City of Chicago v. M/V Morgan
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DMC/SandT/04/53 The United States Court of Appeals for the Seventh Circuit recently affirmed a decision of the District Court for the Northern District of Illinois holding that a shipowner failed to rebut the Oregon Rule by failing to demonstrate that (1) the allision (i.e., the striking of a stationary object by a moving vessel) was the sole fault of the stationary object, (2) the vessel acted reasonably, or (3) the allision was the result of an inevitable accident. The Oregon Rule creates a presumption of fault against a vessel moving under its own power that strikes a stationary object. In addition, the Seventh Circuit affirmed the District Court’s 50/50 apportionment of liability between the parties on the grounds that the plaintiff bridgeowner had failed to take adequate precautions to prevent the accident. DMC Rating Category: Developed This case note was contributed by Matthew H. James, an attorney with Healy & Baillie, LLP, in New York. Healy & Baillie are the International Contributors to the website for the USA Discussion Judgment The Appellate Court concluded its analysis by affirming the District Court’s determination that due to the lack of the fendering system on the bridge, the installation of which could have been accomplished at minimal cost in comparison to the significant risk resulting from its absence, the plaintiff’s damages should be reduced by 50%. The court dismissed the defendant’s argument that the plaintiff should be 100% liable for the damage as to so hold would effectively absolve the vessel of liability regardless of its negligence. The Appellate Court thus accepted the lower court’s conclusion that the lack of prudence of both parties in avoiding the accident warranted an equal apportionment of damages. |
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