In Re the Exxon Valdez

767 F. Supp. 1509, 21 Envtl. L. Rep. (Envtl. Law Inst.) 21068, 1991 A.M.C. 1482, 1991 U.S. Dist. LEXIS 1868, 1991 WL 111341
CourtDistrict Court, D. Alaska
DecidedFebruary 8, 1991
DocketA89-095 Civ
StatusPublished
Cited by15 cases

This text of 767 F. Supp. 1509 (In Re the Exxon Valdez) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Exxon Valdez, 767 F. Supp. 1509, 21 Envtl. L. Rep. (Envtl. Law Inst.) 21068, 1991 A.M.C. 1482, 1991 U.S. Dist. LEXIS 1868, 1991 WL 111341 (D. Alaska 1991).

Opinion

ORDER NO. 38

HOLLAND, Chief Judge.

ALYESKA’S MOTION FOR JUDGMENT ON THE PLEADINGS

Alyeska’s 1 motion for judgment on the pleadings was brought, pursuant to Rule 12(c), Federal Rules of Civil Procedure, on the ground that certain identified claims for economic losses made by certain identified plaintiffs should be dismissed because those plaintiffs did not complain of any physical impact or injury from the oil on their person or property, as required by maritime law and the rule in Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303, 48 S.Ct. 134, 72 L.Ed. 290 (1927). The plaintiffs targeted by the motion are: (i) area businesses, such as boat charters, taxidermists, and fishing lodges; (ii) those with use and enjoyment claims, such as sport fishermen, photographers, and kayakers; and (iii) fish processors and fish tenders.

Robins Dry Dock established that in those situations where negligence does not result in any physical harm, thereby providing no basis for an independent tort, and only pecuniary loss is suffered, a plaintiff may not recover for the loss of the financial benefits of a contract or prospective trade. Getty Refining & Marketing Co. v. MT FADI B, 766 F.2d 829, 833 (3d Cir.1985). The Robins Dry Dock rule is well established maritime law. See Louisiana ex rel. Guste v. M/V Testbank, 752 F.2d 1019, 1032 (5th Cir.1985), cert. denied, 477 U.S. 903, 106 S.Ct. 3271, 91 L.Ed.2d 562 (1986); Getty Refining, 766 F.2d at 833; see also, Owen, Recovery for Economic Loss Under U.S. Maritime Law: Sixty Years Under Robins Dry Dock, 18 J.Mar.L. & Com. 157 (1987).

The Ninth Circuit, however, has eroded the “bright-line” rule of Robins Dry Dock by creating a limited exception to the requirement for physical harm for commercial fishermen. See Carbone v. Ursich, 209 F.2d 178, 181-182 (9th Cir.1953) (held that crew members of fishing vessel could recover lost profits from owners of another vessel that negligently fouled their nets); Union Oil Co. v. Oppen, 501 F.2d 558, 570 (9th Cir.1974) (held that commercial fishermen whose harvests were depleted by an oil spill could recover lost profits from defendant oil company in negligence action); Emerson G.M. Diesel, Inc. v. Alaskan Enterprise, 732 F.2d 1468, 1475 (9th Cir.1984) (held that economic losses such as lost profits and repair expenses were recoverable in manufacturer's strict liability admiralty action involving commercial fishing vessel).

MARITIME TORT

Alyeska characterizes the oil spill from the Exxon Valdez as a classic maritime tort. Whether the court is indeed faced with a maritime tort is a determination crucial to the final resolution of the motion for judgment on the pleadings. If the oil spill is not a maritime tort, then the maritime rule in Robins Dry Dock will not apply.

A tort falls under admiralty jurisdiction if it meets both the “locality” and the “maritime nexus” requirements which the courts have imposed. Claims satisfy the locality requirement if the wrong occurred on the high seas or navigable waters. East River Steamship Corp. v. Transamerica Delaval, Inc., 476 U.S. 858, 863-864, 106 S.Ct. 2295, 2298, 90 L.Ed.2d 865 (1986). Here, the wrong was the damage which occurred on or in the navigable waters and which was caused by the oil spilling from the Exxon Valdez, grounded in navigable waters. The locality requirement is met.

*1512 Claims meet the maritime nexus requirement if the wrong bears “a significant relationship to traditional maritime activity.” Executive Jet Aviation, Inc. v. Cleveland, 409 U.S. 249, 268, 93 S.Ct. 493, 504, 34 L.Ed.2d 454 (1972). The Exxon Valdez was engaged in maritime commerce, specifically the transport of oil in a ship, when the accident occurred. Maritime commerce is the primary focus of admiralty law. East River, 476 U.S. at 864, 106 S.Ct. at 2298. Therefore, the maritime nexus test is also met.

Since both tests are met for those claims for damages which occurred in or on navigable waters, the oil spill is a maritime tort subject to admiralty jurisdiction. Factual development of the claims will probably establish that the claims of the sport fishermen, kayakers, and fish tenders, who are targeted by Alyeska’s motion, are for damages which occurred in or on the navigable waters.

However, a large portion of the claims are for damages that occurred on land, such as the claims of shoreside businesses and fish processors. Historically, damages to the shore or to shore facilities were not cognizable in admiralty. Askew v. American Waterways Operators, Inc., 411 U.S. 325, 340, 93 S.Ct. 1590, 1599, 36 L.Ed.2d 280 (1973). In 1948, Congress remedied that inequity by enacting the Admiralty Extension Act, 46 U.S.C. § 740, which states, in pertinent part, as follows:

The admiralty and maritime jurisdiction of the United States shall extend to and include all cases of damages or injury, to person or property, caused by a vessel on navigable water, notwithstanding that such damage or injury be done or consummated on land.

(Emphasis added.) A ship or its appurtenances must proximately cause an injury on shore to invoke the Admiralty Extension Act and the application of maritime law. Pryor v. American President Lines, 520 F.2d 974, 979 (4th Cir.1975), cert. denied, 423 U.S. 1055, 96 S.Ct. 787, 46 L.Ed.2d 644 (1976); see Louisiana ex rel. Guste v. M/V Testbank, 752 F.2d 1019, 1031 (5th Cir.1985), ce rt. denied, 477 U.S. 903, 106 S.Ct. 3271, 91 L.Ed.2d 562 (1986) (Under Admiralty Extension Act, admiralty jurisdiction extends to claims for shoreside damages resulting from chemical spill caused by collision of ships on navigable waterway.). Factual development will probably establish that the oil spill from the Exxon Valdez was the proximate cause of the shore-based damage claims, thereby subjecting them to admiralty jurisdiction pursuant to the Admiralty Extension Act.

Oil spills from vessels on navigable waters have consistently been held to be maritime torts by other courts.

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767 F. Supp. 1509, 21 Envtl. L. Rep. (Envtl. Law Inst.) 21068, 1991 A.M.C. 1482, 1991 U.S. Dist. LEXIS 1868, 1991 WL 111341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-exxon-valdez-akd-1991.