Board of Com'rs of Orleans v. M/V Belle of Orleans

535 F.3d 1299, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20188, 2008 U.S. App. LEXIS 15869, 2008 WL 2853878
CourtCourt of Appeals for the Eleventh Circuit
DecidedJuly 25, 2008
Docket06-13614
StatusPublished
Cited by19 cases

This text of 535 F.3d 1299 (Board of Com'rs of Orleans v. M/V Belle of Orleans) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Com'rs of Orleans v. M/V Belle of Orleans, 535 F.3d 1299, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20188, 2008 U.S. App. LEXIS 15869, 2008 WL 2853878 (11th Cir. 2008).

Opinion

FORRESTER, District Judge:

Appellant, the Board of Commissioners of the Orleans Levee District (“the Board”), appeals from the district court’s *1302 order granting Appellee, M/V BELLE OF ORLEANS’, motion to dismiss for lack of admiralty jurisdiction and from the district court’s order denying Appellee’s Rule 59(e) motion to alter, amend or vacate the order to dismiss. 1 The Board sought (1) a maritime lien against the BELLE OF ORLEANS to secure payment for dockage, wharfage, utilities, and other charges pursuant to a lease between the Board and the BELLE OF ORLEANS’ owners, Belle of Orleans, L.L.C., and (2) damages resulting from the BELLE OF ORLEANS’ collision with the piers, docks, and other structures of South Shore Harbor Marina (“the Marina”) during Hurricane Katrina’s landfall. The district court found that the BELLE OF ORLEANS was not a vessel, that the lease between the Board and Belle of Orleans, L.L.C., was not a maritime contract, and therefore, it had admiralty jurisdiction over neither the Board’s tort claim nor its contract claim. The district court denied the Board relief under Rule 59(e).

For the reasons set forth below, we AFFIRM IN PART AND REVERSE IN PART the district court’s order and hold that (1) the BELLE OF ORLEANS is a “vessel” for purposes of establishing admiralty jurisdiction; (2) the district court improperly determined that it lacked admiralty jurisdiction over the Board’s tort claim; (3) the district court improperly refused to issue a writ of attachment under Rule B of the Supplemental Rules; and (4) the district court properly dismissed the Board’s contract claim for lack of admiralty jurisdiction because the lease between the Board and Belle of Orleans, L.L.C., while partially maritime in nature, is not a maritime contract for purposes of creating a maritime lien.

I. Background

A. Facts

In 1995, Belle of Orleans, L.L.C. (“the Owner”), purchased the BELLE OF ORLEANS, a fully operational, steel-hulled paddlewheeler vessel, from Avondale Shipyard to conduct gaming cruises on Lake Pontchartrain. The BELLE OF ORLEANS is a “riverboat,” which Louisiana law defines as a paddlewheel-driven “vessel,” of at least 150 feet, that carries a valid certificate of inspection from the Coast Guard for the carriage of a minimum of 600 passengers, and “is of such type and design so as to replicate as nearly as practicable historic Louisiana river borne steamboat passenger vessels of the nineteenth century era.” La. R.S. § 27:44(23).

The Board is the governing authority of the Orleans Levee District, a political subdivision of the State of Louisiana, which in addition to monitoring the district’s levee system, owns and administers the South Shore Harbor Marina (“the Marina”). The Owner entered into a Lease Agreement (“the Agreement”) with the Board for the use of “certain portions of land, wharf and water bottom in the Marina located on the South Shore of Lake Pontchartrain.” 2

The original term of the Agreement was to run until 2003, and the parties had four ten-year options to renew. The Agreement stated that “the leased premises [was] to be used solely and exclusively for *1303 the operation of a riverboat gaming facility, a passenger terminal, related services and attendant parking facilities.” The leased premises included five parcels of land: (1) 0.854 acres, described as “[t]he proposed mooring berth for the riverboat casino and the right of exclusive use of the adjacent wharf area”; (2) 0.418 acres, described as “the small parking area adjacent to the mooring berth”; (3) 2.087 acres, described as “[t]he site of the proposed passenger terminal building”; (4) “approximately 6.2 acre[s][of] undeveloped land area”; and (5) 4.68 acres out of parcel 6E. 3 The Agreement called for a quarterly rent, with an additional payment of five percent of the monthly gross gaming revenues and with a minimum monthly percentage rental. The Agreement also required the lessee to pay for utilities provided to the property. 4 The Agreement provided for penalties if the lessee failed to pay rent or discontinued the use of the premises. 5 The Agreement also specified how the parties would handle any damage to property. 6

Louisiana law permits “riverboat” gaming on certain navigable waters. La. R.S. 27:65. The Owner had a valid Louisiana gaming license to operate the BELLE OF ORLEANS as a riverboat casino and gaming establishment. At the time the parties entered into the Agreement in 1995, the law required riverboat casinos, including the BELLE OF ORLEANS, to be cruising navigable waters when engaged in *1304 gaming operations. In 2001, the Louisiana legislature abolished the cruising requirements and stated that gaming could only occur when a riverboat was dockside. La. R.S. 27:65(B)(l)(b). In compliance with the law, the BELLE OF ORLEANS conducted gaming cruises on Lake Pontchartrain from 1995 to 2001 and conducted all gaming dockside from 2001 until the occurrence of Hurricane Katrina in 2005.

The BELLE OF ORLEANS was subject to Coast Guard certification and inspection. 7 In 2001, the Owner sent a letter to the Coast Guard indicating that the BELLE OF ORLEANS would no longer be conducting cruises and would be remaining dockside at all times. The Coast Guard reduced the BELLE OF ORLEANS’ manning requirements based upon her owner’s “stated intent to operate in a continuously moored status.” The Coast Guard limited the BELLE OF ORLEANS to “permanently moored operations” but did not prohibit the BELLE OF ORLEANS from navigating in the future. The Coast Guard’s letter stated that “should the vessel return to underway passenger service, [it would] be required to show compliance with all applicable regulations for operation on a specific route intended and comply with standard manning requirements.” The BELLE OF ORLEANS maintained a captain and a crew abroad and maintained her engines, generators, and equipment in working order at all times prior to the landfall of Hurricane Katrina in 2005.

When the BELLE OF ORLEANS began operating dockside in 2001, her owners added steel cables to her mooring system and attached electrical, computer, and phone cables from a shore-side source. The BELLE OF ORLEANS began receiving water in bulk from a shore-side source and began pumping her sewage to shore. The affidavit of the BELLE OF ORLEANS’ chief engineer, Mr. Franklin, characterized the BELLE OF ORLEANS at this time as “permanently moored” and “out of operation.” By contrast, the affidavit of Mr. Maureau, the Harbormaster of the Marina, characterized the BELLE OF ORLEANS as “moored with ropes and cables customary to a fully operational vessel of her size, and ... not permanently affixed to the dock or restricted in any way from being capable of navigation.”

On August 29, 2005, Hurricane Katrina made its landfall in New Orleans, Louisiana.

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Bluebook (online)
535 F.3d 1299, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20188, 2008 U.S. App. LEXIS 15869, 2008 WL 2853878, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-comrs-of-orleans-v-mv-belle-of-orleans-ca11-2008.