Stewart et al v. Lester J. Plaisance, Inc. et al, E.D.La. February 27, 2011

The Eastern District of Louisiana (Judge Berrigan) held that a charterer could be found negligent for a defective condition onboard a vessel that causes injury despite the charterer not having operational control at the time of the accident.  In Stewart et al v. Lester J. Plaisance Inc., et al, Lester J. Plaisance Inc., the owner of a vessel, entered into a bareboat charter agreement with Global Oilfield Contractors L.L.C. (“Global”).  Global in turn sub-chartered the vessel in another bareboat charter agreement to Grand Isle Shipyard, Inc. (GIS).  Three men onboard the vessel were injured in an allision due to an alleged throttle malfunction.

Global filed a Motion for Summary Judgment requesting the Court find it was not liable for the unseaworthiness of the defective throttle because it did not have operational control at the time the alleged unseaworthy condition was created or when the accident occurred.  Global further argued it was not responsible for the operational negligence of the vessel because operational control was transferred to GIS prior to the accident.  Plaintiffs argued Global knew or should have known of the defective throttle prior to commencing operations, pointing to evidence showing the vessel was in need of service three weeks prior to entering into the charger and prior to the accident.  Plaintiffs further argued the vessel’s throttle light was illuminated prior to the accident.

The Court agreed that Global had transferred operational control to GIS prior to the accident. However, the Court pointed out the timing issue of Global’s alleged knowledge of the defective throttle, stating this was an important factor for consideration.  Even if Global was not in operational control of the vessel at the time of the accident, the Court stated liability may derive from its involvement at the time the condition was created or in the event that condition was not brought into play by the negligence of the sub-charterer.

Stewart v Lester J Plaisance Inc 10-04016

Author: Leigh Anne Gilchrist