Complaint of American Export Lines, Inc.

76 F.R.D. 210, 1977 U.S. Dist. LEXIS 13961
District Court, S.D. New York·Decided September 16, 1977·No. No. 73 Civ. 2507 (CHT)·Published·Cited by 1 cases

Opinion

TENNEY, District Judge.

In the now four-year-old litigation arising from the collision between the S/S c.v. SEA WITCH and the S/S ESSO BRUSSELS in New York Harbor on June 2, 1973, three new procedural motions have been submitted to the Court. Movants are Bath Iron Works Corporation (“Bath”), third-party defendant; Sperry Rand Corporation (“Sperry”), claimant and third-party defendant; and Esso Belgium, Standard Tankers (Bahamas) Company Limited and Exxon Corporation (“Exxon Group”), claimants, all of whom request leave to amend pleadings and assert cross-claims against the United States pursuant to Rules 13(g) and 15(a) of the Federal Rules of Civil Procedure (“Rules”). For the reasons stated below, the motions are granted as to Bath and Sperry and denied as to the Exxon Group.

The United States, which opposes these motions, is itself both claimant (for cargo lost aboard the SEA WITCH) and third-party defendant in the above-captioned proceedings. It was cast in its defensive posture by an order of this Court dated May 19, 1977, permitting American Export Lines, Inc. (“American Export”), owners of the SEA WITCH and petitioners for limitation, to assert a cross-claim for indemnity against the sovereign under the Suits in [212] Admiralty Act, 46 U.S.C. §§ 741 et seq. That order was issued pursuant to a report by United States Magistrate Martin D. Jacobs, to whom the American Export motion was referred to “hear and determine.” 28 U.S.C. § 636(b)(1)(A).

The instant motions and that considered by Magistrate Jacobs in his report arise out of the same concern: there are allegations that the steering gear of the SEA WITCH was defectively designed and negligently installed during construction and that the United States bears responsibility for approving the allegedly deficient gear in derogation of Coast Guard regulations. 46 C.F.R. § 58.25. In the American Export hearing, the particular focus of the Magistrate’s inquiry was the Government’s contention that impleader against it was actually a suit against a joint-tortfeasor and thus was time-barred by the two-year statute of limitations contained in 46 U.S.C. § 745. Petitioner American Export countered that it wished to plead a cause of action in indemnity, a claim which would not arise until its own liability, if any, were fixed.1 Without endorsing the merits of American Export’s claim, Magistrate Jacobs found “at least a minimal standard of merit” in the legal sufficiency of the indemnity claim. Glazer Steel Corporation v. Yawata Iron & Steel Co., 56 F.R.D. 75, 80 (S.D.N.Y.1972). He thus concluded that American Export ought at least be permitted to advance the purported contractual and tort bases of the claim over. The same arguments are made in the instant motions and, at least as to Sperry and Bath, this Court concludes that their indemnification pleading follows a fortiori from the similar grant to American Export.

While the conclusion is by no means certain, there is some authority that a contractual relationship between indemnitor and indemnitee may be required for a maritime indemnification claim to survive on the merits. See United New York Sandy Hook Pilots’ Ass’n v. United States, 191 F.Supp. 893 (S.D.N.Y.), aff’d, 355 F.2d 189 (2d Cir. 1965); cf. Hidick v. Orion Shipping & Trading Co., 157 F.Supp. 477 (S.D.N.Y.1957), aff’d, 278 F.2d 114 (2d Cir.), cert. denied, 364 U.S. 830, 81 S.Ct. 67, 5 L.Ed.2d 56 (1960). But see United States Lines v. United States, 470 F.2d 487 (5th Cir. 1972); Chicago, Rock Island & Pacific Railway Co. v. United States, 220 F.2d 939 (7th Cir. 1955); Central Soya Company v. Economy Boat Store, 411 F.Supp. 214 (E.D.Mo.1976). In the case at bar there is a contract, although not one of indemnity, to which American Export, Bath and the Government (acting through the Maritime Subsidy Board) were parties. It is asserted that its terms governed certain aspects of the construction and eventual Government approval of the SEA WITCH. The contract is relied on in part by American Export and Bath to raise a theory of implied indemnity. (Sperry, as a subcontractor, was not a party to this contract).

Beyond contractual duty, however, American Export (in the Magistrate’s hearing) and Bath, Sperry and the Exxon Group (in the current motion) invoke general tort principles of indemnity in seeking to imp-lead the Government past the normal two year time-bar of 46 U.S.C. § 745. At this stage it is unnecessary to decide whether movants can prevail on any such theory. However, there are indications that maritime tort law is becoming increasingly similar to its modern civi1 counterpart. See, e. g., United States v. Reliable Transfer Co., 421 U.S. 397, 95 S.Ct. 1708, 44 L.Ed.2d 251 (1975) (replacing old admiralty collision rule of divided damages with comparative negligence standard). In a civil tort action,

[213] “[t]he claimant for complete indemnity . proceeds on contract or implied contract, or on a comparative analysis of the contributions of conduct and status or relationship that the claimed indemnitor and indemnitee bring to the damage causing episode. If the analysis of the contract or status or conduct-relation of the indemnitor and indemnitee establishes that the indemnitor is the one ultimately responsible for the damage arising out of the episode it is because, however difficult it may be to give it a precise expression in familiar legal categories, the indemnitor is in breach or at fault toward the indemnitee.” (Emphasis added.)

Atlantic Aviation Corporation v. Estate of Costas, 332 F.Supp. 1002, 1005 (E.D.N.Y.1971).

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Complaint of American Export Lines, Inc., 76 F.R.D. 210, 1977 U.S. Dist. LEXIS 13961 (S.D.N.Y. 1977).

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