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Louisiana ex rel. Guste v. M/V. Testbank | 752 F.2d 1019 (1985)
Tort law teaches that if a party’s conduct is negligent, then the party is liable for the conduct’s consequences. But how far does that liability extend? In Louisiana ex rel. Guste versus Motor Vessel Testbank, we explore whether a negligent party is liable for another’s purely economic harm.
When two ships, the motor vessel Sea Daniel and the motor vessel Testbank, collided on the Mississippi River Gulf outlet, cargo from the Testbank fell overboard, releasing twelve tons of pentachlorophenol, or PCP, into the water. While containing and cleaning up the spill, the United States Coast Guard closed the waterway for almost twenty days and suspended fishing, shrimping, and crabbing in adjacent waterways and marshes within four hundred square miles.
Various negatively impacted parties filed suits for damages against the Testbank and her owners, alleging unintentional maritime tort. The complaining parties included commercial fishermen, who regularly worked on the impacted waterways, as well as seafood-related businesses, boat-rental companies, tackle shops, shippers, and recreational fishermen. The cases were consolidated, and the Testbank parties moved for summary judgment against any claims based on purely economic losses, arguing that damages for such losses couldn’t be recovered for unintentional maritime torts.
The district court agreed with the Testbank parties and granted summary judgment against all claims except those involving commercial-fishing interests, which the court determined were entitled to special protection. The parties negatively impacted by summary judgment appealed. A panel of the Fifth Circuit originally affirmed, but the court subsequently granted review en banc.
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