The U.S. Supreme Court’s June 25, 2009, decision in Atlantic Sounding Co. Inc., et al. v. Townsend leaves uncertainty in its wake for those left to navigate the once-familiar waters of maritime damages. Townsend casts a large shadow over a line of case law within the 5th U.S. Circuit Court of Appeals that disallowed punitive damages and other nonpecuniary remedies in seamen’s cases. This article will address the effect of Townsend on maintenance-and-cure claims, suggest how lawyers can help maritime employers improve their handling of such claims and examine the potential expansion of punitive damages to other general maritime law claims.
“Maintenance and cure” is a centuries-old fundamental right of seamen when they fall ill or are injured while in service of a ship. The shipowner has a general maritime law duty to pay maintenance — a per diem equivalent of the room and board the seaman enjoyed on the vessel — and cure (curative medical treatment) until the seaman reaches maximum medical improvement.
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