In October 1953 Francisco Romero, a Spanish subject, signed on as a crew member of the S.S. Guadalupe, a vessel of Spanish registry owned by the Spanish corporation Compania Trasatlantica.
Romero continued to serve on the Guadalupe after the initial voyage, so that under Spanish law the original contract of hire remained in force. The ship sailed from Bilbao, touched other Spanish ports, proceeded to New York and Hoboken, made a brief trip to Vera Cruz and Havana, and returned to Hoboken.
On May 12, 1954, while the vessel lay in Hoboken, Romero was struck by a cable on deck and seriously injured. Romero filed suit on the law side of the United States District Court for the Southern District of New York against four corporate defendants.
He asserted Jones Act and general maritime claims for unseaworthiness, maintenance and cure, and maritime tort against Compania Trasatlantica and its New York husbanding agent Garcia & Diaz, Inc. He asserted maritime-tort claims against stevedore International Terminal Operating Co. and carpenter Quin Lumber Co., both of which were performing work aboard the Guadalupe under oral contracts with Garcia & Diaz. Jurisdiction was invoked under the Jones Act and under 28 U.S.C. §§ 1331 and 1332.
After a pre-trial hearing the district court dismissed the entire complaint. It held that the Jones Act supplied no right of action against the foreign shipowner, that § 1331 did not confer jurisdiction over general maritime claims, that Garcia & Diaz was not Romero's employer, and that complete diversity was lacking under Strawbridge v. Curtiss. The court also declined to exercise discretionary admiralty jurisdiction after examining Spanish law, which provided Romero a lifetime pension of 35 to 55 percent of his wages plus maintenance and cure enforceable through the Spanish consul. The Court of Appeals affirmed. The Supreme Court granted certiorari because of conflicts among the circuits concerning the construction of § 1331 and the applicability of Lauritzen v. Larsen to the facts presented.
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