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2 Int'l L. Update 1 (1996)

handle is hein.journals/intlwup2 and id is 1 raw text is: A monthly report on international legal developments affecting the United States
Iuterrnational LaW uydate
Editors: Professor John R. Schmertz, Jr., Georgetown University Law Center, and Mike Meier, Esq.

January 1996

In en banc opinion in case involving
injury on oil rig in waters of United Arab
Emirates, Fifth Circuit resolves jurisdictional
and  choice-of-law  issues  and  ponders
abandonment of joint and several liability in
maritime tort cases (Page 1)
ow First Circuit rules on whether either New
York Convention or Title 9 precludes
judicial stay of International Chamber of
Commerce Court of Arbitration award to
allow arbitral consideration of plaintiffs
setoff claims against Swedish parties (Page 3)
In light of Chapter 15 of NAFTA, Canada
and United States agree better to coordinate
enforcement of respective competition laws
and  laws   against deceptive  marketing
practices (Page 4)
aw In case of first impression, Ninth Circuit
rules on whether First Amendment applies to
actions of Australian citizen who played
within U.S. third parties' videotape that
allegedly defamed public figure (Page 5)
aw U.S. government issues rule dealing with
international  exchange  of  confidential
information  on  FDA-regulated  products
(Page 6)
Bw Fifth Circuit rules on whether plaintiff can
sue the United States under the FTCA for
conversion of Adolf Hitler's paintings (Page
9)

ADMIRALTY

In divided en banc opinion, Fifth
Circuit rules that it had admiralty
jurisdiction over injury on oil rig in
foreign   waters,   and   that   federal
maritime law, not foreign law, should
govern; Court also declines invitation
to adopt modified joint liability for
federal maritime tort law
Maritime Industrial Services (MIS) is a
corporation of one of the United Arab Emirates
(UAE). Using foreign employees, it specializes
in repairing vessels and offshore oil rigs. On a
recruiting trip to Mississippi from UAE, an MIS
agent hired Earl Coats, a Mississippi domiciliary,
for an indefinite term beginning in December
1987. While doing an unfamiliar pressure test on
a U.S. flag jack-up rig (Rig 69) moored in UAE
territorial waters, Coats severely injured his knee.
Penrod  Drilling  Corporation, a  Delaware
corporation headquartered in Texas, owned the
rig and had contracted for the test.
In April 1989, Coats sued MIS and Penrod in
a Mississippi federal court based on diversity and
admiralty  jurisdiction,  alleging  Penrod's
negligence and the unseaworthiness of Rig 69.
Coats later added a claim for compensatory and
punitive damages against MIS for failing to
provide maintenance and cure. Penrod cross-
claimed  against MIS  for indemnity  and
contribution. After the judge dismissed the
punitive damages claim, the jury awarded Coats
$925,000 and assigned fault as follows: 20% to
Coats, 20% to Penrod and 60% to MIS.
Applying U.S. maritime law, the court entered

© 1996 Transnational Law Associates, LLC. All rights reserved.

Vol. 2

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