rejecting future medical expenses for a surgery which intervening plaintiff had not established he was “more likely than not” going to undergo
How later courts described this case
- rejecting future medical expenses for a surgery which intervening plaintiff had not established he was “more likely than not” going to undergo
- awarding $100,000 after bench trial
- “[I]n practice, few awards exceeding a single-digit ratio between punitive and compensatory damages will satisfy due process.”
- holding that parties waive objections to improper statements in closing arguments when they do not object contemporaneously
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA
MCARTHUR GRIFFIN CIVIL ACTION
VERSUS
REC MARINE LOGISTICS, LLC, ET
AL. NO. 20-00092-BAJ-EWD
RULING AND ORDER
Now before the Court are numerous post-judgment motions.! For the reasons
that follow, Defendant REC Marine Logistics, LLC’s Renewed Motion for
Judgment as a Matter of Law (Doc. 228) and Amended and Supplemental
Renewed Motion for Judgment as a Matter of Law (Doc. 251) will be denied;
Defendants REC Marine and Offshore Transport Services, LLC’s Motion for New
Trial and/or Remittitur (Doc. 229), and Amended Motion for New Trial or
Remittitur (Doc. 253) will be granted in part; Plaintiff McArthur Griffin’s Motion
for Reconsideration of 209 Minute Entry on QBE Insurance (Europe) Ltd.'s
Judgment as a Matter of Law and to Alter or Amend Judgment (Doc. 227),
First Amended and Supplemental Motion for Reconsideration on QBE
Insurance (Europe) Ltd.’s Judgment as a Matter of Law and to Alter or
Amend Judgment (Doc. 252), and Motion to Exclude Evidence Related to the
1 Although the Court gave the parties leave to file their post-judgment motions within 30
days after the last trial transcript was filed to the record, (Doc. 226), “out of an abundance of
caution based on potential jurisdictional issues,” the parties filed post-judgment motions
before all transcripts had been published, (Doc. 237 at 1). The parties were then granted leave
to supplement their filings if necessary, once all transcripts had been filed. (Doc. 248).
Value of the M/V Dustin Danos (Doc. 254) will be denied; and Plaintiffs Motion
for Attorneys’ Fees Pursuant to Federal Rule of Civil Procedure 54(D) (Doce.
224) will be denied without prejudice.
I. BACKGROUND
This personal injury case arises from injuries to Plaintiffs shoulder, back, and
neck sustained during a personnel basket transfer incident aboard the M/V Dustin
Danos. (Doc. 215 at 1). Plaintiff, a Jones Act seaman, sued his employer and the
vessel’s operator, REC Marine, for negligence and maintenance and cure; the vessel’s
owner, Offshore Transport, for breaching its duty of maintaining a seaworthy vessel;
and QBE Insurance (Europe) Limited, the alleged insurer of the other two
Defendants. (Doc. 1). Plaintiff also sought punitive damages against REC Marine for
its willful failure to provide maintenance and cure. (/d.). The parties agreed that a
jury would decide issues of lability and damages, but, if damages were awarded, the
Court would decide whether Defendants could limit their liability through the
Limitation of Liability Act, 46 U.S.C.A. § 30501, et seq. (Doc. 172). During trial, the
Court granted Defendant QBE Insurance’s oral Motion for Judgment as a Matter of
Law. (Doc. 209). At the close of trial, the jury rendered a verdict for Plaintiff against
REC Marine and Offshore Transport. (Doc. 212). The jury found that REC Marine’s
negligent conduct was a 70% cause of Plaintiffs injuries, Offshore Transport’s
unseaworthy vessel was a 20% cause of Plaintiffs injuries, and Plaintiff was 10% at
fault for his own injuries. (id. at 4). The jury found that Plaintiff was owed
compensatory damages totaling $1,696,700.00. Ud. at 5-7). The jury also found that
Plaintiff had reached maximum medical cure for his back injury but not his neck and
shoulder injuries, and awarded Plaintiff $10,000 in maintenance benefits and nothing
for cure. Finally, the jury found that REC Marine’s unreasonable, willful, wanton,
and arbitrary failure to provide maintenance and cure to Plaintiff warranted
$1,500,000.00 in punitive damages. (/d. at 8-9).
Following trial, REC Marine moved for judgment as a matter of law, REC
Marine and Offshore Transport moved for a new trial or remittitur, and Plaintiff
moved for reconsideration of the Court’s grant of QBE Insurance’s Oral Motion for
Judgment as a Matter of Law. Plaintiff also moved for attorney’s fees and, as the first
salvo in the parties’ dispute over limitation of liability, moved to exclude evidence
regarding the value of the M/V Dustin Danos. Each of those motions was
supplemented, amended, and/or renewed after the trial transcripts were published.
