Document: 350 U.S. 124 76 S.Ct. 232 100 L.Ed. 133 RYAN STEVEDORING CO., Inc., Petitioner,v.PAN-ATLANTIC STEAMSHIP CORPORATION. No. 4. Reargued Oct. 11, 12, 1955. Decided Jan. 9, 1956. Mr. Sidney A. Schwartz, New York City, for petitioner. Edward J. Behrens, respondent. Leavenworth Colby, Washington, D.C., as amicus curiae by Special Leave of Court. Justice BURTON delivered the opinion 1 This case presents two questions to liability a stevedoring contractor reimburse shipowner damages paid latter one contractor's longshoremen on account injuries received him in course his employment shipboard. 1. The first question is whether Longshoremen's and Harbor Workers' Compensation Act1 precludes from asserting such liability. 2. second exists where contractor, without entering into an express agreement indemnity, contracts perform shipowner's operations longshoreman's are caused unsafe stowage ship's cargo. For reasons hereafter stated, we answer negative affirmative. 2 In 1949, respondent, Pan-Atlantic Steamship Corporation, Delaware corporation, operated SS. Canton Victory American coastwise trade under bareboat charter. As evidenced letters, but formal contract or indemnity agreement, respondent secured, that year, petitioner, Ryan Stevedoring Co., inc., Alabama all required its service. Pursuant contract, petitioner loaded at Georgetown, South Carolina, with mixed included pulpboard, used making corrugated paper bags, shipped rolls 4 feet wide 3 5 long. Petitioner stowed some these side-by-side floor Hatch 'nested' others above them placing upper troughs between lower ones. To immobilize rolls, it was necessary secure 'chock' bottom tier wedges miscellaneous pieces wood known 'dunnage.' There little evidence what took place when were Georgetown uniform practice petitioner's stow cargo immediate direction their hatch foreman, while respondent's officers supervised loading entire ship had authority reject stowage. A few days later, July 20, navigable water pier Brooklyn, York, engaged unloading rolls. While Brooklyn longshoremen, Frank Palazzolo, working 3, roll, weighing about 3,200 pounds, broke loose others, struck violently severely injured left leg. no he negligent. On other hand, appears been insufficiently secured Georgetown. established absence proper dunnage holding time accident. Petitioner's insurance carrier Act Palazzolo $2,940 compensation furnished medical services costing $9,857.36, any award Deputy Commissioner. permitted § 33 Act, sued respondent-shipowner Supreme Court York.2 He claimed cargo, which injuries, either unseaworthiness ship, negligence failing furnish safe work, both. removed United States District Eastern filed third-party complaint against By stipulation, Palazzolo's tried jury, returned verdict favor $75,000. entered judgment jury verdict. From sum, be reimbursed $12,797.36 advanced because injuries. Also submitted same record judge who presided over case. dismissed complaint. 111 F.Supp. 505. Appeals affirmed reversed dismissal directed shipowner. 211 F.2d 277. Petitioner, contends order reversing impleader suit erroneous. Because application conflicting views have expressed issues, granted certiorari. 349 813, 75 41. brief support part oral argument. 348 948, 435. equally divided Court, 901, 575, restored docket reargument before full 926, 769. 6 assertion it, also employer longshoreman. 7 Neither court below discussed this question, although presented them. argument based upon following provision Act: 8 'Sec. 5. prescribed section (for compensation) shall exclusive employee, legal representative, husband wife, parents, dependents, next kin, anyone otherwise entitled recover law admiralty injury death, except if fails payment representative death results injury, may elect claim maintain action death. * *.' (Emphasis supplied.) 44 Stat. 1426, U.S.C. 905, U.S.C.A. 905. 9 obvious purpose make statutory contribute employee's claiming through arising out employment. return, those him, given substantial quid pro quo form assured compensation, regardless fault, substitute excluded claims. prescribes compelled pay obtained amount damages.3 10 Section expressly excludes 'to employee,' 'on (employee's) death.' Therefore, instant case, longshoreman, At time, however, preserves each employee right third persons.4 It thus right, has exercised, present nowhere limits person, insure itself bond own save harmless. amounts for, will shown, contractual undertaking 'with reasonable safety' harmless failure do so. 11 face statute clearly does not cut off bonding company reimbursement indemnitor, good consideration, contracted pay. Such springs independent right. behalf of' 'injury simple recover, voluntary self-sufficient sum measured foreseeable occasioned longshoreman ship. 12 like result occurs sues, breach warranty, supplier defective gear using And accrues instance latter's improper causes shipboard than employees. coincidence here happens makes difference principle. protects actions brought tortious conduct causing logical ground relief consequences