Supreme Rice, L.L.C. v. Turn Services, L.L.C.

CourtDistrict Court, E.D. Louisiana
DecidedJune 24, 2021
Docket2:20-cv-01212
StatusUnknown

This text of Supreme Rice, L.L.C. v. Turn Services, L.L.C. (Supreme Rice, L.L.C. v. Turn Services, L.L.C.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Supreme Rice, L.L.C. v. Turn Services, L.L.C., (E.D. La. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

SUPREME RICE, L.L.C. CIVIL ACTION

VERSUS NO. 20-1212

TURN SERVICES, L.L.C. SECTION M (5)

ORDER & REASONS Before the Court are cross-motions for summary judgment filed by plaintiff Supreme Rice, L.L.C. (“Supreme Rice”)1 and defendant Turn Services, L.L.C. (“Turn”),2 to which they each respond in opposition3 and reply in further support of their own motions.4 Also before the Court is a motion for summary judgment filed by third-party defendant SCF Marine, Inc. (“SCF Marine”),5 to which third-party plaintiff Turn responds in opposition,6 and SCF Marine replies in further support of its motion.7 Having considered the parties’ memoranda, the record, and the applicable law, the Court issues this Order & Reasons denying Supreme Rice’s and Turn’s cross- motions for summary judgment because there are disputed issues of material fact regarding whether Turn knew what was on the barges and what material contaminated the rice. The Court grants SCF Marine’s motion for summary judgment on Turn’s third-party complaint because suit was filed more than nine months after the incident, which is prohibited by SCF Marine’s contract with Supreme Rice.

1 R. Doc. 62. 2 R. Doc. 57. 3 R. Docs. 66 & 67. Third-party defendant SCF Marine, Inc. filed a response to Turn’s motion for summary judgment to address some factual assertions made therein, but not to oppose the substance of the motion. R. Doc. 82. 4 R. Docs. 83 & 84. 5 R. Doc. 59. 6 R. Doc. 69. 7 R. Doc. 81. I. BACKGROUND This matter concerns contamination of part of a shipment of long grain milled rice (“LGMR”). On February 7, 2019, Supreme Rice entered into a contract with the United States Department of Agriculture to provide 12,666 metric tons of LGMR, valued at $5,810,940.00.8 The purchase order provided that Supreme Rice was to deliver the LGMR to an ocean-going vessel

in Myrtle Grove, Plaquemines Parish, Louisiana, sometime between April 4 and 14, 2019, for shipment to Conakry, Guinea.9 Supreme Rice and SCF Marine entered into a contract under which SCF Marine provided seven hopper barges to transport the LGMR downriver to Myrtle Grove.10 The barges all had barge covers and grain doors designed to protect the cargo from the weather, but to allow for air flow and ventilation to prevent mold growth and overheating.11 Federal grain inspectors inspected the barges and found them fit to carry the cargo.12 Between March 15 and 26, 2019, the LGMR was loaded onto the barges for transport downriver.13 Turn operates a barge fleeting facility on the east bank of the Mississippi River near Myrtle

Grove that consists of a series of tiers where barges are parked side-by-side extending outward into the river.14 The fleet is upriver from one coal/petcoke terminal and across the river from another.15 When the barges carrying Supreme Rice’s cargo arrived in Myrtle Grove on April 6, 2019, SCF Marine’s subcontractor delivered them to Turn’s fleet for later loading onto the ocean- going vessel.16 Prior to delivery of the barges to Turn, SCF Marine sent an email to Turn’s

8 R. Doc. 1 at 2. 9 Id. 10 Id. 11 R. Doc. 62-1 at 3. 12 Id. (citing R. Doc. 62-7). 13 R. Doc. 1 at 2. 14 R. Docs. 57-1 at 1; 62-1 at 3-4. 15 R. Doc. 57-1 at 2. 16 Id. at 2-3. dispatcher stating that the barges contained “LGMR.”17 Turn disputes whether it received the email and whether its representatives understood that “LGMR” is an acronym for long grain milled rice.18 Turn inspected the barges, accepted them into the fleet, and was paid for its fleeting services.19 Three of the barges were placed in the upriver section of the fleet next to seven uncovered barges that Supreme Rice asserts were loaded with coal/petcoke.20 Turn claims the