II. LAWAND ANALYSIS
A. REC Marine’s Motions for Judgment as a Matter of Law
Entry of judgment as a matter of law is appropriate if the defendant shows
that a reasonable jury would not have a legally sufficient evidentiary basis to find for
the plaintiff on the issue. See Fed. R. Civ. Proc. 50(a). “This occurs when the facts and
inferences point so strongly and overwhelmingly in the movant’s favor that
reasonable jurors could not reach a contrary verdict.” Brennan’s Inc. v. Dickie
Brennan & Co., 376 F.8d 356, 862 (5th Cir. 2004). In deciding if the defendant has
made such a showing, the court draws reasonable inferences in the light most
favorable to the plaintiff. See Alonso v. Westcost Corp., 920 F.3d 878, 882 (5th Cir.
2019).
REC Marine first asks that the jury’s verdict and award of maintenance
damages be vacated because the evidence did not establish that Plaintiff was injured
in the personnel basket incident. (Doc. 251 at 12-18). To the contrary, substantial
evidence was introduced at trial that would allow a reasonable juror to find that
Plaintiff was injured while working aboard the M/V Dustin Danos. (See Doc. 261 at
15 (listing evidence)). Testimony at trial also supported a finding that Plaintiff has
not reached maximum medical cure for his neck and shoulder injuries, (See Doc. 261
at 17-18), triggering REC Marine’s ongoing obligation to pay maintenance and cure.
See Johnson v. Marlin Drilling Co., 893 F.2d 77, 79 (5th Cir. 1990) (“Payments may
be terminated when it is determined that the seaman has reached maximum medical
cure.”).
REC Marine also argues that maintenance and cure was not required because
Plaintiff failed to disclose a prior neck injury suffered during a car accident, (Doc. 251
at 13-14), invoking, as it did at trial, the McCorpen defense. See McCorpen v. Cent.
Gulf S. S. Corp., 396 F.2d 547, 548 (5th Cir. 2005) (allowing employer to avoid
maintenance and cure obligation if a seaman employee hides a preexisting physical
disability). REC Marine admits that because it required no pre-employment physical,
under McCorpen it must establish that Plaintiff considered his prior neck injury
important and that there were no reasonable grounds to support Plaintiff's good-faith
belief that he was fit for duty. (See Doc. 251-1 at 18). Evidence at trial, including that
Plaintiff did not miss a single day of work after the car accident, (See Doc. 261 at 19),
supported a reasonable juror’s finding that REC Marine failed to state a McCorpen
defense.
REC Marine next asks that the jury’s award of punitive damages be vacated
because there was no evidence that REC Marine acted in a willful, wanton, or
arbitrary way in denying maintenance and cure. (Doc. 251-1 at 15). Plaintiff responds
with examples of REC Marine’s conduct that could merit punitive damages, including
its dilatory and half-hearted investigation and its repeated denial of maintenance
and cure. (See Doc. 261 at 20-80).
“Tt is well-settled that a ship-owner who arbitrarily and capriciously denies
maintenance and cure to an injured seaman is liable to him for punitive damages and
attorney’s fees.” Robinson v. Ergon, Inc., No. CV 17-6906, 2018 WL 3368888, at *3
La. July 10, 2018) (quoting Breese v. AWI, Inc., 823 F.2d 100, 108 (5th Cir.
1987)) (Vance, J.). “Examples of employer behavior that could merit punitive damages
have included (1) laxness in investigating a claim; (2) termination of benefits in
response to the seaman's retention of counsel or refusal of a settlement offer; and (8)
failure to reinstate benefits after diagnosis of an ailment previously not determined
medically.” Id. (citing Tullos v. Res. Drilling, Inc., 750 F.2d 380, 388 (5th Cir. 1985)).
Evidence at trial supported a conclusion that REC Marine delayed investigating the
incident, (Tr. IIT at 157:5-158:23), did not meaningfully investigate the incident, Ud.
at 110:24-111:12; 117:3-118:3), and continued to deny maintenance and cure
unreasonably, (Tr. I at 186:24—137:12). For these reasons, not necessarily exclusive,
a reasonable juror could find that the evidence at trial warranted punitive damages
against REC Marine.
B. REC Marine and Offshore Transport’s Motions for a New Trial
and Remittitur
A court “may, on motion, grant a new trial on all or some of the issues—and to
any party—... after a jury trial, for any reason for which a new trial has heretofore
been granted in an action at law in federal court.” Fed. R. Civ. Proc. 59(a)(1)(A). “A
new trial may be granted, for example, if the district court finds the verdict is against
the weight of the evidence, the damages awarded are excessive, the trial was unfair,
or prejudicial error was committed in its course.” Smith v. Transworld Drilling Co.,
773 F.2d 610, 613 (5th Cir. 1985) (citations omitted). But “new trials should not be
granted on evidentiary grounds unless, at a minimum, the verdict is against the great
not merely the greater weight of the evidence.” Conway v. Chem. Leaman Tank Lines,
Inc., 610 F.2d 860, 368 (5th Cir. 1980). “The decision to grant or deny a motion for
new trial is within the sound discretion of the trial court.” Pryor v. Trane Co., 188
F.3d 1024, 1026 (5th Cir. 1998). That discretion extends to “overturning verdicts for
excessiveness and ordering a new trial without qualification, or conditioned on the
verdict winner’s refusal to agree to a reduction (remittitur).” Gasperini v. Ctr. for
Humans., Inc., 518 U.S. 415, 483 (1996).
