In Re Complaint of Wepfer Marine, Inc. for Exoneration From or Limitation of Liability

344 F. Supp. 2d 1120, 2004 U.S. Dist. LEXIS 26692, 2004 WL 2610169
CourtDistrict Court, W.D. Tennessee
DecidedNovember 9, 2004
Docket03-2202 B
StatusPublished
Cited by2 cases

This text of 344 F. Supp. 2d 1120 (In Re Complaint of Wepfer Marine, Inc. for Exoneration From or Limitation of Liability) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Complaint of Wepfer Marine, Inc. for Exoneration From or Limitation of Liability, 344 F. Supp. 2d 1120, 2004 U.S. Dist. LEXIS 26692, 2004 WL 2610169 (W.D. Tenn. 2004).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART CLAIMANTS’ MOTION TO DISMISS FOR LACK OF ADMIRALTY JURISDICTION

BREEN, District Judge.

In its petition filed April 3, 2003, Wepfer Marine, Inc. (“Wepfer”) averred that it was the owner of barge ET-715, a steel-hulled river barge in the process of being broken up by Robinson Maintenance, Inc. (“Robinson”) for scrap. Wepfer also owned a deck barge known as the No. 1 crane barge, which was used to accommodate a crawler crane in connection with longshoring work performed by Robinson on the Mississippi River. On March 13, 2002, the crane barge was positioned at or near mile 725 of the lower Mississippi River alongside a floating dry dock upon which the barge breaking was being conducted by, among others, the Claimant Jose Ramon Gonzalez. On that date, Gonzalez, allegedly employed by Robinson as a welder, barge breaker and barge repairman, was seriously injured while in the process of breaking barge ET-715. Gonzalez and his wife, Kimberlee Gonzalez, sued Wepfer in the Circuit Court of Shelby County, Tennessee for alleged injuries and other damages arising from the incident. Wepfer has brought this action claiming the benefit of the Limitation of Liability Act, codified at 46 U.S.C. §§ 181-95 (the “Limitation Act” or the “Act”) as to both the river barge and the crane barge. The Gonzalezes and Robinson’s insurer, Liberty Mutual Insurance Company, which paid compensation and medical expenses to Gonzalez under Robinson’s Longshore and Harbor Workers’ Compensation Act policy, have filed claims in this action against Wepfer.

The Act permits the owner of a vessel to “limit liability for damage or injury, occasioned without the owner’s privity or knowledge, to the value of the vessel or the owner’s interest in the vessel.” Lewis v. Lewis & Clark Marine, Inc., 531 U.S. 438, 446, 121 S.Ct. 993, 1000, 148 L.Ed.2d 931 (2001). Originally enacted in 1851, the statute “was passed to encourage ship building and to induce capitalists to invest money in this branch of industry.” In re Muer, 146 F.3d 410, 414 (6th Cir.1998) (citing Norwich & N.Y. Transp. Co. v. *1123 Wright, 80 U.S. (13 Wall.) 104, 121, 20 L.Ed. 585 (1871)), cert. denied sub nom. Estate of Muer v. Karbel, 525 U.S. 1103, 119 S.Ct. 867, 142 L.Ed.2d 769 (1999) (internal quotation marks omitted). This purpose is achieved “by exempting innocent shipowners from liability, beyond the amount of their interest.” Id. (citing Norwich) (internal quotation marks omitted). “When faced with liability for a maritime accident, a vessel owner may file a petition in federal court seeking limitation of liability” under the Limitation Act. Id. In seeking such limitation on liability, “a vessel owner also may request exoneration, or freedom from all liability,” as the petitioner has in this case. See Cape Fear. Inc. v. Martin, 312 F.3d 496, 499 (1st Cir.2002).

In the instant motion, the Claimants, Liberty Mutual Insurance Co. and the Gonzalezes, seek dismissal of this proceeding on two grounds: (1) lack of admiralty jurisdiction based on barge ET-715 vessel status and (2) the untimeliness of Wepfer’s petition. Although the Claimants do not identify the procedural rule pursuant to which their motion is brought, the Court assumes, as both arguments are jurisdictional, see Complaint of Tom-Mac. Inc., 76 F.3d 678, 682 (5th Cir.1996); In re UFO Chuting of Haw., Inc., 233 F.Supp.2d 1254, 1256 n. 2 (D.Haw.2001), they intended to invoke Rule 12(b)(1) of the Federal Rules of Civil Procedure, which allows the court to dismiss an action for lack of subject matter jurisdiction. Anderson v. United States, 317 F.3d 1235, 1236-37 (11th Cir.2003), cert. denied, 540 U.S. 965, 124 S.Ct. 429, 157 L.Ed.2d 309 (2003) (No. 02-1822) (applying Fed.R.Civ.P. 12(b)(1) to a request for dismissal of complaint for lack of admiralty jurisdiction). The court is permitted to weigh the evidence in order to satisfy itself that jurisdiction in fact is present. See Marina Entm’t Complex. Inc. v. Hammond Port Auth., 842 F.Supp. 367, 369 (N.D.Ind.1994).

The United States Constitution extends the power of the federal courts “to all Cases of admiralty and maritime jurisdiction.” U.S. Const. art. III, § 2, cl. 1. Title 28 U.S.C. § 1333(1) confers on the district court exclusive jurisdiction over “[a]ny civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled.” Traditionally, the test for admiralty jurisdiction was whether the injury occurred in navigable waters. See Masherah v. Dettloff, 968 F.Supp. 336, 338 (E.D.Mich.1997) (citing Thomas v. Lane, 23 F. Cas. 957 (C.C.D.Me.1833)). In 1948, Congress changed the rule by enacting the Extension of Admiralty Jurisdiction Act, which broadened admiralty jurisdiction in the district courts to include all cases of damage or injury “caused by a vessel on navigable water, notwithstanding that such damage or injury be done or consummated on land.” See id. (citing Gutierrez v. Waterman S.S. Corp., 373 U.S. 206, 209-10, 83 S.Ct. 1185, 1187-88, 10 L.Ed.2d 297 (1963)).

With respect to this case, the federal courts enjoy exclusive admiralty jurisdiction to determine limitation of liability for a vessel owner under the Limitation Act. In re Muer, 146 F.3d at 417. The Act does not, however, provide an independent ground for jurisdiction in this Court. Sea Vessel Inc. v. Reyes, 23 F.3d 345, 348 n. 6 (11th Cir.1994). When subject matter jurisdiction has been challenged, the party invoking such jurisdiction bears the burden of establishing its existence. Fernandez v. Haynie, 120 F.Supp.2d 575, 577 (E.D.Va.2000), aff'd, 31 Fed.Appx. 816, 2002 WL 451824 (4th Cir.2002).

In Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co., 513 U.S. 527, 115 S.Ct. 1043, 130 L.Ed.2d 1024 (1995), the Supreme Court discussed the long his *1124 tory of admiralty jurisdiction and refined the parameters thereof, articulating as follows:

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344 F. Supp. 2d 1120, 2004 U.S. Dist. LEXIS 26692, 2004 WL 2610169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-complaint-of-wepfer-marine-inc-for-exoneration-from-or-limitation-tnwd-2004.