Document: 337 U.S. 783 69 S.Ct. 1317 93 L.Ed. 1692 COSMOPOLITAN SHIPPING CO., Inc.v.McALLISTER. No. 351. Argued Feb. 1, 2, 1949. Decided June 27, Rehearing Denied Oct. 10, See 70 32. Mr. Leavenworth Colby, Washington, D.C., for petitioner. Jacob Rassner, New York City, respondent. [Argument of Counsel from page 784 intentionally omitted] Justice REED delivered the opinion Court. 1 This case, like Hust v. Moore-McCormack Lines, 328 707, 66 1218, 90 1534, and Caldarola Eckert, 332 155, 67 1569, 91 1968, presents questions concerning liability injury to third persons a general agent who, under terms wartime standard form agency agreement, GAA 4-4-42,1 manages certain phases business ships owned by United States operated War Shipping Administration. More specifically issue raised these facts is whether such liable Merchant Marine Act 1920, § 33, known as Jones Act,2 member crew who suffered physical through negligence master officers vessel, when occurred after March 24, 1943, date enactment Administration (Clarification) Act.3 2 Respondent was procured union hiring hall petitioner in accordance with agreement4 made available employment him. The designated contract an employee States. In July 1945 respondent signed on S. Edward B. Haines at that vessel second assistant engineer. space shipping articles entitled 'Operating Company this Voyage' there written 'Cosmopolitan Co., Inc., States.' were stamped top follows: 'You Are Being Employed By States.'5 3 November, 1945, voyage either port or off coast China, contracted poliomyelitis. At time exercised 'full control, responsibility authority respect navigation management vessel' provided 3A(d) contract. 796, p. 1324, infra. Because alleged furnishing proper treatment he permanent disease. McAllister sued petitioner, Cosmopolitan, Act. complaint Cosmopolitan 'managed, controlled' General Agency Agreement its owner, employ his injuries resulted 'its agents, servants, employees' failing take precautions against poliomyelitis epidemic provide treatment. answer denied allegations. jury found verdict $100,000. 4 On appeal Court Appeals Second Circuit affirmed. 169 F.2d 4. While recognizing 'a company which attend accounting other shoreside * Service Agreement,' Id. 5, court felt itself bound decision supra. It relied upon fact we expressly distinguished case Caldarola. reached conclusion despite prior Clarification Act, here subsequent act. view held, matter law, before seaman could recover tort service agreement agent, employer. did not perceive how changed liability. 4, 8. I. 5 We are impelled affords no basis distinguishing present reasoning later accept sound, calls rejection case. went theory agents same employers injured seaman, Hust, purposes Act.6 be two steps reasoning: first, overruling Board Emergency Fleet Corporation Lustgarten, 280 320, 50 118, 74 451, Brady Roosevelt S.S. 317 575, 63 425, 87 471, gave right sue employed contracts Moore-McCormack's torts committed seamen masters crew, 716—722, 1222, 1225, second, although 'technically States,' 723, 1226, 'rules private agency,' 724, 1227, should applied away 'protections' seamen. 165—166, 1574, 1968.7 step said find support election given proceed new claims arising October 1941, 1943. 725, et seq., 1534.8 6 As first conclusion, think it arises misconception ruling decided more, directly implication, than action maintained common law agents' own torts. involve customs inspector suing sustained ship's ladder broke. said, 577, 426, 427, 'The sole question Suits Admiralty makes operators nonsuable their torts.'9 Cf. pages 159—160, 1571, 1968. 7 unable statutes relating sailors' rights history behind any legislative purpose create employees enforce others recognition existed. welfare legislation created damages maritime le islation, statute liberal construction accomplish beneficent purposes. Compare Aguilar Standard Oil 318 930, 1107; American Stevedores Porello, 330 446, 847, 1011. considering similar fields, have concluded Congress intended enactments restricted common-law concepts control so bar independent contractors economic reality part processes dependent businesses they render service.10 8 carrying out intention grant those requires permits holding employer depends interpretation between one hand other. assume without deciding rule Hearst applies, is, word 'employment' construed give protection them standing proximate relation employer, rules rigorously applied.11 Yet may disregard plain rational meaning furnish