In a maritime claim under the Shipowners' Liability Act, claimant's award for future pain and suffering had to be reduced to its present value. The Doca discount rate of two percent was a reasonable representation of the present value of the claimant's
IN THE MATTER OF THE COMPLAINT OF DELMARINE, INC., AS OWNER OF A CERTAIN 1973 18' SIGNA BOWRIDER FOR EXONERATION FROM OR LIMITATION OF LIABILITY.
UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW YORK
2008 U.S. Dist. LEXIS 9216
February 1, 2008, Decided
PROCEDURAL POSTURE: Claimants, husband and wife, collided with another boat and the wife was injured. The owner of the boat commenced a maritime claim under the limitations of Shipowners' Liability Act, 46 App. U.S.C.S. § 181 et seq., now 46 U.S.C.S. § 30503 et seq. The court found the boat's operator 85 percent liable and the husband 15 percent liable. Before the court was, inter alia, the issue of reducing the wife's future damages award to present value. OVERVIEW: Claimant wife was awarded $ 750,000 for her injuries and pain and suffering, $ 500,000 for future pain and suffering, and $ 23,422.10 for past medical expenses. The court noted that the award for future pain and suffering had to be reduced to its present value. The determination of the appropriate discount rate was discretionary with the court. Claimant wife argued that the court should discount her award for future pain and suffering by two percent pursuant to the U.S. Court of Appeals for the Second Circuit's decision in Doca. The owner and the operator argued that based on current market information a discount rate of 4.15 percent would reasonably represent a conservative long-term investment. The court held that the Doca discount rate of two percent was a reasonable representation of the present value of the claimant's award for future pain and suffering. Here, the parties had stipulated that if the court applied the two percent Doca discount rate, the present value of claimant wife's $ 500,000 future pain and suffering was $ 347,898. OUTCOME: The court ordered that the clerk of the court was directed to enter final judgment in favor of claimant wife against the boat operator in the amount of $ 953,122. The court ordered that the owner and operator disclose the remaining policy limits of their insurance coverage.
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