In Re the Complaint of Taira Lynn Marine Ltd. No. 5

349 F. Supp. 2d 1026, 2004 A.M.C. 1886, 2004 U.S. Dist. LEXIS 20744, 2004 WL 3000967
CourtDistrict Court, W.D. Louisiana
DecidedJuly 6, 2004
DocketCIV.A. 6:01CV1420, CIV.A. 6:01CV2484
StatusPublished
Cited by2 cases

This text of 349 F. Supp. 2d 1026 (In Re the Complaint of Taira Lynn Marine Ltd. No. 5) is published on Counsel Stack Legal Research, covering District Court, W.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 the Complaint of Taira Lynn Marine Ltd. No. 5, 349 F. Supp. 2d 1026, 2004 A.M.C. 1886, 2004 U.S. Dist. LEXIS 20744, 2004 WL 3000967 (W.D. La. 2004).

Opinion

REASONS FOR JUDGMENT

HAIK, District Judge.

Pending before the court at this time are three motions for partial summary judgment filed by Kirby Inland Marine, L.P., the State of Louisiana through the Department of Transportation and Development, and Taira Lynn Marine, Inc. These motions for partial summary judgment (documents # 320, # 324, # 409, and # 329 respectively) seek the dismissal of the “purely economic loss” claimants in this matter pursuant to the jurisprudence of the Fifth Circuit as set out in the Robins Dry Dock and Testbank decisions. The motions also seek dismissal of the Oil Pollution Act of 1990 and Comprehensive Environmental Response Compensation Liability Act claims filed by the claimants in this matter.

I. FACTS

In the early morning hours of July 19, 2001, the M/V MR. BARRY and its tow, *1027 the T/B KIRBY 31801, allided with the Louisa swing bridge in St. Mary Parish, Louisiana. This allision happened at or close to mile 134 on the Intracoastal Waterway near Cypremore Point, Louisiana. T/B KIRBY 31801 (“the barge”) was owned by Kirby Inland Marine, L.P. and the M/V MR. BARRY was owned and operated by Taira Lynn Marine, Inc. The cargo on the barge consisted of a gaseous cargo mixture of propylene/propane. This gaseous mixture was discharged into the atmosphere as a result of the allision. After the allision and subsequent gas discharge into the atmosphere, the Louisiana State Police Hazardous Materials Division ordered a mandatory evacuation of all businesses and residences within a certain radius of the Louisa swing bridge.

The geographical dimensions of this area of Louisiana are of extreme import to this court. Cypremore Point is basically an island in southwest Louisiana which is home to local residents and serves as secondary residences for many people in southwestern Louisiana. The Louisa swing bridge is the only means of ingress and egress from the Cypremore Point Island. It is the only connection that residents and businesspeople have with the mainland. This unfortunate allision of tug and tow with the Louisa swing bridge forced the residents and business owners from their respective residences and businesses, essentially decapitating the local business economy for only a couple of days.

As a result of this accident and subsequent evacuation, the following business owners and/or companies have filed claims in the limitation action seeking to recover damages for their alleged losses: Cajun Wireline, Inc.; North American Salt Company/Carey Salt Company; Coastline Marine, Inc; Pamela Dore d/b/a Cove Marina; Legnon Enterprises, Inc.; Marine Turbine Technologies, L.L.C.; Mason Seafood; CVD Incorporated d/b/a Rohm & Haas Advanced Materials; Morton International, Inc.; Riverfront Seawalls & Bulkheads; Bagala’s Quality Oysters, Inc.; Big D’s Seafood; Blue Gulf Seafood, Inc.; and Twin Brothers Marine. These claimants have made claims under the General Maritime Law, the Oil Pollution Act of 1990, the Comprehensive Environmental Response, Compensation, and Liability Act, and state law.

II. RELEVANT PROCEDURAL HISTORY

Taira Lynn initiated the instant litigation under the Limitation of Liability Act, 46 U.S.C. Section 183, et seq., in which several hundred claims have been filed. These claims have been asserted against Taira Lynn Marine, Kirby Inland Marine, and the State of Louisiana through the Department of Transportation and Development, as the owner and operator of the Louisa bridge. The original limitation proceeding consolidated two declaratory judgment actions involving insurance coverage issues and other related matters. Magistrate Hill for the Western District of Louisiana held several conferences with counsel to determine the limits of discovery and the proper method of dealing with the “economic loss claimants.” Thereafter, the instant motions for partial summary judgment were filed by Kirby Inland Marine (Doc. # 320), the State of Louisiana through the Department of Transportation and Development (Docs. # 324 and # 409), and Taira Lynn Marine (Doc. # 329).

III. SUMMARY JUDGMENT STANDARD

Federal Rule of Civil Procedure 56(c) provides that summary judgment should be granted if the “pleadings, depositions, *1028 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 judgment as a matter of law.” In Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986), the Supreme Court of the United States eloquently reviewed this summary judgment standard. Justice Rehnquist stated that Rule 56(c) “mandates the entry, of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265.

IV. APPLICABLE LAW

A. The Economic Loss Issues

Due to longstanding precedent, this court must first consider the controlling cases of Robins Dry Dock & Repair Co. v. Flint et al and State of Louisiana ex rel. Guste v. M/V TESTBANK, 275 U.S. 303, 48 S.Ct. 134, 72 L.Ed. 290 (1927), and 752 F.2d 1019 (5th Cir.1985)(en banc).

Robins Dry Dock involved “a libel by time charterers of the steamship Bjornef-jord against the Dry Dock Company to recover for the loss of use of the steamer...” 48 S.Ct. at 134. This seminal case involved a “contract and damage” claim in which the libelants (respondents) “were not parties to that contract ‘or in any respect beneficiaries’ and were not entitled to sue' for breach of it ‘even under the most liberal rules that permit third parties to sue on a contract made for their benefit.’ ” Id. at 135. In coming to that determination, the Robins Court looked to the case of German Alliance Insurance Co. v. Home Water Supply Co., which articulated the idea that “[Bjefore a stranger can avail himself of the exceptional privilege of suing for a breach of an agreement, to which he is not a party, he must, at least, show that it was intended for his direct benefit.’ ” 226 U.S. 220, 230, 33 S.Ct. 32, 35 (57 L.Ed. 195, 42 L.R.A. (N.S.)1000).

The issue in Robins

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349 F. Supp. 2d 1026, 2004 A.M.C. 1886, 2004 U.S. Dist. LEXIS 20744, 2004 WL 3000967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-complaint-of-taira-lynn-marine-ltd-no-5-lawd-2004.