Ninth Circuit Holds that Death on the High Seas Act Preempts Alien Tort Statute - But Not Always

By Lafcadio Darling

The Ninth Circuit Court of Appeals recently held that the specific provisions of the federal Death on the High Seas Act (DOHSA) preempted a wrongful death claim under the more general Alien Tort Statute (ATS).  However, the court also held that this preemption was not absolute.

Bowoto v. Chevron arose out of a protest aboard an oil rig nine miles off the Nigerian coast.  When the owner of the rig (a subsidiary of oil giant Chevron) authorized Nigerian Government  Security Forces to move in, the incident turned deadly and numerous protesters were killed or injured.  Several injured protesters and the estate of one of those killed sued in U.S. federal court, claiming that Chevron and related companies were liable under the ATS.  The case was ultimately tried to a jury, who found in favor of Chevron on all claims.

One of the issues on appeal was the trial court's pre-trial ruling that the DOHSA preempted wrongful death claims under the ATS.  The court affirmed this outcome, but in a qualified way.  After summarizing the history of the DOHSA and Supreme Court case law, the Ninth Circuit  held that, in this case, the wrongful death claim was precluded by the more detailed provisions of the DOHSA.  However, the court refused to rule out the possibility of a such a wrongful death claim under the ATS, finding that  "[t]here may .. be situations where a plaintiff can simultaneously pursue claims under both DOHSA and the ATS." 

While the outcome of this case is not surprising--particularly in light of the facts and the jury verdict in favor of Chevron--the Ninth Circuit's ruling that DOHSA does not totally preclude a concurrent death claim under the ATS is more intriguing.  The Bowoto court gave little guidance as to when a plaintiff might be able to bring concurrent DOHSA and ATS claims; rather, the it simply pointed to the Supreme Court's recognition that "DOHSA does not address every issue of wrongful death law" and refused to rule out the possibility.

It will be interesting to see whether future plaintiffs will try to assert concurrent ATS and DOHSA claims and, if they do, how those claims will be handled by the federal courts.  While this author suspects that such concurrent DOHSA/ATS cases will be rare indeed, only time and jurisprudence will provide the answer.

 

 

"SPILL Act" - Proposed Federal Legislation makes Changes to Maritime Statutes

By Jess G. Webster and Lafcadio Darling

Legislation currently working its way through Congress, called the “Securing Protections for the Injured from Limitations on Liability Act” (or “SPILL Act”) proposes significant changes to several old and established maritime stattues.  In brief, the proposed SPILL Act amends the Death on the High Seas Act and the Jones Act to allow for non-pecuniary damages under certain circumstances.  It also expands the scope of the Death on the High Seas Act, extending it to 12 miles offshore, instead of the current 3-mile limit.  The proposed Act also has provisions requiring more transparency regarding discharges of pollutants in U.S. waters, and restrictions upon bankruptcy trustees to sell assets of a debtor that may be liable under the Oil Pollution Act of 1990.

There are two ways to view this proposed legislation.  One perspective is that the changes to the DOHSA and Jones Act simply bring those statutes in line with the law of most states.  As to the Limitation of Liability Act, federal courts rarely grant limitation in practice, so its repeal would have a limited effect on the rights of litigants.

On the other hand, it can be argued that this legislation represents a significant change.  The changes to the DOHSA and Jones Act will undoubtely increase the amount of damages that can be claimed by seaman and others injured or killed at sea.  Also, limitation of liability under federal law, whether or not it is granted, is a powerful tool that often drives consolidation and settlement of claims and its removal may cause more cases to be taken to trial.

Another factor to consider is perception.  It is well known that foreign insurers and maritime businesses are notoriously fearful of American litigation, with its attendant costs and reportedly large verdicts.  Although this fear is probably overblown, these legislative changes may feed these concerns and cause certain insurers or businesses to reconsider doing business in U.S. waters. 

Whether these changes are a good or bad idea depends on who you ask, and is probably an unanswerable policy question. 

In any event, vessel owners and maritime employers would be well advised to monitor this legislation and, if it passes, revisit their liability insurance coverage with their insurance brokers.

A more detailed explanation of the proposed SPILL Act can be found on our firm's website, where  full text of the proposed SPILL Act can also be found.