George Moench v. M/V Salvation

CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 29, 2016
Docket15-31105
StatusPublished

This text of George Moench v. M/V Salvation (George Moench v. M/V Salvation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George Moench v. M/V Salvation, (5th Cir. 2016).

Opinion

Case: 15-31105 Document: 00513697755 Page: 1 Date Filed: 09/29/2016

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT United States Court of Appeals Fifth Circuit

FILED September 29, 2016 No. 15-31105 Lyle W. Cayce Clerk GEORGE T. MOENCH, as Co-Trustee on behalf of George T. Moench Irrevocable Trust; JENNIFER J. AREGOOD, as Co-Trustee on behalf of George T. Moench Irrevocable Trust,

Plaintiffs - Appellees

v.

MARQUETTE TRANSPORTATION COMPANY GULF-INLAND, L.L.C., In personam,

Defendant - Appellant

Appeal from the United States District Court for the Western District of Louisiana

Before KING, SMITH, and COSTA, Circuit Judges. KING, Circuit Judge: A towing vessel owned and operated by Defendant–Appellant Marquette Transportation Co. Gulf-Inland, L.L.C., allided with a private vessel, the SES EKWATA, owned by the George T. Moench Irrevocable Trust. Plaintiffs– Appellees, trustees of the George T. Moench Irrevocable Trust, sued Marquette for damages. After a bench trial, the district court awarded damages and attorneys’ fees against Marquette. Marquette appeals those awards, as well the district court’s exclusion of certain expert testimony from trial. For the reasons that follow, we AFFIRM. Case: 15-31105 Document: 00513697755 Page: 2 Date Filed: 09/29/2016

No. 15-31105 I. FACTUAL AND PROCEDURAL BACKGROUND The SES EKWATA was a 116 foot-long, fiberglass-hulled vessel originally built for military and commercial use, but later converted for private use. In that conversion, the EKWATA was stripped of many components, essentially leaving a bare hull and 8,000 square feet of interior space. In 2005, Plaintiff–Appellee George T. Moench purchased the essentially bare hull of the EKWATA for $200,000. 1 Between 2005 and 2011, he spent $217,000 in materials and equipment to refurbish the vessel. Moench, along with a marine carpenter, also spent thousands of hours laboring on the EKWATA, where Moench lived several months each year. In late May 2011, Moench moved the EKWATA to a fleeting facility along the Atchafalaya River to keep it safe during expected flooding. On June 10, 2011, the M/V SALVATION, a steel-hulled tug owned and operated by Defendant–Appellant Marquette Transportation Co. Gulf-Inland, L.L.C., which was towing two barges, allided 2 with the EKWATA while it was moored at the fleeting facility. Prior to the allision, the SALVATION’s captain knew that the Atchafalaya River was experiencing historic water levels, which created the potential for extreme cross-currents and required him to exercise extreme caution. Yet he proceeded down the river without assistance from another tug, and upon arriving at a holding position in the river, left the controls for a cup of coffee while the on-duty deckhand—who was supposed to be on watch—was below deck. By the time the captain returned to the controls, the river’s current had taken control of the SALVATION. After unsuccessfully

1 The EKWATA’s registered owner was the George T. Moench Irrevocable Trust. For ease of reference, we refer to the George T. Moench Irrevocable Trust and George T. Moench interchangeably as “Moench.” 2 An allision is “[t]he contact of a vessel with a stationary object such as an anchored

vessel or a pier.” Allision, BLACK’S LAW DICTIONARY (10th ed. 2014); see also Apache Corp. v. Global Santa Fe Drilling Co., 435 F. App’x 322, 323 n.1 (5th Cir. 2011) (per curiam). 2 Case: 15-31105 Document: 00513697755 Page: 3 Date Filed: 09/29/2016

No. 15-31105 attempting to regain control, the captain decided to allide with the EKWATA to avoid damaging the two barges in tow. The allision between the steel-hulled SALVATION and fiberglass-hulled EKWATA severely damaged the EKWATA 3 and caused it to take on water. After the allision, Moench attempted to determine the full extent of the damage by dry-docking the EKWATA; however, he was unable to find anyone willing to assume the liability of transporting the severely damaged vessel for inspection. The EKWATA was subsequently vandalized, which resulted in various materials and equipment Moench purchased being stolen. Moench filed the instant suit on June 6, 2012, invoking the admiralty and maritime jurisdiction of the district court and asserting general maritime law negligence and unseaworthiness claims against Marquette. Moench claimed the EKWATA was a total (or constructive total) loss as a result of the allision and sought the pre-casualty value of the vessel. 4 Up to and through trial, Marquette contested liability, despite the captain of the SALVATION admitting the facts outlined above. On the issue of damages, Moench testified at trial (without objection from Marquette) to the substantial financial investment he had made in the EKWATA. Moench and Marquette also elicited the testimony of experts at trial to assist the court on the issue of damages. Moench’s expert testified that the pre-casualty value of the EKWATA was $850,000–$1.5 million. He also testified that the replacement cost, less depreciation, of the EKWATA was $5 million–$7.5 million. Marquette’s first expert testified that the EKWATA was a constructive total loss as a result of

