Sullivan v. Tropical Tuna, Inc.

Citations: 963 F. Supp. 42; 1997 A.M.C. 2017; 1997 U.S. Dist. LEXIS 2634; 1997 WL 106961Docket: Civil Action No. 95-12767-WGY

Court: District Court, D. Massachusetts; January 20, 1997; Federal District Court

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Kenneth Sullivan initiated a maritime lawsuit against Tropical Tuna, Inc. for injuries sustained while working on its vessel, leading to claims under the Jones Act, negligence, and unseaworthiness, with maintenance and cure claims being adjudicated separately by the Court. A jury ruled in favor of Tropical Tuna on the broader claims, but the Court determined that Tropical Tuna owed Sullivan $9,000 for maintenance and cure, along with $3,000 in attorneys' fees for a willful failure to timely pay for cure. Tropical Tuna subsequently filed a motion under Fed. R.Civ. P. 59 to vacate the judgment and seek a ruling in its favor regarding the damages and attorneys' fees.

Factual findings revealed that Sullivan injured his finger on October 23, 1995, and received an initial payment of $1,000 from Tropical Tuna when the vessel docked on October 30, which the Court deemed inadequate but not willfully deficient. Sullivan underwent a series of medical evaluations, culminating in a recommendation for surgery by Dr. Richard Fox. Tropical Tuna's insurer denied pre-approval for the surgery initially, citing an ongoing investigation and lack of authority to authorize treatment. After Sullivan's attorney demanded payment, the insurer authorized the surgery a month later, which was successfully performed on January 12, 1996. The Court reiterated that maritime law mandates shipowners to provide maintenance and cure for injured seamen, emphasizing the importance of these obligations in supporting maritime commerce and the welfare of seamen.

Shipowners are obligated to provide maintenance and cure until a seaman fully recovers or is diagnosed with a permanent condition. In the case of Sullivan, who injured himself on October 23, 1995, and fully healed by April 8, 1996, he was entitled to maintenance payments for 160 days at an average of $18.70 per day, totaling $2,992.00. Tropical Tuna only paid $1,600.00, resulting in a judgment of $1,392.00 for Sullivan. The court found that Tropical Tuna's inadequate maintenance payments were not willful.

Regarding the cure aspect, although Tropical Tuna eventually paid all medical bills, Sullivan claimed that a one-month delay in approving surgery constituted a willful failure to provide cure, leading him to seek damages for pain, suffering, and attorney’s fees. Tropical Tuna argued that it had no obligation to pay for treatment before it was performed. The court noted that while no precedent directly addresses the obligation to guarantee payment prior to treatment, it upheld that shipowners must ensure injured seamen receive proper care, implying a duty to guarantee payment for reasonable medical expenses in light of the healthcare system. The court concluded that Tropical Tuna's one-month delay in approving Sullivan's surgery was unreasonable and willful, breaching their duty. Sullivan’s written demand for maintenance and cure was made on December 4, 1995, and the shipowner is entitled to investigate such claims before commencing payments.

Tropical Tuna's insurer failed to conduct a reasonable investigation into Sullivan's claim for maintenance and cure despite having ample time to do so. The key issue for the insurer was whether Sullivan was in service of the ship at the time of his injury, a fact the Court found indisputable. The insurer could have quickly verified Sullivan's claim by contacting Captain Bodiek, who was reachable via radio despite being at sea. The Court determined that the insurer's delay in approving Sullivan's surgery resulted in unnecessary pain and suffering, warranting compensatory damages. Legal precedents establish that a seaman can recover damages for pain and suffering due to an unreasonable refusal to pay maintenance and cure. The Court awarded Sullivan $7,608 for pain and suffering, in addition to $1,392 for inadequate maintenance payments, totaling $9,000. Sullivan is also entitled to reasonable attorneys’ fees for the delay, as the insurer's actions demonstrated willfulness in withholding payments. The Court referenced Supreme Court rulings which allow for recovery of attorneys' fees when a shipowner is callous or recalcitrant in fulfilling maintenance and cure obligations.

Calculating a reasonable fee award in maintenance and cure cases is complex, as the First Circuit has not established a method, leading to varying approaches in different circuits. The Fourth Circuit employs the lodestar method, similar to that used in civil rights cases, emphasizing reasonableness in fee calculation. The Ninth Circuit, however, does not apply the lodestar method outside of civil rights and instead considers various factors, including the time and labor required, the novelty and difficulty of the case, the attorney's skill, customary fees, and the results obtained, among others. These factors align closely with those outlined by the Supreme Judicial Court of Massachusetts for awarding attorneys' fees. The Court favors the Ninth Circuit's approach and determines that the reasonable attorneys’ fees for this case amount to $3,000, which is one-third of the $9,000 compensatory damages awarded. This amount reflects the costs associated with initiating a federal lawsuit, including investigation and compliance with procedural rules. Consequently, judgment is entered for Sullivan for $9,000 in compensatory damages and $3,000 in attorneys’ fees, while the jury's verdict for Tropical Tuna on other claims remains unchanged. The motion to alter the judgment is denied, and a cited case only acknowledged the issue without establishing a precedent regarding employer responsibilities for medical tests.

The Court finds no precedent indicating that maritime employers lack a duty to provide maintenance and cure to seamen. This duty is comprehensive, with minimal exceptions, and applies regardless of the shipowner's negligence or whether the seaman's injury occurred during employment. Negligence does not exempt the shipowner from responsibility. The case notes that Tropical Tuna delayed approving necessary surgery for seaman Sullivan for twelve days after the vessel returned to port, failing to justify this delay. While most cases awarding attorneys' fees involve outright failures to pay maintenance and cure, a shipowner that compels a seaman to seek legal recourse for owed payments should not escape liability for attorneys' fees simply because it pays before trial. The excerpt also highlights concerns regarding the rising costs of litigation related to mandatory disclosures and notes that efforts in the District of Massachusetts to reduce litigation expenses have not yielded significant savings. A study confirmed that these expense and delay reduction plans do not decrease costs for litigants and may actually increase expenses, prompting some to prefer state courts over federal options.