Smith v. Isthmian Lines, Inc.
A longshoreman filed an action against the owner of a vessel for personal injuries due to its negligence. The defendant moved to dismiss the complaint, arguing that the longshoreman's rights against the defendant were assigned to his employer and its insurer due to his acceptance of compensation under the Longshoremen’s and Harbor Workers’ Compensation Act. The court denied the defendant's motion, citing a conflict of interest between the plaintiff’s employer and its insurer (who also insured the defendant) and the plaintiff, which allowed the plaintiff to proceed with the action despite the assignment.