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Maritime Law--Jury Hits Royal Caribbean Cruises With $20.3M Verdict for Officer's Hand Injury

In Spearman v. Royal Caribbean Cruises , Case No. 2011-023730-CA-01, a Miami-Dade County, Florida jury has awarded $20.3 million to a former crewmember of Royal Caribbean Cruises, whose hand was crushed while coming to the aid of a fellow worker during an emergency test in 2008. After a three-week trial, the jury found the Miami-based cruise company negligent in operating an unseaworthy ship and 100 percent liable for the injuries suffered by Lisa Spearman, who was working an officer on Royal Caribbean’s Voyager of the Seas . Spearman sued the company in 2011, three years after her right hand was caught in a watertight power door during a fire-safety drill. According to her lawyers, Spearman was trying to prevent the door from closing on the ship’s nurse when her hand was pulled into a recess pocket of the sliding door and crushed.  The nurse allegedly breached the company’s safety protocol when she stumbled through the door, prompting the response from Spearma...

Maritime Law--Lozman's "Floating Home" Saga Ends at SCOTUS

The U.S. Supreme Court has rejected Fane Lozman's latest appeal in his landmark case involving the seizure and destruction of his floating home. The justices denied without comment Mr. Lozman's petition asking them to enforce their 2013 ruling by ordering the city of Riviera Beach to pay him about $365,000 for the home's value and legal fees. Lower courts also ruled against Mr. Lozman, and this was his last appeal. Fane Lozman and his dog with floating home in foreground Picture from the Associated Press The ruling obtained by Mr. Lozman in 2013 set a new standard for floating homes and other structures. As posted previously in this blog, the ruling meant that federal maritime law that calls for seizure under Supplemental Rule C could no longer be applied to disputes involving floating structures that have no traditional characteristics of a vessel, such as an engine, rudder or sails. As reported by such news sources as the AP, the Daily Business Review and o...

Maritime Law--Florida Supreme Court Finds Concurrent Cause Must be Covered if Covered by Policy

In Sebo v. American Home Assurance Co ., Case No. SC140897 (Fla. Dec. 1, 2016), the Florida Supreme Court ruled that insurance companies should not deny coverage for property damage just because it had more than one concurrent cause, as long as the policy covers one of the causes. The opinion reverses a Second District Court of Appeal decision that instructed courts to determine the primary cause of damage and rule that an insurance claim could be denied if that primary cause was not covered by the policy. The Second DCA decision conflicted with a Miami appellate court ruling that had been the law since 1988. The 1988 decision in Wallach v. Rosenberg issued by the Third District Court of Appeal relies on the competing "concurrent cause" doctrine, which says coverage may exist if an insured risk is one of the causes of the damage, even if it is not the primary cause. The Florida Supreme Court opinion affirmed the Third DCA's logic. Sebo's homeowners ...

Maritime Law--U.S. Crewmember Required to Arbitrate Claims Applying Norwegian Law

In Alberts v. Royal Caribbean Cruises, Ltd ., No. 15-14775 (11th Cir. Aug. 23, 2016), the U.S. Court of Appeals for the Eleventh Circuit held that a U.S. citizen, working aboard a Royal Caribbean cruise ship is required to arbitrate his claims against Royal Caribbean. Plaintiff, a United States citizen, worked as the lead trumpeter on a passenger Royal Caribbean cruise ship. The ship is a Bahamian flagged vessel with a home port in Fort Lauderdale, Florida. Royal Caribbean, the operator of the vessel, is a Liberian corporation with its principal place of business in Florida. After plaintiff became ill while working for Royal Caribbean, he filed suit alleging unseaworthiness, negligence, negligence under the Jones Act, maintenance and cure, and seaman’s wages and penalties. Royal Caribbean moved to compel arbitration, and the district court granted the motion. This appeal presented an issue of first impression: Whether a seaman’s work in international wate...

Maritime Law--Lozman Case Revisited in Miami?

