holding that a shipowner was entitled to indemnity if the trier of fact found that the port authority breached its warranty of workmanlike performance and that the breach caused the shipowner’s injury
How later courts described this case
- holding that a shipowner was entitled to indemnity if the trier of fact found that the port authority breached its warranty of workmanlike performance and that the breach caused the shipowner’s injury
- holding that a fireman was not entitled to a warranty of seaworthiness because he was not engaged in work traditionally done by seamen and entered the vessel only after it was obviously unseaworthy
- “The duty of workmanlike performance arises out of the stevedoring contract, but it does not automatically imply that the stevedore owes the owner indemnity against all liability under all circumstances.”
- declining to extend Ryan indemnity to controversies involving seamen injured at sea
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
JACKSONVILLE DIVISION
GRIMALDI DEEP SEA S.p.A.,
Plaintiff,
vs. Case No. 3:24-cv-562-MMH-SJH
SSA ATLANTIC, LLC,
Defendant.
/
ORDER
THIS CAUSE is before the Court on Defendant SSA Atlantic, LLC’s
Motion to Dismiss Amended Complaint (Doc. 24; Motion), filed April 24, 2025.
On May 15, 2025, Plaintiff, Grimaldi Deep Sea S.p.A. (Grimaldi), filed its
Memorandum in Opposition to Defendants Motion to Dismiss (Doc. 31;
Response). Accordingly, the Motion is ripe for consideration.
I. Background1
On June 3, 2020, the M/V Hoegh Xiamen (the Vessel), a cargo ship, was
berthed at the Blount Island Marine Terminal in Jacksonville, Florida. See
1 In considering the Motion, the Court must accept all factual allegations in the
Amended Complaint (Doc. 22), filed on April 10, 2025, as true, consider the allegations in the
light most favorable to Plaintiff, Grimaldi Deep Sea S.p.A., and accept all reasonable
inferences that can be drawn from such allegations. See Hill v. White, 321 F.3d 1334, 1335
(11th Cir. 2003); Jackson v. Okaloosa Cnty., 21 F.3d 1531, 1534 (11th Cir. 1994). As such, the
facts recited here are drawn from the Amended Complaint and may well differ from those that
can ultimately be proved.
Amended Complaint ¶ 8. The Vessel was time chartered to Grimaldi.2 Id. ¶ 3.
Prior to the Vessel’s arrival in Jacksonville, Grimaldi contracted with
Defendant, SSA Atlantic, LLC (SSA), for stevedoring services. Id. ¶ 18. As the
stevedore, SSA was responsible for loading approximately 1,500 used vehicles
onto the Vessel for international transport. Id. ¶¶ 15, 17, 18. When the parties
entered into the contract, Grimaldi provided SSA with instructions on how to
complete the loading operations, including procedures for disconnecting
batteries in used vehicles. Id. ¶ 19. Specifically, SSA was to remove the negative
cable from its battery post and cover the exposed part with a battery cap or
wrap the disconnected battery cable with tape. Id. ¶¶ 20–22. The purpose of
these procedures was to reduce the risk of fires caused by used vehicles. Id. ¶ 23.
On June 4, 2025, shortly after the loading operations were completed, a
fire broke out on the Vessel. Id. ¶¶ 38, 49–50. The Vessel’s crew attempted to
extinguish the fire until a team of firefighters from the Jacksonville Fire and
Rescue Department (JFRD) arrived. Id. ¶¶ 58–62, 64. While JFRD crew were
on board the Vessel, an explosion occurred, causing extensive injuries to many
of the firefighters. Id. ¶ 71. After eight days of firefighting efforts, the U.S. Coast
Guard declared that the fire had been extinguished. Id. ¶ 72. Ultimately, many
2 A time charter does not involve transfer of possession or control of a vessel; the owner
of the vessel fully equips and maintains the vessel and retains responsibility for it. See Walker
v. Braus, 995 F.2d 77, 81 (5th Cir. 1993).
of the vehicles on the Vessel were damaged in the fire, and the Vessel itself was
declared a total loss. Id. ¶¶ 73–74.
Eleven firefighters who were injured in the explosion on the Vessel sued
multiple defendants, including both Grimaldi and SSA. Id. ¶ 83. Shortly before
trial, the firefighter plaintiffs settled their claims against SSA and Grimaldi.
