Angelex, Ltd. v. United States

907 F.3d 612
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 2, 2018
Docket17-5269
StatusPublished
Cited by6 cases

This text of 907 F.3d 612 (Angelex, Ltd. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Angelex, Ltd. v. United States, 907 F.3d 612 (D.C. Cir. 2018).

Opinion

Tatel, Circuit Judge:

Nearly forty years ago, Congress authorized the Coast Guard to detain ships suspected of intentionally discharging oil and other contaminants into the sea. At the same time, Congress gave a ship "unreasonably detained or delayed" a cause of action to recover "any loss or damage suffered thereby." 33 U.S.C. § 1904 (h). Until today, no circuit has considered the contours of this cause of action. Sailing into uncharted waters, we ask whether the Coast Guard acted reasonably in detaining a vessel for nearly six months pending a criminal trial after its owner and operator failed to meet the government's security bond demands. Measuring the reasonableness of the Coast Guard's actions by an objective standard, we find that the Coast *615 Guard set a reasonable monetary bond. We also conclude that the nonmonetary components of the bond demand contributed nothing to the owner's losses. We therefore affirm the district court's award of summary judgment to the government.

I.

The United States is a party to the 1973 International Convention for the Prevention of Pollution from Ships, as later supplemented by a protocol and several annexes (collectively, the "Convention"). Watervale Marine Co. v. United States Department of Homeland Security , 807 F.3d 325 , 327 (D.C. Cir. 2015). The Convention obliges member states to hold ships accountable for intentionally discharging oil and other contaminants into the ocean. See id.

Congress implemented the Convention through the Act to Prevent Pollution from Ships (the "Act"). See Pub. L. No. 96-478, 94 Stat. 2297 (1980) (codified as amended at 33 U.S.C. §§ 1901 et seq . ). As amended, the Act authorizes the Department of Homeland Security to enforce the Convention and "prescribe any necessary or desired regulations to carry out" the Convention's obligations. 33 U.S.C. § 1903 (c)(1). Pursuant to that authority, the Department requires ships to, among other things, "maintain" an "Oil Record Book" that keeps track of the ship's oily discharges into the sea. 33 C.F.R. § 151.25 (a), (d). "[K]nowingly violat[ing]" those regulations is a felony. 33 U.S.C. § 1908 (a). It is undisputed in this case that a new violation occurs each time a ship enters a U.S. port with a non-compliant oil record book. "A ship operated in violation of" these rules is liable in rem for "any fine imposed under" the Act. Id. § 1908(d).

If the Coast Guard has "reasonable cause" to believe that a "ship, its owner, operator, or person in charge" may be liable under the Act, the Coast Guard may require Customs and Border Patrol ("Customs") to "refuse or revoke" the clearance required for a vessel to depart from American ports. Id. § 1908(e). While enforcement proceedings are pending, that clearance may nonetheless be granted "upon the filing of a bond or other surety satisfactory to the Secretary" of Homeland Security. Id. Consistent with the United States's obligations under the Convention-and central to this case-the Act, through section 1904(h), also creates a cause of action for a "ship unreasonably detained or delayed" to recover "compensation for any loss or damage suffered thereby." Id. § 1904(h); see International Convention for the Prevention of Pollution from Ships, art. 7(2), Nov. 2, 1973, 12 I.L.M. 1319, 1340 U.N.T.S. 184 (entered into force on Oct. 2, 1983).

Appellant, Angelex, Ltd., owns the Maltese-flagged M/V Antonis G. Pappadakis , a nearly 750-foot-long bulk carrier subject to the Convention. Kassian Maritime Navigation Agency, Ltd.-not a party to this lawsuit-chartered the vessel in 2013 to carry a load of coal. In the district court, Angelex conceded that Kassian was the ship's "operator," as the Act uses that term. See 33 U.S.C. § 1901 (a)(9). Lambros Katsipis served as the ship's chief engineer during the 2013 voyage.

In April 2013, the Pappadakis arrived at the port of Norfolk, and Coast Guard agents boarded for a routine inspection. A crewmember passed the inspectors a note confiding that the chief engineer was using a "magic pipe"-a device designed to covertly dump water containing oil residue-to avoid reporting discharges in the oil record book.

Investigating the allegation, the Coast Guard searched the ship and interviewed crew members. The on-board investigation *616 ended after one week, on April 19, and on the same day, the port captain sent Angelex and Kassian a letter saying that the investigation established "reasonable grounds" to believe that the Pappadakis had violated the oil record book requirements. The Coast Guard therefore directed Customs to withhold the ship's departure clearance.

Negotiations ensued to reach an agreement that would allow the Pappadakis to sail pending prosecution.

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Bluebook (online)
907 F.3d 612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/angelex-ltd-v-united-states-cadc-2018.