Commercial Union Insurance v. Bohemia River Associates, Ltd.

855 F. Supp. 802, 1994 A.M.C. 1410, 1991 U.S. Dist. LEXIS 21193, 1991 WL 576967
CourtDistrict Court, D. Maryland
DecidedJuly 22, 1991
DocketCiv. S 89-2991
StatusPublished
Cited by10 cases

This text of 855 F. Supp. 802 (Commercial Union Insurance v. Bohemia River Associates, Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Union Insurance v. Bohemia River Associates, Ltd., 855 F. Supp. 802, 1994 A.M.C. 1410, 1991 U.S. Dist. LEXIS 21193, 1991 WL 576967 (D. Md. 1991).

Opinion

SMALKIN, District Judge.

Presently before the Court are several motions for summary judgment. The twenty plaintiffs in this consolidated admiralty case are the owners of yachts that were either destroyed or damaged by fire at the Bohemia Bay Yacht Harbour (“marina”) in Chesapeake City, Maryland, on January 6, 1989. Plaintiffs seek recovery from six defendants, five of whom were allegedly involved in the construction, development, or operation of the marina.

Standard for Summary Judgment

The Court will grant summary judgment if there is “no genuine issue as to any material fact” and “the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). The initial responsibility of informing the Court of the basis for summary judgment lies with the moving party. See Fed.R.Civ.P. 56; Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986); Pulliam Inv. Co. v. Cameo Properties, 810 F.2d 1282, 1286 (4th Cir.1987). Once a motion for summary judgment is made and supported, the nonmoving party “may not rest upon the mere allegations or denials of [that] party’s pleading, but ... must set forth specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e). See also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986).

I. Motions of NPI, Condo Association, BRA, and BYS

The difficulty with this admiralty case is that “the marina” was not a traditional marina. That is, instead of having one entity or individual own and run the facility, Bohemia Bay Yacht Harbour was developed as a “condominium marina.” Individuals owned their slips, while the condo association maintained the common areas, including all of the piers. The plaintiffs in this ease either owned or rented their slips.

Because of this condominium organizational structure, it is difficult to ascertain just who or what was “the marina.” There are four defendant corporations that were allegedly involved with the development and operation of the marina, but all claim they were not “the marina,” and that they therefore owed no duties to any of the plaintiff yacht owners. Nautical Properties, Inc. (“NPI”), Bohemia Bay Yacht Harbour Condominium Association (“Condo Association”), Bohemia River Associates (“BRA”), and Bohemia Yacht Services, Inc. (“BYS”) all move for partial or complete summary judgment against the plaintiffs and several cross-claimants and counter-claimants. There are essentially four common issues before the Court regarding these four defendants: whether there is evidence to support claims for breach of bailment contracts, for negligence, for breach of warranty of workmanlike performance, and for breach of contract. Opposition and reply memoranda have been filed, and no oral hearing is necessary. Local Rule 105.6, D.Md.

Discussion

Was there a bailment?

Defendants NPI, Condo Association, BRA, and BYS assert that there are no facts *805 allowing the plaintiffs and their insurers to allege claims under a bailment contract. All of the plaintiffs who leased their slips pursuant to a Slip Rental Agreement argue the existence of a bailment relationship, which they claim arose through the lease agreement. Additionally, plaintiff Brian Hard, owner of slip F-8, asserts a claim under a bailment theory.

Generally, a contract for the storage or repair of a boat constitutes a bailment agreement. See, e.g., Snyder v. Four Winds Sailboat Centre, Ltd., 701 F.2d 251, 252 (2d Cir.1983); Leyendecker v. Cooper, 1978 AMC 1544 (D.Md.1978). In admiralty law, a bailor makes out a rebuttable presumption of negligence if the bailor proves that the bailed article was delivered in good condition and was returned damaged or not at all. Leyendecker v. Cooper, 1980 AMC 1061 (D.Md.1979), citing Richmond Sand and Gravel Corporation v. Tidewater Construction Corporation, 170 F.2d 392 (4 Cir.1948). The burden of proof then shifts to the defendant/bailee who may rebut the presumption of negligence by showing that either the disaster was in no way attributable to the defendant’s negligence, or that the defendant did indeed exercise the requisite care. Id.

The parties disagree as to whether a bailment requires exclusive control by the bailee. As plaintiffs note, the exclusive control requirement has been relaxed somewhat when the owner of the boat has access to it in dry storage. See, e.g., Hicks v. Tolchester Marina, Inc., 1984 AMC 2027, 1983 WL 709 (D.Md.1983). But, as is true with the general law of bailment, the majority of the admiralty cases consider the bailee’s exclusive right to possess the boat a major factor which points in the direction of an admiralty bailment. Snyder, 701 F.2d at 252 (bailment contract where marina kept only keys to locks on boat); Fletcher v. Port Marine Center, Inc., 1990 AMC 2877, 2880, 1990 WL 255536 (D.Mass.1990) (no bailment where plaintiff fails to show exclusive control); Continental Insurance Co. v. Washeon Corp., 524 F.Supp. 34, 37 (E.D.Mo.1981) (bailee must have exclusive right to possession, even as against the owner). The rebuttable presumption of negligence given a bailor makes sense if the bailee has exclusive control, because it is then the bailee who is in the best position to explain the loss.

Plaintiffs’ failure to assert that either the marina or any of the defendants had the exclusive right to control the vessels, is, in itself, enough to deny them the benefit of the bailment presumption. Snyder, 701 F.2d at 252; Fletcher, 1990 AMC at 2880, 1990 WL 255536; Continental Insurance, 524 F.Supp. at 37. In Rogers v. Yachts America, Inc., 1983 AMC 417, 420 (D.Md.1982), cited repeatedly by plaintiffs, Judge Young held that a contract for the storage of a boat on land constituted a bailment contract. All of the plaintiffs who claim that there was a bailment in this case rented or owned water slips, and all but one plaintiff rented pursuant to a Slip Rental Agreement.

There is a distinction in the admiralty eases between what is essentially a mere lease and a bailment. A lease is an agreement to pay a fee for the opportunity to tie a boat at an assigned slip, Fletcher v. Port Marine Center, Inc., 1990 AMC 2877, 1990 WL 255536 (D.Mass.1990), while a bailment is a contract for storage or repair. Snyder v. Four Winds Sailboat Centre, Ltd.,

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Bluebook (online)
855 F. Supp. 802, 1994 A.M.C. 1410, 1991 U.S. Dist. LEXIS 21193, 1991 WL 576967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-union-insurance-v-bohemia-river-associates-ltd-mdd-1991.