Albina Engine & Machine Works v. American

At Portland in the Willamette River on April 7, 1955, during fire drill on appellees ship, the Java Mail, a lifeboats pelican hook became disconnected from the link on the falls lowering the boat. Thus, the lifeboat, out of control, plunged to the river injuring two seamen of the ships crew. The accident was caused by the point of the hook in the lifeboat being worn short or because of inadequate, defective or out of repair guards on the hook which permitted the link to become disengaged. Asserting diversity of citizenship and the requisite amount in controversy, American Mail sought and obtained judgment of the district court full indemnity from Albina, a ship repair company, for the amounts it had to pay the seamen, as well as damage to the lifeboat.