Plaintiffs, crew members of a vessel, appealed a judgment of dismissal by the Superior Court of San Diego County (California) after the trial court sustained the demurrer of defendants, manufacturers of the vessel, without leave to amend.
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Overview
Plaintiffs, crew members of a fishing vessel, brought an action against defendant manufacturers seeking money damages for lost earnings during a period while the vessel was being repaired. The trial court sustained defendants’ demurrer without leave to amend. On appeal, the court considered whether, under either California or federal admiralty law, crew members might recover from a vessel manufacturer for purely economic loss caused by the manufacturer’s non-intentionally tortious construction of a defective product. Under California law, in actions for negligence, a manufacturer’s liability was limited to damages for physical injuries and there was no recovery for economic loss alone. However, admiralty jurisdiction was present, and such recovery was possible under federal law. On that basis, the demurrer should not have been sustained as to the negligence counts of the complaint. With respect to the other causes of action, the court found that an allegation of breach of an express warranty stated a cause of action and that the complaint could have been amended to show a contract basis for recovery. Another count of the complaint was properly dismissed as duplicative.
Outcome
The judgment of the lower court was affirmed in part with respect to the dismissal of a duplicative cause of action. The judgment with respect to the other causes of action was reversed because they showed, or could be amended to show, a valid basis for recovery.