Complaint of Steuart Transportation Co.

435 F. Supp. 798, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20658, 1977 U.S. Dist. LEXIS 14736
CourtDistrict Court, E.D. Virginia
DecidedJuly 29, 1977
DocketCiv. A. 76-697-N
StatusPublished
Cited by8 cases

This text of 435 F. Supp. 798 (Complaint of Steuart Transportation Co.) 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 Steuart Transportation Co., 435 F. Supp. 798, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20658, 1977 U.S. Dist. LEXIS 14736 (E.D. Va. 1977).

Opinion

MEMORANDUM OPINION AND ORDER

CLARKE, District Judge.

On the morning of February 2, 1976, the Tank Barge STC 101, owned by plaintiff, Steuart Transportation Company (hereinafter referred to as “Steuart”), sank in the Chesapeake Bay approximately four miles south of Smith Point Light. The barge carried a full cargo of approximately 19,700 barrels of # 6 oil owned by defendant, Amoco Oil Company. A portion of this cargo of oil was lost following the sinking of the barge.

The STC 101 departed Amoco, Yorktown in tow of the Tug FALCON, owned by defendant, Allied Towing Company (hereinafter referred to as “Allied”), on the afternoon of February 1, 1976, enroute to Baltimore.

*801 The tug and barge headed out of the York River and proceeded up the Chesapeake Bay. At approximately 4:00 A. M. February 2, the FALCON altered course toward the western shore of the Chesapeake Bay below Smith Point in order to obtain a lee in the face of adverse wind and sea conditions. At that time visibility was obscured in heavy snow. At approximately 6:00 A. M., when the snow had cleared, the master and mate of the FALCON were able to sight the Barge STC 101 visually and determined at that time that she had sunk by the stern.

At some time after the sinking, a quantity of oil escaped from the barge. It is stipulated that the amount was a “harmful amount” within the meaning of the Federal Water Pollution Control Act, 33 U.S.C. § 1321 (Supp.1977) (hereinafter referred to as “FWPCA”) and was an “amount sufficient to cause damage to aquatic life in State waters or to the lands or beaches adjacent thereto” within the meaning of the State Water Control Law, Code of Virginia, § 62.1-44.34 (1973 Repl.Vol.).

In this proceeding, Steuart claims exoneration from or limitation of liability in connection with the sinking of Barge STC 101 and the resulting oil spill. The following claims have been made:

(1) Amoco claims against Steuart for its lost cargo;
(2) Allied claims against Steuart for damaged towing gear, as Amoco’s bailee and for indemnification of penalties paid and/or claimed in connection with the spill;
(3) The Commonwealth of Virginia claims against Steuart for oil spill cleanup costs, statutory penalties, damage to state oyster beds, and injuries to wildlife and other natural resources;
(4) The United States claims against Steuart for oil spill cleanup costs, statutory penalties, and injuries to wildlife and other natural resources;
(5) Winfred E. Sutton, Sr. claims against Steuart for the cost of cleaning his boat;
(6) Steuart claims against Amoco for a general average contribution for the salvage of barge and cargo;
(7) Steuart claims against Allied for contribution or indemnification (based on allegations of negligence in towing the barge);
(8) Steuart claims against the United States for contribution or indemnification (based on allegations of negligence in weather forecasting and Coast Guard regulations);
(9) The Commonwealth of Virginia cross-claims against Allied for the same damages claimed against Steuart, in the event Allied is held responsible for the same.

Trial of the case was bifurcated, and the case is now before the Court on the issues of liability for the casualty and the right of Steuart to limitation of damages recoverable against it. This Court’s jurisdiction is based upon 28 U.S.C. § 1333. (See also 33 U.S.C. § 1321(n) and 46 U.S.C. § 185).

Steuart asserts the right to limit recoveries against it under the provisions of two Federal statutes: the Limitation of Liability Act, 46 U.S.C. §§ 181-189 (1958) 1 and the FWPCA, 33 U.S.C. § 1321 (Supp.1977). 2 *802 Virginia asserts a right to damages under Virginia Code § 62.1-44.34:2 (Supp.1976). 3 This case presents serious and unsettled questions of the relationship of these acts. In determining liability and limitation of damages in this case, the Court has the duty of attempting a harmonious construction of the acts. To that end, it is useful at the outset to categorize the claims against Steuart thus: (A) federal spill cleanup costs; (B) Virginia spill cleanup costs; (C) other damage claims by Virginia; (D) other federal damage claims; and (E) all other claims.

On its face, the Limitation Act is applicable as a potential limit to all these claims. However, the subsequent enactment of the more specific FWPCA clearly cuts into the operation of the Limitation Act at least as to federal spill cleanup costs. Askew v. American Waterways Operators, Inc., 411 U.S. 325, 93 S.Ct. 1590, 36 L.Ed.2d 280, reh. denied, 412 U.S. 933, 93 S.Ct. 2746, 37 L.Ed.2d 162 (1973). To" the owner of a vessel, some of the changes under FWPCA are advantageous and others are burdensome. The right to limit under FWPCA exists unless “willfullness” by the owner is shown; while under the Limitation Act, the owner loses the right to limit if it is shown that he had “privity or knowledge” of the cause of the casualty. On the other hand, the Liability Act permits exoneration where the owner is free of fault, while FWPCA imposes strict liability for the costs of cleanup unless the sole cause of the spill is one or a combination of specified acts. Also, the amount recoverable even if limitation is granted may be much higher under FWPCA than under the Limitation Act. 4

In this case, the combined claims for cleanup costs exceed the limits established in FWPCA, thus raising the question whether Virginia can recover its cleanup costs in full under Virginia Code § 62.1-44.-34:2, notwithstanding the federal limitation statutes. Also, the other federal claims, other Virginia claims, and all other claims each exceed the Liability Act limit asserted by Steuart, raising the issue of Steuart’s privity or knowledge as to the cause of the *803 casualty under the provisions of the Limitation Act.

With this structure of conflicting claims in mind, the Court turns to the facts of the case. The STC 101 is a steel tank barge built in 1956. It measures 240.1 feet in length, 50.1 feet in breadth with a depth of 12.2 feet, weighing 1,228 gross tons. Its cargo capacity is approximately 20,000 barrels.

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435 F. Supp. 798, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20658, 1977 U.S. Dist. LEXIS 14736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/complaint-of-steuart-transportation-co-vaed-1977.