Exxon Co., USA v. Sofec, Inc.

9 Fla. L. Weekly Fed. S 664, 116 S. Ct. 1813, 135 L. Ed. 2d 113, 517 U.S. 830, 64 U.S.L.W. 4415, 1996 A.M.C. 1817, 1996 U.S. LEXIS 3718, 96 Cal. Daily Op. Serv. 4107, 96 Daily Journal DAR 6630
CourtSupreme Court of the United States
DecidedJune 10, 1996
Docket95-129
StatusPublished
Cited by141 cases

This text of 9 Fla. L. Weekly Fed. S 664 (Exxon Co., USA v. Sofec, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exxon Co., USA v. Sofec, Inc., 9 Fla. L. Weekly Fed. S 664, 116 S. Ct. 1813, 135 L. Ed. 2d 113, 517 U.S. 830, 64 U.S.L.W. 4415, 1996 A.M.C. 1817, 1996 U.S. LEXIS 3718, 96 Cal. Daily Op. Serv. 4107, 96 Daily Journal DAR 6630 (U.S. 1996).

Opinion

517 U.S. 830 (1996)

EXXON CO., U. S. A., et al.
v.
SOFEC, INC., et al.

No. 95-129.

United States Supreme Court.

Argued March 19, 1996.
Decided June 10, 1996.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

*832 *832 Thomas, J., delivered the opinion for a unanimous Court.

Shirley M. Hufstedler argued the cause and filed briefs for petitioners.

George Playdon argued the cause for respondents. With him on the brief for respondents Pacific Resources, Inc., et al. were James W. McCartney, Theodore G. Dimitry, Eugene J. Silva, and Richard H. Page. Kenneth W. Starr, Edward W. Warren, Richard A. Cordray, Randall K. Schmitt, David W. Proudfoot, and John R. Lacy filed a brief for respondents Sofec, Inc., et al.[*]

Justice Thomas, delivered the opinion of the Court.

In United States v. Reliable Transfer Co., 421 U. S. 397 (1975), we abandoned the "divided damages" rule previously applied to claims in admiralty for property damages, and adopted the comparative fault principle for allocating damages among parties responsible for an injury. In this case we affirm that the requirement of legal or "proximate" causation, and the related "superseding cause" doctrine, apply in admiralty notwithstanding our adoption of the comparative fault principle.

I

This case arises from the stranding of a tanker, the Exxon Houston , several hours after it broke away from a Single Point Mooring System (SPM) owned and operated by the HIRI respondents and manufactured by respondent Sofec, Inc.[1] The Houston was engaged in delivering oil into HIRI's *833 pipeline through two floating hoses, pursuant to a contract between Exxon and respondent PRII, when a heavy storm broke the chafe chain linking the vessel to the SPM. As the vessel drifted, the oil hoses broke away from the SPM. The parting of the second hose at approximately 1728 nautical time was designated below as the "breakout." The hoses were bolted to the ship, and a portion of the second hose remained attached to the ship. So long as the hose was attached to and trailing from the ship, it threatened to foul the ship's propeller, and consequently the ship's ability to maneuver was restricted.

During the 2 hours and 41 minutes following the breakout, the captain of the Houston , Captain Coyne, took the ship through a series of maneuvers described in some detail in the District Court's findings of fact. The District Court found that by 1803, a small assist vessel, the Nene, was able to get control of the end of the hose so that it was no longer a threat to the Houston . See 54 F. 3d 570, 572 (CA9 1995). Between 1803 and 1830, Captain Coyne maneuvered the Houston out to sea and away from shallow water. The District Court, and on appeal, a panel of the Court of Appeals for the Ninth Circuit, found that by 1830, the Houston had successfully avoided the peril resulting from the breakout. App. to Pet. for Cert. 65; 54 F. 3d, at 578-579. The ship had "reached a safe position," App. to Pet. for Cert. 64, and was "heading out to sea and in no further danger of stranding," id. , at 65; 54 F. 3d, at 578.

Many of Captain Coyne's actions after 1830 were negligent, according to the courts below. Most significant was his failure to have someone plot the ship's position between 1830 and 2004, a period during which the crews of the Houston and the Nene were working to disconnect the hose from the Houston . Without knowing his position, Captain Coyne *834 was unable to make effective use of a navigational chart to check for hazards. The courts found that this failure to plot fixes of the ship's position was grossly and extraordinarily negligent. App. to Pet. for Cert. 61; 54 F. 3d, at 578. The District Court found that "Captain Coyne's decisions were made calmly, deliberately and without the pressure of an imminent peril." App. to Pet. for Cert. 60. His failure to plot fixes after 1830 "was entirely independent of the fact of breakout; he voluntarily decided not to plot fixes in a situation where he was able to plot fixes." Id., at 64.

At 1956, Captain Coyne initiated a final turn toward the shore. Because he had not plotted the ship's position, Captain Coyne was unaware of its position until he ordered another crew member to plot the fix at 2004. Upon seeing the fix on the chart, the captain apparently realized that the ship was headed for a reef. Captain Coyne's ensuing efforts to avoid the reef came too late, and moments later the ship ran aground, resulting in its constructive total loss. The District Court found that Captain Coyne's decision to make this final turn "was not foreseeable." Id., at 65.

Exxon filed a complaint in admiralty against the HIRI respondents and respondent Sofec for, inter alia, the loss of its ship and cargo. The complaint contained claims for breach of warranty, strict products liability, and negligence. HIRI filed a complaint against several third-party respondents, who had manufactured and supplied the chafe chain that held the tanker to the SPM.

Before trial, respondents suggested that Captain Coyne's conduct was the superseding and sole proximate cause of the loss of the ship, and they moved to bifurcate the trial. Respondents and the third-party respondents disputed among themselves the cause of the breakout, and they apparently sought bifurcation of the trial to avoid lengthy proceedings to resolve those factual disputes prior to a determination whether Captain Coyne's conduct was the superseding cause *835 of Exxon's injury. The District Court granted the motion, limiting the first phase of the trial to the issue of proximate causation with respect to actions taken after the breakout, and leaving the issue of causation of the breakout itself for the second phase.

Following a 3-week bench trial in admiralty, the District Court found that Captain Coyne's (and by imputation, Exxon's) extraordinary negligence was the superseding and sole proximate cause of the Houston' s grounding. Id., at 63. The court entered final judgment against Exxon with respect to the loss of the Houston, and Exxon appealed.

The Ninth Circuit held that the District Court's findings "that Captain Coyne had ample time, as well as opportunity and available manpower, to take precautions which would have eliminated the risk of grounding, and that his failure to do so amounted to extraordinary negligence, superseding any negligence of the defendants with regard to the breakout or provision of safe berth after the breakout," were "well supported by the record," and not clearly erroneous. 54 F. 3d, at 579. The court rejected Exxon's contention that the captain's actions were foreseeable reactions to the breakout; rather, it noted, Captain Coyne himself had explained that he did not plot fixes "because he felt it was unnecessary to do so." Id. , at 578.

Relying upon Circuit precedent, the court rejected Exxon's legal argument that the doctrines of proximate causation and superseding cause were no longer applicable in admiralty in light of this Court's decision in Reliable Transfer.

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9 Fla. L. Weekly Fed. S 664, 116 S. Ct. 1813, 135 L. Ed. 2d 113, 517 U.S. 830, 64 U.S.L.W. 4415, 1996 A.M.C. 1817, 1996 U.S. LEXIS 3718, 96 Cal. Daily Op. Serv. 4107, 96 Daily Journal DAR 6630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exxon-co-usa-v-sofec-inc-scotus-1996.