Judge Barrington Parker
While working on a Maersk Line ship, Padilla was injured—and relieved from service and discharged as unfit for duty—before his voyage ended. In addition to "maintenance and cure" for the duration of his contract, Maersk paid Padilla unearned wages at his base rate. However, it did not pay him overtime wages. In Padilla's class suit district court found in favor of a class of seafarers who, after discharge, were paid unearned wages, maintenance and cure until the end of their voyage, but were not paid overtime wages as part of unearned wages. District court awarded the class $836,819 in damages. Second Circuit affirmed, agreeing with Padilla that, because overtime was a substantial, routine component of the seafarers' compensation, they were entitled to overtime payments because, under general maritime law, they must be placed in the same position they would have been in had they not been disabled or injured. Aligning itself with the Eleventh, Fifth, and Third circuits, Second Circuit held that district court properly applied the "but for" test in deeming Padilla entitled to recover in full the compensation he would have earned "but for" his injury.
