Bunge Corp. v. Agri-Trans Corp.

542 F. Supp. 961
CourtDistrict Court, N.D. Mississippi
DecidedAugust 4, 1982
DocketGC 79-106-WK-O, GC 80-224-WK-O
StatusPublished
Cited by11 cases

This text of 542 F. Supp. 961 (Bunge Corp. v. Agri-Trans Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bunge Corp. v. Agri-Trans Corp., 542 F. Supp. 961 (N.D. Miss. 1982).

Opinion

MEMORANDUM OPINION

READY, Chief Judge.

In these consolidated admiralty actions, three questions arise. First, may the non-negligent owner of an abandoned sunken vessel obtain “prospective” indemnity against the negligent sinker for claims of third parties that might be asserted at some future date because of the presence of the sunken vessel in navigable waters? Second, may the non-negligent owner of an abandoned sunken vessel obtain declaratory relief against the government’s demand that it remove the wreck? Third, whether the government in one case established the sunken vessel to be a hazard to navigation or obstruction to the navigable capacity of the Mississippi River so as to require removal? For reasons that follow, we answer no to the first and third questions and yes to the second.

On April 25,1979, the M/V JEAN GLADDERS, owned and operated by Gladders Barge Line, Inc. (Gladders), was proceeding downbound on the Mississippi River in the vicinity of Vicksburg, Mississippi, with a tow that included two barges of Bunge Corporation, Bunge 107 and Bunge 408, and two barges of Agri-Trans Corporation, AT-73 and AT-104. The voyage proved to be ill-fated in that the JEAN GLADDERS and its tow first struck the Vicksburg bridge, causing the sinking of the two Bunge barges and AT-73, and three days later collided with U. S. Highway 190 bridge at Baton Rouge, Louisiana, which caused the sinking of a fourth barge, AT-104. No one has attempted to remove any of the wrecks and they remain on the bottom of the river.

On June 14, 1979, Bunge filed suit against Agri-Trans, GC 79-106, for its cargo, barge and other losses, alleging that the latter company had orally agreed to tow the Bunge barges and was, therefore, responsible for the loss. Agri-Trans impleaded Gladders since the JEAN GLADDERS, at the time of the Vicksburg casualty, was being operated under a fully found charter from its owner, and asserted that Gladders was responsible for Bunge’s loss as well as Agri-Trans’ own loss. On November 29, 1979, Agri-Trans filed its complaint in the United States District Court for the Eastern District of Louisiana against the M/V JEAN GLADDERS in rem and Gladders in personam. By agreement of the parties, the cause was on October 1, 1980, transferred to this court, and docketed as GC 80-224. Shortly thereafter the two cases were consolidated. Agri-Trans later amended its *964 suit adding the Secretary of the Army, United States Army Corps of Engineers and the United States as additional defendants in its original action to seek declaratory relief against the government as the result of its abandonment as owner of AT-104. The United States and its officers counterclaimed against Agri-Trans demanding that it abate the nuisance created by the sunken barge AT-104, and be required to remove the wreck or else be held liable to the government for removal costs. The federal defendants cross-claimed against Gladders for the same relief.

At a pretrial conference before the United States Magistrate on January 12, 1982, Bunge, Agri-Trans and Gladders disclosed that Gladders had discharged all claims of Bunge and Agri-Trans for money damages sustained when their barges and cargo sank in the collisions with the Vicksburg and Baton Rouge bridges. The essential facts, which were largely stipulated by the parties, are set forth below.

I.

(a) Vicksburg Bridge Collision.

The sole cause of the collision of the JEAN GLADDERS and her tow on April 25, 1979, which resulted in the sinking of the two Bunge barges and the one AgriTrans barge in the navigable channel of the river below Vicksburg, was the negligent operation, fault and/or unseaworthy condition of the JEAN GLADDERS and her crew. No negligence or fault of Bunge or Agri-Trans, or unseaworthiness of their barges, caused or contributed in any way to the collision, or subsequent sinking of the three barges. As conceded by the parties, Gladders was the “negligent sinker,” Bunge the “non-negligent owner” of Barges 107 and 408, and Agri-Trans the “non-negligent owner” of AT-73, for the purposes of this collision and sinking of the barges. On May 2-3 the stabilized locations of the three sunken barges were ascertained. Bunge 107 was found to be at a water depth of 76 feet near mid-river, abreast the fueling dock of the Baxter Wilson Steam Plant on the left descending shore, at mile 433.2. The highest point of the wreck as disclosed by profile was 68 feet below the river’s surface on the Vicksburg river gauge of 49.6 feet. Bunge 408 was located at mile 435.5, about 1180 feet off the left descending shore, with the highest protrusion of the wreck 81 feet below the water surface. Immediately following the collision, Barge AT-73 was seen partially sunk and grounded at mile 426.5 on the left descending shore; a day or two later it became entirely submerged. This sunken barge was last determined to be 1000 feet off the left bank and 47 feet below the surface of the river at a Vicksburg river gauge reading of 47.2 feet. Although the lowest Vicksburg water stage in the last 10 years has been minus 2 feet, which would expose above water a portion of AT-73, the barge is so positioned on a sandbar, in ‘sanded-in’ fashion so as to cause a shallow draft vessel operating in the area at a water stage of minus 2 feet or less to strand on the sandbar before reaching any exposed portion of the barge AT-73.

On July 11,1979, Bunge tendered written abandonment of its two sunken barges to the Army Corps of Engineers at Vicksburg, which on July 20 acknowledged the notice as follows: “This acknowledgement should in no way be construed as acceptance by the United States of an abandonment of such vessels, nor of waiver of any right to enforce liability for any damage caused by its sinking or cost of removal.” This decision was, of course, mandated by federal regulation. 1 On April 19, 1980, Agri-Trans ten *965 dered written abandonment of Barge AT-73 to the Army Corps of Engineers at New Orleans, which merely acknowledged receipt of the communication. Also, AgriTrans advertised notice of abandonment in the Vicksburg newspaper over a four-week period. 2 After the receipt of these communications, the Corps of Engineers made no effort to commence removal of the wrecks or to mark any of the sunken vessels other than to temporarily mark Bunge 408. This marking was discontinued on July 11,1979; since that time no further marking has been made by anyone. At trial, neither Bunge nor Agri-Trans tendered credible evidence that the wrecks at Vicksburg have been or presently are either an obstruction to the navigable capacity of the river under 33 U.S.C. § 403, 3 or a hazard to navigation under 33 U.S.C. § 409. 4 Upon the conclusion of their case, Gladders moved for directed verdict, which motion was overruled without prejudice to later disposition.

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Bluebook (online)
542 F. Supp. 961, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bunge-corp-v-agri-trans-corp-msnd-1982.