In re Henry Marine Service, Inc.

136 F. Supp. 3d 401, 2015 A.M.C. 2742, 2015 U.S. Dist. LEXIS 131477, 2015 WL 5719832
CourtDistrict Court, E.D. New York
DecidedSeptember 29, 2015
DocketNo. 14-cv-6824 (ADS)(ARL)
StatusPublished
Cited by5 cases

This text of 136 F. Supp. 3d 401 (In re Henry Marine Service, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Henry Marine Service, Inc., 136 F. Supp. 3d 401, 2015 A.M.C. 2742, 2015 U.S. Dist. LEXIS 131477, 2015 WL 5719832 (E.D.N.Y. 2015).

Opinion

DECISION AND ORDER

SPATT, District Judge.

This case is related to 14-cv-5197 (the “Damages Action”). That case is a damages action originally brought in Nassau County Supreme Court by the Plaintiff Nassau County Bridge Authority (the “NCBA’.’) against the Defendants Henry Marine Service, Inc. (“Henry Marine”), Sterling Equipment, Inc. (“Sterling”), and James Olsen (“Olsen”) (collectively, the “Defendants”).

In the Damages Action, the Plaintiff brought one claim against the Defendants based on negligence and seeks to recover damages caused to the Atlantic Beach Bridge (the “Bridge”) in Nassau County on December 9, 2012, after the Kelly, a 260-foot barge being towed by the Dorothy J, a towing vessel, collided with the northwest fender system of the Bridge.

On - November 20, 2014, Henry Marine, the owner of the tug Dorothy J, commenced this action pursuant to 46 U.S.C. §,30501. et seq., to limit its liability for claims arising out of the December 9, 2012 accident to $530,000, the value of Henry Marine’s interest in the Dorothy J. ,

Presently before the Court is a motion by NCBA pursuant to Federal Rule of Civil Procedure (“Fed. R. Civ.P.”) 12(b) to dismiss this action.

For the reasons set forth below, the motion by NCBA is denied without prejudice and with leave to renew to the extent that an appropriate stipulation is filed.

I. BACKGROUND

A. Limitation of Liability Actions

Prior to setting, forth the relevant facts, the Court finds it necessary to provide a brief overview of limitation of liability actions.

The Limitation Act, ;46 U.S.C.A. § 30505 (the “Limitation Act”), allows “a vessel owner 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).

“Congress passed the Limitation Act in 1851 ‘to ‘encourage ship-building and to induce capitalists to invest money in this branch of industry.’” Id. (citing Norwich & N.Y. Transp. Co. v. Wright, 13 Wall. 104, 121, 20 L.Ed. 585 (1871)).

The procedure for a limitation action is found in Supplemental Admiralty and Maritime Claims-Rule F (“Rule F”). Rule F requires that the vessel, owner file a complaint seeking exoneration or limitation of [404]*404liability “[n]ot later than six months after receipt of a claim in writing.” After filing the complaint, Rule F sets forth the following procedures:

The district court secures the value of the vessel or owner’s interest, marshals claims, and enjoins the prosecution of other actions with respect to the claims. In these proceedings, the court, sitting without a jury, adjudicates the,claims. The court determines whether the vessel owner, is liable and whether the owner may limit liability. The court then determines the validity of the claims, and if liability is limited, distributes the limited fund among the claimants.

Lewis, 531 U.S. at 448, 121 S.Ct. 993.

B. The Damages Action

On August 6, 2014, NCBA filed a complaint against Henry Marine, Olsen, D & J River Towing, Inc. (“D & J”), and Sterling in Nassau County Supreme Court.

According to the complaint, on December 8, 2012, the Dorothy J, a tug boat owned by Henry Marine and D & J, was towing the Kelly, a barge owned by Sterling. Olsen was the captain of the Dorothy J on the evening of December 8, 2012.

On December 8, 2012, at 11:41pm, the Dorothy J allegedly “on signal ... re-quésted the opening of the Bridge.”

NCBA alleges that in response, it requested that the Dorothy J “slow transit to the Bridge to allow the opening of the Bridge.”

Allegedly, the Dorothy J failed to do so, and .on December 9, 2012, at.approximately 12:16 a.m.,- the Kelly collided with the “northwest fender system of the Bridge.”

On July 18, 2013, more than six months after the accident, Vincent LaRoeco (“LaRocco”), a maintenance supervisor for the NCBA, sent Dorothy E. Julian (“Julian”), President and CEO of Henry Marine, an email which stated the following:

I have been directed at this time to contact your firm in regard to [the] incident of the' tug Dorothy J. and our North/West fender wring. We are en-quiring as to how you would like to proceed with repairs. Please contact us on whether you would like to have your own company do the repair work, or have us do the repairs and bill your insurance.

(Hopkins Decl., Ex. A.).

On March 18, 2014, nine months later, James Mercante, Esq. (“Mercante”), counsel for Henry Marine, sent a letter to Stanley R. Kopilow, Esq. (“Kopilow”), counsel for NCBA, stating:

We are counsel for owners of the tugboat ‘Dorothy J.’ We received your correspondence of July 18, 2013 (and refer to our subsequent telephone conversations), wherein Nassau County is considering pursuing a claim for repairs to the Atlantic Bridge arising out of a December 9, 2012 allision involving the Dorothy J. For the reasons stated below, and as determined by the Coast Guard’s official investigation[,] the owner of the Dorothy J are not liable for the damage to the bridge. ‘

(Hopkins Deck, Ex. B, at 1.) The letter goes on to describe the investigation of the U.S. Coast Guard (the “Coast Guard”) of the December 9, 2012 accident. (Id. at 1.) According to Mercante, the Coast Guard ultimately concluded that there was “no fault on the Tug Dorothy J or its operator.” (Id. at 1.) Finally the letter concluded, “In light of the foregoing [Coast Guard Report], we trust that there is no need for further discussion related to the allision on December 9, 2012, and that the matter is ended.” (Id. at 3.)

Although the March 18, 2014 letter referred to previous phone conversations be[405]*405tween NCBA and Henry Marine, it is not clear from the letter, nor from the record, what the parties discussed during those conversations.

As noted above, on August 6, 2014, NCBA filed a, negligence claim against Henry Marine, Olsen, D & J, and Sterling in Nassau County Supreme Court seeking $850,000 in damages.

On September 14, 2014, pursuant to 28 U.S.C. § 1441, Henry Marine and Olsen filed a timely notice of removal on the basis of “admiralty jurisdiction.” The case was assigned to this Court under' docket number, 14-cv-5197.

On November 13, 2014, NCBA filed a motion to remand this case to Nassau County Supreme Court, alleging that the “saving to suitors” clause of 28 U.S.C. § 1333 protected its right to pursue its negligence claim in state court.

On February 14, 2015, the Court so-ordered a stipulation pursuant to Fed. R.CivJP. 41(a)(l)(A)(i) filed by NCBA and D & J voluntarily dismissing D & J from the action

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Bluebook (online)
136 F. Supp. 3d 401, 2015 A.M.C. 2742, 2015 U.S. Dist. LEXIS 131477, 2015 WL 5719832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-henry-marine-service-inc-nyed-2015.