In applying the location test, a court must determine whether the tort occurred on navigable water or whether injury suffered on land was caused by a vessel on navigable water. (a) A party seeking to invoke such jurisdiction over a tort claim must satisfy conditions of both location and connection with maritime activity. Held: The District Court has federal admiralty jurisdiction over Great Lakes's Limitation Act suit. The District Court dismissed the suit for lack of admiralty jurisdiction, but the Court of Appeals reversed. That Act would permit the admiralty court to decide whether Great Lakes had committed a tort and, if so, to limit its liability to the value of the barges and tug involved if the tort was committed without the privity or knowledge of the vessels' owner. Great Lakes then filed this action, invoking federal admiralty jurisdiction and seeking, inter alia, the protection of the Limitation of Vessel Owner's Liability Act. They claimed that in the course of driving piles from a barge into the river bed months earlier, Great Lakes had negligently weakened the tunnel, which had been improperly maintained by the city.

After the Chicago River flooded a freight tunnel under the river and the basements of numerous buildings, petitioner corporation and other victims brought tort actions in state court against respondent Great Lakes Dredge & Dock Co.

Great lake dredge and dock company