Here, Defendants REC Marine and Offshore Transport argue that a new trial
or remittitur is warranted because the verdicts for future medical expenses, past
wage loss and future loss of earning capacity, past and future general damages, and
punitive damages all evince passion and prejudice and are against the great weight
of the evidence; the “time limits imposed at trial were unfair and prejudiced
Defendants”; the jury’s percentage of fault attributed to Plaintiff was improper; and
“fiJmproper statements” were made during closing argument. (Doc. 258-1 at 3).
i. Future Medical Expenses
Defendants argue that the jury award of $686,700.00 for future medical
expenses 1s excessive and against the great weight of the evidence. (Doc. 253-1 at 4).
Instead, Defendants argue that the maximum award supported by Plaintiffs own
experts and requested by Plaintiffs counsel at closing argument was $590,503.00.
Ud.). Defendants further point out that $121,286.00 of that sum was allocated for a
speculative second cervical fusion surgery that Plaintiff might need to undergo “20
years down the road,” and therefore should not form part of Plaintiffs award. (Ud. at
6). Plaintiff disagrees, arguing that “there was substantial evidentiary support for
the jury’s damage award,” and cites a chart, presented at trial, that lists future
medical expenses recommended by Plaintiffs doctors. (Doc. 259 at 14, 14 n.18). But
that chart only lists future medical costs totaling $590,503.00. (See Doc. 259-9 at 4—
11). Moreover, Plaintiff does not respond at all to Defendants’ challenge to the sum
set for a possible second cervical fusion surgery. The Court finds that there is simply
no support for the jury’s award in excess of what Plaintiff himself attempted to prove
at trial. Additionally, the sum of $121,286.00 for a possible surgery 20 years from now
is far too speculative. Accordingly, Defendants’ Motion for Remittitur will be granted
in part and the award for future medical expenses will be reduced to $469,217.00,
which represents the maximum amount Plaintiff even attempted to support with
evidence at trial less the cost of the purely speculative second surgery. See Matter of
Lasala, 644 F. Supp. 3d 245, 280 (E.D. La. 2022) (citing Haley v. Pan American World
Airways, 746 F.2d 311 at 316 (5th Cir. 1984)) (denying request for future medical
costs where “the only evidence to support it [was] speculative or purely conjectural”)
(Vitter, J.); Associated Terminals of St. Bernard, LLC v. Potential Shipping HK Co.
Ltd., 324 F.Supp.3d 808, 830-33 (E.D. La. 2018) (rejecting future medical expenses
for a surgery which intervening plaintiff had not established he was “more likely than
not” going to undergo) (Africk, J.). In the event Plaintiff does not accept this amount
as remitted, new trial on the issue of damages will be granted. See Foradori v. Harris,
523 F.3d 477, 503 (th Cir. 2008) (“[T]he court may not reduce the amount of damages
without giving the plaintiff the choice of a new trial, for to do so would deprive the
parties of their constitutional right to a jury.”).
ii. Past Wage Loss, Future Loss of Earning Capacity, and
Maintenance
In a similar vein, Defendants argue that the jury award of $150,000.00 for past
wage loss and $500,000.00 for future wage loss is excessive and against the great
weight of the evidence because Plaintiff presented no support for such an award. (Doc.
253-1 at 9). Again, Defendants point out that Plaintiff's expert and counsel at closing
argument only suggested a maximum award for past wage loss of $144,995.00 and
for future wage loss of $321,589.00. Ud. at 10). Plaintiff does not dispute this point
but responds that Defendants’ expert opened the door for the jury to consider different
figures when he called into question the general methodology for determining future
earning capacity. (Doc. 259 at 15).2 As there is simply no support for the jury’s award
as to past and future wage loss that is not “speculative or purely conjectural,”
Masinter v. Tenneco Oil Co., 929 F.2d 191, 194 (5th Cir. 1991), the Court will grant
Defendants’ Motion for Remittitur in part and reduce the awards for past wage loss
to $144,995.00 and for future wage loss to $321,589.00, the maximum amount
supported by evidence at trial. In the event Plaintiff does not accept this amount as
remitted, new trial on the issue of damages will be granted.
