History/ Development
What grants the judicial branch the power over cases in admiralty and maritime jurisdiction?
US Constitution, Article III
How do you know if a K falls under admiralty and maritime jurisdiction?
based on the subject-matter, "salty flavor"
In re Three Buoys
"purely intrastate shipping maintained on a lake in one state, insufficient to be navigable waters"
what are the 3 loss allocation systems?
general average
maritime insurance
limitation of liability
the prosecution of crimes on navigable waters are conducted as _____ cases, by US attorneys in federal court, not in ______.
criminal; admiralty
-Established the federal court system
-granted exclusive jurisdiction over admiralty
-excluded jury trials
-savings to suitors clause
Executive Jet Formulation
locality (navigable waters) + significant/substantial relationship to traditional maritime activity (maritime nexus)
Exxon Shipping v Baker (pollution)
polluter pays- punitive damages allowed but restricted to 1:1 ratio with compensatory damages
When does general average occur?
and through what "rules" and instrument?
1. a common imminent danger, an inevitable expectation for voluntarily incurring loss of a portion of the whole to save the remainder
2. voluntary jettison
3. successful
parties state in their K that the voyage is guided by the york-Antwerp rules of YEAR XXXX
Where may maritime cases be tried?
and what law is applied and whats the reasoning behind it?
in federal court-diversity jx, federal question, admiralty- or state court (savings to suitor clause)
-federal law is applied, uniformity
List 3 claims that fall under admiralty and maritime jurisidiction?
-mortgage of the ship
-repair of the ship
-loss of goods carries on ship
-wages of crew
-loss of life due to ship defect
contracts related to salvage
Foremost extension
maritime activity is not limited to commerce - "potential disruption to maritime commerse" so can apply to pleasure boats.
quite different from a common law lien, a maritime lien is not simply a security device to be foreclosed if the owner defaults . The vessel itself is viewed as the obliger whether or not the owner is also obligated. Substantive maritime law confers on the holder of a maritime lien a sufficient interest in the vessel to detain it for security and ultimately to subject it to condemnation and sale for satisfaction of the lien
MATH!!
Assume a vessel is worth 30 million, bulk cargo is worth 25 million, and freight is 5 million. In order to not capsize: jettisons 20 million of bulk cargo....
START VALUE OF THE ENTIRE SHIP: 60 MILLION
AFTER VALUE OF THE ENTIRE SHIP: 40 MILLION
SO 40/60.. 2/3 LEFTOVER.. 1/3 LOSS! take 1/3 from vessel and give to cargo, take 1/3 from freight and give to cargo.
1/3 of vessel (30) is 10; 1/3 of freight (5) is 1.66 million
RESULT:
vessel: 20 million
freight: 3.33 million
cargo: 5 million + 10 million + 1.66 million =16.66 million.
EVERYBODY HAS 2/3 OF WHAT THEY STARTED WITH
CASES IN WHICH EXCLUSIVE FEDERAL JX: (list 3)
What did the Act of 1845 do?
extended the jurisdiction of the district courts to cases upon lakes and navigable waters connected
How to determine if its a vessel?
"includes every description of a watercraft used, or capable of being used, as a means of transport over the water." DUTRA
-Not every floating structure is a vessel
-practical use, not theoretical
-not permanently moored
-reasonable observer test: "looking at physical characteristics and activities"
What can maritime insurance cover?
What is usually required on behalf of shipowner?
what else do you know about it?
hull and machinery; cargo; protection and indemnity
utmost good faith
states can give _____, but cannot create _____. going towards the idea of _____-___-____.
remedies;rights;maritime but local
Admiralty and maritime jurisdiction went from the ___ and ___ of the tide to ________ ______.
ALSO: what did the Extension Act do?
ebb, flow, navigable waters. GENESEE CHIEF
"includes cases of injury or damage caused by a vessel in navigable waters, even if injury completed on land"
abritration: the judgemade test of when an award may be vacated and the 3 factors
manifest disregard of the law plainly evident
(1) was the law clear enough to be disregarded? (unambiguous)
(2) law was in fact, improperly applied AND led to the wrong outcome?
(3) subjective knowledge on the law - an avergae person qualified to be an arbitrator
when wrongful arrest happens, D has ....
duty to mitigate
Describe limiation of liability and Congress's intent behind it
-encourage commerce
REMOVAL:if the P commences an admiralty action in state court, can D remove?
No because:
**if Fed Q or diversity jx, then ok can be removed