In re the Complaint of ENSCO Offshore Co.

9 F. Supp. 3d 713, 2014 U.S. Dist. LEXIS 40779, 2014 WL 1275985
District Court, S.D. Texas·Decided March 26, 2014·No. Civ. A. No. H-09-2838·Published·Cited by 2 cases

Opinion

OPINION AND ORDER

MELÍNDA HARMON, District Judge.

Pending before the Court in the above referenced cause of exoneration from or limitation of liability pursuant to 46 U.S.C. § 30501 et seq.,1 civil and maritime, is Plaintiff ENSCO Offshore Company’s (“ENSCO’s”) motion for summary judgment against Sea Robin Pipeline Company, LLC (“Sea Robin”) (# 98) on the grounds that Sea Robin cannot prove the ENSCO 74 allided with Sea Robin’s pipeline.

Background Facts

ENSCO was the sole owner of the EN-SCO 74, a self-elevating drilling unit and a registered vessel of Panama, Official No. 8764420, approximately 74.0918 meters long and 62.788 meters wide, and a depth of 7.924 meters. It weighed approximately 16.1 million pounds. On September 8, 2008 the ENSCO 74 was located off the Coast of Louisiana in South Marsh 149 when Hurricane Ike approached. ENSCO claims that it followed its hurricane proce[718]*718dures, made fast the rig, and evacuated all personnel. On September 12, 2009, at approximately 9:00 a.m. according to experts, the ENSCO 74 was swept off its location, with .the barge ending up floating upright in the Gulf of Mexico, while the rig broke free of its legs just below the barge, leaving only parts of two of its three legs on the drill site, and was destroyed by Hurricane Ike. The rig was moved approximately 100 miles northwesterly by the storm and finally sank sixty-five miles south of Galveston, Texas in High Island 241A.

According to ENSCO, on March 6, 20092 the M/V SATILLA allided with and was damaged by the remains of the EN-SCO 74. . At that time the ENSCO 74 had been missing and considered lost for six months, despite efforts of ENSCO, C & C Technologies, the National Oceanic and Atmospheric Administration (“NOAA”), the U.S. Coast Guard, and third parties to locate it. ENSCO filed this limitation of liability action, and among the claimants who appeared and filed claims is Sea Robin (# 10,11, and 39-3).

Sea Robin asserts that when the ENSCO 74 broke away from the sea floor, it drifted west, crossing and damaging Sea Robin’s pipeline at East Cameron Blocks 300, 315, 317, and 334. ENSCO 74’s location was revealed when the M/V Satilla allided with its submerged remains. Sea Robin claims that ENSCO was negligent in failing to secure the ENSCO 74, in failing to follow recommended procedures of the Mineral Management Service in advance of approaching storms, in failing to perform an appropriate search for the ENSCO 74, in putting a damaged drilling rig weakened by previous hurricanes or otherwise unseaworthy back out to sea, and in failing to implement safeguards to prevent such damage if the ENSCO 74 broke loose of its moorings. Sea Robin states that under general maritime law, the negligence of a defendant is presumed when a drifting vessel strikes a fixed object, based on the logical deduction that a drifting vessel was mishandled or improperly moored.3 Moreover Sea Robin explains [719]*719that it had entered into agreements with oil and gas producers in the Gulf of Mexico to transport their product through its pipeline, but because of the damage the pipeline was shut in and could no longer transport production. One of these companies, Energy Resource Technology GOM, Inc. (“ERT”), filed suit against Sea Robin seeking damages for lost revenues and escalating shipping costs that ERT has sustained because it is unable to transport production through Sea Robin’s pipeline. Medco Energi U.S. LLC (“Medco”), which owns and operates platforms located in Blocks 317 and 318B of the East Cameron area of the Gulf and whose production from these platforms was transported to market through Sea Robin’s pipeline pursuant to a contract between Medco and Sea Robin, has also filed suit against Sea Robin. Sea Robin seeks to recover specifically for damage to its pipeline, lost revenue due to interruption in service of the pipeline, and costs of surveying the damage to the pipeline, as well as reimbursement, indemnification or contribution resulting from any liability it is found to have to ERT or Medco, whether through tort, contract or otherwise. Sea Robin' further claims that ENSCO is not entitled to limitation or exoneration because all of its negligent actions were within its privity and knowledge.

Standard of Review

Summary judgment under Federal Rule of Civil Procedure 56(c) is appropriate when “the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed. R, Civ. P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A fact is material if it might affect the outcome of the suit under the governing law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A dispute of material fact is “genuine” if the evidence would allow a reasonable jury to find in favor of the nonmovant. Id. The court must consider all evidence and draw all inferences from the factual record in the light most favorable to the nonmovant. Matsushita Elec. Indus. Co. v. Zenith Radio, 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); National Ass’n of Gov’t Employees v. City Pub. Serv. Board, 40 F.3d at 712-13.

[720]*720The application of the rule depends upon which party bears the burden of proof at trial. If the movant bears the ultimate burden at trial, the movant must provide evidence to support each element of its claim and demonstrate the lack of a genuine issue of material fact regarding that claim. Malacara v. Garber, 353 F.3d 393, 403 (5th Cir.2003); Rushing v. Kansas City S. Ry., 185 F.3d 496, 505 (5th Cir.1999), cert. denied, 528 U.S. 1160, 120 S.Ct. 1171, 145 L.Ed.2d 1080 (2000). The nonmovant must then respond with evidence that raises a genuine issue of material fact to avoid summary judgment against it; a “complete failure of proof concerning an essential element of the nonmoving party’s case necessarily renders all other facts immaterial.” Celotex, 477 U.S. at 323, 106 S.Ct. 2548.

If the nonmovant bears the burden of proof at trial on an issue, the movant may either offer evidence that undermines one or more of the essential elements of the nonmovant’s claim or point out the absence of evidence supporting essential elements of the nonmovant’s claim; the movant may, but is not required to, negate elements of the nonmovant’s case to prevail on summary judgment. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Lujan v. National Wildlife Federation, 497 U.S. 871, 885, 110 S.Ct. 3177, 111 L.Ed.2d 695 (1990); Edwards v. Your Credit, Inc., 148 F.3d 427, 431 (5th Cir.1998);

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In re the Complaint of ENSCO Offshore Co., 9 F. Supp. 3d 713, 2014 U.S. Dist. LEXIS 40779, 2014 WL 1275985 (S.D. Tex. 2014).

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