Innocent Vessel Denied Reimbursement for Fraudulent M&C Claim of Seaman
In re: In the Matter of the Complaint of 4-K MARINE, L.L.C., 2019 U.S. App. LEXIS 3095, 2019 WL 362452, No. 18-30348 (5th Cir. Jan. 30, 2019)
By: Arthur Crais
The employer of a seaman which also owned an innocent vessel damaged in the Mississippi River was denied reimbursement for its maintenance and cure payments fraudulently claimed by the seaman employee. The seaman claimed he injured his back in the incident. But, the trial court held that he withheld material information about previous back injuries and that the back was not injured the accident. Having been successful in its McCorpen[1]defense, the employer sought reimbursement from the negligent vessel. The trial court denied reimbursement not only in tort but also in contract.
The panel of the Fifth Circuit, consisting of Judges Southwick, Wiener and Costa affirmed. Citing prior precedent which held that the employer of a seaman may recover maintenance and cure from a negligent party which causes the seaman’s injury,[2] the court determined that as the back injury was not caused by the allision, the third party was not legally liable to reimburse the non-negligent employer. The court reasoned that the employer has does not have to pay maintenance and cure immediately and is entitled to investigate the claim and corroborate it.[3]
The Court of Appeals also affirmed the trial court’s determination that the non-negligent employer was not entitled to reimbursement based on contract. No party contested the existence of a contract which obligated the third party to reimburse the employer for maintenance and cure. It was not clear if the contract covered the situation in which the claim for maintenance and cure was not caused by the incident. Though the trial court made no findings regarding the agreement’s details and an e-mail, the panel could not see where the negligent vessel owner conceded it would reimburse for a non-related injury.
[1] McCorpen v. Cent. Gulf S.S. Corp., 396 F.2d 547 (5th Cir. 1968)
[2] Bertram v. Freeport McMoran, Inc., 35 F.3d 1008 (5th Cir. 1994)
[3] Morales v. Garijak, Inc., 829 F.2d 1355 (5th Cir. 1987)
