Pierno v. Mobil Oil Corp.

7 Misc. 3d 162, 233 N.Y.L.J. 18, 794 N.Y.S.2d 804, 2005 NY Slip Op 25014, 2005 N.Y. Misc. LEXIS 47
CourtNew York Supreme Court
DecidedJanuary 21, 2005
StatusPublished

This text of 7 Misc. 3d 162 (Pierno v. Mobil Oil Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pierno v. Mobil Oil Corp., 7 Misc. 3d 162, 233 N.Y.L.J. 18, 794 N.Y.S.2d 804, 2005 NY Slip Op 25014, 2005 N.Y. Misc. LEXIS 47 (N.Y. Super. Ct. 2005).

Opinion

OPINION OF THE COURT

Joseph J. Maltese, J.

Without warning, on February 21, 2003 an earthquake force of a gasoline barge exploded at Port Mobil in Staten Island, New York, which knocked people down, shattered windows, unhinged doors miles away, and sent chunks of metal flying into the air.1 The explosion and subsequent fire destroyed Petroleum Barge B. No. 125 (hereinafter referred to as the barge). The Port Mobil terminal suffered damage from the explosion and subsequent fire. Chips of burnt material the size of quarters rained down upon the roofs and patios as the spectacular inferno sent thousands of panicked residents into the streets.2 The explosion claimed the lives of two crew members and severely injured a dock worker.

The plaintiff, Stephen Pierno, a New York City police officer, was injured when he tripped and fell on snow and ice which had accumulated on an alleged cracked and defective driveway leading into the Port Mobil facility while responding to the explosion, which is the subject matter of this case.

The barge was owned and operated by Bouchard Transportation Co., Inc. (hereinafter Bouchard). Immediately after the explosion, Bouchard filed an action in the United States District Court for the Eastern District of New York for the limitation or exoneration of liability for damages caused as a result of the explosion pursuant to 46 USC Appendix § 183, which limits the liability of the owner of the vessel to the salvage value of the vessel. In a case where the value of the vessel is insufficient for payment of losses with respect to loss of life or bodily injury, the minimum value will be set at $420 per ton of the vessel. Mobil filed a claim and answer in the United States District Court seeking damages from Bouchard.

Defendants, Bouchard Transportation Co., Inc. and B. No. 125 Corporation, have moved to dismiss this Supreme Court [164]*164complaint against them on the grounds that the claim is duplicative and was filed in the wrong court. In the alternative, the defendants seek a stay with respect to all claims against them until the United States District Court for the Eastern District of New York resolves the limitation on liability proceeding filed in that court.3

Defendant, Bouchard Coastwise Management Corp., has moved for summary judgment or in the alternative for a dismissal of the complaint against them. Additionally, they move for a protective order regarding the numerous discovery requests made by defendant Mobil Oil Corporation (hereinafter referred to as Mobil or ExxonMobil).

Mobil opposes all motions made by the above-mentioned defendants. The plaintiff did not submit papers with respect to this motion and took no position.

• Subsequent to Mobil filing its claim and answer, Bouchard and Mobil entered into a settlement agreement in which Bouchard agreed to pay Mobil a sum of $25 million for the release of all claims that Mobil may have against Bouchard arising from the explosion of the barge on February 21, 2003. Specifically, at paragraph 4 of the settlement agreement, Bouchard and Mobil agreed that:

“Nothing in the mutual releases granted in this Paragraph 4 may be construed as preventing Exxon-Mobil from impleading Bouchard in any action filed against ExxonMobil by a third party (including without limitation, limitation claimants and employees of either of the parties alleging damages suffered on an individual basis) as a result of the explosion of the B. No. 125.”

The papers submitted by Mobil stated that the claim by the plaintiff in this action for the personal injuries sustained at Port Mobil is exactly the type of claim that is contemplated in paragraph 4 of the settlement agreement. This court agrees.

However, the issue on the underlying motion is not whether the plaintiffs have the right to bring suit against Mobil, which in turn impleaded Bouchard; instead, it is whether or not this court may adjudicate those claims. Defendant Bouchard claims that this New York State Supreme Court cannot adjudicate the plaintiffs’ claims because a limitation of liability proceeding was [165]*165commenced in the Eastern District and all claims pertaining to the potential limitation must therefore be adjudicated in the United States District Court under 28 USC § 1333, which states in part:

“The district courts shall have original jurisdiction, exclusive of the courts of the States, of:

“(1) Any civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled.”

While it may appear that the statute would give exclusive jurisdiction over any case that rests in admiralty to the federal courts, the federal Judiciary Act (28 USC § 1333) “vests original jurisdiction of all admiralty and maritime cases concurrently in the Federal District and State courts.” (Lerner v Karageorgis Lines, 66 NY2d 479, 484 [1985].) However, in adjudicating maritime cases, state courts “are bound to apply Federal law in such disputes in order to secure a single and uniform body of maritime law.” (Matter of Rederi [Dow Chem. Co.], 25 NY2d 576, 581 [1970].) Therefore, this court has jurisdiction to adjudicate the underlying action.

Bouchard also states that the continued adjudication of the case in this state court would be in violation of the order signed by Judge Sterling Johnson of the Eastern District on September 30, 2003, which states in paragraph 6 that “[t]he commencement or further prosecution of any and all actions, suits or proceedings in any jurisdiction of the United States against plaintiffs or against the B. No. 125 with respect to any claims subject to limitation in this action, are hereby stayed and enjoined until resolution of this action.”4

Bouchard’s memorandum of law points out that it is hornbook admiralty law that “once the limitation action has been filed, the district court ‘shall enjoin the further prosecution of any action or proceeding against the plaintiff or the plaintiffs property with respect to any claim subject to the limitation in this action.’ All potential claimants must then file their claims against the shipowner in the limitation action.” (Complaint of Great Lakes Dredge & Dock Co., 895 F Supp 604 [ED NY 1995].)

In that case, a tugboat owned by Great Lakes was pushing nine scows owned by the Lone Star Company on the Hudson River. The scows collided with a pleasure boat and killed Edward [166]*166Palmer and James Edward Palmer and seriously injured James J. Palmer. Both Great Lakes and Lone Star filed limitation claims in the United States District Court for the Eastern District of New York. Karen Palmer filed separate claims against Great Lakes and Lone Star as the administratrix of her husband Edward Palmer’s estate. Jeannie Palmer filed separate claims against Great Lakes and Lone Star as the administratrix of her husband James Edward Palmer’s estate. The claims by both administratrices5 were identical as to Great Lakes and Lone Star and, therefore, the District Court ordered the limitation proceeding and the wrongful death actions to be consolidated and adjudicated in one case. This, of course, was possible due to the fact that all of the claims were originally filed in the United States District Court.

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Bluebook (online)
7 Misc. 3d 162, 233 N.Y.L.J. 18, 794 N.Y.S.2d 804, 2005 NY Slip Op 25014, 2005 N.Y. Misc. LEXIS 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierno-v-mobil-oil-corp-nysupct-2005.