A 2016 decision against an injured US Navy sailor has pushed a US appeals court to side with Japanese shipping giant NYK Line in a more than $260m legal dispute over a fatal 2017 crash in the Pacific Ocean.

A three-judge panel from the New Orleans-based Fifth Circuit Court of Appeals ruled unanimously that, despite NYK Line's business ties to the US, previous precedent determined that US courts have no jurisdiction over the collision that led to the US Navy's greatest loss of life since 1975.