Fourth Circuit Upholds $10 Million Award to Physician Injured During Boat Demo

In an unpublished opinion released today, the U.S. Court of Appeals for the Fourth Circuit in Richmond, affirmed the judgment of the U.S. District Court/E.D. North Carolina which awarded nearly $10.4 million to a physician injured during a sea trial of a Triton 2286 center console.

The plaintiff was injured during a demo or sea-trial that took place during a small craft advisory off Beaufort, NC. An employee of Triad Marine Center was at the controls when the 22 ft boat hit a wave head on, rose into the air, and "slammed back down" causing the prospective buyer to fall and injure his ankles. At trial the injured physician claimed permanent disability from the ankle injuries and his need for continued opioid pain medication.

The District Court, at the underlying bench trial under admiralty jurisdiction, found the joint defendants (the salesman and dealer employer) negligent and awarded the Plaintiff a total verdict of $10,397,291.58, of which $3,320,995.58 was prejudgment interest. The prejudgment interest was calculated at NC's statutory interest rate for judgments of 8%, as opposed to the federal rate (which is typically applied post judgment), which is currently 0.21%.

The Court, in affirming the District Court's use of the NC-state rate for prejudgment interest upheld the lower court's discretion to look to state law "or other reasonable guideposts indicating a fair level of compensation." The Fourth Circuit noted contrary opinions from other Circuits, but affirmed the lower court's exercise of discretion in choosing the state rate. Because this opinion is not published, it does not establish precedent in the Circuit for prejudgment interest rates in maritime personal injury cases.

Ironically, the District Court will be required to utilize the statutory rate for post judgment interest, set by 28 U.S.C. 1961, which again is the minuscule rate of 0.21 %, for the period the appeal has been pending.