Marine Transport Lines, Inc. v. M/V Tako Invader

37 F.3d 1138, 1995 A.M.C. 622, 1994 U.S. App. LEXIS 31717, 1994 WL 590056
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 14, 1994
Docket94-30247
StatusPublished
Cited by29 cases

This text of 37 F.3d 1138 (Marine Transport Lines, Inc. v. M/V Tako Invader) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marine Transport Lines, Inc. v. M/V Tako Invader, 37 F.3d 1138, 1995 A.M.C. 622, 1994 U.S. App. LEXIS 31717, 1994 WL 590056 (5th Cir. 1994).

Opinion

EMILIO M. GARZA, Circuit Judge:

Marine Transport Lines, Inc. (“Marine Transport”) brought an admiralty action against M/V Tako Invader, Lumar Marine, Inc., and Tako Towing, Inc. (“Tako Towing”) to recover damages its barge sustained in a collision with the Tako Invader on the Mississippi River. Tako Towing appeals the district court’s calculation of damages and apportionment of fault. Finding only a mathe-matícal error in the court’s calculation of damages, and an insufficient legal basis for its apportionment of fault, we affirm in part and remand in part.

I

In the early hours of a February morning, two barges in tow on the Mississippi River collided just below the Luling Bridge near mile 121.5. Marine Transport’s tug, M/V Marine Guardian, with its barge the MBC-2 in tow, was on its way up the river to Baton Rouge, Louisiana, where she was to load cargo for a journey to Mexico. She had been following a second tow, M/V Creole Rivers, for some time, unable to pass her because of downbound traffic. Finally, an opportunity to pass the Creole Rivers on her starboard side presented itself, and the Marine Guardian proceeded to overtake the Creole Rivers. This maneuver placed the Marine Guardian between the Creole Rivers and the east, or left-descending, bank of the river.

As the Marine Guardian slowly gained alongside the Creole Rivers, her mate, Captain Jack Sears, heard the Creole Rivers reach a port-to-port passing agreement with a downbound vessel, M/V Tako Invader. He saw the Tako Invader’s lights above the Lul-ing Bridge, on the east side of the river, 1 but he soon lost them in the bridge’s supports. The movement of the lights suggested to Captain Sears that the Tako Invader was slipping toward the west bank. Captain Sears did not communicate with the Tako Invader. Instead, he assumed that because he was on the eastern side of the river, safely to starboard of the Creole Rivers, he too could pass the Tako Invader port-to-port. 2

*1140 Captain Sears did, however, send a deckhand named Rowe top-side to observe the Tako Invader. Rowe rushed back to the wheelhouse, grabbed some binoculars, and returned top-side. When he ran back down to the wheelhouse again, he informed Captain Sears, “You’d better do something, [the Tako Invader’s] right ahead of you.” Captain Sears then heard an excited conversation on his radio between the Tako Invader and the Creole Rivers, and about a minute later, according to Captain Sears, “I knocked the shit out of him or he knocked the shit out of me, one way or another.”

Marine Transport sued Tako Towing in admiralty, alleging that the Tako Invader’s negligent operation and failure to adhere to the applicable navigational rules caused the collision and resulting damage to Marine Transport’s barge. The district court found the Tako Invader in violation of Rules 7, 8, 9, and 14 of the Inland Navigational Rules (“the Rules”), and the Marine Guardian in violation of Rules 7, 8, 14, and 34. Based on this finding, the court apportioned 75% of the fault to the Tako Invader and 25% to the Marine Guardian. Consequently, the court awarded Marine Transport detention damages in the amount of $61,072.50 and repair costs in the amount of $80,374.77. Tako Towing now appeals, arguing that the district court’s findings were clearly erroneous and that the court misinterpreted Rules 9 and 14.

II

A

Tako Towing argues that the district court incorrectly calculated Marine Transport’s damages. Determinations of the trial court concerning the amount of damages are factual findings, and we will set them aside only if clearly erroneous. See Todd Shipyards Corp. v. Turbine Serv., Inc., 674 F.2d 401, 405 (5th Cir.), cert. denied, 459 U.S. 1036, 103 S.Ct. 448, 74 L.Ed.2d 603 (1982). “A finding is ‘clearly erroneous’ when although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed.” United States v. United States Gypsum Co., 333 U.S. 364, 395, 68 S.Ct. 525, 542, 92 L.Ed. 746 (1948).

Specifically, Tako Towing contests the district court’s calculation of detention damages, the profits that Marine Transport lost while its vessel was detained for collision repairs. “A ship owner is entitled to damages for the loss of use of its vessel in addition to the cost of repairs of the vessel.” Kim Crest, S.A. v. M.V. Sverdlovsk, 753 F.Supp. 642, 649 (S.D.Tex.1990) (citing Continental Oil Co. v. S.S. Electro, 431 F.2d 391 (5th Cir.1970), cert. denied, 401 U.S. 937, 91 S.Ct. 925, 27 L.Ed.2d 216 (1971)). “The damage that this loss represents is the ship’s charter rate, less the variable or incremental expenses that would have been required of the owner to perform the charters, discounted by the probable utilization rate.” Kim Crest, 753 F.Supp. at 649. Loss of detention damages “need not be proven with an exact degree of specificity.” Mitsui O.S.K Lines, K.K. v. Horton & Horton, Inc., 480 F.2d 1104, 1106 (5th Cir.1973). A district court’s lost profits methodology must permit it to arrive at a damages amount “with ‘reasonable certainty.’ No more is required.” Orduna S.A. v. Zen-Noh Grain Corp., 913 F.2d 1149, 1155 (5th Cir.1990) (quoting The Conqueror, 166 U.S. 110, 125, 17 S.Ct. 510, 516, 41 L.Ed. 937 (1897)). The evidence must be sufficient to allow the district court to “find with reasonable certainty that the damages claimed were actually or may be reasonably inferred to have been incurred as a result of the collision.” Id.

Tako Towing first argues that the district court erroneously failed to reduce Marine Transport’s detention damages by an “historical utilization rate,” a rate that reflects the portion of a typical time period that the vessel does not earn revenue. The district court applied the traditional “three voyage rule” to calculate detention damages. According to this rule, “the court determines the charter hire rate for the voyage immediately preceding the collision, the charter hire rate during the voyage of the casualty, and the charter hire rate of the first voyage succeeding the casualty and averages them.” Kim Crest, 753 F.Supp. at 650; see also Delta S.S. Lines, Inc. v. Avondale Ship *1141 yards, Inc., 747 F.2d 995, 1001 (5th Cir.1984) (noting the “time honored rule in maritime cases that a proper method of determining lost detention profits is to seek a fair average based on a number of voyages before and after”). The court calculated, based on historical data for the three voyages closest in time to the collision, that the Marine Guardian and MBC-2 earned an average revenue of $105,000 per voyage.

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Bluebook (online)
37 F.3d 1138, 1995 A.M.C. 622, 1994 U.S. App. LEXIS 31717, 1994 WL 590056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marine-transport-lines-inc-v-mv-tako-invader-ca5-1994.