D was in charge of handling the mooring lines for a barge operated by the P.
D did so negligently and the barge broke free from the pier and ran into another ship. The ship's propeller made a hole in the barge, and it sank.
P sued D for negligence. D claimed that P was required to have a bargee on board at the time and that if there had been one on board, the damages could have been minimized.
Procedural History:
Trial court found for P but found D's argument compelling, divided the damages.
2nd Cir COA affirmed, divided the damages.
Issues:
Can a person be liable for failing to take a reasonable precaution against great risk of injury even where the probability of the injury occurring is very small?
Holding/Rule:
A person may be liable for failing to take reasonable precaution against great risk of injury even when the probability of the injury occurring is very small.
Reasoning:
There are three variables to consider when looking at precaution against risk: the probability of the harm, the seriousness of the injury if the harm occurs, and the cost of the adequate precaution.
If the burden is less than the probability x the liability, then the person not exercising care is liable.
The bargee was absent without an excuse for 21 hours. The bargee knew the damage could be great if the barge broke away from the pier.
Thus, the P is partial liable for not exercising precaution.
Dissent:
None.
Notes:
B < P * L, then liable.
This is similar to an economic cost-benefit analysis.
