Complaint of Allied Towing Corp.

409 F. Supp. 180
CourtDistrict Court, E.D. Virginia
DecidedMarch 9, 1976
DocketCiv. A. 75-151-N
StatusPublished
Cited by10 cases

This text of 409 F. Supp. 180 (Complaint of Allied Towing Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Complaint of Allied Towing Corp., 409 F. Supp. 180 (E.D. Va. 1976).

Opinion

MEMORANDUM OPINION AND ORDER

CLARKE, District Judge.

Allied Towing Corporation [hereinafter referred to as “Allied”] seeks exoneration from or limitation of liability in regard to damages caused by an explosion and subsequent fire aboard the tank barge ATC 3060 on March, 17, 1975. Exoneration from or limitation of liability is sought pursuant to 46 U.S.C. § 181, *182 et seq. Allied is entitled to exoneration if it is free of liability. If negligence is established, Allied argues that damages for which it would be liable should be limited to the barge’s value and its pending cargo pursuant to the statute. 1 Jurisdiction is invoked pursuant to the Court’s general admiralty jurisdiction, 28 U.S.C. § 1333 and the specific grant of jurisdiction to supervise limitation of liability proceedings.

Allied has complied with the statutory requirements detailed in 46 U.S.C. § 181, et seq. and the provisions of Rule F, Supplemental Rules for Certain Admiralty and Maritime Claims, Federal Rules of Civil Procedure. Allied fulfilled the notice requirements informing all potential claimants that Allied was seeking exoneration from or limitation of liability. The parties opposing Allied’s invocation of limitation of liability are persons whose property or person were injured by the explosion and fire aboard ATC 3060. Parties were provided an opportunity to present evidence and brief the relevant issues.

FINDINGS OF FACT

Most of the facts are not in dispute. Allied Towing Corporation is a wholly owned subsidiary of Allied Marine Industries, Inc. 2 William E. Law is president of both Allied Marine Industries, Inc. and Allied Towing Corporation;' Similarly, he is a director and stockholder of both corporations. Allied’s corporate headquarters are located at Norfolk, Virginia, as is its principal place of business. Both are located in close proximity to the banks of the Eastern Branch of the Elizabeth River on Avory Avenue in Norfolk, Virginia.

Allied is the owner of the barge ATC 3060 which was moored at the corporation’s docks on March 17, 1975. ATC 3060 is designed to carry fuel oils and is an unmanned barge built in 1968 and had been owned by Allied since 1972. ATC 3060 was docked for the purposes of investigating for and if necessary, repairing a suspected leak in one of its tanks. The history of the leak is pertinent to this limitation proceeding.

On March 15, 1975, an Allied tug towing ATC 3060 was directed by Joe Smith, Vice President of Operations, to meet the tanker AMOCO Yorktown and to lighten a cargo of Grade C crude oil from the ship to a dock on the York River. Chemical tests by Amoco confirmed that the AMOCO Yorktown was carrying Grade C and that the oil delivered was Grade C. This cargo was discharged from the barge at the AMOCO Yorktown refinery on Sunday, March 16, 1975. In the process of discharging, an oil slick formed near the ATC 3060 and it was suspected that it was caused by a leak in one of the barge’s fuel compartments. The tankerman in charge of the barge contacted Mr. Wayne Johnson, Allied’s Vice President of Maintenance and Repairs, on Sunday, March 16, 1975. Mr. Johnson was advised that the ATC 3060 had a suspected leak and the barge was ordered to return to Allied’s yards for inspection and if necessary, for repairs. It is not disputed that both Wayne Johnson, Vice President, and Benny Harwood, General Foreman, were cognizant on March 16, 1975, that ATC 3060 had a suspected leak and was en route to the corporation’s Norfolk docks for inspection and possible repair on Monday, March 17, 1975.

*183 ATC 3060 was within the parameters of Allied’s property at the commencement of the workday on March 17, 1975. ATC 3060 was initially in the fleet area but it was moved to a position next to the dock during the morning. At approximately 7:30 A.M., Johnson directed Richard T. Waida, ah employee of Allied holding the position of Assistant Port Engineer, to examine the barge for the suspected leak. Additionally, Powell, Allied’s Yard Superintendent, requested labor pusher Turner to inspect the tanks of the ATC 3060 to see whether water was in the tanks. Turner reported that there was not any water in the tanks. Nevertheless, Powell personally inspected the tanks for the presence of water and then directed Benny Harwood, General Foreman, to have one of the barge’s tanks air tested for a leak. At this time, Powell was aware that Waida had been assigned to inspect the barge for a leak.

ATC 3060 was air tested in an effort to discover the leak’s source. This consisted of pumping air into the sealed fuel cargo hold, building up pressure inside the hold and painting the outside of the barge in the areas of suspected leak with soap. As the air escaped at the point of the leak, the soap bubbles thus disclosing the leak. Although Waida was in charge of the ATC 3060 repair, he testified that he did not direct the air tests to be performed nor was he aware who did order the tests. In contrast to Waida’s testimony, Johnson testified that on two separate occasions he discussed the repair with Waida and inquired about the status of the leak. According to Johnson, Waida indicated that an air test was going to be performed and that the specific trouble had been located and the Coast Guard had been notified. The Court finds as a fact that Johnson asked specifically on two separate occasions about the repair of ATC 3060 on the day of the explosion and that he queried Waida whether the Coast Guard had been notified. 3 The Court concludes that although Assistant Port Engineer Waida had been assigned to the repair job, a clear line of responsibility and accountability had not been formulated as evidenced by the variety of employees involved in the repair and the failure of one employee to direct and supervise the repair.

The Court also finds as a fact that at the time of the explosion, Waida was aware that employees of Allied were doing hot work (welding) on the barge. This work was being done in the same location where Waida had observed Allied employees performing a soap test to find the leak’s source. At the time of the explosion, Waida and Executive Vice President for Special Projects Ferrer were standing at the back of the barge measuring its stern for a purpose not connected with the leak repair.

The evidence adduced shows that Yard Superintendent Powell was aware that a fire watch, that is, additional personnel to stand by with fire fighting equipment, was requested for ATC 3060. This request was made by Benny Harwood, General Foreman. Overhearing the request for a fire watch, Powell suggested that a fire hose should be used in addition to the fire extinguisher. Powell testified that he assumed that if Harwood was requesting a fire watch that hot work (welding) was anticipated.

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409 F. Supp. 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/complaint-of-allied-towing-corp-vaed-1976.