Petition of Cleveland Tankers, Inc.

791 F. Supp. 669, 1992 A.M.C. 1727, 22 Envtl. L. Rep. (Envtl. Law Inst.) 21450, 1992 U.S. Dist. LEXIS 6242, 1992 WL 92754
CourtDistrict Court, E.D. Michigan
DecidedFebruary 25, 1992
Docket91-CV-70661-DT
StatusPublished
Cited by10 cases

This text of 791 F. Supp. 669 (Petition of Cleveland Tankers, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petition of Cleveland Tankers, Inc., 791 F. Supp. 669, 1992 A.M.C. 1727, 22 Envtl. L. Rep. (Envtl. Law Inst.) 21450, 1992 U.S. Dist. LEXIS 6242, 1992 WL 92754 (E.D. Mich. 1992).

Opinion

OPINION

DUGGAN, District Judge.

Presently before the Court are motions to dismiss filed by Cleveland Tankers, Inc. (“Cleveland”) and Total Petroleum, Inc. (“Total”). In their motions, Cleveland and Total ask this Court to dismiss the economic damages claims made by several parties (“claimants”) whose business interests were adversely affected by the accident between Cleveland’s vessel the M/V JUPITER and Total’s dock. 1 Most of the claim *671 ants have filed responses to the motions to dismiss. On December 19, 1991, oral argument was heard on the motions. For the reasons which follow, this Court shall grant such motions.

7. Background

On September 16, 1990, Cleveland’s vessel, the M/V JUPITER, docked at Total’s dock in the Saginaw River at Bay City, Michigan. The JUPITER was carrying a cargo of gasoline. As the JUPITER was unloading the gasoline at the Total dock an explosion and fire occurred. As a result of this accident the JUPITER broke loose from its mooring at the Total dock and drifted into the navigation channel of the river. The explosion and fire damaged the JUPITER to such an extent that the vessel partially sank in the channel. The JUPITER blocked all commercial navigation in the channel causing the Coast Guard to close the channel until October 22, 1990.

In the wake of the accident, litigation ensued. In February 1991, Cleveland filed a Petition for Exoneration From or Limitation of Liability and a third-party complaint against Total. Total thereafter filed a counterclaim against Cleveland. On March 15,1991, this Court entered an Order which provided for notice of Cleveland’s Petition, enjoined suits against Cleveland, and directed the filing of claims.

II. Discussion

In support of its motion to dismiss the claimants’ economic loss claims, Cleveland argues that the “bright line” rule, as set forth in Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303, 48 S.Ct. 134, 72 L.Ed. 290 (1927), and in cases such as Louisiana ex rel. Guste v. M/V TESTBANK, 752 F.2d 1019 (5th Cir.1985) (en banc), applies to such claims and requires their dismissal. Total’s arguments in support of its motion to dismiss are essentially identical to Cleveland’s.

In response to Cleveland’s and Total’s arguments, the claimants argue that the bright line rule should not be used to bar their claims. Instead, they contend, the “traditional” test for tort liability, involving factors such as proximate cause, foreseeability and remoteness, as developed in cases such as Petition of Kinsman Transit Co., 388 F.2d 821 (2nd Cir.1968) (“Kinsman II”) should be used to determine the appropriateness of their claims. As an alternative basis of liability, the claimants argue that their claims for economic losses are cognizable under the Oil Pollution Act of 1990, 33 U.S.C. §§ 2701-2761 (“OPA”), because gasoline was spilled into the river as a result of the accident.

In response to Total’s motion to dismiss only, Bay Aggregate, Inc. asserts that the bright line rule cannot apply because its claim against Total relates to a non-maritime tort. To wit, Bay Aggregate argues that Total’s negligence related to the design and condition of its dock and that, as a result, the tort which arose from such negligence occurred on land because a dock is considered an extension of land.

This Court finds Cleveland’s and Total’s arguments persuasive and shall grant their motions to dismiss.

The bright line rule draws its basis from the Supreme Court’s decision in Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303, 48 S.Ct. 134, 72 L.Ed. 290 (1927). This decision was aptly discussed by the Fifth Circuit in Louisiana ex rel. Guste v. M/V TESTBANK, 752 F.2d 1019 (5th Cir.1985) (en banc):

In Robins, the time charterer of a steamship sued for profits lost when the defendant dry dock negligently damaged the vessel’s propeller. The propeller had to be replaced, thus extending by two *672 weeks the time the vessel was laid up in dry dock, and it was for the loss of use of the vessel for that period that the charterer sued. The Supreme Court denied recovery to the charterer, noting:
... no authority need be cited to show that, as a general rule, at least, a tort to the person or property of one man does not make the tort-feasor liable to another merely because the injured person was under a contract with the other unknown to the doer of the wrong, (citation omitted). The law does not spread its protection so far.
275 U.S. at 309, 48 S.Ct. at 135. Justice Holmes did not stop with this delphic language, but with a citation to three cases added a further signal to his meaning:
A good statement, applicable here, will be found in Elliott Steam Tug Co. Ltd. v. The Shipping Controller, [1922] 1 K.B. 127, 139, 140; Byrd v. English, 117 Ga. 192 [191], 43 S.E. 419 [(1903)]; The Federal No. 2, (C.C.A. [2nd Cir.1927] 21 F.2d 313.
Id.
The plaintiff in Elliott Steam Tug was a charterer of a tug boat who lost profits when the vessel was requisitioned by the admiralty under wartime legislative powers. In applying an indemnity statute that authorized recovery, the court noted that the charterer could not have recovered at common law: “[t]he charterer in collision cases does not recover profits, not because the loss of profits during repairs is not the direct consequence of the wrong, but because the common law rightly or wrongly does not recognize him as able to sue for such an injury to his mere contractual rights.” Id. at 140. (emphasis supplied). In Byrd v. English, recovery of lost profits was denied when a utility’s electrical conduits were negligently damaged by defendant, cutting off power to plaintiffs printing plant. In the Federal No. 2, the third case cited by Justice Holmes, the defendant tug negligently injured plaintiffs employee while he was working on a barge. The Second Circuit denied the employer recovery from the tug for sums paid to the employee in maintenance and cure. The court (Mantón, Swan and Augustus Hand) explained:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
791 F. Supp. 669, 1992 A.M.C. 1727, 22 Envtl. L. Rep. (Envtl. Law Inst.) 21450, 1992 U.S. Dist. LEXIS 6242, 1992 WL 92754, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petition-of-cleveland-tankers-inc-mied-1992.