seven barges in question were loaded with petcoke, not coal.21 Due to a prior instance of cargo contamination, Turn has a standing order that is reissued to its fleet boat captains ever twelve hours instructing them not to put milled rice barges close to coal barges.22 There was no written fleeting contract between Supreme Rice and Turn, nor between SCF Marine and Turn.23 On April 17, 2019, surveyors from Russel Marine Group (“RMG”), working on Supreme Rice’s behalf, inspected the LGMR cargo prior to transloading to the ocean-going vessel.24 The RMG surveyors discovered that the cargo in the three barges that were moored near the coal/petcoke barges was contaminated with black dust.25 Based on their contemporaneous observations, the RMG surveyors opined that the black dust was coal dust blown by the wind from

the nearby uncovered coal/petcoke barges which entered the SCF Marine barges through gaps in the barges’ hopper covers and coaming.26 On April 19, 2019, Michael Lagasse, a marine surveyor, was at Turn’s fleet performing another job for Turn when Turn’s claims manager, David Bullard, asked him to inspect the

17 R. Doc. 62-12. 18 R. Doc. 67 at 14-19. 19 R. Doc. 62-1 at 5 (citing R. Docs. 62-13 & 62-17) 20 Id. (citing R. Doc. 62-14). 21 R. Doc. 67 at 16-18. 22 R. Doc. 62-1 at 4 (citing R. Doc. 62-25). 23 R. Doc. 5 at 9. 24 R. Doc. 57-1 at 3. 25 R. Doc. 62-1 at 5 (citing R. Docs. 62-15 & 62-16). 26 Id. (citing R. Docs. 62-15 & 62-16). contaminated SCF Marine barges.27 Lagasse reported to Bullard via email that the “it appears that fleeted open hopper barges of pet coke in the near vicinity are blowing a very fine black dust onto nearby barges causing the contamination.”28 At his deposition, Lagasse testified that he did not see any black dust contamination on barges downriver from the SCF Marine barges at issue.29 Subsequent testing indicated that the contaminant in Supreme Rice’s cargo was likely green

delayed petcoke, coal tar pitch, or both.30 On April 16, 2020, Supreme Rice filed this action against Turn pursuant to Rule 9(h) of the Federal Rules of Civil Procedure and the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions.31 Supreme Rice alleges that it sustained a loss of $1,183,945.07 due to the damaged LGMR cargo.32 After making deductions for salvage, Supreme Rice seeks $1,071,827.49 in damages from Turn.33 Supreme Rice further alleges that the cargo damage was caused by Turn’s breach of contract, negligence, gross negligence, and want of due care and/or fault in breaching various obligations as a fleeter and bailee of the barges.34 In response to the suit, Turn filed an answer and third-party complaint bringing SCF Marine into the litigation as a third-party defendant.35 Turn denies liability for Supreme Rice’s alleged

damages and instead contends that SCF Marine bears sole responsibility.36 Turn alleges that the seven barges were moored at its Myrtle Grove facility in the condition provided by Supreme Rice and SCF Marine, and that Turn never received any specific instructions concerning the cargo or

27 Id. (citing R. Doc. 62-17). 28 R. Doc. 62-26. 29 R. Doc. 62-1 at 6 (citing R. Doc. 62-17). 30 Id. (citing R. Doc. 62-20). 31 R. Doc. 1. 32 Id. at 3. 33 R. Doc. 62-1 at 11. 34 R. Doc. 1 at 3. 35 R. Doc. 5. 36 Id. the barges.37 Turn further alleges that SCF Marine was in control of the cargo and provided barges that were unseaworthy due to their open air vents which caused the alleged damage to the cargo through SCF Marine’s breach of contract, negligence, gross negligence, and breach of express or implied warranty.38 Turn seeks indemnity and contribution from SCF Marine for any and all damages for which Turn may be cast in judgment because of SCF Marine’s actions.39 Further,

Turn tendered SCF Marine to Supreme Rice as a direct defendant pursuant to Rule 14(c) of the Federal Rules of Civil Procedure

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Supreme Rice, L.L.C. v. Turn Services, L.L.C., Counsel Stack Legal Research, https://law.counselstack.com/opinion/supreme-rice-llc-v-turn-services-llc-laed-2021.