ATB Marine, LLC v. AES Puerto Rico, L.P.

CourtDistrict Court, D. Delaware
DecidedApril 24, 2025
Docket1:24-cv-00922
StatusUnknown

This text of ATB Marine, LLC v. AES Puerto Rico, L.P. (ATB Marine, LLC v. AES Puerto Rico, L.P.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ATB Marine, LLC v. AES Puerto Rico, L.P., (D. Del. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE ATB MARINE, INC. ) ) Plaintiff, ) ) v. ) Civil Action No. 24-00922-GBW ) AES PUERTO RICO, L.P. ) ) Defendant. ) ) ) MEMORANDUM OPINION

Kyle R. Brady, SALMON, RICCHEZZA, SINGER & TURCHI LLP, Wilmington, DE; Frank P. DeGiulio, Daniel H. Wooster, PALMER BiEzUP & HENDERSON LLP, Philadelphia, PA— attorneys for Plaintiff.

Karine Sarkisian, KENNEDYS CMK LLP, Wilmington, DE; Cameron Cushner, Forrest Booth, Kevin Lih, Camille Zuber, KENNEDYS CMK LLP, San Francisco, CA — attorneys for Defendant.

April 24, 2025 Wilmington, Delaware

WILLIAMS, U.S. DISTRICT JUDGE: Presently before the Court are Defendant AES Puerto Rico, L.P.’s (“Defendant” or “AES”) Motion to Transfer Venue (D.I. 19) (“the Motion to Transfer”) and Motion to Stay Proceedings Pending Resolution of its Motion to Transfer Venue (D.I. 34) (“the Motion to Stay”). Plaintiff ATB Marine, Inc. (“Plaintiff’ or “ATB Marine”) opposes both Motions. (See D.I. 22; D.I. 36). For the reasons set forth below, Defendant’s Motion to Transfer is denied and Defendant’s Motion to Stay is denied-as-moot. 1. BACKGROUND! Plaintiff ATB Marine is a limited liability company organized under the laws of Delaware. (D.I. 1 42). ATB Marine “owns and operates tugs and barges which it uses to provide waterborne transportation of bulk cargoes for third parties.” (/d. 7). Defendant AES is a limited partnership organized under the laws of Delaware. (Jd. § 3). AES “is the owner and operator of a coal-burning electric generating station located in Guayama, Puerto Rico.” (/d. 6). AES’s station produces “flJarge quantities of coal ash” as a byproduct of its activities. (/d.). In 2017, Puerto Rico prohibited the dumping and disposal of coal ash in Puerto Rico. (/d.). Asa result, ATB Marine “agreed to transport coal ash from the AES plant in Guayama, Puerto Rico, to Jacksonville, Florida, using an articulated tug-barge unit,” for AES’s dumping and disposal. (Jd. { 8). ATB Marine and AES memorialized this arrangement in three “Time Charter” contracts (“the Time Charter Contracts”). (See D.I. 4, Ex. 1; D.I. 4, Ex. 4, D.I. 4, Ex. 7). The Time Charter Contracts were executed in October 2019, January 2021, and September 2021, respectively. (Id., Ex. 1 (October 2019 Charter); /d., Ex. 4 (January 2021 Charter); /d., Ex. 7 (September 2021

When addressing a motion to transfer for improper venue, the Court must “accept as true all of the allegations in the complaint, unless those allegations are contradicted by the oo affidavits.” Bockman v. First Am. Mktg. Corp., 459 F. App’x 157, 158 n.1 (3d

