Bay Casino, LLC v. M/V Royal Empress

199 F.R.D. 464, 2000 A.M.C. 502, 1999 U.S. Dist. LEXIS 22356, 1999 WL 33218594
CourtDistrict Court, E.D. New York
DecidedNovember 26, 1999
DocketNo. 98 CV 2333(SJ)
StatusPublished
Cited by24 cases

This text of 199 F.R.D. 464 (Bay Casino, LLC v. M/V Royal Empress) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bay Casino, LLC v. M/V Royal Empress, 199 F.R.D. 464, 2000 A.M.C. 502, 1999 U.S. Dist. LEXIS 22356, 1999 WL 33218594 (E.D.N.Y. 1999).

Opinion

MEMORANDUM & ORDER

JOHNSON, District Judge.

Shedrick J. Rhodes, Monica Rhodes, and LeDawn Sims (“proposed interveners”) seek to intervene as plaintiffs in this action under Rule 24(a)(2) of the Federal Rules of Civil Procedure as enhanced by Local Admiralty Rule E.2. They ask this Court to allow them to assert a maritime lien against the M/V Royal Empress, defendant in rem, in order to protect any eventual judgment rendered in their favor. For reasons detailed below, this Court grants the motion to intervene.

BACKGROUND

Proposed Interveners were driving along a Florida highway when they were struck by a vehicle driven by Gregory R. Dupie, a minor under Florida law. The proposed complaint alleges that proposed interveners were seriously injured as a result of Dupie’s operation of a vehicle on the highway while inebriated. Dupie, a minor, had become inebriated as a passenger on a gambling day cruise aboard the M/V Royal Empress, where he was served liquor and deposited on shore by shipboard personnel who knew or had reason to know that he would operate a motor vehicle after leaving the ship.

RECENT PROCEDURAL HISTORY

On October 12,1999, this Court entered an order granting a reduced security in this matter, denying a motion to fully vacate the attachment of the vessel, as well as addressing other pending issues. The vessel is currently under attachment in this Court. On October 20, 1999, this Court denied proposed interveners request to prevent defendants from posting a bond to release the M/V Royal Empress from attachment or to require defendants to provide notice before posting such a bond. On October 29, 1999, this Court denied plaintiffs request for an order to show cause why this Court should not reconsider its recent decisions regarding this case, as well as for other miscellaneous relief.

DISCUSSION

I. Standard for Intervention

Proposed interveners move to join this action under Supplemental Admiralty Rule E(2)(a)1 and Rule 24 of the Federal [466]*466Rules of Civil Procedure. Intervention as of right under Rule 24(a)(2) is granted when an applicant: (1) files a timely motion; (2) asserts an interest relating to the property or transaction that is the subject of the action; (3) is so situated that without intervention the disposition of the action may, as a practical matter, impair or impede its ability to protect its interest; and (4) has an interest not adequately represented by the other parties. See, e.g., United States v. New York, 820 F.2d 554, 556 (2d Cir.1987); Restor-A-Dent Dental Lab., Inc. v. Certified Alloy Prods., Inc., 725 F.2d 871, 874 (2d Cir.1984). The intervention application will be denied unless all four requirements are met.

When considering a motion to intervene, the court “must accept as true the non-conclusory allegations of the motion.” Reich v. ABC/York-Estes Corp., 64 F.3d 316, 321 (7th Cir.1995). “A motion to intervene as a matter of right, moreover, should not be dismissed unless it appears to a certainty that the intervener is not entitled to relief under any set of facts which could be proved under the complaint.” Id. at 321 (citing Lake Investors Dev. Group v. Egidi Dev. Group, 715 F.2d 1256, 1258 (7th Cir.1983)). Each intervention case is “highly fact specific and tend[s] to resist comparison to prior cases.” Id. at 321.

II. Jurisdiction & The Existence of A Maritime Lien

As a preliminary matter, the Court will examine the basis for federal jurisdiction in this matter. Proposed interveners assert admiralty jurisdiction under 28 U.S.C. § 1333. Federal jurisdiction under admiralty requires satisfaction of a two-pronged test: (1) the Court must determine whether the tort occurred on navigable water or whether injury suffered on land was caused by a vessel on navigable water; (2) the Court must consider: (a) whether the incident has a “potentially disruptive impact on maritime commerce” based on the “general features of the type of accident involved”; and (b) whether the general character of the activity giving rise to the incident bears a “substantial relationship” to traditional maritime activity. See Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co., 513 U.S. 527, 534, 115 S.Ct. 1043, 130 L.Ed.2d 1024 (1995) (citing Sisson v. Ruby, 497 U.S. 358, 363, 110 S.Ct. 2892, 111 L.Ed.2d 292 (1990)).

Proposed interveners allege injuries sustained from a collision with an underage drunk driver who became intoxicated aboard the M/V Royal Empress on a gambling cruise. The alleged negligence, the provision of large amounts of alcohol to an underaged customer attending the gambling cruise, clearly occurred on navigable waters, assuming the facts remain as alleged. As to the second prong, this Court finds merit to the claim that the general features of the accident alleged — alcohol-related injury to a third party by a passenger on the gambling cruise — may well have a disruptive effect on maritime commerce. The popularity of gambling “cruises to nowhere” demonstrates an increasing potential that incidents like that alleged here will be faced both on land and on ship by vessel owners and operators. Finally, there is a “substantial relationship to traditional maritime activity” as courts have recognized that torts aboard entertainment vessels, including cruise ships, sightseeing ships, and casino boats satisfy the traditional maritime activity requirement. See, e.g., Young at 834 — 35, Palmer v. Fayard Moving & Transportation Corp., 930 F.2d 437, 441 (5th Cir.1991); Butler v. American Trawler Co., 887 F.2d 20, 21-22 (1st Cir.1989); Carey v. Bahama Cruise Lines, 864 F.2d 201, 207 (1st Cir.1988); Luby v. Carnival Cruise Lines, 633 F.Supp. 40, 41 n. 2 (S.D.Fla.1986). Thus, the incident underlying the proposed cause of action satisfies the requirements of admiralty jurisdiction.

There is some dispute in this case as to the substantive law that should govern this action. Although federal maritime jurisdiction normally accompanies a finding of admiralty jurisdiction, defendants argue that there is no federal maritime dram shop rule and that application of maritime law is inappropriate here. In support of this argument they cite Meyer v. Carnival Cruise Lines, Inc., 1994 WL 832006 (N.D.Cal. Dec. 29, 1994), a district court decision from the Northern District of California. There, the court found that a plaintiffs lawsuit for inju[467]

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Bluebook (online)
199 F.R.D. 464, 2000 A.M.C. 502, 1999 U.S. Dist. LEXIS 22356, 1999 WL 33218594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bay-casino-llc-v-mv-royal-empress-nyed-1999.