In Re the Complaint of Ballard Shipping Co.

823 F. Supp. 68, 1993 A.M.C. 1428, 1993 U.S. Dist. LEXIS 7783, 1993 WL 197053
Procedural entryThis page is a short order in In Re the Complaint of Ballard Shipping Co.. Read the opinion of the Court — 810 F. Supp. 359
District Court, D. Rhode Island·Decided January 20, 1993·No. Civ. A. 89-0685L·Published

Opinion

MEMORANDUM AND ORDER

LAGUEUX, Chief Judge.

This matter is before the Court on the motion of Ballard Shipping Co. (“Ballard”) for summary judgment against claimant Americas Insurance Company (“Americas”) pursuant to Rule 56 of the Federal Rules of Civil Procedure. Americas, which is seeking payment from Ballard for the value of cargo destroyed in a shipping accident, argues that Ballard’s motion must be denied because genuine disputes exist regarding facts material to the outcome of the case.

The present motion is one of many arising from the June 23, 1989 grounding of the vessel MTV WORLD PRODIGY off the coast of Rhode Island. As a result of that accident, the ship spilled a large quantity of its cargo of oil into Narragansett Bay. Soon after the spill, several suits were filed against Ballard, the owner of the M/V WORLD PRODIGY, thus prompting Ballard to file a verified complaint for exoneration from or limitation of liability under 46 U.S.CApp. § 183 in this Court in December, 1989. Americas, the insurer of the cargo of oil aboard the M/V WORLD PRODIGY at the time of the vessel’s accident, reimbursed the cargo owners for the value of the cargo lost. Americas then filed a claim against Ballard pursuant to its subrogation rights to recover monies paid to the cargo owners. 1

BACKGROUND

At the time of the casualty, the WORLD PRODIGY was a three year old Greek-fiag tanker, owned by Ballard and managed and operated by Ballard’s agent, International Operations, S.A. (“International Operations”). The vessel was under the command of Captain Iakovos Georgudis, who had served as a seaman for twenty-three years, including more than 18 years as a licensed deck officer, and had been licensed by the Greek government to act as master of merchant vessels for over eight years. Assisting Captain Georgudis were Chief Officer George Vlachos, who had seven years of sea-going experience, and Second Officer Dimitrios Mi-taras, who was licensed by the Greek government to serve as a Second Officer and had been employed by International Operations for nine years.

The WORLD PRODIGY departed on its ultimately doomed voyage from Piraeus, Greece, on June 10, 1989 carrying a cargo of oil bound for the United States. On June 21, 1989, while at sea, Captain Georgudis learned that his destination was Providence. Bad weather impaired visibility the day and night before the ship was set to arrive in Providence, and Captain Georgudis spent most of June 22-23, until the grounding, on the bridge of the vessel. Nonetheless, visibility had improved and the seas were calm by the time the boat approached Narragansett Bay in the afternoon of June 23rd. Before entering the Bay, Captain Georgudis plotted the ship’s intended course on British Admiralty (“BA”) chart 2890 and planned to pick up a pilot in the vicinity of Brenton Reef Light Tower. However, before the vessel reached the anticipated boarding area, it strayed off course, passing a red buoy on the starboard rather than port side. At about 4:40 p.m., the WORLD PRODIGY hit Brenton Reef, spilling almost 300,000 gallons of oil into the Bay, thus spawning numerous suits, including the present one.

Americas’s claim for payment in this action is governed by the Carriage Of Goods By Sea Act (“COGSA”), 46 U.S.C-App. §§ 1300-1315 (1992). Ballard argues that the grounding of the WORLD PRODIGY resulted solely from the master’s negligent navigation and ship management, thus exempting Ballard from liability under COGSA. Americas responds that facts regarding the underlying cause of the accident are in dispute, and that a trial is necessary to determine the role Ballard played in the loss of the cargo.

*71 After hearing oral arguments on this motion, the Court took the matter under advisement. It is now in order for decision. For the reasons that follow, the Court denies Ballard’s motion for summary judgment.

DISCUSSION

1. Summary Judgment Standard

Rule 56(c) of the Federal Rules of Civil Procedure sets forth the standard for ruling on a summary judgment motion:

The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.

A fact is material if it could affect the outcome of the suit. Ryan, Klimek, Ryan Partnership v. Royal Ins. Co. of America, 728 F.Supp. 862, 866 (D.R.I.), aff'd, 916 F.2d 731 (1st Cir.1990). Further, in determining whether summary judgment is appropriate, the court must view the facts in the record and all inferences therefrom in the light most favorable to the nonmoving party. Continental Casualty Co. v. Canadian Universal Ins. Co., 924 F.2d 370, 373 (1st Cir.1991). Additionally, the moving party bears the burden of showing that no evidence supports the non-moving party’s position. Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2554, 91 L.Ed.2d 265 (1986). The party opposing summary judgment need only show that there are questions of fact which must be resolved before the Court can decide the related legal issues. Mack v. Great Atlantic & Pacific Tea Co., 871 F.2d 179, 181 (1st Cir.1989). Since this Court concludes that genuine disputes over material facts prevent it from determining the legal issues at this juncture in the present case, the Court must deny Ballard’s motion for summary judgment.

II. Carriage Of Goods By Sea Act

Americas filed a claim seeking payment from Ballard for the value of the cargo lost after the M/V WORLD PRODIGY hit Brenton Reef. Both parties agree that COG-SA governs the present claim. COGSA, like its predecessor the Harter Act of 1893, allocates the risk of cargo loss from various perils of the sea between the shipowners (or “carriers”) and the cargo owners (or “shippers”). 2 The Act requires carriers to exercise due diligence to make their vessels seaworthy. 46 U.S.C.App. § 1303(1). However, to balance the interests of the parties involved in commerce on the high seas, COG-SA exempts shipowners from liability for both cargo losses due to the vessel’s unseaworthiness if the carrier had exercised due diligence to ensure the ship’s readiness prior to the start of the voyage, 46 U.S.C.App. § 1304(1), and cargo losses resulting from certain specified actions beyond the carrier’s control, 46 U.S.CApp. § 1304(2).

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In Re the Complaint of Ballard Shipping Co., 823 F. Supp. 68, 1993 A.M.C. 1428, 1993 U.S. Dist. LEXIS 7783, 1993 WL 197053 (D.R.I. 1993).

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