Savage Services Corporation v. United States

25 F.4th 925
CourtCourt of Appeals for the Eleventh Circuit
DecidedFebruary 8, 2022
Docket21-10745
StatusPublished
Cited by17 cases

This text of 25 F.4th 925 (Savage Services Corporation v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Savage Services Corporation v. United States, 25 F.4th 925 (11th Cir. 2022).

Opinion

USCA11 Case: 21-10745 Date Filed: 02/08/2022 Page: 1 of 50

[PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 21-10745 ____________________

SAVAGE SERVICES CORPORATION, SAVAGE INLAND MARINE, LLC (UTAH), Plaintiffs - Counter-Defendants - Appellants, versus UNITED STATES OF AMERICA,

Defendant - Counter-Claimant - Appellee.

Appeal from the United States District Court for the Southern District of Alabama D.C. Docket No. 1:20-cv-00137-WS-N ____________________ USCA11 Case: 21-10745 Date Filed: 02/08/2022 Page: 2 of 50

2 Opinion of the Court 21-10745

Before ROSENBAUM and JILL PRYOR, Circuit Judges, and ALTMAN,* District Judge. ALTMAN, District Judge: In the wake of the Exxon Valdez oil spill, which saw millions of gallons of oil pour into the waters off Alaska’s coast, Congress passed the Oil Pollution Act of 1990 (the “OPA”). The OPA creates a comprehensive remedial scheme that governs—and apportions liability for—oil-removal costs. The statute holds oil spillers strictly liable upfront for oil-removal expenses and then carefully incentiv- izes their good behavior by allowing them, if they meet certain re- quirements, (1) to avail themselves of one of three liability defenses and (2) to seek contribution on the back end from other culpable parties. In our case, the M/V SAVAGE VOYAGER was transporting oil through a Mississippi waterway when an accident at a boat lift— operated by the U.S. Army Corps of Engineers—caused a rupture in the SAVAGE VOYAGER’s hull, through which thousands of gal- lons of oil poured into the river. Blaming the Government, the owners of the vessel sued the United States. Critically, though, they sued, not under the OPA, but under the common-law admiralty regime that has persisted for centuries. And, hoping to pierce the

* The Honorable Roy K. Altman, United States District Judge for the Southern District of Florida, sitting by designation. USCA11 Case: 21-10745 Date Filed: 02/08/2022 Page: 3 of 50

21-10745 Opinion of the Court 3

Government’s sovereign immunity, they relied on the Suits in Ad- miralty Act (the “SAA”), a 1920 law by which Congress generally waived sovereign immunity for most admiralty claims. This case—hinging on the interplay between the OPA and the SAA—presents an issue of first impression in the federal courts. The district court dismissed the vessel owner’s claims for removal costs in two steps. First, the court held that the OPA authorizes no claim against the Government for oil-removal damages. Second, it concluded that the OPA’s comprehensive remedial scheme dis- placed the SAA’s more general sovereign-immunity waiver. We agree and now affirm. USCA11 Case: 21-10745 Date Filed: 02/08/2022 Page: 4 of 50

4 Opinion of the Court 21-10745

BACKGROUND

I. The Spill

We start at the beginning—with an oil spill in the Tennes- see-Tombigbee Waterway, a manmade system of canals, locks, and dams linking the Tennessee River in Mississippi with the Tombigbee River in Alabama. Here’s a map of the Waterway:

On September 8, 2019, the M/V SAVAGE VOYAGER was pushing two tank barges along the Tennessee-Tombigbee Water- way. 1 Our Plaintiffs—Savage Services Corp. and Savage Inland

1 Tank barges are non-self-propelled vessels that carry liquids—including oil. USCA11 Case: 21-10745 Date Filed: 02/08/2022 Page: 5 of 50

21-10745 Opinion of the Court 5

Marine LLC—owned the vessel. 2 Along its journey, the vessel ap- proached the Jamie Whitten Lock, a boat lift operated by the U.S. Army Corps of Engineers (the “Army Corps”). Things quickly devolved from there. On Savage’s account, when the barge entered the lock, the lock master “began de-water- ing the lock chamber without notice or warning to the crew” and without “confirm[ing] the tug and tow were within the miter walls.” At that point, the vessel’s crew noticed that the “rake end” of one of the barges was caught on the north miter wall. The crew immediately relayed this information to the lock master. But, by then, it was too late. The lock chamber descended nearly sixty feet—and, as the water in the chamber fell, the barge rose out of the water until the angle became so steep that the barge fell off the miter wall. The weight of the barge caused the rake end of the barge to bend upward. According to Savage, the distorted rake “punctured a cargo tank . . . , resulting in a release of crude oil into the lock chamber.” In the end, the barge looked like this:

2 For simplicity’s sake, we’ll refer to Savage Services Corp. and Savage Inland Marine LLC (collectively) as “Savage.” USCA11 Case: 21-10745 Date Filed: 02/08/2022 Page: 6 of 50

6 Opinion of the Court 21-10745

Savage alleges that the Army Corps was “solely responsible” for the accident and that “[t]here was nothing the SAVAGE VOYAGER could have done to avoid the accident.” Savage also says that, as a result of the Army Corps’s sole negligence, Savage suffered $4 million in damages—mostly due to the time-consum- ing process of removing oil from the Waterway. Hoping to recover these costs, Savage sued the United States in admiralty, relying in large measure on the Suits in Admiralty Act of 1920. In the SAA, the United States waived its sovereign immunity for most admi- ralty claims. See 46 U.S.C. § 30903(a) (“In a case in which, . . . if a private person or property were involved, a civil action in admi- ralty could be maintained, a civil action in admiralty in personam may be brought against the United States or a federally-owned cor- poration.”). USCA11 Case: 21-10745 Date Filed: 02/08/2022 Page: 7 of 50

21-10745 Opinion of the Court 7

II. The Federal Water Pollution Control Act

Before the Oil Pollution Act of 1990—the law that now gov- erns oil-removal liability—there was the Clean Water Act, more formally known as the Federal Water Pollution Control Act Amendments of 1972 (the “FWPCA”). The FWPCA was the cor- nerstone of a fractured liability scheme. See J.B. Ruhl & Michael J. Jewell, Oil Pollution Act of 1990: Opening a New Era in Federal and Texas Regulation of Oil Spill Prevention, Containment and Cleanup, and Liability, 32 S. TEX. L. REV. 475, 481 (1991) (“The cor- nerstone of pre-OPA federal oil spill liability law was found in the Federal Water Pollution Control Act[.] Supplementing that central provision in specified, limited contexts were the Trans-Alaska Pipe- line Authorization Act, the Deepwater Port Act of 1974, and the Outer Continental Shelf Lands Act[.]”). The default under the FWPCA was for the federal govern- ment to take the lead on oil-spill removal. In the event of an oil spill, the law authorized the President of the United States “to act to remove or arrange for the removal of such oil or substance at any time, unless he determines such removal will be done properly by the owner or operator of the vessel . . . from which the discharge occurs.” 33 U.S.C. § 1321(c)(1) (1988). As to liability, the FWPCA provided that the “owner or op- erator of any vessel from which oil . . . is discharged . . . shall . . . be liable to the United States Government for the actual costs . . . for the removal of such oil or substance by the United States USCA11 Case: 21-10745 Date Filed: 02/08/2022 Page: 8 of 50

8 Opinion of the Court 21-10745

Government.” Id. § 1321(f)(1). The vessel owner was strictly liable for those costs, subject to certain complete defenses.

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25 F.4th 925, Counsel Stack Legal Research, https://law.counselstack.com/opinion/savage-services-corporation-v-united-states-ca11-2022.