American President Lines, Ltd. v. Marine Terminals Corp.

Defendant stevedoring company moves to dismiss a complaint for indemnity brought against it by plaintiff shipowner. Plaintiff was sued in a state court by an employee of defendant who was injured in the course of his employment while unloading one of plaintiff’s ships. The complaint in the state court consisted of allegations of negligence and of unseaworthiness of the vessel. The parties to the suit in the state court arrived at a settlement, and now plaintiff seeks recovery of the amount it paid in settlement of the injured person’s claim plus plaintiff’s expenses in connection with the state proceeding. Plaintiff seeks indemnity on the theory that the sole, active and primary cause of the injury was defendant’s negligence in proceeding with the unloading with knowledge of a dangerous condition, without notifying plaintiff or its agents.

Defendant’s motion to dismiss is based upon the contention that the action in the state court was for active negligence, and that plaintiff here is bound by the allegations of active negligence in the state proceeding because it voluntarily settled that action. Defendant cites Fidelity & Casualty Co. v. Federal Express, 6 Cir., 136 F.2d 35 ;…