Defendants also argue that the award of $10,000.00 in maintenance benefits
was duplicative but cite no case law and make no showing in support. (Doc. 258-1 at
10). The jury was instructed to not award maintenance benefits and lost wages or
medical expenses for the same period. (/d.). The Court will not upset the jury’s award
where Defendants only speculate that the jury did not follow the Court’s instructions
and make no showing at all that the jury’s maintenance award was duplicative.
iii, Past and Future General Damages
Defendants next argue that the awards of $100,000.00 for past general
damages and $250,000.00 for future general damages are excessive and against the
great weight of the evidence because testimony supporting such damages was
“meager.” (Doc. 158-1 at 11). The Court disagrees. Plaintiff suffered significant
injuries to his shoulder and neck, underwent multiple surgeries and requires
surgeries in the future as a result, continues to be in pain, is physically limited, and
can no longer enjoy the recreation he previously enjoyed. (See Doc. 259 at 16-17
2 Neither expert found that Plaintiff had more than eleven years of expected work life
remaining or earned more than $37,000 annually before the incident. (See Doc. 259 at 8).
(citing trial record)). Based on this and other testimony at trial and in keeping with
the “strong presumption in favor of affirming a jury award of damages,” Giles v. Gen.
Elec. Co., 245 F.3d 474, 488 (5th Cir. 2001), the Court finds that the jury’s award for
past and future general damages is appropriate.
iv. Punitive Damages
As for punitive damages, Defendants argue correctly that the jury’s award of
$1,500,000.00 was excessive. Pursuant to the verdict form, after awarding
compensatory damages for the other claims, the jury awarded Plaintiff $10,000.00 for
maintenance and nothing for cure. (Doc. 212 at 7). The jury’s final step was deciding
whether to award punitive damages for REC Marine’s “willful, wanton, and arbitrary
failure to provide maintenance and cure” and if so, how much. (/d. at 9). The sequence
of questions on the verdict form shows that the jury intended to punish REC Marine
for only its failure to provide maintenance and cure. (/d. at 9). The 150:1 ratio of
punitive damages to maintenance damages that resulted is unconstitutionally
disproportionate. See State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408, 425
(2008) (“[I]n practice, few awards exceeding a single-digit ratio between punitive and
compensatory damages will satisfy due process.”).
The Supreme Court has identified three “guideposts” that bear on the
reasonableness of punitive damages. BMW v. Gore, 517 U.S. 559, 574 (1996). In
addition to the ratio of punitive to compensatory damages, which is clearly excessive
here, these guideposts are “the degree of reprehensibility of the tortious conduct” and
“the difference between this remedy and the civil penalties authorized or imposed in
comparable cases.” Jd. Additionally, “[i]t should be presumed that a plaintiff has been
10
made whole by compensatory damages, so punitive damages should be awarded only
if the defendant's culpability is so reprehensible to warrant the imposition of further
sanctions to achieve punishment or deterrence.” State Farm, 538 U.S. at 419.
With respect to the second guidepost, although the Court declines here to
disturb the jury’s finding that punitive damages were warranted, see supra Section
ILA, REC Marine’s conduct was hardly reprehensible enough to support such a
shocking sum. Testimony adduced at trial equally supported a finding that punitive
damages were not warranted. (See Doc. 251-1 at 15-16). Indeed, when considering
REC Marine’s motion for judgment as a matter of law after the close of Plaintiffs
case, the issue of whether to even let the jury consider Plaintiffs claim for punitive
damages was a “much closer call” for the Court than for Plaintiffs other claims. (Tr.
V at 64:7).
As for the third guidepost, the discrepancy between this and other punitive
damages awards for failure to provide maintenance and cure is vast. (See Doc. 253-1
at 15 (listing cases)). The next highest awards within the Fifth Circuit found by either
party were one-fifteenth the sum chosen by the jury here. See Weeks Marine v.
Watson, 190 F.Supp.3d 588 (E.D. La. 2016) (awarding $100,000 after bench trial);
Hodges v. Keystone Shipping Co., 578 F.Supp. 620 (S.D. Tex. 1983) (awarding
$100,000). After awarding damages for future maintenance and cure, the Weeks court
awarded $1,139,828 in aggregate damages, including around $67,000 for past
maintenance and cure and $100,000.00 in punitive damages for willful failure to pay.
Weeks, 190 F.Supp.8d at 598. In support of the punitive damages award, the court
11
noted that the employer there had “simply ignored the opinions of two treating
orthopedic surgeons and multiple radiologists because [the employer] did not agree
with their diagnosis and treatment recommendations.” Id. Instead, the employer
chose to rely on the advice of a non-treating doctor whose testimony the court found
“incredible and biased.” Jd. Furthermore, after unilaterally terminating all
maintenance and cure payments, the employer sued its employee seeking a
declaratory judgment that it owed nothing further. Jd. No such wanton behavior is
present here, where at least some credible testimony supported REC Marine’s
decision to withhold maintenance and cure. (See 251-1 at 5—-9).3 In sum, because
evidence cut both for and against whether to even award punitive damages, the Court
finds that the extraordinary and unprecedented sum awarded is excessive.
