In Re the Complaint of Nautilus Motor Tanker Co.

85 F.3d 105, 1996 WL 264833
CourtCourt of Appeals for the Third Circuit
DecidedMay 20, 1996
Docket95-5126
StatusUnknown
Cited by2 cases

This text of 85 F.3d 105 (In Re the Complaint of Nautilus Motor Tanker Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit 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 Nautilus Motor Tanker Co., 85 F.3d 105, 1996 WL 264833 (3d Cir. 1996).

Opinions

OPINION OF THE COURT

McKEE, Circuit Judge.

This dispute arises from the grounding of the tanker BT Nautilus, an 811 foot oil tanker owned by appellant Nautilus Motor Tanker Co., Ltd. (“Nautilus”). That grounding caused approximately 230,000 gallons of fuel oil to spill into the Kill van Kull waterway in [109]*109Bayonne, New Jersey. Thereafter, Nautilus commenced a proceeding in the United States District Court for the District of New Jersey under the Limitation of Liability Act, 46 U.S.C. §§ 181-189, in an effort to escape liability from various potential claimants including Coastal Oil New York, Inc. (“Coastal”), the owner of the terminal. Coastal filed a counterclaim against Nautilus alleging that Nautilus was solely responsible for the grounding. Following a nonjury trial, the district court entered judgment for Coastal and against Nautilus on Coastal’s counterclaim.

In this appeal from that judgment, we are asked to determine whether the district court erred in admitting opinions and conclusions contained in a Coast Guard Report of the incident into evidence. We must also decide the relevance and possible application of a rather ancient rule of maritime law — the Pennsylvania Rule — to this controversy; and finally, we must decide whether the district court erred in concluding that Coastal’s failure to provide navigational aids and information about the limits of its ship berth did not contribute to the accident. For the reasons that follow, we will affirm the ruling of the district court.

I.

We need only briefly set forth the underlying facts as they are detailed in the district court’s opinion, In the Matter of the Complaint of Nautilus Motor Tanker Co., Ltd., 862 F.Supp. 1260 (D.N.J.1994), and largely uneontested. On the morning of June 7, 1990, Moran Towing & Transportation, Co., Inc. (“Moran”) dispatched two tugs and a docking pilot, Captain James Naughton, to assist BT Nautilus Captain Albert Frank Ainseough in docking his vessel at Coastal’s terminal in Bayonne, New Jersey. As the Nautilus neared the terminal, it ran aground.1

On June 18, 1990, Nautilus filed a petition in the district court seeking exoneration and/or limitation of its liability under the Limitation of Liability Act, 46 U.S.C. §§ 181-189.2 Coastal responded by filing a claim against Nautilus, and Nautilus responded by seeking damages for Coastal’s alleged negligence in causing the grounding.

At the ensuing bench trial on Coastal’s counterclaim, Nautilus argued that Coastal “had breached its duty as a wharfinger because the vessel either grounded in the ship berth or, if it grounded outside the ship berth, the approach to the berth was unsafe.” Appellant’s Brief at 5. Coastal countered by arguing that the grounding was a direct consequence of negligent navigation by the vessel’s captain and the docking pilot.

On September 27, 1994, the district court issued its findings of fact and conclusions of law. The court found that the BT Nautilus ran aground “at least 125 feet east of the Coastal New York ship berth,” Nautilus, 862 F.Supp. at 1268, and that Nautilus had failed to prove by a preponderance of the evidence that any of Coastal’s alleged negligent acts were a proximate cause of the grounding. Accordingly, the district court entered judgment in Coastal’s favor, and this appeal followed.

Nautilus challenges that judgment on three grounds. First, Nautilus contends that the district court erred in admitting opinions and conclusions contained in a Coast Guard Report of this incident. Second, Nautilus argues that the Pennsylvania Rule created a burden-shifting presumption that Coastal’s statutory violations caused the grounding. Finally, Nautilus argues that the district court clearly erred in finding that Coastal’s failure to provide navigational aids and information on the limits of its ship berth did not contribute to the grounding.

We have jurisdiction pursuant to 28 U.S.C. § 1292(a)(3), which authorizes an appeal from an interlocutory order determining [110]*110the rights and liabilities of the parties to admiralty eases.3

II.

A. The Admissibility of the Coast Guard Report.

Coast Guard regulations require Coast Guard personnel to conduct an investigation, and prepare a report following marine casualties and accidents. See 46 C.F.R. § 4.07 (1994).4 Accordingly, the United States Coast Guard investigated the June 7, 1990, grounding of the Nautilus and issued a public report that stated in part:

The apparent cause of this grounding was failure on the part of the Docking Pilot to maintain the BT NAUTILUS within the navigable limits of the channel ... [t]he docking pilot was not familiar with the shape or dimensions of the dredged underwater basin leading from the channel to the Terminal.
Except as noted above there is no evidence of ... misconduct, inattention to duty, negligence, or willful violation of law or regulation ... nor evidence that any personnel of the Coast Guard, or of any other federal agency, or any other person contributed to this casualty ...

Coast Guard Report (“Report”) ¶¶ 2, 18. At trial, Coastal offered the entire Report into evidence under the exception to the hearsay rule for public records, FRE 803(8)(C).5 The court received the report over the objection of Nautilus. That objection was based upon a provision in the Coast Guard regulations that states:

investigations of marine casualties ... are for the purpose of taking appropriate measures for promoting safety of life and property at sea, and are not intended to fix civil or criminal responsibility.

46 C.F.R. § 4.07-l(b). Nautilus argued that the foregoing portions of the Report held “no evidentiary relevance other than to fix liability ...”, Appellant’s Brief at 14, and should therefore be excluded under § 4.07-l(b).

The district court concluded that the entire Report fit within the confines of FRE 803(8)(C) and deemed it admissible irrespective of 46 C.F.R. § 4.07-l(b).6

On appeal, Nautilus relies principally upon Huber v. United States, 838 F.2d 398 (9th Cir.1988), and its progeny to argue that the district court erred in admitting the Report [111]*111into evidence. In Huber, two crew members drowned when their yacht sank north of San Francisco Bay.

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85 F.3d 105, 1996 WL 264833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-complaint-of-nautilus-motor-tanker-co-ca3-1996.