Mississippi Department of Transportation v. Signal International, LLC

579 F.3d 478, 2009 A.M.C. 2177, 2009 U.S. App. LEXIS 18088, 2009 WL 2461845
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 12, 2009
Docket08-60696
StatusPublished
Cited by83 cases

This text of 579 F.3d 478 (Mississippi Department of Transportation v. Signal International, LLC) 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
Mississippi Department of Transportation v. Signal International, LLC, 579 F.3d 478, 2009 A.M.C. 2177, 2009 U.S. App. LEXIS 18088, 2009 WL 2461845 (5th Cir. 2009).

Opinion

KING, Circuit Judge:

During Hurricane Katrina, two vessels owned by Signal International, LLC broke from their moorings on the Pascagoula River, Mississippi, and allided with and damaged a bridge of Interstate 10 approximately five miles away. Thereafter, Signal International brought this petition seeking exoneration from or limitation of liability for the allision. The Mississippi Department of Transportation, which had repaired the bridge, opposed the petition. The district court held that Signal International was not entitled to exoneration from but was entitled to limitation of its liability. The court then entered limited judgment in favor of the Mississippi Department of Transportation. Signal International now appeals the district court’s denial of exoneration and its antecedent holding that Signal International failed to timely challenge the Mississippi Department of Transportation’s status as a real party in interest. The Mississippi Department of Transportation appeals the district court’s grant of limitation of liability and its failure to award prejudgment interest. For the following reasons, we affirm the district court’s holding that Signal International waived its real party in interest defense, its finding that Signal International was not entitled to exoneration, and its finding that Signal International was entitled to limitation of its liability. We vacate the district court’s judgment to the extent that it omitted an award of prejudgment interest for a portion of the time that elapsed prior to entry of judgment, as discussed herein. We therefore remand for calculation of prejudgment interest and *484 entry of a modified judgment including that interest.

I. FACTUAL AND PROCEDURAL BACKGROUND

Signal International, LLC (“Signal”) is a marine fabrication and repair company. It owns two facilities in Pascagoula, Mississippi, which sits on the Mississippi Sound, north of the Gulf of Mexico. 1 In August 2005, it owned and operated two ringer crane barges, 2 the D/B MR. T and the D/B MISS TIFF, and one smaller, steel deck barge, the D/B JACK KING. 3 During Hurricane Katrina, the MISS TIFF and the JACK KING broke from their moorings on the east branch of the Pascagoula River and abided 4 with a bridge of Interstate 10 approximately 4.7 miles away. Although the federal government owns the bridge, the Mississippi Department of Transportation (“MDOT”) serves as a trustee and proprietor that is responsible for maintaining and repairing the bridge, and quickly undertook to repair it. Signal brought this petition seeking exoneration from or limitation of liability for the allision. MDOT opposed the petition. On March 24, 2008, the district court held a trial without a jury pursuant to Rule 52 of the Federal Rules of Civil Procedure. During that trial, the following facts were presented.

Hurricane Katrina approached the Gulf Coast in late August 2005. In order to monitor anticipated weather conditions at its facilities, Signal contracted with ImpactWeather to receive frequent, site-specific weather reports. On August 23, 2005, ImpactWeather began issuing weather advisories related to Tropical Depression Twelve, which eventually developed into Hurricane Katrina. On August 26, after Hurricane Katrina passed over the Florida peninsula and entered the Gulf of Mexico, ImpactWeather issued Advisory 14, which reported that some models were predicting that the hurricane could strike Mississippi late on August 28 or early on August 29 with hurricane-force winds possible in Pascagoula. 5

At that time, Signal had a written hurricane plan to secure its facilities and vessels in the event of an approaching storm. Ronald W. Schnoor, Signal’s senior vice president and general manager of its Mississippi operation, was responsible for Signal’s hurricane preparations in Pascagoula and approved the plan. Among the other components of the plan, Signal was to monitor approaching hurricanes and hold a meeting to discuss preparation of its facilities, property, and equipment when there was the possibility of a hurricane strike within seventy-two hours (the “seventy-two hour meeting”). Once the plan was set in motion, Signal crews were, among *485 other tasks, to use ringer crane barges to secure the rigs, vessels, and objects in the facilities. The crews were then to prepare the ringer crane barges for transit to the mooring site by removing the crane booms because, during high winds, the booms function like large sails and could cause the barges to strike other objects. After preparing the ringer crane barges, the crews were to move them upriver and moor them “with the barge spuds, or other suitable moorings.” 6

After receiving the Advisory 14 on August 26, Signal held its seventy-two hour meeting. At the completion of that meeting, Signal braced its Pascagoula facilities for a Category 4 hurricane. Category 4 hurricanes pack maximum sustained winds of 155 miles per hour and maximum storm surges of eighteen feet. As part of Signal’s preparations, its rigging crews used the ringer crane barges to secure the rigs in Signal’s yard. At the time, the MISS TIFF’s spud motor, which was used to lift the barge spuds, was inoperable and had been for several weeks. In the yard, the crews were able to use the MISS TIFF’s ringer crane to raise and drop the barge spuds; however, because they needed to remove its boom to prepare the MISS TIFF for transit to the mooring site, the ringer crane was unavailable for use. Undeterred, Signal’s rigging crew drove a smaller crawler crane onto the deck of the JACK KING to facilitate the use of barge spuds to moor the MISS TIFF. Although the JACK KING would not typically accompany the ringer crane barges to the mooring site, on this occasion, the crews tied the JACK KING to the MISS TIFF, used the crawler crane to partially raise the MISS TIFF’s barge spuds, and sent the flotilla up the Pascagoula River to the mooring- site. On the initial journey, the MISS TIFFs spuds caught on a fiberoptic cable that should have been buried deeper into the riverbed. William L. Tanner, Signal’s rigging department manager, reported the problem to William D. Bingle, Jr., Signal’s production manager, who was in charge of implementing the hurricane plan. Bingle ordered that the spuds should be removed and that the MISS TIFF should be moored at the mooring site without them. The crews took the MISS TIFF back to Signal’s West Yard and removed the spuds. At that time, Tanner developed a plan to tie the MISS TIFF and the JACK KING to the MR T using nylon rope and instructed the rigging crews on his plan.

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579 F.3d 478, 2009 A.M.C. 2177, 2009 U.S. App. LEXIS 18088, 2009 WL 2461845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-department-of-transportation-v-signal-international-llc-ca5-2009.