Roen Salvage Co. v. Sarter

In underlying action seeking recovery by defendant-widow of individual who died after vessel owned by plaintiff capsized in Lake Superior, Dist. Ct. did not err in instant federal action by initially entering injunction that barred defendant from litigating her claim against plaintiff in any other forum, but then granting defendant’s motion pursuant to “Saving-to-Sailors Clause” in Limitation Act to allow defendant to pursue her claim in state court once defendant had agreed in instant action to limit plaintiff’s liability to $25,000, which plaintiff claimed was amount of its interest in capsized vessel. While plaintiff insisted that any action by defendant had to be litigated in federal court, there is nothing in section 30505(a) that entitles owner of vessel to have federal judge determine liability under instant circumstances, and court in Lewis, 531 U.S. 438, held that where, as here, there is only one claimant, whose claim arising out of capsized vessel does not exceed value of owner’s interest in said vessel, federal court may permit substantive claim to proceed in state court. Ct. further noted that defendant promised not to plead res judicata should plaintiff return to federal court to enforce liability limitation.