Nautilus Marine, Inc. v. Niemela

989 F. Supp. 1229, 1997 A.M.C. 1597, 1996 U.S. Dist. LEXIS 22048, 1996 WL 906348
CourtDistrict Court, D. Alaska
DecidedSeptember 16, 1996
DocketNo. A95-364-CV (JWS)
StatusPublished
Cited by1 cases

This text of 989 F. Supp. 1229 (Nautilus Marine, Inc. v. Niemela) 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
Nautilus Marine, Inc. v. Niemela, 989 F. Supp. 1229, 1997 A.M.C. 1597, 1996 U.S. Dist. LEXIS 22048, 1996 WL 906348 (D. Alaska 1996).

Opinion

ORDER FROM CHAMBERS

SEDWICK, District Judge.

I. MOTIONSPENDING

At Docket 26, defendant John “Porter” O’Hara (“O’Hara”) moves for partial summary judgment dismissing the claims asserted . by plaintiff , Nautilus Mariné, Inc. (“Nautilus Marine”) for economic losses. The motion joins and incorporates by reference the motion for summary judgment filed by defendant Ocean Beauty Seafoods, Inc. (“Ocean Beauty”).

At Docket 31, plaintiffs Nautilus Marine, Avalon Leasing, Inc., Erling Carlson, and Larry Gray (“plaintiffs”) oppose and move to continue O’Hara’s motion. Alternatively, plaintiffs move to strike the motion on the ground that it is “procedurally infirm.” No party has requested oral argument, and it would not be of material aid to the court.

II.FACTS

On September 19, 1995, plaintiffs filed a complaint in admiralty, alleging, in pertinent part, as follows: Nautilus Marine is in the salmon tendering and processing business and operates tenders from Valdez, Alaska. On May 5, 1994, Nautilus Marine entered into a tender charter agreement with Erling Carlson (“Carlson”), owner of the F/V TOR, and Larry Gray (“Gray”), skipper of the TOR. The agreement was intended to include the 1994 Prince William Sound commercial salmon fishing season. During the same summer, Nautilus Marine and Avalon Leasing, owner of the F/V TRADITION, operated the TRADITION under a tender charter agreement that also was intended to include the 1994 Prince William Sound fishing season. Pursuant to these agreements, Carlson, Gray, and Avalon Leasing were to receive a per-pound compensation based on the amount of salmon tendered by the vessels during the summer of 1994, , with a minimum seasonal compensation guarantee of $60,000.

On July 16, 1994, while the TOR and the TRADITION were moored along-side the [1231]*1231Valdez City Dock, the F/V NORQUEST struck the vessels, damaging the TRADITION and incapacitating the TOR. The complaint raises claims: (1) against all defendants for negligence; (2) against O’Hara (skipper of the NORQUEST) and James R. Niemela (owner of the NORQUEST) for punitive damages for reckless, wanton and/or willful misconduct; (3) against all defendants for vessel unseaworthiness; and (4) against O’Hara and Niemela for failure to provide, maintain, and supervise an adequate crew. The claims are not based on negligent or intentional interference with contractual relations. Rather, the complaint alleges that defendants negligently maintained the NOR-QUEST and negligently, recklessly, or intentionally caused the allision.

Ocean Beauty filed a cross-complaint against Niemela, alleging that Ocean Beauty had an oral daily charter agreement with Niemela, whereby Ocean Beauty chartered the NORQUEST for use as a fill-in tender, and pursuant to which Niemela agreed to indemnify, hold harmless, and protect it from any liabilities, obligations, and losses arising out of any litigation related to the performance of the daily1 charter agreement. On April 11, 1996, Ocean Beauty filed a motion for summary judgment against plaintiffs, arguing that Ocean Beauty was a non-demise charterer and, thus, did not assume ownership, and that Nautilus Marine’s claims for economic losses should be dismissed on the ground that it did not have a proprietary interest in either vessel. On April 17, 1996, O’Hara filed a similar motion for partial summary judgment, incorporating Ocean Beauty’s arguments and seeking to dismiss Nautilus Marine’s claim for $290,693.18 in economic losses.

The amount of $290,693.18 reflects the damages asserted in Exhibit A to Ocean Beauty’s summary judgment motion and includes the following: (1) $36,120.59 in lost harvest and profits from the Eshamy District in Prince William Sound for July 18-20,1994, due to inability to timely repair or adequately replace the TOR; (2) $49,093.81 in lost harvest and profits from the Eshamy District for July 21-23 and July 28-29, 1994, due to continuing mechanical difficulties from damages on the TOR; (3) $173,704.42 in lost harvest and lost harvest profits from the Eshamy District for August 1-30, 1994, due to lost loyalty/market share of fishermen; (4) $8,212.12 in lost harvest and profits from the Coghill District for July 25-26,1994; and (5) $23,062.24 in lost value on pink salmon and pink salmon roe for July 18, 1994 (Docket 26; Robert J. Adolph affidavit).

On June 6, 1996, pursuant to stipulations by all parties except O’Hara, the court dismissed with prejudice all claims between plaintiffs and Ocean Beauty, on condition that O’Hara’s motion continued to incorporate by reference the arguments Ocean Beauty had advanced in its summary judgment motion. This order addresses O’Hara’s adoption of Ocean Beauty’s argument that, because Nautilus Marine holds no proprietary interest in the damaged property, its claim for economic loss is barred as a matter of law.

III. DISCUSSION

A. Summary Judgment Standards

Under Rule 56(c) of the Federal Rules of Civil Procedure, summary judgment “shall be rendered forthwith if the pleadings, depositions, 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 a judgment as a matter of law.”

[T]he plain language of 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.

Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552 (1986).

To withstand summary judgment, the non-moving party (1) must make a showing sufficient to establish a genuine issue of fact with respect to any element for which it bears the burden of proof; (2) must show that there is an issue that may reasonably be resolved in favor of either party; and (3) must come forward with more [1232]*1232persuasive evidence than would otherwise be necessary when the factual context makes the non-moving party’s claim implausible.

British Motor Car Distrib. v. San Francisco Auto Indus. Welfare Fund, 882 F.2d 371, 374 (9th Cir.1989); California Architectural Bldg. Prod., Inc. v. Franciscan Ceramics, Inc., 818 F.2d 1466 (9th Cir.1987), cert. denied, 484 U.S. 1006, 108 S.Ct. 698, 98 L.Ed.2d 650 (1988).

B. Robins Dry Dock

“This case poses the conundrum which arises when ‘the defendant commits a tort causing physical harm to A which also results in an interference with B’s contract rights without actually causing physical harm to B.’ ” Mathiesen v. M/V OBELIX, 817 F.2d 345, 346 (5th Cir.1987), cert. denied sub nom Unimills B.V. v. Statistix Shipping, N.V., 484 U.S. 898, 108 S.Ct. 234, 98 L.Ed.2d 192 (1987) (quoting Prosser and Keeton on the Law of Torts; § 129, p. 997 (5th ed.1984)). General federal maritime law-prohibits recovery in tort for economic damages absent physical injury to person or property.

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989 F. Supp. 1229, 1997 A.M.C. 1597, 1996 U.S. Dist. LEXIS 22048, 1996 WL 906348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nautilus-marine-inc-v-niemela-akd-1996.