Having determined that remittitur is appropriate here, the next question is
where to peg the punitive damages. Defendants urge that Supreme Court precedent
requires a ratio of 1:1 in maritime cases, (Doc. 258-1 at 14 (citing Exxon Shipping Co.
v. Baker, 554 U.S. 471, 518-515 (2008)), but the Fifth Circuit recently eliminated that
requirement. Kenai Ironclad Corp. v. CP Marine Servs., LLC, 84 F.4th 600, 610 (5th
Cir. 2023) (deGravelles, DJ, sitting by designation). Here, mindful of the “especially
deferential” review owed to a jury’s verdict, Vetter v. McAtee, 850 F.3d 178, 185 (5th
Cir. 2017), the Court will reduce the punitive damages award to an elevated, but
constitutionally tenable, ratio to the maintenance award of 9:1, or $90,000.00. In the
event Plaintiff does not accept this amount as remitted, new trial on the issue of
3 For example, two treating physicians determined that Plaintiffs injuries were not caused
by the personnel basket injury. (/d.).
12
damages will be granted.
v. Time Limits Imposed
Defendants next argue that the time limits imposed at trial were unfair and
prejudicial but cite no case from the Fifth Circuit in support and only allege specific
examples of prejudice with respect to the time limit imposed on the cross-examination
of Plaintiff. (Doc. 253-1 at 17-18). But at Defendants’ request, the Court granted more
time to cross-examine Plaintiff, (Tr. II] at 1383:7—11), and Defendants did not ask for
additional time when the added time had elapsed, (/d. at 235:20—236:8). Defendants’
motion on this issue is denied.
vi. Jury’s Percentage of Fault
Defendants next argue that the jury’s percentage of fault attributed to Plaintiff
was not proper because there was “conflicting testimony” regarding the incident and
Defendants’ expert testified that Plaintiff had not followed his training. (Doc. 253 at
19). Defendants’ argument is self-defeating: “Conflicting testimony is to be resolved
by the jury.” Robinson v. Smith, No. 3:19-CV-2593-C-BH, 2022 WL 17970411, at *19
(N.D. Tex. Nov. 28, 2022), report and recommendation adopted, No. 3:19-CV-2593-C-
BH, 2022 WL 17961396 (N.D. Tex. Dec. 27, 2022) (citing Koch v. Puckett, 907 F.2d
524, 531 (5th Cir. 1990)). The jury here merely resolved the conflicting testimony
against Defendants. Therefore, Defendants fail to establish that the jury’s verdict
was against the great weight of the evidence. See Conway, 610 F.2d at 3638.
vii. Improper Statements
Finally, Defendants argue that Plaintiffs closing argument to the jury was
prejudicial because it “improperly mischaracterized witness testimony, contained
13
inflammatory remarks, and [counsel] made improper inferences and statements.”
(Doc. 253-1 at 19). “[[]mproper comments by counsel will not warrant reversal unless
they so permeate the proceedings that, in the light of all evidence presented, manifest
injustice would result if the court allowed the verdict to stand.” Verdin v. Sea-Land
Serv., 8 F.3d 21 (5th Cir. 1993). The Court will not address whether Plaintiffs
statements were improper because, even if they were, nothing said would rise to the
“extreme nature” required for a new trial, United States v. Blevins, 555 F.2d 1236,
1240 (5th Cir. 1977), and Defendants did not object at the time, see Nissho—Iwai Co.
v. Occidental Crude Sales, Inc., 848 F.2d 613, 619-20 (5th Cir. 1988) (holding that
parties waive objections to improper statements in closing arguments when they do
not object contemporaneously).
C. Plaintiffs Motions for Reconsideration and to Alter or Amend
Judgment
Plaintiff seeks reversal of the Court’s grant of Defendant QBE Insurance’s Rule
50 Motion for Judgment as a Matter of Law. (Docs. 227, 252). A motion to alter or
amend a judgment is “not the proper vehicle for rehashing evidence, legal theories,
or arguments that could have been offered or raised before the entry of judgment.”
Simon v. United States, 891 F.2d 1154, 1159 (5th Cir. 1990). Reconsideration of a
judgment after its entry is an extraordinary remedy that should be used sparingly.
Clancy v. Employers Health Ins. Co., 101 F.Supp.2d 468, 465 (E.D. La. 2000). At trial,
the Court found that Plaintiff had completely failed to meet his burden of offering
evidence that QBE Insurance issued a policy that provided coverage for the damages
claimed by Plaintiff. (Tr. III at 244:13-247:15). No newly discovered evidence or
14
manifest error of law or fact compels a contrary conclusion now. Plaintiff simply did
not introduce any evidence at trial showing that QBE Insurance provided coverage
for the asserted damages, as was his burden to do. See Zeno v. ADM Mill Co., No. 06-
4326, 2008 WL 4974876, at *2 (E.D. La. Nov. 20, 2008) (Duval, J.) (isting the
elements of a direct action against an insurer, including “that the insurer has issued
a policy to the insured”).
