Hemingway v. The Vessel Star Savannah

200 F.R.D. 572, 50 Fed. R. Serv. 3d 1533, 2001 U.S. Dist. LEXIS 7532, 2001 WL 640666
District Court, E.D. Texas·Decided March 23, 2001·No. No. Civ.A. 1:00CV124·Published

Opinion

MEMORANDUM OPINION

COBB, District Judge.

Before the Court is Plaintiffs’ Motion for Leave to File Amended Pleading [13] and Plaintiffs’ Motion to Increase Security Pursuant to Rule E(5)(a)[16], and the Court having-reviewed the motions and responses on file is of the opinion that the motions be DENIED.

I. Background.

This action was originally filed in the United States District Court for the Southern District of Texas, Galveston Division, on November 24,1999, invoking Admiralty jurisdiction (civil action docket number G-99-719). On motion of various defendants, venue was transferred to this court on February 15, 2000, and the current docket number assigned. On December 20, 2000, a case management conference was conducted between the Court and counsel for all remaining parties. The motions at hand are based on the following facts.

On November 27, 1997, the Motor Vessel (MAO STAR SAVANNAH departed dock in Port Arthur, Texas, under tug control, en route Port Neches, Texas. While maneuvering in the restricted waters of Port Arthur, with the vessel intending to proceed under its own power, the two tugs were cast off to avoid one or both of them being swept under the vessel’s stern to a dangerous position relative to its propeller and rudder. However, the state pilot onboard MZV STAR SAVANNAH was unable to control the vessel, apparently due to insufficient flow of water through the propeller and over the rudder. The vessel was wind-blown to an allision with two moored fishing vessels and with the dock belonging to Plaintiffs Jack Hemingway and JBS Packing, Inc.

Defendants’ counsel hired Sabine Surveyors, Inc., to conduct a joint damage survey, without prejudice, of the JBS Packing-shrimp dock. That survey was attended by Mr. C. Brannon of JBS Packing, according to the survey report. On December 2,1997, the initial survey was conducted, assumedly of the topside or above-water areas of the dock. On April 9, 1998, an underwater survey of the southeast corner of the dock was conducted. In a report dated October 19, 1998, Sabine Surveyors published its findings as to the damage to the dock and rendered its estimate of costs to repair said damage. Its overall estimate of cost to repair' was $4,000.00. The report contained the statement, “Damages as enumerated above could reasonably be attributed to vessel contact as reported.” It was distributed to all parties.

The original November, 1999 complaint included claims by the owners of the fishing vessels damaged in the allision and by Mr. Hemingway and JBS Packing. A security bond was imposed against defendants in the amount of $225,000.00 in accordance with Rule E(5)(a) of the Supplemental Rules for Certain Admiralty and Maritime Claims. The fishing vessel claims were subsequently settled and those plaintiffs’ claims were dismissed in an Order signed July 21, 2000. Mr. Hemingway and JBS Packing are the sole remaining plaintiffs. The JBS dock apparently continued to be in use by fishing vessels following the allision despite the damage it incurred.

After dismissing the fishing vessel claims, the outstanding monetary claim by the remaining plaintiffs was $50,000.00, as stated in paragraph 24 of the original complaint. In a motion brought August 7, 2000, defendants sought a reduction in security to $75,000.00. They did so based on the custom in admiralty in Southeast Texas of imposing security in the amount of one and one-half times the amount of the claimed damages. That motion was unopposed by plaintiffs. During the December 20, 2000, management conference, counsel for plaintiffs agreed that the claim for $50,000.00 appeared to be correct and did [574]*574not object to the defendants’ motion to reduce security. The plaintiffs had not, at that time, presented evidence supporting the amount of the claim but indicated that it was “not a large case.” This Court granted the motion to reduce security to $75,000.00. The parties further agreed that there was essentially no other discovery to be had except possibly deposing expert witnesses. Although the parties believed they would be able to settle the claim, they asked for a trial date to be set and this Court set April 9, 2001 as the date for docket call for a bench trial.

Plaintiffs Hemingway and JBS Packing have now submitted a report of a survey dated January 31, 2001, which describes more extensive damage to the dock than previously identified, along with three bids for repair ranging from $134,685.00 to $159,200.00. The newly reported damage includes: 1) Seven-Pile Dolphin; 2) Three-Pile Dolphin; 3) Corner between New Dock and Slip; 4) New Dock; 5) Fendering System; and 6) Original Dock. Plaintiffs seek leave to amend their original complaint, by a motion entered March 12, 2001, to claim damages in the amount of $200,000.00. In another motion entered March 19, 2001, the plaintiffs seek to have security against M/V STAR SAVANNAH and the defendants reinstated to $225,000.00.

II. Rule 15 and Amending Complaints.

Rule 15(a) governs amendments to pleadings. In pertinent part, it states that “a party may amend the party’s pleading only by leave of court or by written consent of the adverse party; and leave shall be freely given when justice so requires.” See Fed.R.Civ.P. 15(a).

The United States Supreme Court has reiterated the requirement to freely allow such amendments when the underlying facts or circumstances relied upon by a plaintiff may be a proper subject of relief. See Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962). However, the U.S. Supreme Court qualified the requirement to do so by further stating,

In the absence of any apparent or declared reason — such as undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc. — the leave sought should, as the rules require, be “freely given.”

Id.; Wimm v. Jack Eckerd Corp., 3 F.3d 137, 139 (5th Cir.1993). Further, it is within a district court’s exercise of discretion to grant or deny an opportunity to amend, though outright refusal to grant the leave without any justifying reason is an abuse of discretion. Foman, 371 U.S. at 182, 83 S.Ct. 227; Louisiana v. Litton Mortgage Co., 50 F.3d 1298, 1302-03 (5th Cir.1995).

Defendants refuse to consent for plaintiffs to amend their complaint; instead, they object to such amendment on the bases of undue delay on the part of the plaintiffs and undue prejudice which would accrue to the defendants if the plaintiffs’ motion were to be granted “on the eve of trial.” This Court agrees.

Plaintiffs point out that delay, alone, is insufficient reason to deny leave to amend. That may be true, particularly if the plaintiffs were engaged in an ongoing or difficult and lengthy- effort to uncover their true damages or other facts bolstering the merits of their claim. There has been no such apparent ongoing effort here.

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Hemingway v. The Vessel Star Savannah, 200 F.R.D. 572, 50 Fed. R. Serv. 3d 1533, 2001 U.S. Dist. LEXIS 7532, 2001 WL 640666 (E.D. Tex. 2001).

200 F.R.D. 572 (Hemingway v. The Vessel Star Savannah) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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