cause completely outside broadest lines definitions doubt only person, firm, corporation can Either Government employer.12 seaman's substantive whoever Under remedy him demand trial. If jury. excerpt House Report, 8, 9 remedies granted effective indicated had broader after. Part III. suggestion restrict suits agents. statement springs Court's then understanding heretofore considered. reason quite different. public vessels foreign-flag otherwise means redress theretofore possessed them, mentioned note supra, enjoy merchant vessels.13 Nothing has been presented us indicative congressional do anything extend existing all declared H.R. Rep. 107, 78th Cong., 1st Sess., 21: 10 various death, injury, illness, casualty seamen, rather fully set forth hereinabove. clause section 1(a) would governed privately modification thereof remedial provision shall enforced provisions (46 U.S.C.A. 741 seq.). procedure appropriate will suit trial proceeding reasons letter Attorney (September 14, 1942).' 11 62, pp. 11—12; 1813, 77th 2d 6; Hearings Committee Fisheries, Representatives, 7424, 33. 12 undermined foundations Hust. dissent therein, 161—163, 1572, 1573. held possession make invitee maintenance, 158—159, 1570, 1571. Our based 'the contract' federal concern.' consistent hold enough 'possession control' but responsible maintenance law. true, argues, dealt agent's stevedore, opposed member, York. think, however, vicarious anyone must predicated exists involved proximity necessary finding crew. why rationale does apply equal force principles required. equally compelled even if adopt, suggested, perhaps less technical more substantial tests propounded National Labor Relations Publications, 322 111, 64 851, 88 1170. 13 1946; 23, 1947. Certainly latter date, danger relying apparent world though admitted uncertainty aw properly concern Congress.14 Notwithstanding some undesirable results loss reliance Caldarola, decisions generate, desirability clarifying position Administration, overruled. II. 14 A reexamination clear I opinion. 46 C.F.R.Cum.Supp. 306.44 seq. solution problem determining whose enterprise operation was. Such words contractor decisive. No single phrase determine One look venture whole. Whose orders controlled crew? money paid wages? Who hired initiative judgment chose route ports? light basic considerations read evidence come our attention indicates ever undertook directions ship while voyage. 15 An examination actual conduct parties far shown record, demonstrates retained entire possession, management, exclusion agent. appointed 'as contractor, manage assigned it.' Art. agrees 'manage States, directions, orders, regulations prescribed, prescribe.' 2. engages maintain trade direct,' 'collect moneys due States' 'equip, victual, supply bject methods supervision inspection prescribe,' 3A, 'arrange repairs vessels' 'exercise reasonable diligence making inspections obtaining information state repair condition vessels.' 14. provides that: 16 '(d) Agent procure Master hereunder, subject approval exercise full vessel. engagement men required fill complement usual channels customary practices commercial conditions prevailing particular services time. members Master. All manner funds hereunder.' 17 thus seen duties limited husband engaged care reinforced led establishment operation, purchase, charter, requisition, use ocean flag States.'15 Secrecy, speed, efficiency paramount importance. Direct governmental fleet insured sovereign immunity regulation, taxation, inspection, sovereignties both local foreign. companies utilized because personnel skilled familiar facilities conditions. addition favorably situated connections secure man vessels. result agreements designed whereby administration handled over 18 Two types drafted—the Agreement, presently concerned, Berth Agreement.16 husbanding supply, maintain, ship. berth relate primarily handling loading cargo wharfage pilotage needed foreign ports also takes services. There necessarily overlapping duties, avoid conflict 'such (United States) prescribe.'17 division emphasizes neither nor conferred occasion regard received made, 3A(d), vessel.' 