Harcrest International, Ltd. v. M/V Zim Keelung

681 F. Supp. 354, 1988 U.S. Dist. LEXIS 4274, 1988 WL 24110
CourtDistrict Court, E.D. Louisiana
DecidedJanuary 28, 1988
DocketCiv. A. 86-2195
StatusPublished

This text of 681 F. Supp. 354 (Harcrest International, Ltd. v. M/V Zim Keelung) 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.

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Harcrest International, Ltd. v. M/V Zim Keelung, 681 F. Supp. 354, 1988 U.S. Dist. LEXIS 4274, 1988 WL 24110 (E.D. La. 1988).

Opinion

HEEBE, Chief Judge.

This cause came on for hearing January 13, 1988 on the motion of third-party defendant, Intermodal Transportation, Inc., to dismiss the complaint as it pertains against itself.

The Court, having considered the record, the arguments of counsel, and the memo-randa submitted by the parties, is now fully advised in the premises and ready to rule. Accordingly,

IT IS THE ORDER OF THE COURT that the motion to dismiss of third-party defendant, Intermodal Transportation Services, Inc., be, and the same is hereby, DENIED.

*355 REASONS

This action involves cargo (shirts), belonging to Harcrest International, Ltd. (“Harcrest”), shipped from Pusan, Korea to New Orleans, Louisiana by Zim Container Service (“Zim”). From New Orleans, the shirts, remaining in Zim’s container, were transported via a tractor trailer, owned and operated by Searail, Inc. (“Searail”), to Union, Mississippi. However, on or about June 24, 1985, while in route from New Orleans to Union, the shirts were allegedly damaged by fire.

On May 23, 1986, Harcrest filed suit in this Court under both Rule 9(h) of the Federal Rules of Civil Procedure and Title 49 U.S.C. §§ 10103, 11707, 10730 (formerly 49 U.S.C. § 20(11)) of the Interstate Commerce Act. Named as defendants were Zim and Searail. Zim subsequently filed a cross-claim against Searail on June 13, 1986.

On April 15, 1987, Zim, pursuant to Rule 14(c) of the Federal Rules of Civil Procedure, impleaded both Great American Insurance Co. (“Great American”), Searail’s insurer, and Intermodal Transportation Services, Inc. (“Intermodal”), alleged by Zim to have assumed Searail’s liabilities as its successor. (Intermodal denies it assumed this particular contingent liability from Searail). In paragraph VIII of its impleader, Zim tendered both Great American and Intermodal as direct defendants, who were, therefore, directly liable, to Har-crest, plaintiff in the principal action, under Rule 14(c) of the Fed.R.Civ.P. In this 14(c) impleader, Zim prayed for judgment in its favor against the third-party defendants or, in the alternative, in favor of the original plaintiff and against the third-party defendants, for the full amount of Harcrest’s claim.

On December 16, 1987, this Court granted Zim’s motion to dismiss its third-party complaint against Intermodal. On January 21, 1988, this Court vacated that dismissal.

Now Intermodal moves this Court to dismiss that third-party complaint on the grounds that “there is no maritime jurisdiction over this particular claim. Thus, the 14(c) tender was and continues to be improper.” R.II, 59.

Harcrest filed this suit against Searail under both Rule 9(h) of the Fed.R.Civ.P. (admiralty designation) and the Interstate Commerce Act. This Court without question has jurisdiction over Searail and the claims asserted against it. However, Inter-modal argues that because any claims against Searail (and itself as successor) are non-maritime, Rule 14(c) is inappropriate to implead itself into this action.

It is not clear that any and all claims arising out of this action against Searail must be non-maritime. However, without so deciding, and for purposes of this motion only, the Court will assume, as Intermodal argues, that the claims against Searail are non-maritime.

On the other hand, it is clear that Har-crest’s claim against Zim is maritime. And it was Zim, not Searail, who has impleaded Intermodal. The question, therefore, is whether a defendant to a maritime action (Zim) may implead and tender to the plaintiff, through Rule 14(c) of the Fed.R.Civ.P., a third-party action and defendant therein, where that third-party action is non-maritime? Put another way, may Rule 14(c) be used to implead a non-admiralty third-party action into an admiralty action? The Court holds that it may.

The primary case supporting Intermo-dal’s position, extensively relied upon in its memorandum, is McCann v. Falgout Boat Co., 44 F.R.D. 34 (S.D.Tex.1968), which was decided after the merger of the civil and admiralty procedure rules. In McCann, a seaman brought an admiralty claim against his employer, a shipowner, for a broken hand. Pursuant to Rule 14(c), the shipowner attempted to implead the plaintiff’s doctor for a malpractice claim resulting from his treatment of plaintiff’s hand. Judge Noel denied the impleader, reasoning that:

[tjhere can be no non-maritime impleader in an action where the jurisdiction of the district court is based exclusively upon the maritime nature of the plaintiff’s claim for relief — absent independent, and perhaps admiralty, jurisdiction over *356 the third-party or the subject matter of the third-party complaint. (Emphasis added).

Id. at 41.

According to this reasoning, because there was no independent federal jurisdiction over the shipowner’s malpractice claim, there could be no impleader of that claim. However, in the action before this Court, there is an independent federal jurisdictional basis for the claims against Sear-ail (and, therefore, Intermodal). The claims against Searail are brought under the Interstate Commerce Act. This Court has jurisdiction over those claims pursuant to 28 U.S.C. § 1331 (federal question jurisdiction). Because there exists an independent jurisdictional basis over the impleaded claims, even if not in admiralty, McCann’s reasoning is not applicable.

McCann further distinguished itself from the case now before this Court when Judge Noel explained that the impleaded claim did not state a claim arising from the “same maritime transaction, occurrence, or series of transactions or occurrences.” (Emphasis original). McCann, 44 F.R.D. at 42. In McCann, the alleged malpractice was distinct in time and location from the injury which occurred aboard the ship. However, in this action, all of Harcrest and Zim’s claims arise out of the destruction of cargo; clearly, this was a single occurrence.

It should be noted that the McCann opinion has been termed “undesirable.” C. WRIGHT & A. MILLER, 6 FEDERAL PRACTICE AND PROCEDURE § 1465(E) at 349 (1971). It has been criticized extensively. 3 J. MOORE’S, W. TAGGART & J. WICKER, FEDERAL PRACTICE para. 14.36 (2d ed. 1979); Lander, By Slight of Rule, Admiralty Unification and Ancillary and Pendent Jurisdiction, 51 Tex.L.Rev. 50, 63 n. 55 (1972); Comment, Admiralty Practice After Unification: Barnacles on the Procedural Hull, 81 Yale L.J. 1154 (1972); and the American Law Institute, which explained that:

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681 F. Supp. 354, 1988 U.S. Dist. LEXIS 4274, 1988 WL 24110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harcrest-international-ltd-v-mv-zim-keelung-laed-1988.