obligation, voluntarily assumed shipowner, load properly. See Stevedores v. Porello, 330 446, 67 847, 91 1011; Crawford Pope & Talbot, Cir., 206 784, 792—793; Brown American-Hawaiian S.S. 16; Rich States, 177 688; Arrow 175 329.5 13 founded tort duty owes employee. grounded purely consensual obligation owing reasonably manner. Accordingly, basis barred Act.6 14 found precise action. hypothesis, purchase way insurance, require undertakes If did hold here, disputed would enforceable indemnitor. merely responsible related degree Palazzolo. action, reliance undertakings, bald respective responsibilities stowage, should bear ultimate burden judgment. That widely elsewhere terms relative responsibility parties tort, discussions dealt concepts primary secondary active passive conduct.7 relies entirely meet noncontractual relation 15 contribution joint tortfeasor. Consequently, considerations led decision Halcyon Lines Haenn Ship Ceiling Refitting Corp., 342 282, 72 277, 96 318, applicable. Mutual Liability Ins. Co. Matthews, 182 322. 16 holds uncontroverted loaded. necessarily includes only pulp properly safely. Competency safety inescapable elements service undertaken. quasi-contractual implied relationship. essence contract. warranty workmanlike comparable manufacturer's soundness manufactured product. changed simply recovery turn standard performance service.8 17 stated board 'in manner.' page 279. produced hazardous condition 18 suggests that, supervise so, now damage uncorrected Accepting facts obligations thereby defeated. Whatever clear themselves, warrantor services, cannot use discover correct defense. Respondent's excuse breach.9 19 Appeals, accordingly, affirmed. 20 Affirmed. 21 BLACK, whom THE CHIEF JUSTICE, DOUGLAS, CLARK concur, dissenting. 22 Company, subject Act.1 completely abolished rights sue employers resulting substituted old remedies schedule employees' declared 'exclusive I think Court's today breaks promises made both My view requires more detailed statement circumstances opinion. 23 Ryan, stevedore, owned Corporation. authorized elected rather accept award. charged solely due negligent manner number heavy stowed, vessel. One pounds broken position seriously answered denying allegations unseaworthiness. alleging attributable stevedore's employees pulp. asked compel stevedore might obtain jury; largely issues jury. summary these: 24 four five later different unloaded York. pursuant general agreed along Atlantic Gulf coasts. set written memorandums prepared stevedore. These contained plus, circumstances, cost insurance. nothing further could possibly inferred indemnify losses Ryan's prevent crew customary put kind props supports keep stationary until they unloaded. Some witnesses testified thick, heavy, strong piece lumber special wedge shape, called 'chock,' satisfactory Failure 'chocks' may, officers, permit run 'rampant.' Other addition chocking, wooden floors placed layers All agreed, indiscriminate scraps 'dunnage' wholly inadequate supports. witness swore roll it. lone exception officer saw No available testimony never chocks flooring looked none An being loaded; watch see chocked; watch; 'gear'; chocks, dunnage, rolls; attempt stop stevedore; 'the stevedores chief mate generally cooperate work together overall cargo.' Thus uncontradicted sufficient finding actively joined stowing arrived unprotected chocks. 25 charge. told find unseaworthy goods issue revolved around Carolina officers. questions, among equipment dangerous guilty Carolina. gave trial deciding 'did admitted careful vessel', 'authority remedy halt work.' 505, 507. concluded findings2 'joint-tortfeasors' therefore declined 26 held there adequate jury's defectively nevertheless loss despite findings occurred negligence.3 justified imposing $75,000 'sole,' 'primary,' 'active' But court's suggestion 'sole' Use words 'primary' seems indicate believed look cold type negligence. agree findings. Appeals' cryptic statements can considered upsetting court, aside McAllister 19, 6. 27 detail shows almost beyond doubt line duties. least $60,000 Act. revolutionary field. away fixed fault. Many workers opposed scheme. deplored chance get big verdicts. Congress thought best give certain less expensive recovery, even though far recoveries be. preferred take defeating suits system. idea 'liability fault' abhorrent weighed interests fair constitutional balance.4 Injured lost large verdicts employers, gained sure frequently modest recovery. However, leave extra persons negligently imposed absolute accorded counterbalancing advantages. They longer subjected hazards Under liable every reason believe buy business arrangements limited More provides himself indemnified money collected person. end actually mulcted successfully prosecuted employer's forbids. Whether 'common-law indemnity,' ccontribution,' 'subrogation,' name, precisely same. said 28 agree, course, written, agreeing whole part, valid obtained. forbid agreements others. slightest made. allegation counsel stipulate during common-law indemnity.5 recognize sometimes arise people commit wrong hurts wrongdoers courts impose total wrongdoer, apparently meaning wrongdoer deems most so plainly forbids 'anyone' account' longshoremen. Plainly, fasten company. suppose purports actual decides neither nor court. 