F. Additional Property Damage Rules in Admiralty

• Library: South Carolina Damages (SCBar) (2009 Ed.)

F. Additional Property Damage Rules in Admiralty

1. Nominal Damages

Admiralty does not recognize nominal damages. They are not recoverable.¹⁹⁹

2. Punitive Damages

Under general maritime law, punitive damages may be recovered when a wrongdoer acts willfully or with gross disregard of a plaintiff's rights.²⁰⁰ Although punitive damages are not favored in the law, the Ninth Circuit has held that they are available under general maritime law for property damage as a result of conduct by a defendant that manifests recklessness or callous disregard for the rights of others or that shows gross negligence, actual malice, or criminal indifference.²⁰¹

The general rule in admiralty is that the principal or master cannot be held liable for punitive damages for the willful or reckless act of an agent or employee unless the act is committed with the approval and knowledge of the master.²⁰²

A claim for punitive damages does not give rise to a maritime lien. Since an action against the vessel in rem is available only if based on a maritime lien, punitive damages are not recoverable in an in rem action. Punitive damages claims can be asserted in personam only against the vessel owners or operators, not against the vessel itself.²⁰³ Punitive damages are available in admiralty only for claims based in tort. They are not available for actions based on breach of contract.²⁰⁴

Although the United States Supreme Court in Miles v. Apex Marine Corp.²⁰⁵ barred recovery of punitive damages under the Death on the High Seas Act, the Jones Act, or general maritime law for wrongful death of a seaman, the Rhode Island district court held that the Miles decision did not bar punitive damages arising from property damage claims in admiralty.²⁰⁶

Although punitive damages cases arising out of property damage are unusual, some cases have dealt with these issues.²⁰⁷

3. Attorney Fees

Normally, in a maritime property damage claim, each party bears its own attorney fees.²⁰⁸

4. Mitigation of Damages

In land cases, a plaintiff whose property is damaged is required to take all reasonable steps to minimize any continuing damage. The same rule holds true in maritime law. A plaintiff's failure to mitigate damages or take reasonable care of its equipment to prevent further damage may result in reduced recovery to the plaintiff.²⁰⁹ On the other hand, attorney fees and other collateral expenses that otherwise would not be recoverable might be awarded under a mitigation-of-damages argument. An owner who makes reasonable expenditures to...