Id. Grimaldi also faced claims for loss or damage to the vehicles that were on
board the Vessel and claims from the Vessel’s owner. Id. ¶¶ 100, 101–103.
Grimaldi ultimately settled these claims as well. Id.
Grimaldi now brings a breach of contract action against SSA, seeking to
recover “contribution and/or indemnity” for the expenses Grimaldi incurred in
defending against and settling the claims asserted against it. See id. ¶¶ 104,
105. According to Grimaldi, SSA failed to properly disconnect numerous
batteries, secure disconnected cables, and cap the battery posts in vehicles
loaded aboard the Vessel. Id. ¶¶ 29, 32. Grimaldi contends that the fire was
caused, in whole or in part, by SSA’s failure to properly load, stow, and secure
the cargo in a workmanlike manner and in accordance with the stevedoring
contract. Id. ¶ 108.
II. Legal Standard
In ruling on a motion to dismiss, the Court must accept the factual
allegations set forth in the complaint as true. See Ashcroft v. Iqbal, 556 U.S.
662, 678 (2009); Swierkiewicz v. Sorema N.A., 534 U.S. 506, 508 n.1 (2002); see
also Lotierzo v. Woman’s World Med. Ctr., Inc., 278 F.3d 1180, 1182 (11th Cir.
2002). In addition, all reasonable inferences should be drawn in favor of the
plaintiff. See Randall v. Scott, 610 F.3d 701, 705 (11th Cir. 2010). Nonetheless,
the plaintiff must still meet some minimal pleading requirements. Jackson v.
Bellsouth Telecomm., 372 F.3d 1250, 1262–63 (11th Cir. 2004) (citations
omitted). Indeed, while “[s]pecific facts are not necessary[,]” the complaint
should “‘give the defendant fair notice of what the . . . claim is and the grounds
upon which it rests.’” Erickson v. Pardus, 551 U.S. 89, 93 (2007) (per curiam)
(quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007)).
Further, the plaintiff must allege “enough facts to state a claim that is
plausible on its face.” Twombly, 550 U.S. at 570. “A claim has facial plausibility
when the pleaded factual content allows the court to draw the reasonable
inference that the defendant is liable for the misconduct alleged.” Iqbal, 556
U.S. at 678 (citing Twombly, 550 U.S. at 556). A “plaintiff’s obligation to provide
the grounds of his entitlement to relief requires more than labels and
conclusions, and a formulaic recitation of the elements of a cause of action will
not do[.]” Twombly, 550 U.S. at 555 (internal quotations omitted); see also
Jackson, 372 F.3d at 1262 (explaining that “conclusory allegations,
unwarranted deductions of facts or legal conclusions masquerading as facts will
not prevent dismissal”) (internal citation and quotations omitted). Indeed, “the
tenet that a court must accept as true all of the allegations contained in a
complaint is inapplicable to legal conclusions[,]” which simply “are not entitled
to [an] assumption of truth.” See Iqbal, 556 U.S. at 678, 680. Thus, in ruling on
a motion to dismiss, the Court must determine whether the complaint contains
“sufficient factual matter, accepted as true, to ‘state a claim to relief that is
plausible on its face[.]’” Id. at 678 (quoting Twombly, 550 U.S. at 570).
III. Discussion
In the Amended Complaint, Grimaldi brings one claim for breach of
contract and/or breach of implied warranty of workmanlike performance
(Warranty) against SSA. See Amended Complaint ¶¶ 105–109. In the Motion,
SSA seeks dismissal of the Amended Complaint, arguing, amongst other things,
that Grimaldi, as a time charterer, cannot avail itself of the Warranty.3 See
Motion at 20–22. As discussed below, while the Warranty is implied in the
contract between Grimaldi and SSA, Grimaldi does not have a contractual right
to indemnification under the Warranty. Because Grimaldi cannot recover the
3 Among its other arguments, SSA contends that the Amended Complaint is due to be
dismissed because Grimaldi failed to perfect service of process within 90 days of initiating this
action. See Motion at 12–16. It is undisputed that Grimaldi failed to properly serve SSA within
90 days as required by Rule 4(m) of the Federal Rules of Civil Procedure (Rule(s)). See Motion
at 12; Response at 4. However, on February 21, 2025, the Court extended the deadline for
Grimaldi to effect and file proof of proper service on SSA. See Order (Doc. 11) (extending the
deadline to March 21, 2025). Grimaldi complied with this court-ordered deadline. See Return
of Service (Doc. 12), filed on March 3, 2025. As such, the Amended Complaint is not due to be
dismissed for failure to serve process in accordance with Rule 4(m). See Rule 4(m); Horenkamp
v. Van Winkle and Co., 402 F. 3d 1129, 1132 (11th Cir. 2005) (holding that “Rule 4(m) grants
discretion to the district court to extend time for service of process even in the absence of a
showing of good cause.”); Henderson v. U.S., 517 U.S. 654, 663 (1996) (noting that complaints
are not due to be dismissed if served “within such additional time as the court may allow.”).
