Castillo v. Guardian Insurance Company, Inc.

CourtDistrict Court, D. Puerto Rico
DecidedJanuary 30, 2023
Docket3:20-cv-01262
StatusUnknown

This text of Castillo v. Guardian Insurance Company, Inc. (Castillo v. Guardian Insurance Company, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Castillo v. Guardian Insurance Company, Inc., (prd 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO

YELITZA CASTILLO; ET AL.,

Civil No. 20-1262 (DRD) Plaintiffs, 20-MC-317 (DRD)

V.

GUARDIAN INSURANCE COMPANY, INC., ET Consolidated Cases AL.,

Defendants.

IN THE MATTER OF:

JAMES UGOBONO DÍAZ AND FRANCISCO RIVERA MORALES,

FOR EXONERATION FROM OR LIMITATION OF LIABILITY AS OWNER OF THE VESSEL MARINA & PAQUITO HULL NO. BWCE93C919,

Petitioners.

OPINION AND ORDER

Pending before the Court is plaintiffs, Yelitza Castillo, Leslie Sánchez and Sylvia Negrón’s Motion for Partial Summary Judgment and Memorandum of Law (Docket No. 103)1. The defendants filed an Opposition to Plaintiffs’ Motion for Partial Summary Judgment and Memorandum of Law in Support Thereof (Docket No. 105)2. For the reasons stated herein, claimant-plaintiffs, Yelitza Castillo, Leslie Sánchez and Sylvia Negrón’s Motion for Partial Summary Judgment and Memorandum of Law (Docket No. 103) is hereby DENIED.

1 A Statement of Uncontested Material Facts was filed in support thereof. See Docket No. 104. 2 An Opposition to Plaintiffs’ Statement of Material Facts was also filed. See Docket No. 105, Exhibit No. 1. I. FACTUAL AND PROCEDURAL BACKGROUND The underlying petition filed by defendants, James Ugobono-Díaz and Francisco Rivera- Morales, seeks to limit their potential liability as owners of the vessel “Marina & Paquito” also

known as M/V Backstage, Official Hull No. BWCE2393C9193. The defendants’ exposure to liability stems from a collision of M/V Marina & Paquito on the evening of March 14th, 2020. On said date, Rivera invited several friends and acquaintances on board the vessel with the consent of the owner of the vessel, Ugobono. See Complaint for Exoneration from or Limitation of Liability, Rel. Misc. No. 20-317 (DRD), Docket No. 1 at ¶ 10. Among those onboard were plaintiffs, Leslie Sánchez, Yelitza Castillo, and Sylvia Negrón. See id. They all boarded the vessel

in Fajardo, Puerto Rico, in order to navigate the waters adjacent to Marina Puerto del Rey. See id. at ¶ 11. At around 8:45 p.m. as the vessel was about to enter Marina Puerto del Rey, the vessel impacted the reef located on the starboard side of the entrance of the Marina Puerto del Rey and ran aground. See id. at ¶ 12. Since the collision, two (2) torts cases have been filed in this Court to recover damages

suffered as a result thereof. On September 11, 2020, the defendants-petitioners filed a Complaint for Exoneration from or Limitation of Liability (consolidated case no. 20-mc-317 (DRD)).4 The United States’ Limitation of Shipowner’s Liability Act, 46 U.S.C. §§ 30501-30512, and Rule F of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions, Supplemental Rule F, provide for ship owners to seek this type of liability limitation for

3 The Court notes that the Certificate of Numeration issued by the Puerto Rico Department of Natural and Environmental Resources states that the name of vessel for Hull BWCE2393C919 is “Marina & Paquito”. 4 See Docket No. 1. All claims were consolidated into 20-cv-1262 (DRD). potential fault or negligence stemming from an accident similar to that with the M/V Marina & Paquito. On July 18, 2022, plaintiffs filed a Motion for Partial Summary Judgment and

