Sisson v. Ruby

497 U.S. 358 (1990)

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Nature of the Case

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Facts

D owned a 56-foot pleasure yacht. While it was docked at a marina on Lake Michigan, a navigable waterway, a fire erupted in the area of the vessel's washer/dryer unit. The fire destroyed the boat and damaged several neighboring vessels and the marina. Ps filed claims against D for over $275,000 for damages to the marina and the other vessels. Under the Limited Liability Act any damage done 'without the privity or knowledge of such owner' to the value of the vessel and its freight, 46 U. S. C. App. § 183(a) (1982 ed., Supp. V), is limited to $800 above the salvage value of the vessel after the fire. D argued that the federal court had maritime jurisdiction over his limitation of liability action pursuant to § 1333(1). The District Court disagreed, dismissing the petition for lack of subject-matter jurisdiction. The Court of Appeals affirmed holding that neither §1333(1) nor the Limited Liability Act conferred jurisdiction. D appealed.