only damages it seeks, Grimaldi’s claim for breach of contract fails to state a
cause of action and must be dismissed.
To adequately allege a claim for breach of contract, a plaintiff must allege
the existence of 1) a valid contract, 2) a material breach, and 3) damages. See
Sweet Pea Marine, Ltd. v. APJ Marine, Inc., 411 F.3d 1242, 1249 (11th Cir.
2005). In the Amended Complaint, Grimaldi pleads both (1) the existence of a
valid contract between itself and SSA and (2) SSA’s breach of that contract. See
Amended Complaint ¶¶ 18, 29. But in alleging its damages resulting from SSA’s
breach, Grimaldi seeks only “contribution and/or indemnity from SSA” for
settlement payments and litigation expenses it incurred in defending itself
against claims brought by the firefighters, the vehicle owners, and the Vessel’s
owner. See id. ¶¶ 99–104. Grimaldi alleges no other damages apart from
indemnification for claims asserted by other parties. See id. Yet, the contract
between Grimaldi and SSA does not expressly provide for a right to
indemnification. See Exhibit A (Doc. 22-1) at 2–3, filed on April 10, 2025. As
such, whether Grimaldi states a claim for relief depends on whether it has an
implied right to indemnity under the contract.
Under Ryan Stevedor. Co. v. Pan-Atl. Steam. Corp., 350 U.S. 124 (1956),
maritime service contracts include “the implied promise to perform those
services with reasonable care, skill, and safety.” See Vierling v. Celebrity
Cruises, Inc., 339 F.3d 1309, 1315 (11th Cir. 2003). A breach of this Warranty
can give rise to a contractual right to indemnity. See, e.g., id. at 1320 (holding
that a shipowner was entitled to indemnity if the trier of fact found that the
port authority breached its warranty of workmanlike performance and that the
breach caused the shipowner’s injury). But it does not always. See, e.g., Smith
& Kelly Co. v. S/S Concordia TADJ, 718 F.2d 1022, 1028 (11th Cir. 1983)
(declining to extend Ryan indemnity to controversies involving seamen injured
at sea); Agrico Chem. Co. v. M/V Ben W. Martin, 664 F.2d 85, 92 (5th Cir. 1981)
(“The duty of workmanlike performance arises out of the stevedoring contract,
but it does not automatically imply that the stevedore owes the owner
indemnity against all liability under all circumstances.”). “The Ryan doctrine
thus includes two facets: an implied undertaking by a stevedore to render
workmanlike performance and the stevedore’s duty to indemnify the owner for
liability arising out if its breach of the duty.” See Agrico Chem. Co., 664 F.2d at
93.
Ryan’s indemnity doctrine is a judicial creation that was “intended to ease
the shipowner’s burden of absolute liability stemming from the doctrine of
unseaworthiness.” See Campbell Indus., Inc. v. Offshore Logistics Int'l, Inc., 816
F.2d 1401, 1404 (9th Cir. 1987). Under the doctrine of unseaworthiness, a
shipowner was held strictly liable to longshoremen who were injured due to the
vessel’s unseaworthy condition. See Smith & Kelly Co., 718 F.2d at 1025. To
mitigate the potential for unfairness created by this doctrine, under Ryan,
shipowners were permitted to procure indemnity from an independent
contractor whose activities caused the vessel’s unseaworthiness. See id. The
Court reasoned that liability in such cases “should fall on the party best situated
to adopt preventative measures and thereby reduce the likelihood of injury.”
See id. (citing Italia Societa per Azioni di Navigazione v. Oregon Stevedoring
Co., 376 U.S. 315, 324 (1964)).