D. Plaintiffs Motion to Exclude Evidence of the Value of the M/VV
Dustin Danos
Before trial, the parties stipulated that the issues of liability and damages
would be decided by a jury, but, were the jury to find liability on the part of
Defendants and award damages, the issue of Defendants’ possible defense under the
Limitation of Liability Act, 46 U.S.C.A. § 30501, et seg., would be decided by the
Court. (Doc. 172). Under the Limitation of Liability Act, a vessel owner may limit
their damages for certain types of claims to the “value of the vessel and pending
freight.” See SCF Waxler Marine, L.L.C. v. Aris T M/V, 24 F.Ath 458, 472 (5th Cir.
2022). Now, as a prelude to the parties’ potential dispute over the value of the M/V
Dustin Danos for limitation of liability purposes, Plaintiff moves for the Court to
exclude evidence of its value because Offshore Transport did not “meaningfully
respond to discovery requests that sought information related to the [vessel’s value]”
and because Defendants did not disclose information related to their limitation of
liability defense. (Doc. 254-1). This motion will be denied. As the Court stated at trial
when overruling Plaintiffs oral motion to strike the limitation defense entirely, “the
Court is still entitled to receive evidence” related to the value of the M/V Dustin
15
Danos. (Tr. V at 67:21—22).
The Court writes further to note that Defendants suggest testimony will
establish that the relevant value of the M/V Dustin Danos is $1,600,000.00 for
limitation of liability purposes. (Doc. 264 at 12). In accordance with this Order, the
remitted aggregate compensatory damages, less maintenance and cure and punitive
damages, now total $1,285,801.00.4 Before remittitur, REC Marine argued that
though the combined compensatory award—then $1,536,030—against it and
Offshore Transport was less than $1,600,000, with pre-judgment interest the total
award “could exceed the fair market value” of the vessel. (Doc. 264 at 14). That is less
likely to be the case after remittitur, because the total compensatory award now falls
$300,000 short of the alleged minimum value of the vessel.5
E. Plaintiff's Motion for Attorney’s Fees
Under Rule 54(d), a prevailing party generally may not recover attorney’s fees
unless such fees and expenses are specifically provided by “statute, rule, or other
grounds entitling the movant to the award.” Fed. R. Civ. Proc. 54(d)(2)(B)(ii). Punitive
damages and attorney’s fees are available remedies for willful and wanton failure to
pay maintenance and cure. See Manderson v. Chet Morrison Contractors, Inc., 666
F.3d 378, 382 (5th Cir. 2012) (“‘Arbitrary-and-capricious denial of a seaman’s request
4 Damages for maintenance and cure, including punitive damages, are not subject to
limitation of liability. See In re Complaint of Trawler Shrimp Texas 18, Inc., No. CIV.A.G-07-
557, 2008 WL 545041, at *1 (S.D. Tex. Feb. 25, 2008) (citing Brister v. A.W.L, Inc., 946 F.2d
350, 360-61 (5th Cir. 1991)) “[M]aintenance and cure claims are exempt from the limitation
of liability rules in admiralty.”).
5 The parties are still entitled to avail themselves of the Court’s settlement facilitation
procedures to resolve any remaining issues.
16
for maintenance and cure can result in the employer's being liable for the seaman's
attorney’s fees.”).
Now, Plaintiff seeks a fee award of $348,150.00, which, Plaintiff explains,
“represents the lodestar calculation of fees based on the reasonable number of hours
his attorneys expended in prosecuting his claim for maintenance and cure and a
reasonable hourly rate for each of his attorneys.” (Doc. 224 at 2). Defendant REC
Marine disputes whether Plaintiff entitled to an award in the first place, the hourly
rates requested by Plaintiff, and the number of hours billed. (Doc. 280). The Court
considers each of REC Marine’s objections in turn.
i. Plaintiffs Entitlement to a Fee Award
REC Marine first argues that Plaintiff not entitled to attorney’s fees because
he did not plead attorney’s fees in his Original or Amended Petition. (Doc. 230 at 5).
Fed. R. Civ. Proc. 9(g) provides that “[i]f an item of special damage is claimed, it must
be specifically stated.” “The purpose of the rule is to avoid unfair surprise by
informing the parties as to the nature of the damages claimed, and to inform the court
of the substance of the claims.” In re IFS Fin. Corp., No. 02-39553-H1-7, 2010 WL
1992579, at *3 (S.D. Tex. May 18, 2010) (citing Great American Indemnity Co. v.
