Cotemar S.A. De C.V. v. Beaufort

190 F. Supp. 3d 577, 2016 U.S. Dist. LEXIS 69244, 2016 WL 3020665
CourtDistrict Court, E.D. Louisiana
DecidedMay 26, 2016
DocketCIVIL ACTION NO: 14-342
StatusPublished

This text of 190 F. Supp. 3d 577 (Cotemar S.A. De C.V. v. Beaufort) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cotemar S.A. De C.V. v. Beaufort, 190 F. Supp. 3d 577, 2016 U.S. Dist. LEXIS 69244, 2016 WL 3020665 (E.D. La. 2016).

Opinion

SECTION: “S” (1)

ORDER AND REASONS

MARY ANN VIAL LEMMON, UNITED STATES DISTRICT JUDGE

IT IS HEREBY ORDERED that Norwegian Hull Club’s Motion to Approve Assignment of the Letter of Undertaking (Doc. #122) is GRANTED.

IT IS FURTHER ORDERED that Plaintiffs’ Motion to Dismiss (Doc. #90) is GRANTED, and plaintiffs’ claims against the M/V HOS BEAUFORT, in rem, are DISMISSED WITHOUT PREJUDICE.

IT IS FURTHER ORDERED that the MTV HOS BEAUFORT’S Motion to Dismiss for Res Judicata (Doc. #61) is GRANTED, and this matter is DISMISSED WITHOUT PREJUDICE.

BACKGROUND

This matter is before the court on Norwegian Hull Club’s motion to approve the assignment of the letter of undertaking. Also before the court is a motion to dismiss filed by plaintiffs, Cotemar S.A. de C.V., Exeter Marine Limited, and Ocean Oil Construction and Services, S.A.R.L. (collectively referred to as “the Cotemar interests”), who state that they no longer choose to pursue their in rem claims against the MW HOS BEAUFORT. Further, this matter is before the court on a motion to dismiss filed by Hornbeck Offshore Services, LLC (“Hornbeck”), appearing solely as the claimant of the BEAUFORT.1

[581]*581On June 24, 2011, the BEAUFORT, a United States flagged offshore supply vessel, abided with the SSV IOLAIR, a semi-submersible, catamaran-shaped offshore construction support floatel platform registered in the Marshall Islands, an island country in the Northern Pacific Ocean. At the time of the allision, the BEAUFORT’S first mate, an American merchant marine officer from Florida, was at the helm. He set the vessel’s autopilot, sent the lookout to clean behind the wheelhouse, and fell asleep. He was awakened when the lookout informed him that the IOLAIR was 50 feet away. He attempted to avoid the allision, but was unable to do so. The IOLAIR was stationary alongside the AKAL MB platform transferring personnel via crane. The allision occurred in international waters, 44 miles off the coast of Mexico in the Bay of Campeche, while both vessels were performing work for Pemex Exploración y Producción (“Pemex”), Mexico’s state-owned oil company. The United States Coast Guard and Mexican authorities investigated the incident.

Exeter Marine Limited, a Bahamian entity, owns the IOLAIR. Cotemar S.A, de C.V., a Mexican entity, operates, maintains, manages and has a proprietary interest in the IOLAIR. Ocean Oil Construction and Services, S.A.R.L., a Luxembourgian entity, is the IOLAIR’s bare-boat charterer.

The BEAUFORT is owned, operated and managed by Hornbeck, Hornbeck Offshore Operators, LLC (“HOOL”) and Hornbeck Offshore Services, Inc. (“HOSI”), which are all American corporations, that maintain their headquarters in Covington, Louisiana. Hornbeck asserts that the BEAUFORT is managed by Mexican entities located in Mexico, Hornbeck Offshore Services de Mexico, S. de R.L. de C.V. (“HOSMEX”) and Hornbeck Offshore Operators de Mexico S. de R.L. de C.V. (“HOOMEX"). The BEAUFORT’S Port of Registry is New Orleans, Louisiana.