Following Ryan, courts began to extend its indemnity principle to new
factual scenarios, applying it beyond just contracts involving stevedores and
longshoremen. See id. at 1026 (collecting cases). However, this expansion
“began to ebb when, in 1972,” Congress amended the Longshoremen’s Harbor
Workers’ Compensation Act, 33 U.S.C. § 901 et seq. (LHWCA). See Smith &
Kelly Co., 718 F.2d at 1026. In doing so, Congress abrogated Ryan, prohibiting
longshoremen from bringing seaworthiness suits against vessel owners and
prohibiting vessel owners from collecting indemnity from stevedores based on
the Warranty. See id. Since then, courts have been reluctant to extend Ryan
indemnity to new factual situations. See, e.g., id. at 1028 (declining to extend
Ryan indemnity to controversies involving seamen injured at sea); Gator
Marine Serv. Towing, Inc. v. J. Ray McDermott & Co., 651 F.2d 1096, 1100 (5th
Cir. 1981) (describing the Ryan doctrine as “withered” and declining to extend
it to disputes between vessels and stevedores over damaged cargo).4
Here, SSA contracted with Grimaldi to provide stevedoring services on
the Vessel. See Amended Complaint ¶ 18. As such, SSA had a duty to perform
these services with “reasonable care, skill, and safety.” See Vierling, 339 F.3d
at 1315. To the extent it failed to do so, SSA breached the warranty of
workmanlike performance implied in every maritime service contract. As such,
Grimaldi can pursue a breach of contract claim based on a breach of this implied
warranty, but a breach of the Warranty does not automatically entitle Grimaldi
to indemnification under Ryan. Rather, Grimaldi is not entitled to Ryan
indemnity because this case falls far “beyond those controversies involving the
special rules governing the obligations and liability of shipowners which
necessitated [Ryan indemnity] and justify its application.” See In re Dearborn
Marine Serv., Inc., 499 F.2d 263, 287 (5th Cir. 1974) (internal quotation marks
omitted). First, Grimaldi was the time charterer of the Vessel, not the owner.
See Amended Complaint ¶ 3. A time charter does not involve transfer of
possession or control of a vessel; instead, the owner of the vessel fully equips
and maintains the vessel and retains responsibility for it. See Walker v. Braus,
995 F.2d 77, 81 (5th Cir. 1993). No obligation to provide a seaworthy vessel is
4 In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981) (en banc), the
Eleventh Circuit adopted as binding precedent all the decisions of the former Fifth Circuit
handed down prior to the close of business on September 30, 1981.
imposed upon a time charterer who assumes no operational control of a vessel.
See Stranahan v. A/S Atlantica & Tinfos Papirfabrik, 521 F.2d 700, 703 (9th
Cir. 1975). Consequently, “the policy reasons behind judicial creation of the
implied warranty on behalf of the shipowner are absent where a time-charterer
is involved.” Id. As such, a time charterer, like Grimaldi, does not have an
implied right to indemnity against a stevedore under the Warranty.5 See id.
Second, unlike Ryan and its progeny, many of the claims for which
Grimaldi seeks indemnity for relate to property damage, not personal injuries.
See Amended Complaint ¶¶ 100, 102. Even if Grimaldi could recover indemnity
under the Warranty as a time charterer, Grimaldi is not entitled to Ryan
indemnity for these types of claims. See Gator Marine Serv. Towing, Inc., 651
F.2d at 1100 (“Disputes between vessels and stevedores over damaged cargo are
best accommodated by a straightforward application of the usual maritime
comparative fault system”); Cont'l Grain Co. v. Puerto Rico Mar. Shipping
Auth., 972 F.2d 426, 439 (1st Cir. 1992) (“[W]e deem it improvident to apply the
warranty liability created by Ryan to property damage claims against
5 The Court notes that the Fifth Circuit has held that a time charterer who was sued
directly by a libellant could receive the benefit of Ryan indemnity. See D/S Ove Skou v. Hebert,
365 F.2d 341, 352 (1966). However, this decision was rendered before Congress amended the
LHWCA in 1972 and before the courts, including the Fifth Circuit, receded from extending
Ryan indemnity “beyond those controversies involving the special rules governing the
obligations and liability of shipowners which necessitated its formulation and justify its
application.” In re Dearborn Marine Serv., Inc., 499 F.2d at 287 (internal quotation marks
omitted).
stevedoring contractors”). As a result, Grimaldi is not entitled to Ryan
indemnity for claims stemming from damage to the vehicles loaded on board
the Vessel or from damage to the Vessel itself.
