In Re the Complaint of Ballard Shipping Co.

810 F. Supp. 359, 1993 A.M.C. 1413, 23 Envtl. L. Rep. (Envtl. Law Inst.) 21241, 1993 U.S. Dist. LEXIS 289, 1993 WL 6857
CourtDistrict Court, D. Rhode Island
DecidedJanuary 13, 1993
DocketCiv. A. 89-0685L
StatusPublished
Cited by12 cases

This text of 810 F. Supp. 359 (In Re the Complaint of Ballard Shipping Co.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Complaint of Ballard Shipping Co., 810 F. Supp. 359, 1993 A.M.C. 1413, 23 Envtl. L. Rep. (Envtl. Law Inst.) 21241, 1993 U.S. Dist. LEXIS 289, 1993 WL 6857 (D.R.I. 1993).

Opinion

MEMORANDUM AND ORDER

LAGUEUX, Chief Judge.

This matter is before the Court on the motion of Ballard Shipping Co. (“Ballard”) for exoneration from and dismissal of certain claims against it pursuant to Rule F of the Supplemental Rules for Certain Admiralty and Maritime Claims and Rule 12(b)(6) of the Federal Rules of Civil Procedure. Ballard argues that a number of individuals and entities which have filed claims against it have failed to state a claim upon which relief can be granted. 1

*361 This matter arises out of the grounding in Narragansett Bay of the vessel M/V WORLD PRODIGY, which was owned by Ballard. On June 23, 1989, the ship hit Brenton Reef off the coast of Newport, Rhode Island and spilled a substantial amount of its cargo of heating oil into the Bay. After several suits were filed against Ballard arising out of the incident, Ballard initiated this case by filing a verified complaint for exoneration from or limitation of liability under 46 U.S.C.App. § 183 in December, 1989. A large number of parties (almost 450) responded by filing claims for damages allegedly resulting from the oil spill. 2

By its present motion, Ballard addresses the claims of twenty-nine claimants who allege purely economic loss arising out of the oil spill. These claimants include seafood dealers, tackle shop operators, restaurant owners and employees, a scuba equipment and canoe rental shop, and a variety of other shoreline businesses operating in the Narragansett Bay area. Although these individuals and entities do not allege any physical injury to their persons or property, they contend that the oil spill in June 1989 caused them financial harm by preventing, or at a minimum substantially decreasing, their ability to work and conduct their businesses for an extended period of time. Ballard responds that, while these persons or entities may have been harmed financially, such injuries are not cognizable under the law. For the reasons stated below, the Court agrees with Ballard’s position and, thus, grants Ballard’s motion for exoneration from and dismissal of these claims.

DISCUSSION

I. Standard For 12(b)(6) Motion

The standard guiding the Court’s decision on this motion to dismiss for failure to state a claim pursuant to Fed.R.Civ.P. 12(b)(6) is clear. Ballard, as the moving party, bears the burden of establishing that the claims of the twenty-nine claimants, the non-moving parties, are insufficient as a matter of law. National Credit Union Admin. Bd. v. Regine, 795 F.Supp. 59, 62 (D.R.I.1992) (citing Harper v. Cserr, 544 F.2d 1121, 1122 (1st Cir.1976)). For the purpose of testing the sufficiency of the claims, the Court must view all facts and inferences in the light most favorable to the non-moving parties and must assume that all of the allegations in the complaints are true. Paradis v. Aetna Casualty & Sur. Co., 796 F.Supp. 59, 61 (D.R.I.1992). The Court may grant the motion to dismiss only if it appears beyond doubt from the pleadings that the parties opposing the motion can prove no possible set of facts that would support the non-moving parties’ claims for relief. Lopez v. Bulova Watch Co., 582 F.Supp. 755, 767 (D.R.I.1984).

II. Maritime Law

Determining which law applies in this case is crucial to testing the sufficiency of the claims. All parties agree that the oil spill occurring in Narraganset Bay constitutes a maritime tort and is within this Court’s admiralty jurisdiction. Both the locality and operation of the ship when it went aground dictate this result. See East River Steamship Corp. v. Transamerica Delaval Inc., 476 U.S. 858, 863-64, 106 S.Ct. 2295, 2298, 90 L.Ed.2d 865 (1986). The tort occurred in navigable waters and, since the vessel was engaging in maritime commerce when it spilled the oil, the wrong bears “ ‘a significant relationship to traditional maritime activity.’ ” Id. (quoting Executive Jet Aviation, Inc. v. Cleveland, 409 U.S. 249, 268, 93 S.Ct. 493, 504, 34 L.Ed.2d 454 (1972)). The Court will thus apply substantive admiralty law, statutory *362 as well as that developed by the judiciary. Id. 476 U.S. at 864, 106 S.Ct. at 2299.

Courts in admiralty have traditionally applied judge-made maritime law to tort claims resulting from oil spills. This general maritime law has barred claims for purely economic losses sounding in tort since Justice Holmes established such rule in Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303, 309, 48 S.Ct. 134, 135, 72 L.Ed. 290 (1927) (although dry dock’s negligent damaging of ship’s propeller prevented plaintiff, who had chartered the ship, from using the ship for two weeks, plaintiff, who had suffered no physical injury to itself or to its property, had no cause of action for the purely financial injury it sustained).

Claimants concede that such a rule exists, however, they contend that the rule does not apply in this case. First, they argue that their claims fall under an exception to Robins Dry Dock, either because of the nature of the harm or because of the criminal conduct engaged in by the ship’s master. Second, they argue that, even if the Court concludes that their claims are not within an exception to the Robins Dry Dock rule, Rhode Island law, rather than general admiralty law, applies, and thus they have a cognizable claim under Rhode Island’s Environmental Injury Compensation Act (“Rhode Island Act”), R.I.Gen. Laws § 46-12.3-4 (1991). In support of this theory, they claim that the Rhode Island statute is a valid exercise of the state’s police power that does not substantially conflict with federal law. Alternatively, they contend that general maritime law, including the Robins Dry Dock rule, is preempted by the Federal Water Pollution Control Act (“FWPCA”), 33 U.S.C. § 1251 et seq. (1988), and that this federal Act permits recovery under claims made pursuant to a state statute such as Rhode Island has enacted. As discussed below, the Court finds no merit in either of the arguments advanced by these claimants.

III. The Robins Dry Dock Rule

Federal courts have long recognized the Robins Dry Dock rule denying claims in the absence of physical injury to the claimant’s person or property. See, e.g., Getty Refining & Marketing Co. v. MT Fadi B,

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810 F. Supp. 359, 1993 A.M.C. 1413, 23 Envtl. L. Rep. (Envtl. Law Inst.) 21241, 1993 U.S. Dist. LEXIS 289, 1993 WL 6857, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-complaint-of-ballard-shipping-co-rid-1993.