Ondimar Transportes Maritimos v. Beatty Street Properties, Inc.: The Fifth Circuit Invalidates Maritime Tort Assignments Obtained To Seek Contribution from Unreleased Joint Tortfeasors

Recent Development by Mark A. Schlackman

Ondimar brought suit against Beatty in federal district court seeking contribution, indemnity, or tort damages under the assignment but suffered summary judgment on all three of its claims for relief. The district court held that the general maritime law's proportionate liability framework precluded Ondimar's claim for contribution or indemnity because Beatty had not been released in the settlement. For the same reasons, the court also held that the assignment was invalid. On appeal, Ondimar conceded that the general maritime law did not support its claim for contribution or indemnity. But Ondimar challenged the district court's conclusion that the assignment must also be invalid under the proportionate liability framework. The United States Court of Appeals for the Fifth Circuit held that assignments obtained during settlement for the purpose of seeking contribution from unreleased joint tortfeasors are inconsistent with proportionate liability and therefore invalid. Ondimar Transportes Maritimos v. Beatty Street Properties, Inc., 555 F.3d 184, 189, 2009 AMC 164, 170 (5th Cir. 2009).


About the Author

Mark A. Schlackman. J.D. candidate 2011, Tulane University School of Law; B.Acc. 2008, Loyola University New Orleans.

Citation

84 Tul. L. Rev. 1361 (2010)