Riverfront Development, Inc. v. Wepfer Marine, Inc.

CourtCourt of Appeals for the Sixth Circuit
DecidedJune 26, 2020
Docket19-6088
StatusUnpublished

This text of Riverfront Development, Inc. v. Wepfer Marine, Inc. (Riverfront Development, Inc. v. Wepfer Marine, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riverfront Development, Inc. v. Wepfer Marine, Inc., (6th Cir. 2020).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 20a0382n.06

No. 19-6088

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED Jun 26, 2020 RIVERFRONT DEVELOPMENT, INC., and ) DEBORAH S. HUNT, Clerk CITY OF MEMPHIS, TENNESSEE, ) ) Plaintiffs-Appellees, ) ON APPEAL FROM THE UNITED ) STATES DISTRICT COURT FOR v. ) THE WESTERN DISTRICT OF ) TENNESSEE WEPFER MARINE, INC., ) ) Defendant-Appellant. ) )

BEFORE: BATCHELDER, STRANCH, and MURPHY, Circuit Judges.

MURPHY, Circuit Judge. One clear July day, a towboat making its way to the Mississippi

River ran aground on the foot of Mud Island in Memphis, Tennessee. The vessel left large holes

on Mud Island’s banks. The City of Memphis and its agent, Riverfront Development, Inc., invoked

the district court’s admiralty jurisdiction to bring this negligence suit against Wepfer Marine, Inc.,

the owner of the grounded vessel. After finding Wepfer liable for the grounding, the district court

awarded $1,145,990 in damages. Wepfer now challenges only the damages ruling. For the most

part, we reject Wepfer’s claims under our deferential standard of review. But the district court did

commit one clear error in calculating the damages award. We thus reverse the judgment and

remand for entry of an amended award consistent with this opinion. No. 19-6088, Riverfront Development, Inc., et al. v. Wepfer Marine, Inc.

I

A

Mud Island sits in Memphis, Tennessee, where the Wolf River Harbor meets the

Mississippi River. It is not in fact an island, but a peninsula running north-and-south down the

Tennessee side of the Mississippi River. To the island’s west lies the Mississippi River and then

Arkansas; to its east lies the Wolf River Harbor and then downtown Memphis. Mud Island’s

undeveloped southern tip juts out where the Wolf River Harbor meets the Mississippi.

On July 6, 2015, Captain Jared LaFrance was piloting the M/V Lucy Wepfer southbound

through the Wolf River Harbor toward the Mississippi. The Lucy Wepfer pushed a barge loaded

with concrete slurry. LaFrance intended to make a “U-turn” and steer his vessel northward up the

Mississippi River. As he entered the Mississippi, Mud Island was to his starboard (right) side.

The Mississippi was high that day, and Mud Island’s southern tip was submerged. LaFrance made

his starboard turn into the Mississippi prematurely, and the Lucy Wepfer ran aground on Mud

Island’s submerged southern tip. In the language of admiralty law, this was an “allision,” which

“occurs when a moving vessel strikes a stationary object[.]” Bessemer & Lake Erie R.R. Co. v.

Seaway Marine Transp., 596 F.3d 357, 362 (6th Cir. 2010). The Lucy Wepfer and the barge were

extracted after some effort. The water’s later receding revealed two large gashes on Mud Island’s

eastern shore.

B

Riverfront Development, Inc., Mud Island’s managing agent, sued Wepfer Marine, Inc.,

the Lucy Wepfer’s owner, for negligence. Riverfront sought to recover the costs of repairing the

damage to Mud Island. The City of Memphis later intervened as a plaintiff. (The distinction

between the two plaintiffs does not matter on appeal so we will refer to them both as “Riverfront.”)

2 No. 19-6088, Riverfront Development, Inc., et al. v. Wepfer Marine, Inc.

The district court determined that Wepfer was fully liable and that the proper measure of damages

was restitutio in integrum—the cost of restoring Mud Island to its previous condition. The

Baltimore, 75 U.S. 377, 385 (1869).

The district court held a hearing to establish the cost of repairing Mud Island. Following

the grounding, the Mississippi’s rising and falling waters had started filling the holes with

sediment. The parties disputed whether this sediment needed to be removed to restore Mud Island

to its original condition. Wepfer argued that the sediment was the same material that had built

Mud Island and that the river would naturally refill the holes. Alternatively, Wepfer contended

that it needed only to pay to fill the holes above the sediment. Riverfront, by contrast, maintained

that the accumulating sediment would not restore Mud Island to its original condition. It wanted

to excavate the sediment so that the holes could be “filled and packed by human intervention with

sand and/or limestone.” At the hearing, then, the district court needed to resolve (a) the volume

of the holes; (b) whether the sediment needed to be removed; (c) the material that should be used

to fill the holes, if any; and (d) the total cost of the repairs.

1. Volume. The parties debated the size of the two large holes. Both sides measured the

holes within eight months of each other.

James Reeder, a Riverfront project director with a bachelor’s degree in civil engineering,

first measured the holes in November 2016, about 16 months after the accident. Reeder explained

his process. Using a “tape measure and electronic devices,” he “divided the two gouges into five

different areas” and then “took measurements of these five parts . . . and came up with the cubic

yardage.” Reeder estimated the holes’ irregular depths by using “engineering judgment” and his

own height as a reference. Based on rounded-up measurements, he calculated the volume of the

holes as 10,000 or 10,100 cubic yards. When Reeder sought a quote for refilling the holes, he

3 No. 19-6088, Riverfront Development, Inc., et al. v. Wepfer Marine, Inc.

added a 20-percent contingency to account for “compaction” of the material. This contingency

was necessary, Reeder explained, “because a lot of times when you fill up holes, you have material

that’s not compacted and you have to buy more material than what is the volume of the hole. So

when you end up compacting it, you have to have 20 percent more material to get to the final

grade.” That resulted in a total volume of 12,000 cubic yards of fill material to fill the 10,000 or

so cubic yards of holes.

Wepfer hired Ollar Surveying Company to measure the holes again eight months later in

July 2017. The court recognized Douglas Swink, the surveyor, as an expert in the fields of land

surveying, topographic surveys, slope analysis, and soil analysis. Swink measured the holes using

common surveyor methods. He calculated their volume as 2,792.30 cubic yards, a number that

fell more than 70 percent below Reeder’s. But all agreed that Ollar’s measurements were more or

less accurate in July 2017.

The disparities in measurements mattered greatly to Wepfer, as they suggested the amount

of sediment accumulating in the holes. Wepfer tried to paint Reeder’s earlier tape-measure

calculations as unsophisticated and inaccurate. Even Riverfront’s expert opined that it did not

“seem very likely” that the holes could have filled with over 7,000 cubic yards of sediment in eight

months. Benny Lendermon, Riverfront’s former president and a civil engineer, also agreed that,

when he saw the holes in March 2017 (after Reeder’s measurements but before Ollar’s), it appeared

that they “had filled in very little[.]” But Riverfront’s witnesses also suggested that erosion and

“sloughing” (instability of the holes’ slopes) could account for some of the accumulation.

2. Excavation. The parties next debated whether the accumulated sediment needed to be

removed before refilling the holes.

4 No.

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