In Hoefling v. City of Miami , Case no.: 14-12482 (11th Cir. Jan. 25, 2016), the U.S. Court of Appeals for the Eleventh Circuit revived almost all of Hoefling's claims. You ask, "Who is Hoefling?" Hoefling  lived on his sailboat Metis O moored off Dinner Key for nearly a decade—until the day he came home and it was gone. About three months earlier, an officer from the Miami Police Department's Marine Patrol Detail tagged Hoefling's vessel for lacking a sanitary device and a working anchor light. He had a deal to use the facilities at the nearby marina but quickly went out and reportedly bought what he needed to comply. Three months later while he was on a business trip, the City of Miami seized and destroyed his boat and all his belongings. As a result, he was homeless. He sued under § 1983, maritime law, and state law. He stated a claim under the Fourth Amendment for seizure and destruction without notice or cause and a “taking.”    At the ...

Maritime Law--Lawsuits Filed Over RCCL's "Storm Cruise"

Royal Caribbean Cruises Ltd ("RCCL") faces lawsuits by passengers accusing the company of negligently endangering their lives by letting Anthem of the Seas sail into a February 7, 2016 storm.  One class action lawsuit filed in federal court in Miami specifically states that RCCL should be required to pay punitive damages to passengers on its ship for "knowingly sailing directly into" a strong winter storm with 120-mph winds. It is also alleged that people aboard the ship were "subjected to hours of sheer terror as the gigantic cruise ship was battered by hurricane-force winds and more than 30-foot waves." The vessel reportedly encountered 100 mph winds and 30-foot waves, and RCCL said the storm was more severe than expected. RCCL later turned the ship around, and it returned to New Jersey on February 10. Anthem of the Seas ’ port azipod reportedly burnt through “all four clutches” during the storm. RCCL reported four minor injuries amon...

Maritime Law--Concordia Pax Ordered to Bring Suits in Italy

On January 27, 2016,  a 3-judge panel of the Third District Court of Appeal for the State of Florida has ruled unanimously that lawsuits filed by passengers on  Costa Concordia, the infamous cruise ship that ran aground and sank in Italy in January 2012, should be heard in that country.  The appellate court found that 57 plaintiffs, including five U.S. residents, should not be allowed to pursue their lawsuit against Miami-based Costa parent Carnival Corp. in Miami-Dade Circuit Court, which dismissed the case on forum non conveniens grounds.   Costa Concordia sank off the Italian island Giglio in January 2012 after its captain allegedly changed course to do a sail-by salute and hit a coral reef. More than 3,000 passengers and 1,000 crew members were evacuated--32 people died.    The court reasoned that the evidence is located in Italy. The court also noted that the wreckage, voyage data recorder, bridge voice recorder...

Maritime Law--Tour Boat Captain Implicated in Tragedy Off Nicaragua

As reported in the Daily Business Review on January 25, 2016, Nicaragua's police, army and navy will investigate the captain of a tourist boat and his assistant for the deaths of 13 Costa Rican passengers killed on January 23rd when the vessel capsized in bad weather. The Reina del Caribe , Spanish for "Caribbean Queen," was carrying 33 people when it went down Saturday amid rain and strong winds as it ferried between the Corn Islands, a popular tourist destination, off Nicaragua's Caribbean coast. The Daily Business Review article can be accessed here=> Daily Business Review article. The government clarified on the 24th that the boat was carrying 25 Costa Ricans, two Americans, two British citizens, a Brazilian and three Nicaraguans. Previous reports had said there were 32 people on board, including four Americans. All the dead were Costa Ricans. Nicaragua's naval commander for the southern Caribbean region said the boat's captain was detained because ...

Maritime Law--South Florida Lawsuit Filed in El Faro Sinking

 The first South Florida lawsuit against the owner of EL FARO , the cargo ship that sunk in Hurricane Joaquin last month, was filed on October 28, 2015 in Broward County Circuit Court. This latest lawsuit claims EL FARO's engine failure and loss of power on October 1st followed many years of lax maintenance. The lawsuit also claims EL FARO was not seaworthy in that the ship was undergoing "significant maintenance" just before it left port September 29th and had a history of losing power. The lawsuit was brought by the widow of Anthony Thomas who seeks damages for herself and for the couple's five children, ages 8 to 29. The lawsuit states the Fort Lauderdale court has jurisdiction because Tote Maritime's registered agent is in Plantation.     This lawsuit is the fourth complaint brought against ship owner Tote Maritime since the deaths of EL FARO's 33 crew members. This latest lawsuit comes just as the Jacksonville-based company see...