19 Even discretion vested decreased executed numerous supplies vessels.18 detailed instructions issued authorized enter into,19 name principal.20 20 requisition government administrative agencies concerned careful study crews States.21 outstanding many collective bargaining unions. manifestly disturb negotiate ones.22 essential order obviate strikes work stoppages, insure vessels, preserve secrecy confining litigation admiralty courts where security observed. agreements, therefore, customarily operated.23 These men, only. employing officers, Regulations show, exclusively master,24 became agent.25 21 Previously adhered seamen's disrup ed little possible change-over occasioned Administration's over-all arrangement nine principal unions, 'Statements Policy,' WSA Operations Regulation May 25, 1942. Although fell within coverage 29 151 Administrator arranged utilize designation units, reserving Board's absence jurisdiction aboard vessels.26 reporting approved practical problem.27 connection functioning Board. 22 summarized above, complied tenor pay expenses incidental ship, deposited special joint bank account up Administration.' From drew turned used 23 Thus cases analysis relations established lead caused 24 Reversed. 25 BLACK, DOUGLAS, MURPHY RUTLEDGE dissent. 306.44. 41 Stat. 1007, U.S.C. 688, pertinent part: 'Any suffer personal course may, election, jury, modifying extending railway apply; *.' 57 45, U.S.C.Appendix, 1291, U.S.C.A.Appendix, 1291. text, 12, §§ 564, 565, 713, crewman signs presence Commissioner certifies understands contents instrument. Note 33 shows face, advantages Panama R. Co. Johnson, 264 375, 389, 44 391, 394, 68 748; Nolan Seafoods Corp., Cir., 112 515, 517; Norland, 101 967; Baker F.Supp. 207, 208; Eggleston Republic Steel 47 658, 659; Gardiner Agwilines, .d.C., 348. noted concurring added grounds argument owner pro hac vice. 734, 1231, 1534. again rejected 159, 'exclusive command, vessel,' Reed Wall. 591, 600, 220, therefore fails operator owner's power. Leary 607, 611, 756; Shea, 152 178, 186—189, 519, 521, 522, 38 403. '(a) (hereinafter referred 'seamen') shall, (1) laws administered Public Health Social Security amended subsection (b)(2) (3) section; (2) injuries, cure, effects, detention, repatriation, therefrom covered foregoing (1); collection wages bonuses allotments, rights, benefits, exemptions, privileges, liabilities, applicable citizens temporary character considered Employees Compensation amended; Civil Retirement 7, 1942 (Public Law 490, Seventy-seventh Congress); 'An benefits disability, detention reimbursement therefor,' December 784, Congress). Claims hereof Any claim administratively disallowed whole part, pursuant notwithstanding claim, right, accruing enforced, surviving beneficiary, legal representative governed, effect accrued, prescribed Administrator, Rights (3), therefor solely amended. When term 'administratively disallowed' denial *' discussion 745—747, 1237, 1238, Newsboys, 120, 128—131, 859, 860, 1170; unloaders coal cars, Silk, 331 704, 1463, 1468, 1757; meat boners, Rutherford Food Corp. McComb, 722, 1473, 1772. But compare Robinson Baltimore & Ohio 237 84, 94, 35 491, 494, 59 849: 'We 'employee' 'employed' natural sense, describe conventional employee.' Hull Philadelphia Reading 252 475, 40 358, 670. much type Bartels Birmingham, 126, 1547, 1947, 172 A.L.R. 317. leader organizer traveling orchestra band dance proprietors whom performed. For see Moore-McCormack, 744, excerpts Senate Reports, footnotes 10. background statutory distinctions drawn Canadian Aviator, Ltd. 324 215, 218—222, 65 639, 641, 643, 89 901; 450—454, 849, enacted entirely W.S.A. torts, effort so. H.R.4873, 80th sought amending act exclusive protect bill passed 1948, 94 Cong.Rec. 7388—89, Senate. 483 4051 81st now pending. H.R.Rep.No.2060 Judiciary 2: 'Then Supreme handed down clarified, committee, previously announced civil-service manned those, party. committee believes litigants victims confusion regarding cases, brought about lack clarity opinions Legislative relief requisite save possessing meritorious day court, settle future cases.' Executive Order 9054 February 1942, 1295, note, First Powers 18, 55 838, 601 C.F.R. Cum.Supp. 1086. Promulgated 21, Sept. 22, Supp. thereto, Dec. 29, Fed.Reg. 7561; 17512. Article 4—4 42, BA 12—29—43. Examples contained record 625, 1946 Term. example, Operation Nos. 27 (towage contracts); 84 (duties agents); 97 (bunker oil 99, (pilferage). 42 F.R. 4110. April 28, Maritime Commission Department Justice. Statements Policy 1. text 1324. 15, Directive provided: signing reject person seeking employment. Records kept names submitted office Recruitment Manning Organization occurs.' Restatement Agency, 79, comment (a). 26 20, Board, reply 26, H.R.Rep.No.107, 23—24.

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