29 genuine distinguished law, 'quasi-contract,' mutual parties. cardinal rule interpretation intention ascertained enforced.6 ordinarily stretch language person another someone.7 caution construing companies writing 30 shred inference up deliberately designed afford. finds conclusion job. implies takes step—which difficult be—and says immunity judgments rendered scope intended assume doubt. Are unlimited regard comparative qualitative proportions shipowner? intentionally cause injury? Findings fact standards easy. efforts formulate themselves groped considerably trying 'active.' Is understanding nuances cactive' attributed judicial rewriting contracts? Surely determines existence coverage sent back determined after hearing facts. Appeals. tried. 1011, remanded written. Here indemnify. Before creating appropriate follow Porello. Or rejecting phase Porello? Cf. 284, 279, 318. 31 Finally, deprives liability, barren promise. ways person: (1) waive directly damages. (2) accepts assignee claim, recovers excess must able election bring financially interested outcome sustain party incentive future. Hereafter know decidedly advantage brought. prosecutes obtains benefit, dime himself. Human nature habits are, eager finance themselves. wealthy enough pending lengthy lawsuits. Yet overly anxious suggested expect protect circumstances. words, accepted go goes him. complete control everything recovered. effect this: wins lawsuit, loses lawsuit. knowledge yearning anxiety file suit. Even yields call files exceedingly write His pleadings zealous lawyer desire. Although judgment, opening last word closing argument, knows persuades client Counsel lose winner. state affairs very abolished. 32 considerable disagreement three our recent holdings, Seas Shipping Sieracki, 328 85, 66 872, 90 1099; Talbot Hawn, 346 406, 74 202, 98 143. cases worker Judgments shipowners. We doctrine 'contribution' force Sieracki reaffirmed Talbot. refused shift person's employer, contributed injury. rejected contention 'would frustrate (Act's) Act.' 412, 206. change remedial formulas reached former undermined. Employees practically impossible wants method. allege case; automatically proved establishing ship; deprived protection provide. accomplished name 'contract,' really achieved announced principle intends indemnify, agrees indirection recognized Halcyon, taken away. rejected. reverse 1424 et seq., amended, 901 seq. 33. (a) disability payable damages, elect, giving notice deputy commissioner Secretary (of Labor) provide, receive '(b) Acceptance operate assignment '(i) Where insured subrogated section.' 1440, 933(a, b) (i), b, i). procedure 1435—1436, 919, 919. accepting payments award, tortfeasor 454—456, 851—852, 1011. permit, unseaworthiness, negligence, assuming requirements, including discharge requirements. Restatement, Contracts, §§ 334, 330; Bethlehem Shipbuilding Corp. Joseph Gutradt 769; Mowbray Merryweather, (1895) Q.B. 640 (C.A.). 33(a) note, 2, supra. legislative history calling contrary interpretation. Our supported Workmen's Law modeled. the—'liability preceding whatsoever, personal representatives, husband, dependents common .' McKinney's Consol. N.Y.Laws, c. 67, Law, 11. Westchester Lighting County Small Estates 278 N.Y. 175, N.E.2d 567. clauses Acts. Larson, 76.00—76.44(a). reach exclusionary contractor. 16, 18; Rothschild International 205 253; Slattery Marra Bros., 186 134 (N.J. statute); 183 181; 322; Telegraph Kittleson, 179 946; McFall Compagnie Maritime Belge, 304 314, 107 463. generally, Weinstock, Employer's Duty Indemnify Shipowners Damages Recovered Workers, 103 U. Pa.L.Rev. 321 (1954). whether, obligated supra; Union Stock Yards Omaha Chicago, B. Q.R. 196 217, 226, 49 453; supra, pages 323—325; Dunn Uvalde Asphalt Paving 214, N.E. 439. Berti De Navigation Cyprien Fabre, 213 397; Hastorf Contracting Ocean Transportation D.C. 583, 584; Boston Woven Hose Rubber Kendall, 178 Mass. 232, 59 657, 51 L.R.A. 781. 1424, exercise care discovered corrected' conditions. Had material considering indemnity. depended undisputed was. Moreover, failed provide lumber, not. therefore, thing. supply needed permissible Crowell Benson, 285 22, 37—42, 52 285, 287—289, 598; Central R. White, 243 188, 201—202, 37 247, 252, 61 667. Ives Buffalo Cr., 201 271, 94 431, 34 L.R.A.,N.S., 162. 'Mr. Behrens (counsel shipowner): alleged provision. how your Honor. 'Your Honor, motion annexed exchange correspondence Pan-Atlantic, 'Now, documents Honor infer proof Schwartz Ryan): us whatever arrangement contain Behrens' matter law. Behrens: correct. Schwartz: stipulate, 'The Court: Very well.' See, e.g., Mauran Bullus, Pet. 528, 534, 1056; Canal Hill, Wall. 94, 99—100, 64. Note, A.L.R. 8, 29—32.

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