Court Opinion

ID: 9483416
Source: CourtListenerOpinion
Date Created: 2023-08-05 09:20:01.801893+00
Date Added: 2024-06-11T17:49:37.287260
License: Public Domain

CRABB, Chief District Judge,
dissenting.
I agree that the district court should take no action in this case, but I am not convinced it decided correctly that it lacked the jurisdiction to act or that the complaint should have been dismissed when it was. 46 U.S.C.App. § 183(a) gives William the right to limit his liability to the value of his interest in the boat (assuming as I do for the purpose of this opinion that the statute applies to pleasure boats; good reasons exist for not applying it to pleasure boats, which are far more like automobiles in terms of the potential tort liability of their owners and which present none of the commercial justifications for limitation of liability that led to the enactment of the statute. See Complaint of Sisson, 867 F.2d 341, 347 (7th Cir.1989)). The district court had subject matter jurisdiction to entertain William’s complaint. Langnes v. Green, 282 U.S. 531, 539, 51 S.Ct. 243, 246, 75 L.Ed. 520 (1931) (district court not deprived of jurisdiction over § 183(a) complaint by facts that record disclosed privity and knowledge of shipowner and only one claim filed) (citing White v. Island Transp. Co., 233 U.S. 346, 351, 34 S.Ct. 589, 591, 58 L.Ed. 993 (1914)). On the other hand, Mary Ann had a right to bring her action in state court to seek the common law remedy to which she is entitled. Id. If there is only one claim against William arising out of the April 7, 1989 incident (which appears to be the case), the state court is as capable as the federal court to entertain both Mary Ann’s common law claim and William’s claim for limitation of liability. Id. at 540, 51 S.Ct. at 246. Thus, assuming that Mary Ann’s claim was the only one, it was appropriate for the district judge to exercise his discretion not to proceed with the case and let the state court deal with it. I part company with him and with the majority only to the limited extent that he dismissed the complaint at that time rather than abstaining. As a legal matter, the court did have subject matter jurisdiction, and as a practical matter, there remains the unlikely but possible outcome that the state court might not recognize William’s right to limit his liability in circumstances in which the right should exist.
Of course, other reasons may exist for dismissing William's complaint. His allegations fell short of what is required to show entitlement to limitation of liability, and he had service problems. However, those deficiencies would have to await the proper motions to dismiss; they could not be acted upon by the court sua sponte.