Matute v. Lloyd Bermuda Lines, Ltd.

931 F.2d 231 (3rd Cir. 1991)

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Nature of the Case

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Facts

D is a Bermudan corporation with its chief officer John Kearns residing in New Jersey. D time chartered the cargo ship THE LLOYD BERMUDA from its owner, Procoast Navigation (Procoast), a German corporation, beginning June 9, 1983, until the ship's sinking in December 1988. The ship made weekly sailing trips from Port Newark, New Jersey to Hamilton, Bermuda. Trans-Mar Agencies (TMA(D)), a New Jersey corporation, is D's general agent in the United States. D received the right to use the cargo hold of the LLOYD BERMUDA to ship goods to destinations chosen by D. Procoast retained the responsibility for the condition of the ship and control over its crew. D paid a flat rate for use of the ship, which was to be provided by its owner in a condition ready to receive and transport cargo. Procoast hired the captain of the ship and, through the captain, the ship's crew. Procoasthad the duty 'to provide and pay for all provisions [and] wages . . . of the Crew.' The charterer forwarded money for the charter hire once a month to Procoast's representative in Miami Florida. TMA (D) performed various functions as D's agent in the operation of the shipping line. It would obtain crewmembers' U.S. immigration visas, meet arriving crew at the Newark airport, arrange and pay for transportation to the port, and make advances to pay for certain expenses of the ship and crew while docked in New Jersey, the amounts to be deducted from Procoast's monthly charter hire fee (plus 2 1/2% commission). TMA (D) would occasionally assist with the repatriation of foreign crewmen returning to their countries, by preparing immigration documents and making the necessary travel arrangements. Procoast's captain hired P. The letter confirming his employment was drafted on TMA (D) stationery. TMA (D) arranged and paid for his transport to the ship. On his second voyage, P developed an irritation in his right eye. He complained to the ship's captain and first aid officer but they did not secure medical attention. P complained of his eye problem to Jose Planas, a representative of TMA (D) whose job it was to come aboard the ship to inquire about the well-being of the crew members and to determine whether they needed anything. The ship's captain finally made arrangements for P to see an eye doctor. Nothing could be done as it had progressed to near blindness in his right eye. Three days later in Newark, Jose Planas came aboard the ship and told P that he was taking him to see a doctor in New York City. That doctor concluded that 'the vision of his right eye cannot be improved at this time due to scar tissue in the retina of indeterminate cause,' but that P could continue working as long as he wore protective eyeglasses. On November 6, 1986, P was terminated and TMA (D) purchased an airline ticket and obtained the necessary immigration documents for his return to Honduras. P filed a complaint under the Jones Act against Procoast for damages. Procoast admitted to being the owner of THE LLOYD BERMUDA. The district court dismissed that action for lack of subject matter jurisdiction and this court affirmed. P filed a separate complaint under the Jones Act and maritime law against D and TMA (D) as agents-in-fact for the owner of the ship. Ds filed a motion for dismissal or alternatively for summary judgment, and P filed a counter motion requesting additional discovery. Ds' motion was granted. It held that the limited services that D supplied to P through TMA (D) did not transform D's status into that of P's employer or owner of the vessel. P appealed.