Combo Maritime, Inc. v. U.S. United Bulk Terminal, LLC

615 F.3d 599, 2010 A.M.C. 2196, 2010 U.S. App. LEXIS 17644, 2010 WL 3295108
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 23, 2010
Docket09-30592
StatusPublished
Cited by31 cases

This text of 615 F.3d 599 (Combo Maritime, Inc. v. U.S. United Bulk Terminal, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Combo Maritime, Inc. v. U.S. United Bulk Terminal, LLC, 615 F.3d 599, 2010 A.M.C. 2196, 2010 U.S. App. LEXIS 17644, 2010 WL 3295108 (5th Cir. 2010).

Opinions

MILLER, District Judge:

In this barge breakaway case, the appellant-third party plaintiff, U.S. United Bulk Terminal, LLC and its related entities and vessels (collectively “United”), appeals the district court’s order granting appelleethird party defendant’s, Carnival Corp. and its vessel FANTASY (collectively “Carnival”), motion for summary judgment on United’s claims for contribution and indemnity, and property damage.

I. Facts

Combo Maritime, Inc. (“Combo”) sued United for damages sustained when a number of barges broke free of their moorings at United’s barge fleeting facility and drifted downstream, alliding with Combo’s vessel, the M/V ALKMAN, which lay at anchor nearby. United filed a third-party complaint against Carnival, alleging that the barge breakaway was caused by the negligent navigation of Carnival’s cruise ship FANTASY when it navigated too close to the fleeting facility under full speed. United brought claims against Carnival for (1) contribution and indemnity, and (2) damage to United’s fleeting [602]*602equipment and barges.1 United additionally proffered Carnival as a defendant under Rule 14(c) of the Federal Rules of Civil Procedure.

Carnival moved for partial summary judgment on United’s complaint based on the Supreme Court’s decision in THE LOUISIANA, 3 Wall. (70 U.S.) 164, 173, 18 L.Ed. 85 (1866). The LOUISIANA Rule creates the rebuttable presumption that in collisions or allisions involving a drifting vessel, the drifting vessel is at fault. See, e.g., James v. River Parishes Co., 686 F.2d 1129, 1131-32 (5th Cir.1982). After reviewing the submitted evidence, the district court granted Carnival’s motion for partial summary judgment. It further ordered that at trial between Combo and United, United could not present evidence that Carnival’s alleged negligence contributed to the barge breakaway. Later, on a motion for reconsideration, the district court also ordered that United’s third-party complaint against Carnival be dismissed with prejudice.

After the district court entered judgment for Carnival, United settled with Combo. As part of the settlement agreement, Combo specifically released all of its claims against all parties by name, including Carnival. Combo also assigned all of its claims against Carnival to United. United then filed the instant appeal of the district court’s order on summary judgment and judgment on United’s third-party claims. At this court’s request, the parties submitted supplemental letter briefs regarding whether the appeal is moot in light of United’s settlement with Combo. For the following reasons, we reverse and remand.

II. Mootness

As an initial matter, we must address whether the appeal before us is moot. ‘Whether an appeal is moot is a jurisdictional matter, since it implicates the Article III requirement that there be a live case or controversy.” Bailey v. Southerland, 821 F.2d 277, 278 (5th Cir.1987). “[A]ny set of circumstances that eliminates actual controversy after the commencement of a lawsuit renders that action moot.” Ctr. for Individual Freedom v. Carmouche, 449 F.3d 655, 661 (5th Cir.2006).

“In admiralty cases, federal courts allocate damages based upon the parties’ respective degrees of fault.” In re Omega Protein, Inc., 548 F.3d 361, 370 (5th Cir.2008) (citing United States v. Reliable Transfer Co., 421 U.S. 397, 411, 95 S.Ct. 1708, 44 L.Ed.2d 251 (1975)). “Damages are apportioned among the tortfeasors themselves through the application of the doctrin[e] of contribution.” Thomas J. ScHOENBAUM, 1 ADMIRALTY & MARITIME LAW § 5-18 (4th ed.). The right of contribution in admiralty collision claims is of ancient lineage. Cooper Stevedoring Co. v. Fritz Kopke, Inc., 417 U.S. 106, 110, 94 S.Ct. 2174, 40 L.Ed.2d 694 (1974) (citing THE NORTH STAR, 106 U.S. 17, 1 S.Ct. 41, 27 L.Ed. 91 (1882)) (tracing the right of contribution in collision cases back to the Laws of Oleron in the 12th century); Hardy v. Gulf Oil Corp., 949 F.2d 826, 829-30 (5th Cir.1992). “Contribution is defined as the ‘tortfeasor’s right to collect from others responsible for the same tort after the tortfeasor has paid more than his or her proportionate share, the shares being determined as a percentage of fault.’ ” United States v. Atlantic Research Corp., 551 U.S. 128, 139, 127 S.Ct. 2331, 168 L.Ed.2d [603]*60328 (2007) (quoting Black’s Law Dictionary 353 (8th ed.2004)). “The right of contribution exists only in favor of a tortfeasor who has discharged the entire claim for the harm by paying more than his equitable share of the common liability.” Restatement (Second) of Torts § 886(A) (1979). Therefore, contribution requires that the claimant have paid more than he owes, and have discharged the entire claim.

As one commentator puts it, “[difficult and interesting contribution questions arise where one or more tortfeasors settle before trial.” Schoenbaum, supra, § 5-18. In McDermott, Inc. v. AmClyde, 511 U.S. 202, 114 S.Ct. 1461, 128 L.Ed.2d 148 (1994), the Supreme Court addressed a part of this question and held that when one defendant of many settles with a plaintiff, the liability of the remaining non-settling defendants is calculated based on their proportionate responsibility for the plaintiffs injuries without regard to the amount of the settlement. Id. at 221, 114 S.Ct. 1461. In a companion case to McDermott issued the same day, the Supreme Court also held that when one defendant settles its claim with the plaintiff, “actions for contribution against settling defendants are neither necessary nor permitted.” Boca Grande Club, Inc. v. Fla. Power & Light Co., 511 U.S. 222, 222, 114 S.Ct. 1472, 128 L.Ed.2d 165 (1994) (citing AmClyde, 511 U.S. at 202, 114 S.Ct. 1461).

Likewise, we have held that Am-Clyde’s proportionate liability scheme bars a settling tortfeasor from seeking contribution from a non-settling tortfeasor. Ondimar Transportes Marítimos v. Beatty St. Props., Inc., 555 F.3d 184, 187 (5th Cir.2009). Nor may a settling tortfeasor seek recovery from a non-settling tortfeasor based on an assignment of the property damage claim by the plaintiff. Lexington Ins. Co. v. S.H.R.M. Catering Servs., Inc., 567 F.3d 182, 185 (5th Cir.2009); Ondimar, 555 F.3d at 189. However, in both Ondimar and Lexington, we indicated that when a settling tortfeasor obtains a full release2 from the plaintiff for all parties, an action for contribution might not conflict with AmClyde. We now make explicit what we have previously implied and hold that AmClyde

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615 F.3d 599, 2010 A.M.C. 2196, 2010 U.S. App. LEXIS 17644, 2010 WL 3295108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/combo-maritime-inc-v-us-united-bulk-terminal-llc-ca5-2010.