Settoon Towing, L.L.C. v. Marquette Transportation Co.

859 F.3d 340, 2017 WL 2486018
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 9, 2017
Docket16-30459
StatusPublished
Cited by15 cases

This text of 859 F.3d 340 (Settoon Towing, L.L.C. v. Marquette Transportation Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Settoon Towing, L.L.C. v. Marquette Transportation Co., 859 F.3d 340, 2017 WL 2486018 (5th Cir. 2017).

Opinion

LESLIE H. SOUTHWICK, Circuit Judge:

One flotilla of barges encountered another on the lower Mississippi River. Both followed the usual protocol of entering an agreement by radio for how one was to overtake and pass the other. A collision nonetheless resulted, causing an oil spill that closed a portion of the river for two days. Cleanup was immediately undertaken. Who ultimately pays and how much are what this suit is about.

The litigation is governed by the federal Oil Pollution Act, or OPA. No one contests that Settoon Towing was properly charged by the Coast Guard with the initial cleanup and remediation, thus initially paying all expenses under the strict-liability statutory scheme. The district court, though, found both Settoon and Marquette Transportation to be negligent. Our principal issue is whether Settoon can receive contribution under the OPA from Marquette for its payment of purely economic damages, ie., for the cleanup costs. A hoary bit of maritime law has traditionally said, “no.” We conclude that the OPA clearly says, “yes.” Marquette’s arguments to the contrary try to make the statutory question seem a whole lot harder than it really is.

The district court allowed contribution and determined the percentage of fault of each party. We AFFIRM.

FACTUAL AND PROCEDURAL BACKGROUND

On February 22, 2014, the M/V HANNAH C. SETTOON, towing two crude oil *343 tank barges, and the WV LINDSAY ANN ERICKSON, towing twenty-one loaded grain barges, were both heading downstream on the lower Mississippi River. The LINDSAY began to stop just after it passed the College Point 1 bend near Convent, Louisiana. It was preparing to “top around” with the help of a towboat in order to drop off three of her barges and then head back upriver. At approximately 2:58 p.m., as the HANNAH was in the same bend and about 8,500 feet behind the LINDSAY, the vessels communicated by radio and entered into what the parties call a “one whistle overtaking agreement.”

According to the agreement, the HANNAH would pass the LINDSAY on her stern while the LINDSAY would hold steady. Once the HANNAH was clear, the LINDSAY would begin her top around. The width of the river at the location of the overtaking and passing is about 3,000 feet.

Consistent with the agreement, the HANNAH increased her speed and maneuvered in order to remain midway between the LINDSAY and the west bank of the Mississippi River. For approximately three and a half minutes, the LINDSAY held her position in the river. At 3:07 p.m., before the HANNAH had passed the LINDSAY, the HANNAH by radio seemingly released the LINDSAY from the agreement. The LINDSAY acknowledged. At some point prior to the HANNAH completely passing the LINDSAY, the LINDSAY began reversing into the river to start her top-around. At 3:09 p.m., her stern collided with the portside bow of a crude-oil barge towed by the HANNAH. Approximately 750 barrels of light crude oil were discharged into the Mississippi River. As a result, a 70-mile stretch of the river was closed to vessels for approximately 48 hours for cleanup and recovery.

Settoon was named the strictly liable “Responsible Party” by the United States. Coast Guard pursuant to the OPA. That phrase is a term of art central to this appeal and will be much discussed later. Settoon carried out its statutory responsibilities related to cleanup, remediation, and third-party claims for damages. Settoon subsequently filed Limitation of Liability proceedings pursuant to 46 U.S.C. §§ 30501-30512 in the Eastern District of Louisiana. Marquette also filed a claim. Settoon brought a counterclaim against Marquette seeking contribution under the OPA, the general maritime law, or both.

At the conclusion of a four-day bench trial on the issue of liability, the district court determined both parties were at fault and apportioned 65% of the fault for the collision to Marquette and 35% to Set-toon. The district court also considered a question for which, surprisingly, there is little authority: Is a Responsible Party entitled to contribution for purely economic damages from a third party found to be partially liable? The district court answered that such contribution is permitted. Marquette timely filed its notice of appeal.

DISCUSSION

Marquette claims the district court erred in two ways: (A) the OPA does not allow a Responsible Party to obtain contribution from a partially liable third party, and even if it does, (B) the district court erred in its allocation of relative fault. Because the first issue raises legal ques *344 tions of statutory interpretation, our review is de novo. Sobranes Recovery Pool I, LLC v. Todd & Hughes Constr. Corp., 509 F.3d 216, 220 (5th Cir. 2007). As for the second issue, a trial court’s finding on apportionment of relative fault in a maritime collision is reviewed under a clearly erroneous standard. See Tokio Marine & Fire Ins. Co. v. FLORA MV, 235 F.3d 963, 970 (5th Cir. 2001).

Our approach is first to discuss some basics about the relevant statute. Then, with that background, we analyze the two issues before us.

1. The Oil Pollution Act of 1990

The enactment that controls this litigation was a legislative response to the grounding of the oil tanker Exxon Valdez and the spilling of over eleven million gallons of crude oil into the waters of Prince William Sound, Alaska. See 2 Thomas J. SCHOENBAUM, ADMIRALTY & MAR. Law § 18-4 (5th ed. 2016). The OPA is Congress’s effort “to streamline federal law so as to provide quick and efficient cleanup of oil spills, compensate victims of such spills, and internalize the costs of spills within the petroleum industry.” Rice v. Harken Expl. Co., 250 F.3d 264, 266 (5th Cir. 2001). The OPA is codified at 33 U.S.C. §§ 2701-2762.

The OPA facilitates prompt cleanup and compensation by first requiring the President to “designate the source or sources of the discharge,” who is called the “responsible party.” 33 U.S.C. § 2714(a). In 1991, the President delegated that duty to the Coast Guard. 2 The “responsible party” in the ease of a vessel is “any person owning, operating, or demise chartering the vessel.” 33 U.S.C. § 2701(32)(A). The OPA makes the responsible party “strictly liable for cleanup costs and damages and first in line to pay any claims for removal costs or damages that may arise under OPA.” United States v. Am. Commercial Lines, L.L.C., 759 F.3d 420, 422 n.2 (5th Cir. 2014).

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859 F.3d 340, 2017 WL 2486018, Counsel Stack Legal Research, https://law.counselstack.com/opinion/settoon-towing-llc-v-marquette-transportation-co-ca5-2017.