Markel American Ins. v. Dagmar's Marina, LLC.

161 P.3d 1029
CourtCourt of Appeals of Washington
DecidedJuly 11, 2007
Docket58487-1-I
StatusPublished

This text of 161 P.3d 1029 (Markel American Ins. v. Dagmar's Marina, LLC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Markel American Ins. v. Dagmar's Marina, LLC., 161 P.3d 1029 (Wash. Ct. App. 2007).

Opinion

161 P.3d 1029 (2007)

MARKEL AMERICAN INSURANCE COMPANY, a Virginia corporation, Appellant,
v.
DAGMAR'S MARINA, L.L.C., a Washington Limited Liability Corporation, Respondent.

No. 58487-1-I.

Court of Appeals of Washington, Division 1.

May 21, 2007.
Publication Ordered July 11, 2007.

*1030 Chris Parker Reilly, Nicoll Black Misenti & Feig, Seattle, WA, for Appellant.

M.A. Michelle Buhler, Danielson Harrigan Leyh & Tollefson, Seattle, WA, for Respondent.

COLEMAN, J.

¶ 1 The principal issue in this case is whether a limitation of liability provision in a lease agreement clearly and unequivocally disclaims a marina's liability for damage caused by its own negligence. The second issue is whether the marina provided storage services to the boat owner, thus giving rise to an implied warranty of workmanlike performance. We reverse and remand because the lease's limitation of liability provision does not clearly and unequivocally disclaim the marina's liability for damage caused by its own negligence. We agree with the trial court that the marina did not provide storage services giving rise to an implied warranty of workmanlike performance.

FACTS

¶ 2 In August 1999, Harrison Jones, on behalf of Prosail Northwest LLC, entered into a lease agreement with Dagmar's Marina for the monthly lease of a berth for Prosail's vessel, Running with Scissors. This appeal centers on section 5 of the lease, which is a limitation of liability provision. It states:

"5. Limitations of Marina's Liability. [1] Boat Owner acknowledges that he has inspected the berthing space leased herein and satisfied himself that the berthing space is adequate for safe mooring of his vessel. [2] This contract is not a bailment of the boat Owner's boat but a lease of berthing space. [3] It is mutually agreed that the Marina does not accept Owner's boat for storage and shall not be liable or responsible in any manner for its safekeeping and condition of its tackle, apparel, fixtures, equipment, and/or furnishings. [4] The Owner agrees to relieve Marina, its personnel and equipment of all responsibility for damages that may occur while they are handling the Owner's boat upon his request, with the exception of damages resulting from operator error or equipment failure. [5] The Owner also acknowledges the special hazards of keeping a wooden boat out of the water for a prolonged period of time. [6] Furthermore, the Boat Owner acknowledges the damage that can occur with a core-filled boat. [7] It is further agreed that the Marina will not be liable or responsible for any personal injuries suffered by the Owner or his agents or invitees arising from any cause upon the boat, Marina premise or premises adjacent thereto. [8] Owner agrees to keep the premises adjacent *1031 to the berth neat, clean, orderly and free as possible from all inflammatory substances. [9] Owner agrees to indemnify and hold the Marina harmless from any theft or other property loss, damage or personal injury (including death) resulting from the acts or omissions of Owner, his agents, invitees, or employees."

Brief of Appellant, at 2 (quoting Exhibit A) (sentences numbered for clarity). The meaning of the provision's third sentence is disputed by the parties.

¶ 3 The vessel was placed in a berth at the marina in September 1999 and remained there during all times relevant to this appeal. On October 31, 2003, the vessel was blown to the ground in a windstorm and its hull was damaged. Markel American Insurance Company, the hull insurer for Prosail, filed a complaint against the marina alleging two causes of action under general maritime law: negligence and breach of implied warranty of workmanlike performance. Markel alleged that the marina was negligent in configuring the "blocking system" (materials used to support and brace the vessel).

¶ 4 The trial court granted the marina's motion for summary judgment. The court also filed a minute order which read, in relevant part:

The court finds that the lease is the controlling document and paragraph five of the lease expressly disclaims liability for storage. Any cause of action for negligence requires a duty and all such duties are disclaimed. This is a space lease; and no other services are provided.

Markel appeals the trial court's order granting summary judgment in favor of the marina.

ANALYSIS

¶ 5 The first issue is whether the limitation of liability provision in the lease relieves the marina of liability due to its own negligence. The parties agree that this case is governed by federal maritime law. They also agree that under Ninth Circuit maritime law, exculpatory clauses are enforceable even if they absolve a party of all liability for negligence.

Other circuits may adhere [to the rule voiding such clauses], but the Ninth Circuit has weighed the policy considerations and concluded that, except in towing contracts, exculpatory clauses are enforceable even when they completely absolve parties from liability for negligence.

Royal Ins. Co. of Am. v. S.W. Marine, 194 F.3d 1009, 1014 (9th Cir.1999) (citations omitted, emphasis added). The Eighth Circuit, which adopted the Ninth Circuit's approach to exculpatory clauses, has held that an exculpatory clause in a "Boat Space Rental Agreement" absolves a marina from liability for its own negligence "as long as the parties' intent to do so is clear and the clause is not the result of overreaching[.]" Sander v. Alexander Richardson Invs., 334 F.3d 712, 719 (8th Cir.2003). The intent to exculpate a party from its own negligence must "`be clearly and unequivocally expressed.'" Sander, 334 F.3d at 715 (quoting Randall v. Chevron U.S.A., Inc., 13 F.3d 888, 905), (modified on other grounds on denial of reh'g 22 F.3d 568 (5th Cir.1994)). Words in a maritime contract normally should be given their plain meaning. See, e.g., Louisiana Land & Exploration Co. v. Offshore Tugs, Inc., 23 F.3d 967, 969 (5th Cir.1994). Exculpatory clauses are construed against the drafter if more than one construction of a term is reasonable. U.S. v. Seckinger, 397 U.S. 203, 216, 90 S.Ct. 880, 25 L.Ed.2d 224 (1970).[1]

¶ 6 In a claim for negligence, a party must prove: (1) the existence of a duty owed to the complaining party; (2) a breach of that duty; (3) a resulting injury; and (4) that the claimed breach was the proximate cause of the injury. Hansen v. Friend, 118 Wash.2d 476, 485, 824 P.2d 483 (1992). Whether a duty exists is a question of law. Patrick v. Sferra, 70 Wash.App. 676, 683, 855 P.2d 320 (1993). An entity providing docking or moorage services has a duty to maintain its docking space and moorage equipment in *1032 a safe condition. Smith v. Burnett, 173 U.S. 430, 433, 19 S.Ct.

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161 P.3d 1029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/markel-american-ins-v-dagmars-marina-llc-washctapp-2007.