On October 19, 2011, Hornbeck and HOSMEX filed a petition in Mexico to limit their liability under the 1976 Convention on Limitation of Liability for Maritime Claims (the “1976 Convention”),2 posted $556,559.33 USD as security, and listed Cotemar as a possible claimant. Cotemar did not appear or make a claim against the fund. Hornbeck, HOOL, and HOOMEX filed a second limitation proceeding in Mexico on April 9, 2012, adding Exeter as a potential claimant. Exeter has not been served in those proceedings.

.On December 15, 2011, the Cotemar interests filed a complaint in the United States District Court for the Southern District of Texas against Hornbeck, HOOL and HOSI, in personam, and the BEAUFORT, in rem,3 alleging that their negligence, gross negligence and unseaworthiness caused the allision and resulting damage to the IOLAIR. After two years of litigation, the court granted Hornbeck, HOSI and HOOL’s motion to dismiss based on forum non conveniens, finding that a Mexican court was the proper forum for the action. Cotemar S.A. de C.V. v. Hornbeck Offshore Servs. Inc., C/A No. 11-4409 (S.D. Tex. 3/29/13) (Doc. [582]*582#140). The Cotemar interests appealed that decision to the United States Court of Appeals for the Fifth Circuit.

On February 11, 2014, the BEAUFORT entered United States waters for the first time since the Cotemar interests filed the Texas action. Thus, on February 13, 2014, the Cotemar interests filed Civil Action No. 14-342 in the United States District Court for the Eastern District of Louisiana against the BEAUFORT, in rem, alleging that the allision and the resulting damage to the IOLAIR were caused by the BEAUFORT’S negligence, gross negligence and unseaworthiness. This court granted the Cotemar interests’ motion for the issuance of a warrant of arrest of the BEAUFORT, in rem, and the vessel was arrested under Rule C of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions. Hornbeck moved to vacate that arrest under Rule E(4)(f) of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions arguing that the arrest was made in bad faith because Mexican law would apply and the action was barred by laches. This court denied Hombeck’s motion to vacate reasoning that the arrest was made in good faith because there was a reasonable possibility that United States law would apply and laches did not apply due to a lack of prejudice to Hornbeck. Thereafter, on April 15, 2014, Steamship Mutual Underwriting Association, Ltd., the insurer of the BEAUFORT, and the Cotemar interests entered into a $15,400,000 letter of undertaking (“LOU”) securing the release of the BEAUFORT. The LOU stated that it was entered into “in further consideration of [the Cotemar interests’] refraining from arresting or attaching or otherwise detaining or taking any other action to seize the Beaufort to recover for damages” related to the June 24, 2011, incident.

On May 21, 2014, the United States Court of Appeals for the Fifth Circuit issued an Opinion on the Cotemar interests’ appeal of the Texas district court’s dismissal of the action for forum non con-veniens. Cotemar S.A. de C.V. v. Hornbeck Offshore Servs., L.L.C., 569 Fed. Appx. 187 (5th Cir.2014). The appellate court remanded the matter to the Texas district court for consideration of the litigation’s potential untimeliness in the Mexican forum and whether the intervening seizure of the BEAUFORT in the Eastern District of Louisiana affected the forum non conveniens analysis. Id

On July 2, 2014, this court stayed Civil Action No. 14-342 pending the Texas district court’s decision on remand, On remand, the Texas district court considered the questions posed by the appellate court and again dismissed the action for forum non conveniens, finding that Mexico was a more appropriate forum. Cotemar S.A. de C.V. v. Hornbeck Offshore Servs., Inc., C/A No. 11-4409 (S.D. Tex. 3/23/2015). The Cotemar interests appealed that decision. NHC moved to be substituted as the real party in interest. The motion was denied. On August 20, 2015, the second appeal was dismissed for failure to prosecute. Cotemar S.A. de C.V. v. Hornbeck Offshore Servs., L.L.C., No. 15-20231 (5th Cir. 8/20/2015).

On September 30, 2015, Hornbeck filed a motion to dismiss Civil Action No.

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Bluebook (online)
190 F. Supp. 3d 577, 2016 U.S. Dist. LEXIS 69244, 2016 WL 3020665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cotemar-sa-de-cv-v-beaufort-laed-2016.