Barber Lines v. Donau Maru

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Barber Lines v. Donau Maru, 764 F.2d (1st Cir. 1985)

Plaintiff’s ship was blocked from the harbor and had to dock somewhere else for extra expense when Defendant’s ship spilled oil into the Boston Harbor. Plaintiff sued Defendant for the extra costs it incurred. The district court denied recover on pleadings and Plaintiff appealed.

The issue facing the court of appeals was whether a Plaintiff could recover for its pure economic loss that resulted from Defendant’s conduct. The Court ruled in the negative.

The Court reasoned that even though the financial loss was foreseeable, by following the precedent and policy reasons, recovery for Plaintiff’s pure economic loss cannot be allowed. Allowing plaintiffs to recover for pure economic loss will likely make litigation an extremely expensive process and will hurt society at large through high insurance premiums. According to the court, “The number of persons suffering foreseeable financial harm in a typical accident is likely to be far greater than those who suffer traditional physical harm.” Furthermore, there are alternative methods that Plaintiff in this case could recover for the damages and the court does not need to extend the liability of Defendant.