Section 11.19 Proportionate Liability of Nonsettling Defendant

• Library: Tort Law 2016

E. (§11.19) Proportionate Liability of Nonsettling Defendant

In McDermott, Inc. v. AmClyde, 511 U.S. 202 (1994), the U.S. Supreme Court held that the liability of a nonsettling defendant in an admiralty case should be calculated with reference to the allocation of proportionate responsibility rather than by giving the nonsettling defendant credit for the dollar amount of the settlement.

McDermott operated an offshore oil platform. While moving equipment onto the platform, a crane hook parted, damaging the platform and the crane. The malfunction may have been caused by:

· McDermott’s operation of the crane;

· AmClyde’s design or construction of the crane;

· a defect in the hook supplied by River Don Castings, Ltd.; or

· one or more of the three defendants that supplied supporting steel slings.

McDermott sued AmClyde, River Don, and the three "steel sling" defendants. The "steel sling" defendants settled with McDermott before trial for $1 million. At trial, the jury assessed McDermott’s damages at...