Admiralty Jurisdiction and Products Liability: Economic Loss

Paper by Honorable John Minor Wisdom

Products liability is strict liability in tort unfettered by notions of contractual warranty. The theory of recovery in products liability cases is important to federal courts because if a case is based on a warranty in tort and the wrong occurs at sea or on navigable waters of the United States, there is admiralty jurisdiction over the case and the general maritime law applies. On the other hand, if recovery is based on an express or implied warranty in a contract of sale that is not a maritime contract, there is no admiralty jurisdiction, and the state law of the forum applies. There are a great many contracts affecting shipping that a landlubber, such as the author, might think of as maritime but are traditionally considered as not within admiralty jurisdiction. For example, neither a contract for the building and sale of a vessel nor one for services or repairs to a vessel laid up and out of navigation is a maritime contract.


About the Author

Honorable John Minor Wisdom. Senior Judge, United States Court of Appeals for the Fifth Circuit.

Citation

62 Tul. L. Rev. 325 (1988)