Charter)). Specifically, ATB Marine’s managing agent, Express Marine Inc. (“Express Marine”), executed the contracts on behalf of ATB Marine. Express Marine’s role, as managing agent to ATB Marine, is disclosed clearly in each Time Charter contract. (See D.I. 4, Ex. 1; D.I. 4, Ex. 4, D.I, 4, Ex. 7). “Under the terms of each Time Charter contract[,] AES was solely responsible to arrange and pay for loading the coal ash aboard the barge in Puerto Rico, and for discharge of the cargo in Jacksonville.” (D.I. 1 § 23). Additionally, each Time Charter required that “AES as charterer must pay for all costs to repair damage for which AES is responsible under the Charter.” (/d. {| 29). To calculate potential damage to ATB Marine’s barges, surveys of the vessels were conducted at the beginning and end of each charter period. (/d. 10, 13, 17, 18). Following the conclusion of the Time Charter Contracts, ATB Marine identified physical damage to its barge’s cargo hold, requiring repairs in the amount of $2,664,380.00.2 (id. 23, 24). “On March 13, 2023, after the repairs and other work on the vessels were completed,” ATB Marine requested payment from AES, but AES “refused to pay any portion of the repair costs.” (id. 24, 25). Consequently, ATB Marine filed the instant action alleging that AES breached its contractual obligations to “pay for the costs to repair damage caused during cargo loading or discharge operations and restore the barge to its pre-charter condition.” (/d. { 30). ATB Marine seeks “damages in an amount to be fully determined at trial, including but not limited to the payment of $2,664,380.00,” prejudgment interest thereon, attorneys’ fees and costs, and all other relief the Court deems just and proper. (Jd. { 32).

2 “The physical damage in the barge’s cargo hold [ ] occurred during the September 2019 Charter and the January 2021 Charter periods.” (D.I. 1 § 20). The barge was not rendered “unsafe or unseaworthy;” thus, “repair of the damage to the cargo hold was deferred until the next required shipyard period in 2022.” (/d.).

Il. PROCEDURAL POSTURE On August 8, 2024, ATB Marine filed a Complaint (“the Complaint”) against AES. □□□□□ 1). The Complaint asserts one cause of action: Breach of Contract. (/d. [J 26-32). On October 15, 2024, AES filed an Answer. (D.I. 16). On January 15, 2025, Defendant AES filed the Motion to Transfer pursuant to 28 U.S.C. §1404(a). (D.I. 19). In the Motion to Transfer, Defendant AES requests transfer from this Court to the Jacksonville Division of the United States District Court for the Middle District of Florida (“the Middle District of Florida”). (D.I. 19 at 1). On January 29, 2025, Plaintiff ATB Marine filed an Answering Brief in opposition to the Motion to Transfer. (D.I. 22). On February 4, 2025, Defendant AES filed its Reply Brief in support of its Motion to Transfer. (D.J. 25). On April 2, 2025, AES filed a Motion to Stay Proceedings Pending Resolution of its Motion to Transfer (“the Motion to Stay”). (D.I. 34). That same day, AES filed its Opening Brief in support of its Motion to Stay. (D.I. 35). On April 16, 2025, ATB Marine filed an Answering Brief in opposition to the Motion to Stay. (D.I. 36). On April 23, 2025, AES filed a Rely Brief in support of its Motion to Stay. (D.I. 38). Il. JURISDICTION “I]t is axiomatic that federal courts must always assure themselves that they have subject matter jurisdiction.”> Thomas v. City of Philadelphia, 759 F. App’x 110, 111 (3d Cir. 2019). The United States Constitution extends the federal judicial power to “all Cases of admiralty and maritime Jurisdiction.” U.S. Const. art. III, § 2, cl. 1. Separately, Congress has statutorily empowered federal district courts to hear “[aJny civil case of admiralty or maritime jurisdiction.” 28 U.S.C. §1333(1). The “fundamental interest giving rise to maritime jurisdiction is the

3 In contrast, the court need not sua sponte assure itself that it possesses personal jurisdiction over a defendant. See Zelson v. Thomforde, 412 F.2d 56, 59 (3d Cir. 1969). Unlike subject matter jurisdiction, personal jurisdiction can be waived. Ins. Corp. of Ireland vy. Compagnie des Bauxites de Guinee, 456 U.S. 694, 703 (1982).

protection of maritime commerce.” Norfolk Southern Ry. v. James N. Kirby, Pty Ltd., 543 U.S. 14, 25 (2004) (internal quotation marks and citations omitted). Maritime jurisdiction arises if the “the principal objective of a contract is maritime commerce.” Jd. Here, the principal objective of the Time Charter Contracts is maritime commerce — i.e., the transport of coal ash through the ocean by vessel. As such, the Court has admiralty and maritime subject matter jurisdiction under 28 U.S.C.

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ATB Marine, LLC v. AES Puerto Rico, L.P., Counsel Stack Legal Research, https://law.counselstack.com/opinion/atb-marine-llc-v-aes-puerto-rico-lp-ded-2025.