3 Among other things, the allision resulted in compression damage; an eighteen foot hole on the starboard side of the vessel; another twelve foot by six foot hole on the starboard side of the vessel; various splits and fractures in the hull extending below the water line; and internal damage. 4 Moench also sought punitive damages and lost business revenue from Marquette.

The district court dismissed these claims, and they are not directly at issue in this appeal. 3 Case: 15-31105 Document: 00513697755 Page: 4 Date Filed: 09/29/2016

No. 15-31105 the allision and that its pre-casualty value was $50,000. Marquette’s second expert also testified that the EKWATA was a constructive total loss, concluding that repair costs would be “hundreds of thousands” of dollars while the EKWATA’s pre-casualty value was $75,000–$100,000. The third expert presented by Marquette, Larry Strouse, was originally hired and designated by Moench. He testified that repair costs would be $285,000, but admitted this estimate was inconclusive of all damages from the allision because the EKWATA could not be dry-docked to fully assess the damage below the waterline. At trial, Marquette also sought to elicit testimony from Strouse that the pre-casualty value of the EKWATA was $120,000. The district court, however, concluded that he could not testify to that opinion because it was not expressed in his expert report. After the bench trial, the district court found Marquette at fault. On the issue of damages, the district court, after considering all of the testimony, found that the EWKATA’s pre-casualty value was $417,000 and that the cost of repairing the EKWATA would exceed that value. Based on these findings, the district court concluded that the EKWATA was a constructive total loss and awarded Moench $322,890, representing the pre-casualty value of the EKWATA, less the value of materials and equipment that Moench could have preserved following the allision. The district court also found that Marquette’s handling of the case was “an abuse of the process and bad faith” and expressed its “feel[ing]” that an award of reasonable attorneys’ fees and costs to Moench was justified under those circumstances. Moench subsequently requested $323,138.90 in fees and costs based on Marquette’s handling of the case, submitting detailed declarations and billing records to substantiate its request. Marquette responded that its handling of the case did not warrant sanction. Marquette also objected to the amount of fees and costs requested by Moench, principally asserting that it should be reduced as disproportionate to 4 Case: 15-31105 Document: 00513697755 Page: 5 Date Filed: 09/29/2016

No.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Louisiana Power & Light Co. v. Kellstrom
50 F.3d 319 (Fifth Circuit, 1995)
Forbush v. J C Penney Company
98 F.3d 817 (Fifth Circuit, 1996)
Merriman v. Security Insurance Co. of Hartford
100 F.3d 1187 (Fifth Circuit, 1996)
Saizan v. Delta Concrete Products Co.
448 F.3d 795 (Fifth Circuit, 2006)
McClain v. Lufkin Industries, Inc.
519 F.3d 264 (Fifth Circuit, 2008)
Standard Oil Co. of NJ v. Southern Pacific Co.
268 U.S. 146 (Supreme Court, 1925)
Armstrong v. Manzo
380 U.S. 545 (Supreme Court, 1965)
Alyeska Pipeline Service Co. v. Wilderness Society
421 U.S. 240 (Supreme Court, 1975)
Roadway Express, Inc. v. Piper
447 U.S. 752 (Supreme Court, 1980)
Chambers v. Nasco, Inc.
501 U.S. 32 (Supreme Court, 1991)
Farrar v. Hobby
506 U.S. 103 (Supreme Court, 1992)
Whitehouse Hotel Ltd. Partnership v. Commissioner
615 F.3d 321 (Fifth Circuit, 2010)
Federal Insurance Co v. HPSC, Inc.
480 F.3d 26 (First Circuit, 2007)
Apache Corporation v. Global Santa Fe Drilling Co.
435 F. App'x 322 (Fifth Circuit, 2011)
Carl Sawyer, Inc. v. Poor the Monarch of Nassau
180 F.2d 962 (Fifth Circuit, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
George Moench v. M/V Salvation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-moench-v-mv-salvation-ca5-2016.