In Re Aramark Sports & Entertainment Services, LLC

831 F.3d 1264, 2016 A.M.C. 2138, 2016 U.S. App. LEXIS 13888, 2016 WL 4073560
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 1, 2016
Docket14-4118
StatusPublished
Cited by13 cases

This text of 831 F.3d 1264 (In Re Aramark Sports & Entertainment Services, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Aramark Sports & Entertainment Services, LLC, 831 F.3d 1264, 2016 A.M.C. 2138, 2016 U.S. App. LEXIS 13888, 2016 WL 4073560 (10th Cir. 2016).

Opinion

HARTZ, Circuit Judge.

This suit arose out of a recreational boating accident on Lake Powell that claimed the lives of four adults. The boat had been rented from Aramark Sports and Entertainment Services, LLC. Because the accident occurred on navigable waters, the case falls within federal admiralty jurisdiction. See Foremost Ins. Co. v. Richardson, 457 U.S. 668, 102 S.Ct. 2654, 73 L.Ed.2d 300 (1982). Anticipating that it would be sued for damages, Ara-mark filed in the United States District Court for the District of Utah a petition under the Limitation of Liability Act, 46 U.S.C. §§ 30501-12, which permits a boat owner to obtain a ruling exonerating it or limiting its liability based on the capacity or value of the boat and freight. The district court denied the petition, leaving for further proceedings the issues of gross negligence, comparative fault, and the amount of damages. Aramark appeals the denial. After determining that we have appellate jurisdiction, we hold that the district court erred in its application of admiralty principles of duty and remand for further proceedings.

I. BACKGROUND

A. The Accident

Aramark rents boats out of the Wah-weap Marina on Lake Powell, near the Utah-Arizona border. In April 2009 three married couples — the Bradys, the Pres-cotts, and the Tarantos — went on vacation to Lake Powell. On Friday, April 24 the Bradys and Prescotts went to Aramark’s boat rental office at Wahweap to procure a boat for the next day. Mr. Prescott signed a contract to rent a Baja 202 Islander, which is classified in the owner’s manual as a Design Category C boat based on its limited “ability to withstand wind and sea or water conditions.” Aplee. Supp. App., Vol. 4 at 417. For Category C boats the manual lists a “Maximum wind speed” of 27 knots (31 miles per hour). The manual further states:

The wind speed and wave height specified as the upper limit for your category of boat does not mean that you or your passengers can survive if your boat is exposed to these conditions. It is only the most experienced operators and crew that may be able to operate a boat safely under these conditions. You must always be aware of weather conditions and head for port or protected waters in sufficient time to avoid being caught in high winds and rough water. Do not take chances!

*1270 Id. The boaters were never informed of the Baja’s Category-C classification.

When the contract was signed, the National Weather Service (NWS) forecast for the next day on Lake Powell called for breezes from 15-23 miles per hour and gusts up to 37 miles per hour. That forecast was based on data collected at 3:44 a.m. that morning. Before the boaters left, Aramark rental agent Phyllis Coon gave that forecast to Mr. Prescott and told him that he would be given an updated forecast the next morning when they picked up the boat.

Early Saturday morning the NWS updated its Lake Powell forecast for noon to 6 p.m. on Saturday to call for sustained winds of 25 to 35 miles per hour and gusts as high as 55 miles per hour. When the three couples arrived on Saturday morning to begin their trip,- Aramark’s boat-rental instructor, who told the boaters about the weather channel on the boat’s radio, did not inform them of the updated forecast, nor did they request it. He asked Mr. Brady if he knew how to use the radio and Mr. Brady said he did.

The group left Wahweap at about 8 a.m. and safely arrived at their planned destination, Rainbow Bridge. On their return trip to Wahweap, they-stopped to refuel at Dangling Rope Marina, also operated by Aramark. Aramark employee Scott Ber-gantz spoke with some of them during the stop. He testified by deposition that because the water was rough he invited the couples to stay at Dangling Rope if they were uncomfortable. This testimony is disputed, and the district court made no findings concerning any offer of hospitality.

Mr. Brady testified that after his group left Dangling Rope the water was “bumpy” and then “got rough” as they entered a small bay. Aplt. App. at 103. The boat proceeded through a “small opening” and then into “a larger bay, which turned out to be Padre Bay,” at which point “the wind came up like unbelievable. It was ruthless.” Id. at 104. At one point Mrs. Brady noticed water at her feet inside the boat and then heard her husband issue a mayday call. The boat sank shortly thereafter. The Bradys were able to reach a rock pile from which they were later rescued. The Prescotts and Tarantos lost their lives.

B. Governing Law

Admiralty law is not a commonplace in the Tenth Circuit, so a brief introduction to some relevant law may be useful!

1. Admiralty and Maritime Jurisdiction

The United States Constitution extends the “judicial power to ... all Cases of admiralty and maritime Jurisdiction.” U.S. Const, art. Ill, § 2. The first Congress enacted a statute under that authority, stating: “[T]he district courts shall have ... exclusive original cognizance of all civil causes of admiralty and maritime jurisdiction; saving to suitors, in all cases, the right of a common law remedy, where the common law is competent to give it.” Judiciary Act of 1789, ch. 20, § 9, 1 Stat. 73, 76-77. The second clause is often referred to as the saving-to-suitors clause. The original statute has been amended several times and now reads: “The district courts shall have original jurisdiction, exclusive of the courts of the States, of: (1) Any civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled.” 1 28 U.S.C. § 1333. The Supreme Court has said that despite the change in language, the “substance [of the saving-to-suitors clause] has remained largely unchanged.” Lewis v. Lewis & Clark Marine, Inc., 531 U.S. 438, 443-44, 121 S.Ct. 993, 148 L.Ed.2d 931 (2001).

*1271 That substance is quite broad. For the most part, the saving-to-suitors clause has been construed to permit in personam claims within federal admiralty and maritime jurisdiction to be brought in state court as well as in federal court. See Lewis, 531 U.S. at 445, 121 S.Ct. 993 (“[T]he saving to suitors clause [is] a grant to state courts of in personam jurisdiction, concurrent with admiralty courts.”); Grant Gilmore & Charles L. Black, Jr., The Law of Admiralty § 1-13, at 40 (2d ed. 1975) (“Where the suit is in personam, it may be brought either in federal court under the admiralty jurisdiction ... or, under the saving clause, in an appropriate non-maritime court, by ordinary civil action.”). “The right of a common law remedy, so saved to suitors,.... includes remedies in pais,

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831 F.3d 1264, 2016 A.M.C. 2138, 2016 U.S. App. LEXIS 13888, 2016 WL 4073560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-aramark-sports-entertainment-services-llc-ca10-2016.