Punitive Damages In Maintenance And Cure Cases

On June 25, 2009, the Supreme Court of the United States, in the case of Atlantic Sounding Co., Inc. v. Townsend, affirming the Eleventh Circuit Court of Appeals, held that in an appropriate case, punitive damages remain an available remedy under the general maritime law for a failure to provide maintenance and cure. In a 5-4 decision, with the Opinion of the Court written by Justice Thomas, the Court held that where a vessel owner has demonstrated a "willful and wanton disregard of the maintenance and cure obligation", punitive damages are an available remedy.

Of course, maritime lawyers have long advised their clients that they withhold maintenance and cure payments at their peril. In 1962, the U.S. Supreme Court in Vaughn v. Atkinson, had upheld an award of attorney's fees to a seaman where the shipowner was "callous", "willful", and "persistent" in its refusal to pay maintenance and cure. Thereafter, several lower courts had specifically held that punitive