The U.S. District Court of Southern Illinois has ruled against a shipping company’s attempt to limit its liability in a vessel sinking.
In February, the court dismissed National Maintenance and Repair’s amended complaint seeking to limit its liability to $30,000, which was the alleged value of their ownership interest in the
M/V Hanford Beaver.
National had also filed an $800,000 counterclaim against Vincent Ray Deering, the plaintiff in an underlying case; the company charged Deering for replacement value and salvage costs. Deering originally filed a Jones Act case against National for personal injuries he suffered during the sinking.
The court ruled against National, saying that to allow the counterclaim would “chill the filing of Jones Act claims.”
In making the decision, the court agreed with California Home Brands, Inc. v. Ferreira, which ruled that allowing counterclaims for property damages against employees who file Jones claims actually undermines the Jones Act.
Read the case here.
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