Brown, 307 F.2d 306, 308 (5th Cir. 1962)). But the failure to plead attorney’s fees will
not necessarily preclude a party’s ability to recover attorney’s fees if the party's
opponent is on notice that attorney’s fees are being sought. Id. (citing Crosby v. Old
Republic Ins. Co., 978 F.2d 210, 211 n.1 (5th Cir. 1992)). Here, REC Marine was put
on notice that Plaintiff sought attorney's fees by Plaintiffs Rule 26 Disclosures,
17
served in August 2020. (Doc. 250-3 (“Plaintiff seeks recovery of... attorneys’ fees”)).
Cf. Crosby, 978 F.2d 210 at 211 n.1 (“Because the claim [for attorney’s fees] was
advanced by [defendant] during pretrial conferences, the court did not err in
considering the merits of the claim as though the pleadings had been amended.”).
Defendant also argues that Plaintiff is not entitled to fees because the jury did
not specifically award fees and fees were not listed on the verdict form. (Doc. 230 at
9). Defendant cites no case in which courts held similarly. To the contrary, because of
the jury’s finding that punitive damages were appropriate for REC Marine’s failure
to pay maintenance and cure, Plaintiff is also entitled to attorney’s fees. See Dardar
v. T&C Marine, L.L.C., No. CV 16-13797, 2018 WL 3950396, at *2 (E.D. La. May 3,
2018), report and recommendation adopted, No. CV 16-18797, 2018 WL 3927501 (E.D.
La. Aug. 16, 2018) (awarding fees on plaintiffs motion after jury verdict awarding
punitive damages for failure to provide maintenance and cure) (Wilkinson, MJ).
ii. Plaintiffs Hourly Rate
Defendant’s next objection is to the $500.00 hourly rate that Plaintiff requests
for his lead counsel, Daniel E. Sheppard, and co-counsel, P. Hogan Leatherwood. (Doc.
230 at 9). “The calculation of attorney's fees involves a well-established process.”
Migis v. Pearle Vision, Inc., 135 F.3d 1041, 1047 (5th Cir. 1998). “First, the court
calculates a ‘lodestar’ fee by multiplying the reasonable number of hours expended
on the case by the reasonable hourly rates for the participating lawyers.” Jd. An
attorney's reasonable hourly rate should be “in line with those prevailing in the
community for similar services by lawyers of reasonably comparable skill, experience
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and reputation.” Blum v. Stenson, 465 U.S. 886, 896 n.11 (1984); see also Leroy v. City
of Houston, 906 F.2d 1068, 1078-79 (5th Cir. 1990) (“In evaluating an attorneys’ fees
award, we are guided by the overriding principles that a reasonable attorney’s fee is
one that is adequate to attract competent counsel, but that does not produce windfalls
to attorneys.” (quotation marks and alterations omitted)). The Fifth Circuit has
emphasized that “the relevant market for purposes of determining the prevailing rate
to be paid in a fee award is the community in which the district court sits.” Tollett v.
City of Kemah, 285 F.3d 357, 368 (5th Cir. 2002) (quotation marks omitted). The party
applying for attorney’s fees bears the burden of producing satisfactory evidence that
the requested rate is aligned with the prevailing market rate. Louisiana Power &
Light Co. v. Kellstrom, 50 F.3d 319, 324 (5th Cir. 1995).
Here, Plaintiff only manages to offer support for the $500.00 rate he seeks in
his reply memorandum and even then appears to have been unable to find a case in
which a court awarded a comparable rate under similar circumstances. (See Doc. 250
at 5). Indeed, the only case Plaintiff cites in which a court awarded $500.00 an hour
involved an attorney with nearly 41 years of maritime experience. See Jefferson v.
Baywater Drilling, LLC, 2015 U.S. Dist. LEXIS 155110, at *4—5 (E.D. La. Sept. 16,
2015). Mr. Sheppard and Mr. Leatherwood have only practiced law since 2016. (See
Docs. 224-2; 224-3). Because Plaintiff has not produced satisfactory evidence of the
rate he seeks, the Court concludes, based on a review of similar cases, that an hourly
rate of $300.00 is appropriate. See Alonso v. Westcoast Corp., 2017 WL 41769738, at
*8 (M.D. La. Sept. 21, 2017), aff'd in part, vacated in part on other grounds, remanded,
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920 F.3d 878 (5th Cir. 2019) (awarding $3800 an hour) (Jackson, J.); REC Marine
Logistics, L.L.C. v. Richard, No. CV 19-11149, 2020 WL 1527766, at *4 (E.D. La. Mar.
27, 2020) (ordering REC Marine to pay $375 an hour to an attorney with 18 years of
experience); Jefferson, 2015 U.S. Dist. LEXIS 155110 at *4-5 (awarding $350 to an
attorney with six years of experience).
iii. Plaintiff's Hours Billed
Finally, REC Marine objects to the number of hours billed, arguing that
Plaintiff has not demonstrated that the 704.4 hours billed is reasonable. (Doc. 230).
