In Re Marine Leasing Services, Inc.

328 F. Supp. 589, 1971 U.S. Dist. LEXIS 12685, 1971 A.M.C. 1329
CourtDistrict Court, E.D. Louisiana
DecidedJune 25, 1971
Docket869
StatusPublished
Cited by12 cases

This text of 328 F. Supp. 589 (In Re Marine Leasing Services, Inc.) 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.

Bluebook
In Re Marine Leasing Services, Inc., 328 F. Supp. 589, 1971 U.S. Dist. LEXIS 12685, 1971 A.M.C. 1329 (E.D. La. 1971).

Opinion

WEST, Chief Judge:

On September 10, 1965 Hurricane Betsy, in all her fury, struck the Port of Baton Rouge, Louisiana. She was described at the time as probably the most destructive hurricane of modern times. Barges, tugboats, and other vessels were destroyed by the hundreds between the Ports of Baton Rouge and New Orleans. One such vessel was the barge MTC-602, laden with 600 tons of liquid chlorine. After the sinking of the barge, the United States of America expended large sums of money to first locate and mark the sunken vessel and then to raise it and dispose of the chlorine and the remains of the vessel. The United States now seeks recovery of these costs from the owner and charterer of the barge. In support of the conclusion that the United States is entitled only to recovery of costs incurred in locating and marking the sunken vessel, and that these costs should be recovered from the charterer of the barge, the Court now makes the following findings of fact and conclusions of law.

FINDINGS OF FACT

The Parties

(1) Petitioners Marine Leasing Services, Inc. (Marine Leasing) and Pittsburgh Plate Glass Company (PPG) petitioned this Court for exoneration from, or limitation of liability for, any claims arising out of the sinking of the loaded chlorine barge MTC-602 in the vicinity of Baton Rouge, Louisiana, near the east bank of the Mississippi River at approximately mile 227 during Hurricane Betsy on September 9 and 10,1965.

(2) The United States of America filed such a claim, asking for recovery from Marine Leasing and PPG of all costs of removing the sunken MTC-602, the costs of locating and buoying the barge, statutory penalties, and all other related costs.

(3) PPG was the manufacturer, seller, and shipper of the chlorine cargo aboard the MTC-602 as well as the bare-boat charterer of the barge at the time it sank.

(4) Marine Leasing was the owner of the MTC-602 at the time of its sinking.

(5) Marine Leasing and PPG, seeking indemnity in the event the United States should be successful in its claim, joined Cargo Carriers as a third party defendant, alleging that it was Cargo Carriers’ negligence in not properly attending the MTC-602 that was the proximate cause of the sinking.

(6) Cargo Carriers, Inc. (Cargo Carriers) operated a fleeting facility in Port Allen, Louisiana located on the west side of the Mississippi River, and the MTC-602 was moored in the Cargo Carriers’ fleet area, known as LSU Fleet No. 9, for wharfinger services and care at the time the sinking occurred.

(7) Cargo Carriers denied any liability for the sinking of the barge and then, alternatively, in the event they should be held liable therefor, claimed against Marine Leasing and PPG for their alleged failure to timely warn Cargo Carriers of the dangerous nature cf the cargo aboard the MTC-602 and asserted that the MTC-602 was not in a seaworthy condition when delivered to them for fleeting.

(8) Cargo Carriers, in addition, filed a third party complaint against Niagara Fire Insurance Co., American Motorists Insurance Co., the Travelers Insurance Co., and the Employers’ Liability Assurance Corp., Ltd. (also referred to as the American Employers’ Insurance Co.), as insurers of Marine Leasing, PPG, and the Barge MTC-602. Howard Stapp, Jr. and Bruce Barr Stapp, in personam (d/b/a Stapp Towing Co. and as owner, operator, and/or master of the towboat C. H.- DUNBAR), the towboat C. H. DUNBAR, in rem (the tug which delivered the MTC-602 to Cargo Carriers *591 from PPG’s Lake Charles Plant), and the XYZ Insurance Co. (their insurer), were also originally joined as third party defendants by Cargo Carriers, but all of these parties were voluntarily dismissed prior to trial.

(9) Niagara Fire Insurance Co., American Motorists Insurance Co., Travelers Insurance Co., and Employers’ Liability Assurance Corp., cross-claimed against Cargo Carriers seeking contribution and/or indemnity for any liabilities that might be assessed against them.

The MTC-602

(10) The barge in question, MTC-602 (Official No. 269281), was an open hopper, steel tank barge built in 1955 and had registered dimensions of 175.1 feet in length, 26.1 feet in width, and 9.4 feet in depth.

(11) The MTC-602 was last inspected by the U. S. Coast Guard for certification for the carriage of liquid chlorine on rivers, bays, and sounds on July 23, 1964, at which time a certificate was issued. This certificate did not expire until July 23, 1966, well after the sinking.

(12) The MTC-602 had white signs with black lettering measuring four feet by two feet on either side at midships which stated:

“DANGER! CHLORINE NON-FLAMMABLE GAS TOXIC NO VISITORS.”

On each of her eight cargo tank domes the word “CHLORINE” was painted in blue black letters. And there were six one-foot diagonal card holders, two at the stern, two amidships, and two on the bow, which carried red cardboard chlorine warning signs. Further, the barge was distinctive in that it had a red hull and white tanks, characteristic of chlorine barges.

The Sinking

(13) On September 2-3, 1965, PPG at its Lake Charles plant loaded 600 tons of liquid chlorine under approximately 130 pounds of pressure in the four pressure tanks of the barge MTC-602.

(14) PPG, by telephone, arranged with C&S Marine Service (C&S), who in turn made arrangements with the Stapp Towing Company (Stapp), for the towage of the MTC-602 from PPG’s dock in Lake Charles, Louisiana, to the mooring facilities of Cargo Carriers on the Mississippi River at Baton Rouge, Louisiana.

(15) At the same time PPG arranged for the Upper Mississippi Towing Co. to pick up the MTC-602 in Baton Rouge and tow it on to Calvert City, Kentucky to fulfill a contract between PPG and B.F. Goodrich Chemical Co.

(16) The tug C. H. DUNBAR, owned by Stapp, and to whom C&S had subcontracted its portion of the towage of the MTC-602, arrived at the PPG docks in Lake Charles at approximately 10:45 p.m. on September 4, 1965.

(17) The Captain of the C. H. DUNBAR, Bruce Stapp, had received orders from his father, Howard Stapp, Jr., earlier that day to pick up the MTC-602. The Stapp Towing Co. had been towing chlorine barges out of PPG’s Lake Charles plant since 1958.

(18) When the C. H. DUNBAR arrived at the PPG dock a uniformed plant guard met her Captain, Bruce Stapp, had him sign a barge release form and handed him a red banded “chemcard.” This “chemcard,” issued July, 1965, was headed “Chlorine Institute, Water Transportation Information Card; Chlorine, A Compressed, liquified gas; Liquid — clear amber; Gas — greenish yellow, much heavier than air.” And in a box entitled “Hazards” were the following remarks:

“Fire — Will not burn, but will support combustion of certain substances.
Exposure — Gas is primarily a respiratory irritant; severe exposures can be fatal. Liquid and high concentrations of gas in contact with skin or eyes will cause local irritation or burns.”

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Bluebook (online)
328 F. Supp. 589, 1971 U.S. Dist. LEXIS 12685, 1971 A.M.C. 1329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marine-leasing-services-inc-laed-1971.