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Frank R. McMAHON, Appellant, v. PAN AMERICAN WORLD AIRWAYS, INC., and United States of America, Appellees

United States Court of Appeals for the Fifth Circuit1962-01-02No. No. 19053
297 F.2d 268

Summary

Holding. The court affirmed the dismissal of McMahon's overtime wage claim based on laches, finding he failed to overcome the presumption of prejudice arising from filing suit more than one year after his cause of action accrued under Florida law.

Frank McMahon, a former employee of Pan American World Airways working on a U.S.-owned vessel, filed suit in March 1959 seeking unpaid overtime wages and damages for wrongful discharge, claiming he was discharged in August 1957. The defendants raised laches—unreasonable delay in bringing suit—as a defense. The trial court initially dismissed only the overtime wage claim without prejudice, allowing McMahon to amend, but dismissed the entire complaint with prejudice after trial in December 1960 when McMahon failed to address the laches defense. McMahon appealed only the dismissal of his overtime wage claim.

In admiralty cases involving the United States, laches serves as a flexible time limit for bringing suit. However, when an action is filed after the analogous state statute of limitations would have expired, the plaintiff bears the burden of proving the delay was excusable and that the defendant suffered no prejudice. Here, Florida's statute of limitations for overtime wage claims was one year, yet McMahon waited nearly two years from his August 1957 discharge to file suit in March 1959. The court found McMahon failed to present any evidence or argument excusing this delay or demonstrating the defendants were unharmed, and the trial judge properly dismissed the wage claim based on the undisputed dates in the pleadings.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Application of laches doctrine in admiralty actions against the United States
  • Burden of proof when suit is filed after analogous state statute of limitations expires
  • Whether plaintiff adequately excused delay in bringing maritime employment claim

Procedural posture

McMahon appealed the trial court's dismissal with prejudice of his overtime wage claim following trial on the remaining claims in December 1960.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

SIMPSON, District Judge.

Frank R. McMahon filed a libel in personam against Pan American World Airways and the United States of America, claiming that he had been an employee of Pan American, working on a vessel owned by the United States, and asking damages for unpaid overtime wages and for wrongful discharge. The libel was filed on March 24,1959, and contained an allegation that appellant had been discharged on August 24, 1957.

Respondents, in their answer, raised laches on the part of the libelant as a defense, alleging prejudice to them from his unreasonable delay in bringing his action, and moved for dismissal on that ground.

The District Court, on July 21, 1959, granted the respondents’ motion to dismiss as to paragraph six (6) of the libel (the claim for overtime wages) but without prejudice and with leave for libelant to amend. The remainder of the complaint was not dismissed. Libelant made no amendment to his complaint. Trial was held on the remaining issues on December 14,1960. The trial judge granted respondents’ motion to dismiss the entire complaint with prejudice after hearing the libelant’s evidence and entered final decree to that effect on December 14, 1960.

Libelant, in his brief, challenges only the dismissal of his claim for overtime wages by reason of laches. We affirm the action of the District Judge.

The United States, as sovereign, may be sued only with its consent. Title 46 U.S.C.A. §. 742, provides that a libel in personam may be brought against the United States in cases where that action could be maintained against the owner of the vessel if that vessel were privately owned. This gives a libelant no greater right against the United States than he would have against a private party. The Government is entitled to all limitations of liability available to private owners of vessels. Title 46 U.S.C.A. § 746.

Congress has further limited the rights to bring a libel in personam against the United States. No such action may be brought more than two years after the cause of action arises. Title 46 U.S.C.A. § 745. This section provides an added limitation in favor of the United States and gives no added rights to a libelant. Mejia, et al v. United States, 152 F.2d 686 (5 C.A., 1945), cert. denied 328 U.S. 682, 66 S.Ct. 1366, 90 L.Ed. 1632. If libelant’s laches would have barred his action against a private party, suit against the United States is barred.

Laches is a flexible measure of the time within which an admiralty action must be brought. No specific time limit is set. Where there has been no inexcusable delay in seeking a remedy and where no prejudice to the respondent has ensued from the mere passage of time, there should be no bar to relief. Gardner v. Panama R. Co., 342 U.S. 29, 31, 72 S.Ct. 12, 96 L.Ed. 31 (1951).

This does not mean that a libel-ant is never foreclosed from recovery by reason of his delay in bringing suit. The Admiralty Court must exercise discretion in deciding whether the suit is barred. The Federal Court sitting in Admiralty will be guided in setting a time limit by the analogous statute of limitations of the state where the cause of action arose. Oroz v. American President Lines, Ltd., 259 F.2d 636, 639 (2 C.A., 1958) 3 Benedict on Admiralty, Sec. 463.

Where the action is brought after the analogous state statute of limitations has run, the libelant has the burden of showing that he has an excuse for delay and that respondent has not been prejudiced. Morales v. Moore-McCormack Lines, Inc., 208 F.2d 218 (5 C.A., 1953). There is a presumption that respondent has suffered by libelant’s delay in bringing suit after the state statute of limitations would have run. Vega v. The Malula, 291 F.2d 415, 416 (5 C.A., 1961).

This cause arose in the State of Florida. The Florida statute of limitations relating to claims for overtime wages is one year. F.S.A. § 95.11(7) (b). The libelant filed this action for overtime wages more than one year after his claim accrued. He alleged discharge on August 24,1957, and did not bring this action for wages accrued through that date until March 24, 1959. It was incumbent upon him to negative the presumption that respondents were prejudiced by his delay.

The District Judge, recognizing that libelant should be afforded an opportunity to overcome the presumption, dismissed the claim for wages without prejudice and with leave to amend. Libelant did not take advantage of this opportunity during the period of more than one year between the dismissal of the wage claim and trial on the other issues. Libelant filed no pleading alleging that his delay in bringing suit was excusable or that respondents were not prejudiced thereby. Absent such an allegation, the District Judge correctly concluded that the libelant’s claim for wages was barred by laches as demonstrated by the dates apparent in the pleadings. Of course, the wage claim against Pan American was barred for the same reason. The appellant has raised no other issues, and as to the issues raised, has failed to show an abuse of discretion by the District Judge in dismissing the overtime wage claim.

Affirmed.