Memorandum of Law (Docket No. 103).5 Defendants filed an Opposition shortly thereafter. See Docket No. 105. In synthesis, plaintiffs seek the dismissal of the defendants’ Complaint for Exoneration from or Limitation of Liability as M/V Marina & Paquito was not manned in accordance with law and regulation. Specifically, claimants-plaintiffs aver that at the time of the incident, the M/V Marina & Paquito was operated “by an incompetent, unexperienced and/or inadequately

trained captain such as codefendant-petitioner Rivera, over the speed limit, at night, and intoxicated and/or under the influence of alcohol and/or tired, rendered the vessel unseaworthy. The owners of the vessel knew, or should have known, of the unseaworthy condition of the vessel and therefore limitation of liability is barred.” Docket No. 103 at p. 6. For instance, plaintiffs claim that the vessel had an “inoperative and/or faulty navigational

equipment on board,” as the GPS system was not updated. Id. at p. 13. But, in any event, “the [insurance] policy doesn’t indicate that Guardian [Insurance Company] is entitled to limit its liability when the insureds have been afforded a limitation to their liability pursuant to the Shipowner’s Limitation of Liability Act.” Id. As Guardian does not have a proprietary interest in the M/V Marina & Paquito, it is not entitled to limit its liability. See id. In Opposition, defendants-petitioners argue that not only Rivera had more than 20 years

of navigation experience, but he has had a boat since 1997 and “is an avid and frequent

5 A Statement of Uncontested Material Facts was also filed. See Docket No. 104. seaman.” Docket No. 105 at p. 2. Likewise, “the evidence shows that Mr. Rivera was not intoxicated in any way while navigating the Vessel nor was he speeding. Therefore, the Owners are entitled to the defense set forth in the Limitation Liability Act.” Id. Alternatively, “Mr.

Rivera’s competence as a captain, purported intoxication and/or speed while navigating the Vessel is a trial worthy issue that must be decided by the tier of fact during Plaintiffs’ day in Court,” as there are disputes as to the circumstances of the accident. Id. As to Guardian Insurance Company (hereinafter, “Guardian”), the Owners’ insurance carrier, defendants-petitioners argue that the Policy expressly states that Guardian can assert said defense. See id. at p. 3. Therefore, Guardian should not be ordered to indemnify plaintiffs-

claimants in an amount surpassing the amount that the Owners may be ordered to pay should they be held liable. See id. II. FACTUAL FINDINGS6 The following factual findings are taken from the parties’ statements of undisputed facts, and supported documentation. Upon careful review of the record, the Court finds the

following facts are undisputed: 1. Plaintiffs, Yelitza Castillo, Leslie Sánchez, and Sylvia Negrón are all of legal age, citizens of the United States of America and permanent residents of Puerto Rico. See Docket No. 1 at ¶¶ 6-7. 2. At the time of the occurrence of the accident, codefendants, Francisco Rivera and James Ugobono were the owners of “M/V Backstage7,” a motor vessel 2019 Boston Whaler M/V,

6 Some of the Factual Findings are not required for the Court to rule on the pending motions. However, in order to simplify the outstanding controversies, the Court includes herein other Factual Findings that it found to be undisputed and will be relevant during trial. hull no. BWCE2393C919. Rivera believes that it was a Boston Whaler, 33 feet, center console. It had two outward motors 300 horse power each, and Mercury was the brand. See Deposition of Francisco Rivera, Docket No. 105-3 at p. 9.

3. Ugobono and Rivera bought M/V Marina & Paquito for $269,000.00. See id. at p. 9. 4. Ugobono and Rivera were the third owners of M/V Marina & Paquito. See id. 5. M/V Marina & Paquito’s homeport was Marina Puerto del Rey in Fajardo, Puerto Rico. See id. at p. 10. 6. Before March 14, 2020, Rivera had not read M/V Marina & Paquito’s instructions or operating manual. See id. at pp. 10-11, 33.

7. On March 14, 2020, codefendant Rivera did not have a copy of the Navigation Rules. See id. at p. 11. 8. At the time of the accident, there were an infrared system, GPS, compass, and navigation lights installed on M/V Marina & Paquito. See id. at p. 7-8. 9. At the time of the accident, Rivera did not have any experience operating M/V Marina &

Paquito. See id. at p.

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