The Court finds that Plaintiff has supported his hours assertion with sufficient
evidence, including affidavits attesting to the reasonableness of the lawyers’ billing
practices, (Docs. 224-2; 224-3), and an itemization of hours, (224-3). See LaBarge Pipe
& Steel Co. v. First Bank, No. CIV.A. 03-281-BAJ, 2011 WL 3841605, at *2 (M.D. La.
Aug. 29, 2011) (quoting Louisiana Power & Light Co. v. Kellstrom, 50 F.3d 319, 324
(5th Cir. 1995) ([C]lourts customarily require the applicant to produce
contemporaneous billing records or other sufficient documentation so that the district
court can fulfill its duty to examine the application for noncompensable hours, but
failing to provide contemporaneous billing statements does not preclude an award of
fees per se, as long as the evidence produced is adequate to determine reasonable
hours.”) (quotation marks omitted) (Jackson, J.).
Defendant also argues that Plaintiff's submission falls short when it comes to
identifying which hours were spent preparing for and litigating Plaintiffs
maintenance and cure claim—the only claim for which attorney’s fees are available.
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(Doc. 230 at 15). For this reason, Defendant asks that the “hours obviously spent on
the Jones Act negligence and/or unseaworthiness claims be stricken, and that the
hours not clearly limited to the prosecution of the maintenance and cure claim be
reduced.” (/d.). Plaintiff responds that his Jones Act negligence and unseaworthiness
claims are intertwined with the maintenance and cure issues making differentiation
difficult. (Doc. 250 at 6). The Court agrees with Defendant. The work required to
successfully litigate the maintenance and cure claim here was not so inseparable from
the work on the other claims, and Plaintiff must make some attempt to differentiate
the hours. Dardar, 2018 WL 3950896 at *5 (finding that the factual overlap among
plaintiffs maintenance and cure, seaworthiness, and negligence claims was
“substantial, but not complete” and refusing to grant plaintiff 100% of his billed fees);
cf. Wal-Mart Stores, Inc. v. Qore, Inc., 647 F.3d 237, 247 (5th Cir. 2011) (finding
district court erred in not differentiating between successful and unsuccessful
claims). For example, showing that REC Marine’s internal investigation into the
personnel basket incident was delayed or halfhearted—an important step toward
winning punitive damages—required investigating and litigating issues completely
unrelated to the questions of liability and damages for negligence and
unseaworthiness. For this reason, Plaintiff's Motion for Attorney’s Fees will be denied
without prejudice. Plaintiff may resubmit his motion after differentiating the hours
spent on the maintenance and cure claim. To Plaintiffs credit, some hours may
indeed prove too difficult to disentangle, but Plaintiff must identify them and state
why.
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II. CONCLUSION
Accordingly,
IT IS ORDERED that Defendant REC Marine Logistics, LLC’s Renewed
Motion for Judgment as a Matter of Law (Doc. 228) and Amended and
Supplemental Renewed Motion for Judgment as a Matter of Law (Doc. 251)
be and are hereby DENIED.
IT IS FURTHER ORDERED that Plaintiffs Motion for Reconsideration
of 209 Minute Entry on QBE Insurance (Europe) Ltd.'s Judgment as a Matter
of Law and to Alter or Amend Judgment (Doc. 227), First Amended and
Supplemental Motion for Reconsideration on QBE Insurance (Europe)
Ltd.’s Judgment as a Matter of Law and to Alter or Amend Judgment (Doc.
252), and Motion to Exclude Evidence Related to the Value of the M/V Dustin
Danos (Doc. 254) be and are hereby DENIED.
IT IS FURTHER ORDERED that Defendants REC Marine and Offshore
Transport’s Motion for New Trial and/or Remittitur (Doc. 229) and Amended
Motion for New Trial or Remittitur (Doc. 2538) be and are hereby GRANTED IN
PART. The award for future medical expenses is remitted to $469,217.00; the award
for past wage loss is remitted to $144,995.00; the award for future wage loss is
remitted to $321,589.00; and the punitive damage award is remitted to $90,000.00.
Plaintiff shall have 15 days from the date of this order to advise the Court whether
he will accept remittitur.
IT IS FURTHER ORDERED that Plaintiffs Motion for Attorneys’ Fees
Pursuant to Federal Rule of Civil Procedure 54(D) (Doc. 224) be and is hereby
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DENIED WITHOUT PREJUDICE. Plaintiff shall have 21 days to resubmit his
motion after differentiating the hours spent on the maintenance and cure claim and
identifying those hours which will be impossible to differentiate. Defendant REC
shall have 14 days to file any response to Plaintiff's resubmitted motion.
Baton Rouge, Louisiana, this Al y of December, 2023
JUDGE BRIAN A. KSON
UNITED STATES TRICT COURT
MIDDLE DISTRICT OF LOUISIANA
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