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- NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
- being done in connection with this case, at the time the opinion is issued.
- The syllabus constitutes no part of the opinion of the Court but has been
- prepared by the Reporter of Decisions for the convenience of the reader.
- See United States v. Detroit Lumber Co., 200 U. S. 321, 337.
-
- SUPREME COURT OF THE UNITED STATES
-
- Syllabus
-
- CITY OF MILWAUKEE v. CEMENT DIVISION,
- NATIONAL GYPSUM CO., et al.
- certiorari to the united states court of appeals for
- the seventh circuit
- No. 94-788. Argued April 24, 1995-Decided June 12, 1995
-
- After a ship owned by the Cement Division of National Gypsum Co.
- and insured by the other respondents sank in a winter storm while
- berthed in a slip owned by petitioner Milwaukee (City), National
- Gypsum brought this admiralty suit for damages, alleging that the
- City had negligently breached its duty as a wharfinger. The City
- denied fault and filed a counterclaim for damage to its dock, alleg-
- ing that National Gypsum was negligent in leaving the ship virtual-
- ly unmanned. During the course of the litigation, the District
- Court, inter alia, found that both parties were negligent and appor-
- tioned liability primarily to National Gypsum; entered a partial
- judgment for the stipulated amount of respondents' damages, exclud-
- ing prejudgment interest; and denied respondents' request for such
- interest, holding that the fact that National Gypsum's loss was
- primarily attributable to its own negligence and the existence of a
- genuine dispute over the City's liability were special circumstances
- justifying a departure from the general rule that prejudgment
- interest should be awarded in maritime collision cases. The Court
- of Appeals disagreed and reversed the latter ruling, holding, among
- other things, that mutual fault cannot provide a basis for denying
- prejudgment interest after this Court, in United States v. Reliable
- Transfer Co., 421 U. S. 397, announced a rule requiring that dam-
- ages be assessed on the basis of proportionate fault when such an
- allocation can reasonably be made.
- Held: Neither a good-faith dispute over liability nor the existence of
- mutual fault justifies the denial of prejudgment interest in an
- admiralty collision case. Throughout history, such cases have
- established a general rule that prejudgment interest should be
- awarded, subject to a limited exception for ``peculiar'' or ``excep-
- tional'' circumstances. The existence of a legitimate difference of
- opinion on the liability issue is not such a circumstance, but is
- merely a characteristic of most ordinary lawsuits. Nor does the
- magnitude of the plaintiff's fault qualify as a ``peculiar'' feature.
- Although it might appear somewhat inequitable to award a large
- sum in prejudgment interest against a relatively innocent party, any
- unfairness is illusory, because the relative fault of the parties has
- already been taken into consideration under the Reliable Transfer
- rule in calculating the amount of the loss for which the relatively
- innocent party is responsible. In light of Reliable Transfer, a denial
- of prejudgment interest on the basis of mutual fault would unfairly
- penalize a party twice for the same mistake. Pp. 5-11.
- 31 F. 3d 581, affirmed.
- Stevens, J., delivered the opinion of the Court, in which all other
- Members joined, except Breyer, J., who took no part in the consider-
- ation or decision of the case.
-