Slater v. Texaco, Inc.

506 F. Supp. 1099, 1981 U.S. Dist. LEXIS 9384
CourtDistrict Court, D. Delaware
DecidedJanuary 9, 1981
DocketCiv. A. 77-310
StatusPublished
Cited by8 cases

This text of 506 F. Supp. 1099 (Slater v. Texaco, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slater v. Texaco, Inc., 506 F. Supp. 1099, 1981 U.S. Dist. LEXIS 9384 (D. Del. 1981).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

LATCHUM, Chief Judge.

In this Admiralty action, plaintiffs Charles D. Slater, d/b/a Charles D. Slater Enterprises (“Slater”), and Euro-Pirates International, Inc. (“Euro-Pirates”), seek to recover $410,792.61 in damages and prejudgment interest from defendants, Texaco, Inc. (“Texaco”) and Texaco-Trinidad, Inc. (“Textrin”), for lost revenues and damages allegedly suffered by the M/V Sir Henry Morgan (“the Morgan”), a ship owned by Slater and operated by Euro-Pirates, as the proximate result of a collision which occurred in Guayaguayare Bay off of Galeota Point, Trinidad, between the Morgan and an allegedly submerged, unmarked wellhead owned by Textrin.

*1103 Plaintiffs contend that Textrin’s failure adequately to mark or to remove the wellhead constituted negligence and that said negligence was the sole proximate cause of the collision and the claimed damages. Defendants, on the other hand contend that Textrin was not at all negligent, that plaintiffs’ negligence caused or contributed to the casualty, that plaintiffs failed to mitigate their damages and that the damages claimed are excessive.

The case was tried by the Court sitting without a jury on January 28 and 29, 1980. After carefully considering the sufficiency and weight of the testimony adduced at trial 1 and the depositions 2 and documentary evidence admitted, as well as the parties’ post-trial submissions, 3 the Court enters the following findings of fact and conclusions of law as required by Rule 52(a), F.R.Civ.P.

FINDINGS OF FACT

1. Plaintiff, Slater, is a resident of Louisiana and is and was at all pertinent times the owner of the Morgan. 4 Plaintiff, Euro-Pirates, is a Louisiana corporation of which Slater is the sole owner and at all pertinent times operated the Morgan pursuant to a bareboat charter agreement with Slater. 5 Euro-Pirates generally is engaged in the offshore supply vessel business. In this business it services and provides maintenance and crews for vessels leased from Slater and in turn charters those vessels to other companies which use their services in various tasks relating to the offshore oil drilling industry. The tasks performed, among others, include towing oil rigs, towing in general, hauling supplies to and from oil rigs, and setting the anchors for oil rigs. 6

2. Defendant, Textrin, a Delaware Corporation, is a wholly owned subsidiary of defendant, Texaco, also a Delaware corporation. 7 Textrin, at all pertinent times, held an oil lease, originally granted by the Government of Trinidad, covering some 13,-800 acres located for the most part in Guayaguayare Bay off the southern coast of the island of Trinidad 8 (“the lease”).

3. Textrin drilled three wells on the lease, designated GBM-1, IX and 2. 9 GBM-1X was the only producing well ever drilled on the lease. 10 Textrin established a well-head on the GBM-1X site which, after completion, consisted essentially of a pipe with a crow’s nest, marked by a white flashing light 23 feet above the water level. 11

4. According to records in Textrin’s files, Textrin printed a notice regarding the establishment of the well-head, GBM-1X, in two Trinidadian newspapers and prepared a Notice to Mariners dated December 1, 1972 which it forwarded to the Harbour Master for Trinidad and Tobago. 12 This was the only Notice to Mariners ever written regarding GBM-1X. It informed Mariners of the location of the well-head and described it as carrying “a white flashing light at a height of 23 ft., visible all round the horizon.” 13

The evidence, however, clearly shows that, at least as of December, 1976, the information contained in the Notice was unavailable. The Notice was never received by the United States Mapping Agen *1104 cy and, as of November 3,1978, the location of GBM-1X did not appear on any of its official charts. 14 At the time of the collision, on December 6, 1976, the Morgan had a full set of the most recent official charts for Guayaguayare Bay and the well-head did not appear on those charts. 15 Moreover, the Captain of the Morgan had gone to the Harbour Master’s Office prior to the collision to obtain any Notices to Mariners but was told that the Notices could not be provided and would have to come from his company agent. 16 Euro-Pirates, in fact, forwarded all new Notices to Mariners to the captains of its ships. 17 Finally, shortly after the collision, the Harbour Master professed to having no knowledge of any obstruction whatsoever in that part of Guayaguayare Bay where the accident occurred and could provide no information as to the existence of any obstruction to navigation in that area. The well-head did not appear on the charts in the Harbour Master’s Office. 18 Thus, even if the Notice to Mariners had been published, as Texaco’s records appear to indicate, the information contained in that Notice soon sank into obscurity and by 1976 was unavailable and inaccessible to even the most diligent mariner.

5. When the rig with which GBM-1X had been drilled was leaving the site, it struck the well-head causing the structure to lean. 19 From then on, the well-head continued to fall and by July, 1973 the uppermost portion was awash at all times. Because the well-head continued to fall and the fact that the well was leaking oil, it became necessary for Textrin to plug the well with cement and to abandon it as a producing well. Within a few days after it was plugged, the well-head completely disappeared beneath the water. 20

6. Under the terms of the lease, the Government of Trinidad required that all operating well-heads be marked with a light and all other well-heads be cut off at the mud-line under water at the time of final abandonment. 21 Accordingly, GBM-IX was initially marked with a white flashing light and GBM-2 was cut off at the mud-line at the time the latter was abandoned. 22 Textrin’s standard procedure was to cut off abandoned wells at the mud-line. 23

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Bluebook (online)
506 F. Supp. 1099, 1981 U.S. Dist. LEXIS 9384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slater-v-texaco-inc-ded-1981.