Gallagher
Marine
Practice
Are Quarter Barges Considered Vessels
under Maritime Law?
SEPTEMBER 2014
Are Quarter Barges Considered Vessels under Maritime Law?
Maritime law had long been steeped in precedent.
However, recent rulings by the United States
Supreme Court, and subsequently, lower courts,
relating to the status of a quarter barge (many
times used to house workers) as a vessel or other
structure have flip-flopped over the past 20 years.
Most recently, it began with a 2013 United States
Supreme Court decision, in Lozman v. City of
Riviera Beach. The court held that a quarter
barge, specifically in this instance – an unpowered
floatable structure – is not a vessel for purposes
of admiralty jurisdiction. This topic has gained
the interest of the marine industry as the court
decisions continue to change. Whether a structure
is considered a vessel is an important benchmark
because the remedies available under the law to
seamen and other individuals working aboard them
are dependent upon the classification of the structure
on or in which the injury or accident occurred. For
example, the Jones
Act provides tortbased
compensation
to
an
individual
injured or sickened
while operating in the
capacity of a seamen
while working aboard,
or in connection to, a
vessel. To be covered
under the Jones Act,
the seaman must be
engaged or employed
in any capacity on
board a vessel.
The Supreme Court had previously defined
“vessel”, for the purpose of the Jones Act as,
“every description of watercraft or other artificial
contrivance used, or capable of being used, as a
means of transportation on water”. The Supreme
Court ruling in Lozman, redefined the meaning of
the term “vessel”. The Court found that in order
to determine whether an “artificial contrivance” is
a vessel, “it must determine whether a reasonable
observer, looking to the structure’s physical
2
Gallagher Marine
characteristics and activities, would consider it
designed to a practical degree for carrying people
or things over water.” The quarter barge in Lozman,
a house boat, was determined by the court to not
meet the requirements to be classified as a vessel.
Following the Lozman decision, the court in the
Eastern District of Louisiana in Martin v. FabCon, Inc. (2014), found that the quarter barge in
question was not a vessel because the barge did
not have a rudder or steering mechanism; the barge
had no means of self-propulsion and there was no
evidence that the quarter barge had carried cargo
over water; i.e., a reasonable observer would not
consider the structure as being designed for carrying
people or things over water. Interestingly enough,
the Supreme Court in deciding Lozman, looked to
the 5th Circuit’s ruling in Gremillion v. Gulf Coast
Catering Co. (1990), which had formerly held that
quarter barges were not vessels.
The determination of the structure upon which an
accident occurs is significant for many reasons, but
most importantly, the way a claim is settled for an
injured seaman is dependent upon the classification
of a quarter barge. If the quarter barge is deemed
to be a vessel, then the (tort) terms of the Jones
Act would apply in the settlement of any claim.
Additionally, the Jones Act benefits of maintenance
and cure would also apply, as would the potential
for punitive damages and wrongful death claims.
Furthermore, the plaintiff would have an easier time
proving negligence or unseaworthiness (triggered
by a vessel’s Jones Act status) against a vessel
owner or operator in a Jones Act claim. However, if
a quarter barge is not considered a vessel, the claim
would likely be governed by the less favorable
provisions of the Longshore and Harbor Workers
Compensation Act, which does not compensate
an individual for the negligence of his employer.
Additionally, the determination of whether a quarter
barge is a vessel has ramifications for insurance
coverages and pricing as well as hull financing.
We expect there will be additional court rulings
that align with Lozman.
Are Quarter Barges Considered Vessels under Maritime Law?
Takeaways:
1. Maritime employers can now safely assume
that an employee’s time spent living or working
on quarter barges will not be considered when
determining Jones Act status.
2. The Supreme Court has made the distinction
between “artificial contrivances” and “vessels.”
However, they have not provided a clear
definition but offered some guidance as to selfdetermination of an “artificial contrivances”; i.e.:
no rudder or steering mechanism; no means of
self-propulsion whatsoever; remained stationary
in location for several years; lack of any
evidence that the barge carried cargo over water;
connected to shore via gangways; spudded in
place in shallow water. Clients should take the
time to review their crews living arrangements,
to see if the Lozman guidance applies to their
circumstances as not all quarter barges will have
the same physical characteristics.
Gallagher Marine
3. The Lozman matter originally developed from
an unpaid mooring debt and the arrest of the
barge via Maritime Lien. Those who would
look to finance, arrest or post fiscal security
arrangement on what might not be “artificial
contrivances” should consider quarter barges
may be exempt from maritime lien.
4. Clients should review, with their Gallagher
insurance team, their policy which may cover
“artificial contrivances” as underwriters may
now be in a position to move these risks to/
from Hull and Machinery policies to traditional
land based property policies.
Are Quarter Barges Considered Vessels under Maritime Law? 3
Two Pierce Place
Itasca, IL 60143-3141
Gallagher
Marine
Practice
About the Gallagher Global Marine Practice
The Arthur J. Gallagher & Co. Marine Practice works with companies in the maritime industry to help
reduce risk and improve their bottom line. Our team of marine experts offers this highly specialized
industry a unique combination of expertise, individualized service and risk management consulting
that will keep your maritime operations afloat. As a leading protection and indemnity (P & I) broker
in the marine market with over 100 million gross tons entered, our spread of business encompasses
all classes of tonnage, including tankers, bulk carriers, offshore, tug and barge. We maintain a strong
regional presence in the United States, Europe, Greece and Asia.
For more information, contact:
Robert Quigley
Sr. Vice President | Marine Hull Claims Professional
o973.939.3643
[email protected]
www.ajg.com/marine
14BSD26585A