Maritime Law--Novel Rule B Attachment Rejected by Eleventh Circuit

In World Wide Supply OU v. Quail Cruises Ship Management , Case No. 14-14838 (11th Cir. Sept. 30, 2015), the Eleventh Circuit Court of Appeals affirmed the district court’s order vacating an attachment of legal settlement funds.  At issue in this appeal was an attachment of property made pursuant to Supplemental Admiralty Rule B. This appeal had a complicated background, involving multiple lawsuits in federal district courts, Florida state court, and a Spanish bankruptcy court. The common denominator of these suits was Quail Cruises Ship Management, from which multiple parties, including participants in the appeal, tried to collect money that they believed Quail owed them. This is not surprising, as there have been numerous cases against Quail due to a failed cruise venture they operated. The money at issue arose from the legal settlement of a dispute over the purchase of a cruise ship featured on ABC Television Network’s long-running series, The Love Boat. The ...

Maritime Law--Further Easing of U.S. Cuba Sanctions Regulations

On September 18, 2015, the Department of the Treasury and the Department of Commerce announced additional revisions to the Cuban Assets Control Regulations (CACR) and Export Administration Regulations (EAR).  The changes take effect on Monday, September 21, 2015, as published in the Federal Register.  These measures are intended generally to do the following:    to further facilitate travel to Cuba for authorized purposes; expand the telecommunications and internet-based services general licenses, including by authorizing certain persons subject to U.S. jurisdiction (which includes individuals and entities) to establish a business presence in Cuba, such as through subsidiaries or joint ventures; allow certain persons to establish a physical presence, such as an office or other facility in Cuba to facilitate authorized transactions; allow certain persons to open and maintain bank accounts in Cuba to use for authorized purposes; ...

Maritime Law--3d DCA Allows Class Action by Doctors Against Celebrity Cruises

In Celebrity Cruises, Inc. v. Rankin, et al , No. 3D14-3137 (Fla. 3d DCA Sept. 16, 2015), Celebrity failed to stave off a class certification case filed by a group of cruise ship doctors suing the company for breach of contract. The Third District Court of Appeal affirmed the trial court decision certifying a class of about 41 doctors who claim they are owed commissions from medication sales.     The Miami-based cruise line owned by Royal Caribbean Cruises Ltd. argued each doctor's understanding of the contract would overwhelm issues common to the class. The court disagreed, finding that common issues dominated individual issues because the class members were all "beneficiaries of [an] identical written contractual provision." The order included an excerpt from Celebrity management's internal emails that stated, "According to the signed contracts, physicians' commission should be on total medical revenue (procedure and medication sales) as o...

Maritime Law--Uberrimae Fidei Defense Now Requires Showing of Reliance in 8th Circuit

In St. Paul Fire & Marine Ins. v. Abhe & Svoboda, Inc ., No. 14-2234 (8th Cir. Aug. 20, 2015), the Eighth Circuit Court of Appeals held that reliance is an element of the defense of uberrimae fidei . Prior to Abhe , only the Second Circuit had so held.  This case is extremely important to insurers and should be required reading for marine insurers and their coverage counsel.       Abhe, an industrial painting contractor, used stationary leased barges as platforms while painting Pell Bridge over Narragansett Bay. Abhe changed insurance carriers three months into the project. St. Paul Fire did not request that Abhe complete an application, but accepted the application provided to its previous insurer in 2010. The attached schedule of vessels was outdated and did not include vessels leased for the Pell Bridge project. Abhe sent St. Paul an updated schedule in 2011, listing those vessels, but did not provide a 2010 survey that showed that...

