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F & S OFFSHORE v. Serv. MacH. & Shipbuilding

Citation: 430 So. 2d 1167Docket: 82 CA 0572

Court: Louisiana Court of Appeal; April 4, 1983; Louisiana; State Appellate Court

Narrative Opinion Summary

In this case, F. S Offshore, Inc. brought a lawsuit against Service Machine Shipbuilding Corporation, Fireman's Fund Insurance Company, and Alco Power, Inc., alleging breach of contract, breach of warranties, negligence, and faulty workmanship in the construction of two ocean towing vessels. The claims arose from issues with the vessels' engines and structural components, for which the plaintiff sought over a million dollars in damages. The trial court ruled in favor of the defendants, dismissing F. S's claims and those of intervening insurance companies seeking reimbursement. F. S appealed, asserting claims of strict and negligent liability. The court examined whether the vessels, due to alleged construction defects, posed an unreasonable risk of harm under both Louisiana civil code and maritime law. The court found that F. S failed to prove that any defects in the vessels existed at the time of delivery or that such defects caused the alleged damages. Evidence indicated issues like improper maintenance and external factors such as contaminated fuel contributed to the problems experienced by the vessels. The court upheld the trial court’s decision, affirming no negligence or strict liability on the part of the defendants, as the construction met maritime standards and passed all necessary trials. Costs were assigned to the appellants.

Legal Issues Addressed

Admiralty Jurisdiction and Maritime Torts

Application: The court applied maritime tort principles due to the significant relationship of the vessel's design and construction to traditional maritime activity.

Reasoning: The design and manufacture of a vessel for safe use on navigable waters is directly tied to maritime interests, superseding state law.

Burden of Proof in Product Defect Claims

Application: F. S. was unable to demonstrate by a preponderance of evidence that defects in the vessels caused the alleged damages.

Reasoning: In this context, appellants must prove that defects in the vessels caused damages, with a defect defined as unreasonably dangerous or rendering the vessel useless or excessively inconvenient.

Negligent Liability

Application: F. S. alleged negligence in the construction of vessel foundations and engine installations. The court required proof that the manufacturers knew or should have known about the risks.

Reasoning: This requires proving that the manufacturer knew or should have known about the risk, differentiating it from strict liability which does not require proof of the manufacturer’s knowledge.

Redhibition under Louisiana Law

Application: Claims for redhibition were dismissed as the plaintiffs failed to prove defects existed at the time of sale and were not under the defendant's care.

Reasoning: Plaintiffs claim that the trial court's ruling was clearly erroneous and insufficiently considered their arguments for redhibition and strict liability.

Strict Liability under LA.C.C. ART. 2315

Application: The court assessed the applicability of strict liability for defects causing unreasonable risk, requiring evidence of a defect at the time of delivery.

Reasoning: The Louisiana Supreme Court established that manufacturers are liable for injuries caused by defects in their products that present an unreasonable risk of harm, regardless of negligence.

Use of Resin Chocks in Maritime Construction

Application: The court found the use of Chockfast resin chocks in vessel construction appropriate, dismissing negligence claims related to their use and installation.

Reasoning: The use of Chockfast on the Captain John was endorsed by Service Machine, Alco, and A.B.S., and had never been reported to fail in marine applications.