Share on LinkedInShare on LinkedIn

ARTICLE · 21 MARCH 2014

If You Want Contribution, Get The Third Party Released

The maritime version of "Murphy’s Law" can be a potential trap for participants in maritime tort litigation.

United StatesTransport

The maritime version of "Murphy's Law" can be a potential trap for participants in maritime tort litigation. The decision of the 11th Circuit Court of Appeals in Murphy v. Florida Keys Electric Co-op Assoc., Inc., 329 F.3rd 1311 (11th Cir. 2003) enunciated the rule that in order to preserve the right to pursue third parties for tort "contribution," a party must negotiate a release of those third parties when settling the underlying claim brought by the tort victim. The law enounced by the Murphy court was based upon the proportionate fault rule existing in the maritime law and the pro rata credit rule established by the U.S. Supreme Court in McDermott, Inc. v. AmClyde, et al., 511 U.S. 202 (1994). The logic of this version of Murphy's Law is that a settling tortfeasor is, per McDermott, deemed to have paid the tort victim only in accordance with the settlor's own proportionate share of fault. The settlement extinguishes the rights (and needs) of

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from