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United States Court of Appeals for the Second Circuit - 159 F.2d 169
Tags: Torts, Learned Hand Formula, BPL Formula
In the 1947 case United States v. Carroll Towing Co., the Second Circuit Court of Appeals dealt with a negligence claim. After a barge filled with U.S. owned flour sank when it crashed into a tanker, the barge owner sued the tug company responsible for adjusting the moorings. The tug company claimed the barge owner was partially responsible since there was no attendant on board to stop the accident.
Judge Learned Hand proposed a negligence test, considering: 1) probability of harm, 2) gravity of harm, and 3) precaution burden. The formula (B < PL) means negligence occurs if the burden of taking precautions is less than the expected harm. Using this test, the court found both parties partly liable for the incident.
The barge owner should have had an attendant on board since the burden was low compared to the potential damage, and the tug company was negligent in its moorings adjustments. This case introduced a cost-benefit analysis for determining negligence and liability in tort law, known as the Hand test. While widely used and influential, it has limitations and criticisms, such as measuring and quantifying factors, relying on hindsight, and potentially neglecting other moral or social considerations.
The case concerns the liability of the Grace Line for damages caused by the sinking of the barge "Anna C." The court found that the "harbormaster" had the authority to pass on the sufficiency of the fasts of the barge, and both the deckhand and "harbormaster" were jointly deputed by the master of the "Carroll" to do so. Therefore, both should be held equally liable for the damages. The Pennsylvania Railroad Company and the Conners Company seek to affirm the decrees. The liability of the Grace Line is stronger in this case than in a previous case due to the "harbormaster" being allowed to use his own judgment.
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