For similar reasons, even if Grimaldi could recover Ryan indemnity as a
time charterer, Grimaldi is not entitled to indemnification for the firefighters’
personal injury claims. Unlike Ryan and its progeny, this case does not stem
from a typical pier-side accident. And the doctrine of unseaworthiness does not
apply where, as here, maritime rescuers board a vessel with knowledge of and
the specific intent to address the vessel’s unseaworthy condition. Compare
McDaniel v. the M/B Lisholt, 180 F. Supp. 24, 26–27 (S.D.N.Y. 1959) (holding
that a fireman was not entitled to a warranty of seaworthiness because he was
not engaged in work traditionally done by seamen and entered the vessel only
after it was obviously unseaworthy), aff'd sub nom. McDaniel v. The Lisholt,
282 F.2d 816 (2d Cir. 1960); with Complaint of Garda Marine, Inc., No. 88-2282-
CIVHIGHSMITH, 1992 WL 321213, at *9 (S.D. Fla. Apr. 23, 1992) (holding that
the warranty of seaworthiness applied to first responders because they were
unaware of the ship’s unseaworthy condition and did not enter the vessel
because of its unseaworthy condition), aff'd sub nom. In re Garda Marine, 9
F.3d 1558 (11th Cir. 1993). Notably, the firefighters directly sued the Vessel’s
owner, as well as Grimaldi and the contractors involved in loading the vehicles
onto the Vessel, including SSA. See Jolly et al. v. Hoegh Autoliners Shipping
AS et al., No. 3:20-cv-1150-MMH-MCR (M.D. Fla.). Indeed, the firefighters sued
each party for its respective negligence in causing the explosion. See id. No
party faced strict liability for the firefighters’ injuries. As such, the original
justification for Ryan indemnity does not apply here, and Ryan indemnity is
therefore inappropriate.6
Moreover, application of comparative fault in these circumstances best
advances the goals underpinning the Ryan doctrine. “Ryan was in large part
aimed at enhancing safety by placing liability on the party best able to avoid
accidents and encouraging that party to take precautionary measures.” See
Smith & Kelly Co., 718 F.2d at 1028. Where a fire accelerates out of control on
a vessel and necessitates aid from first responders, all parties involved are in a
position to mitigate or prevent potential injuries to the first responders. For
example, the vessel’s owner can ensure that the ship is properly equipped with
safety supplies and reasonable systems and protections for fires, the time
charterer can implement proper loading procedures and policies designed to
reduce the risk of fires, and the stevedore can exercise reasonable care in
6 The Court notes that Ryan indemnity may be appropriate in some circumstances
where the doctrine of unseaworthiness does not apply. See Vierling, 339 F.3d at 1319
(extending the Ryan indemnity doctrine to injuries sustained by passengers while boarding a
ship because a shipowner owes a high duty of care to passengers as a common carrier and it
would make no sense to apply Ryan indemnity to seamen but not to passengers who are hurt
as a result of the same accident). However, here, unlike in Vierling, there is no risk of having
“different rules for different people who are injured under the same circumstances.” See id.
The circumstances under which a first responder enters a vessel to address an unseaworthy
condition are vastly different from those of a seaman or passenger who enter a ship without
even the slightest knowledge of the dangers on board.
loading cargo on the vessel. As such “[a]voidance of future accidents can be best
achieved by interesting [all] parties in greater care.” See id. at 1029, 1030 (also
noting that “[t]he clear trend in maritime cases is to reject all-or-nothing or
other arbitrary allotments of liability in favor of a system that divides damages
on the basis of the relative degree of fault of the parties.”).
For all of the foregoing reasons, Grimaldi is not entitled to Ryan
indemnity under the implied warranty of workmanlike performance. Because
Grimaldi pleads no other damages, Grimaldi’s breach of contract claim fails to
state a cause of action and must be dismissed.
Accordingly, it is
ORDERED:
1. Defendant SSA Atlantic, LLC’s Motion to Dismiss Amended Complaint
(Doc. 24) is GRANTED.
2. Plaintiffs Amended Complaint (Doc. 22) is DISMISSED.
3. The Clerk of the Court is directed to terminate all pending motions and
deadlines as moot and close the file.
DONE AND ORDERED in Jacksonville, Florida this 17th day of October
2025.
United States District Judge
Lc35
Copies to:
Counsel of Record