Petition of Porter

272 F. Supp. 282, 1967 U.S. Dist. LEXIS 9115
CourtDistrict Court, S.D. Texas
DecidedMay 4, 1967
Docket64-H-157
StatusPublished
Cited by16 cases

This text of 272 F. Supp. 282 (Petition of Porter) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petition of Porter, 272 F. Supp. 282, 1967 U.S. Dist. LEXIS 9115 (S.D. Tex. 1967).

Opinion

MEMORANDUM AND ORDER

SEALS, District Judge.

Claimants Katheryn Skinner Bell and Jack R. Fulton and wife, Mae Belle G. Fulton, have filed a motion to dismiss the above styled and numbered cause for want of jurisdiction. Claimants further request that in the event that the motion to dismiss is denied, this Court certify an interlocutory appeal to the Court of Appeals. The sole question presented for determination at this time is whether the Limitation of Liability Act may be properly applied to a twenty-nine foot pleasure craft such as the JULAINE. The portions of the statute relevant to this discussion are found in 46 U.S.C.A. §§ 183 1 and 188. 2

The petition for exoneration from or limitation of liability was occasioned by the explosion of the JULAINE on August 2, 1964. Claimants were guests on board the vessel at that time. They claim aggregate damages in the amount of $125,-000 from petitioners Porter and Bell as a result of their injuries received in the explosion. If petitioners are able to limit their liability under the Act, claimants’ recovery, if any, will probably be restricted to less than three thousand dollars.

The original Limitation of Liability Statute was enacted in 1851. 9 Stat. 635. The purpose of the Act was plainly to promote American commercial shipping *284 by protecting private investment against financially staggering claims arising out of shipboard disasters. Cong.Globe, 31st Cong., 2nd Sess. 331, 332, 713-720 (1851). In one of the first cases that considered the application of the Act, the court concluded that the statute was restricted in its application to vessels of a commercial nature. The Mamie, 5 F. 813 (D.C.E.D.Mich.1885). Accordingly limitation of liability was denied to the owners of a steam pleasure yacht involved in a collision on the Detroit River. In fact, Section 7 of the 1851 Act provided that it should not apply to “any canal boat, barge, or lighter, or to any vessel of any description whatsoever, used in rivers or inland navigation”.

But in 1886, Congress amended the Act to extend its application to “all sea-going vessels, and also to all vessels used on lakes or rivers or in inland navigation, including canal-boats, barges, and lighters”. 24 Stat. 80 (now 46 U.S.C.A. § 188). Thereafter, judicial interpretation of the Act in relation to pleasure craft changed accordingly. By 1937, the Court of Appeals for the Sixth Circuit specifically held that the Act applied to any vessel; in this case a fifteen foot Chris-Craft motorboat used for pleasure on the Ohio River. Feige v. Hurley, 89 F.2d 575 (6th Cir. 1937).

The reasoning of the courts in this respect is best illustrated by a district court decision of the same year:

“Since the amendment taking out the exception, it has uniformly been held by the courts that the question of the right to limitation of liability is not based upon the engagement of the vessel in maritime commerce, and further it is not based upon the question of the size of the craft.” The Francesca, 19 F.Supp. 829, 832 (W.D.N.Y. 1937).

Case law since 1937 is also in accord. See, Petition of Reading, 169 F.Supp. 165 (N.D.N.Y.1958), aff’d 271 F.2d 959 (2nd Cir. 1959); Petition of Colonial Trust, 124 F.Supp. 73 (Conn.1954); The Trilora, 76 F.Supp. 50 (E.D.S.C.1947). In addition, the leading textual authorities at least recognize this conclusion as the present status of the law. Gilmore & Black, The Law of Admiralty, § 10-12, at 674 (1957); Knauth, Benedict on Admiralty, § 494, at 403-405 (6th Ed. 1940).

On at least three occasions the Supreme Court has considered cases involving small craft owners seeking to limit their liability under the Act. The first, Spencer Kellogg & Sons, Inc. v. Hicks, 285 U.S. 502, 52 S.Ct. 450, 76 L.Ed. 903 (1932), concerned a forty-five foot motor launch used to transport workmen across the Hudson River to and from the owner’s business establishment. The facts suggest that this vessel was engaged in a commercial activity and is, therefore, probably of small value to this discussion. Suffice it to say, the Court did not discuss the size of the craft or the purpose to which it was being used.

The other two cases, however, involved typical pleasure yachts. In Just v. Chambers, 113 F.2d 105 (5th Cir.) reversed 312 U.S. 383, 61 S.Ct. 687, 85 L.Ed. 903 (1941), the Court reinstated a district court judgment that the injuries sustained by the petitioners were occasioned with the knowledge or privity of the shipowner and limitation was not available. In Coryell v. Phipps, 317 U.S. 406, 63 S. Ct. 291, 87 L.Ed. 363 (1943), on the other hand, the Court allowed the owner to limit his liability upon a lower court finding that there was no privity or knowledge to the negligence which caused the injuries. As in Kellogg, there was no discussion of pleasure craft as an exception to the Act in either of these cases. Similarly, the majority of lower court opinions in which the Act has been applied to pleasure craft contain the same paucity of discussion in this matter. See, Petition of Rapp, 255 F.2d 628 (7th Cir. 1958); The Pegeen, 14 F.Supp. 748 (S.D. Calif.1936); The Spare Time II, 36 F. Supp. 642 (E.D.N.Y.1941); The Trim Too, 39 F.Supp. 271 (Mass.1941); Petition of Hocking, 158 F.Supp. 620 (N.J. 1958); Petition of Landi and Mainieri, 194 F.Supp. 353 (S.D.N.Y.1960).

The application of the Limitation Act to pleasure craft has not been without *285 criticism, especially in recent years. In Petition of Hutchison, where limitation was denied because of the owner’s failure to exercise proper care in rescuing a passenger that had fallen overboard, the court expressed strong doubts that the words “any vessel” in § 188 should have the effect of limiting the liability of the owner of a small pleasure yacht. 1947 A.M.C. 103, 104 (N.D.Ohio 1946); see also, Kulack v. The Pearl Jack, 79 F.Supp. 802, 807 (W.D.Mich.1948). Another district court, while allowing limitation, found it difficult to reconcile the original purpose of the Act with the explosion of a motorboat of a well-to-do owner. Petition of Reading, supra, 169 F.Supp. at 167. The same court in 1960 (on this occasion denying limitation because the injury did not occur on the navigable waters of the United States) elaborated on the situation in this manner:

“I am sure the ever-growing number of purchasers of these small pleasure craft do not check the limitation statutes before they purchase and never will. The financial protection and regulation necessary to alleviate the burden of society where the widow and orphan, maimed and crippled, are with us as a result of unfortunate highway accidents seem to me just as important in these boating accidents.” Petition of Madsen, 187 F.Supp. 411, 413 (N.D. N.Y.1960).

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