Maritime Law--Pretrial Stipulation is Trial Blueprint in Florida State Court

In Palm Beach Polo Holdings v. Broward Marine , 40 Fla. Law Weekly D1932 (Fla. 4th DCA Aug. 19, 2015), t he issue of whether the underlying claim was barred by the statute of limitations was memorialized in the pretrial stipulation entered between the parties. By definition and policy, this should have been considered a matter officially at issue in dispute during the trial. However, the trial court concluded that because the relevant statute was not framed in the preliminary instructions to the jury and because the appellants did not argue it in their opening statement, the defense was not properly raised and was waived. The Florida's Fourth District Court of Appeals disagreed. It took the opportunity to remind judges and litigators that the document upon which all parties can always rely on is the Pretrial Stipulation. The appellate court observed that any previous disputes or contentious pretrial issues become mostly irrelevant once the parties prepare and ...

Maritime Law--Yacht Broker Plans First US-Cuba Voyage Charter Under New Rules

It is reported that a Palm Beach County yacht broker received a license issued by the U.S. Office of Foreign Assets Control ("OFAC") to operate a 78-foot yacht between the United States and Cuba. Paul Madden, a longtime luxury yacht broker with Paul Madden Associates LLC, reportedly received the license on July 1 and the vessel is already scheduled to carry and documentary filmmaker and a Wall Street Journal reporter, along with other passengers.       As previously reported in my blog, several other vessel operators have received OFAC licenses to operate to Cuba, including Carnival Cruise Lines. Cruise and ferry companies have applied for government licenses to sail to Cuba since the Obama administration restored diplomatic ties with Cuba and loosened rules for U.S. travel to the island. Carnival is the first cruise line to obtain a license, which plans to start service in May.   But the 78-foot yacht will reportedly be the fir...

Maritime Law--Key Biscayne Sues Again Over Miami's Plan for Marine Stadium

It is reported that less than two weeks after agreeing to try to hammer out a deal, Key Biscayne has filed a third lawsuit over Miami's plan to redevelop Virginia Key. The June 25th petition filed in Miami-Dade Circuit Court is looking to push back the construction that the City of Miami is pursuing around the decaying Miami Marine Stadium. In one corner, Miami plans to spend $16 million to turn the entrance and several vacant parcels next to the waterfront stadium into a "flex park" capable of hosting large events. Because some of the construction is on historically designated stadium grounds, the City obtained a special dispensation from the historic preservation board and the City Commission in May. In the other corner, the Village of Key Biscayne maintains that the special dispensation was improvidently granted. The Village claims Miami officials prevented the board from hearing evidence about future uses in violation of Miami's own code. Key Bi...

Maritime Law--Carnival Announces Cruises from Miami to Cuba

The world's largest cruise ship operator could be heading to Cuba by May 2016. Various sources report that Carnival Corp. has received U.S. government licenses to offer "purposeful" cruises from the U.S. to Cuba for people-to-people, humanitarian and other exchanges. Carnival says it would become the first American cruise company to visit Cuba since the 1960 trade embargo. The trips will be through its new "fathom" brand, which focuses on trips where passengers sail to a destination in order to volunteer there.   The weeklong cruises are reported to be aboard ADONIA, a small cruise ship which carries 710 passengers. ADONIA is relatively small for the industry, as ships sailing under the company's namesake line can carry nearly 3,000 passengers. ADONIA is a deluxe ship that offers no casino or Broadway-type shows but rather features Spanish classes and workshops on the island's art and heritage.The itinerary is still being finalized, as C...

Maritime Law--Defeating Liability Waivers Resulting in $12M Settlement

In the case of Adkins v. Big Dipper Charters, et al., Case No. 14-cv-10030-KlNG, the plaintiffs alleged the Florida Keys Dive Center caused the Adkins family economic and non-economic damages, including pain, suffering and past and future lost income. The Florida Keys Dive Center and its boat operator Big Dipper Charters Inc., along with the boat captain, owners and dive master, were named in the suit. The lawsuit alleged the dive master told the father and son team to "dive, dive, dive," then failed to communicate to the boat captain that there were divers in the water. The captain put the boat in reverse, and the propellers struck a boy and his father, causing severe traumatic injuries.       As expected, the defense argued their clients were protected by liability waivers signed by the father for both himself and his son that are common in dive boat operator forms. The plaintiffs argued the liability release forms signed were void because they violate...