United Brands Co. v. M.V. "Isla Plaza"

770 F. Supp. 220, 1991 U.S. Dist. LEXIS 11599, 1991 WL 162889
CourtDistrict Court, S.D. New York
DecidedAugust 21, 1991
DocketNo. 85 Civ. 0491 (PKL)
StatusPublished

This text of 770 F. Supp. 220 (United Brands Co. v. M.V. "Isla Plaza") is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Brands Co. v. M.V. "Isla Plaza", 770 F. Supp. 220, 1991 U.S. Dist. LEXIS 11599, 1991 WL 162889 (S.D.N.Y. 1991).

Opinion

ORDER AND OPINION

LEISURE, District Judge:

This is a maritime action for damages following a fire aboard a cargo ship. Defendants Ahlers Shipping N.V. and F. Laeisz Schiffahrtsgesellschaft M.B.H. & Co. (the “Moving Defendants”) have now moved, pursuant to Fed.R.Civ.P. 15(a), to amend their answer to add a counterclaim (the “Proposed Counterclaim”) of negligence against plaintiff United Brands Company (“United Brands”). For the reasons set forth below, the Moving Defendants’ motion is granted.

Background

The facts pertinent to the Moving Defendants’ motion to amend are not complex. A fire broke out aboard the M/V Isla Plaza while it was being loaded with a cargo of bananas at Turbo, Colombia in January 1985. When the fire was extinguished, firefighters discovered the bodies of two stowaways. On January 21, 1985, United Brands filed suit against the owners and operators of the ship for damage to the bananas. On April 29, 1985, an amended complaint was filed, adding Chiquita International Trading Company as an additional plaintiff. On July 8, 1985, at the request of all parties, this action was placed on the suspense docket, to permit the preparation and issuance of the general average statement. On February 6, 1989, upon the completion of the general average statement, the action was restored to the active docket. On May 16, 1990, the Moving Defendants filed a counterclaim seeking general average contribution from plaintiffs, and on August 3, 1990 plaintiffs filed an answer to that counterclaim.

The Moving Defendants presently move this Court to allow further amendment of their answer by permitting the addition of the Proposed Counterclaim.1 In so doing, [222]*222the Moving Defendants assert that the two stowaways boarded the M/V Isla Plaza at Turbo, Colombia, and that the stowaways caused the fire. The Moving Defendants also claim that there existed a well-known problem with stowaways at the Turbo port, and that United Brands was negligent in failing to implement a reasonable “stowaway prevention program” that would have prevented the two stowaways from gaining access to the M/V Isla Plaza. Thus, the Moving Defendants’ Proposed Counterclaim seeks to hold United Brands responsible for fire damage to the ship, allegedly the result of United Brands’ negligent failure to prevent stowaways from gaining access thereto.

Discussion

The Second Circuit has taken a liberal approach to the amendment of pleadings, stating that “[a] motion to amend should be denied only for such reasons as ‘undue delay, bad faith, futility of the amendment, and perhaps most important, the resulting prejudice to the opposing party.’ ” Richardson Greenshields Securities, Inc. v. Lau, 825 F.2d 647, 653 n. 6 (2d Cir.1987) (quoting State Teachers Retirement Board v. Fluor Corp., 654 F.2d 843, 856 (2d Cir.1981)). “Furthermore, ... parties ... have been permitted to amend their pleadings to assert new claims long after they acquired the facts necessary to support those claims.” Richardson Greenshields, supra, 825 F.2d at 653 n. 6 (citing cases). In the case at bar, United Brands argues that the equitable doctrine of laches bars the Proposed Counterclaim, and thus the instant motion to amend should be denied as futile. United Brands also argues that the instant motion should be denied on the ground that it will suffer prejudice as a result. The Court will address each of these issues.

I. Futility of the Amendment

The doctrine of laches “has immemorially been applied to admiralty claims to determine whether they have been timely filed.” DeSilvio v. Prudential Lines, Inc., 701 F.2d 13, 15 (2d Cir.1983) (citing cases). “Historically laches developed as an equitable defense based on the Latin maxim vigilantibus non dormientibus aequitas subvenit (equity aids the vigilant, not those who sleep on their rights).” Stone v. Williams, 873 F.2d 620, 623 (2d Cir.), cert. denied, — U.S. -, 110 S.Ct. 377, 107 L.Ed.2d 362 (1989), vacated on other grounds, 891 F.2d 401 (2d Cir.1989). By disallowing the enforcement of stale claims, this doctrine promotes diligence on the part of litigants.

However, not every delay will permit a defense of laches. The Second Circuit has established the following guidelines for determining whether the doctrine of laches is applicable in an admiralty context:

“The questions to be answered in the exercise of [the district court’s] discretion are whether there existed satisfactory excuse for the delay in bringing the cause of action and whether allowing the action to go forward despite the delay would unfairly prejudice the defendant. These questions are to be evaluated in light of the ‘peculiar equitable circumstances’ of the case.
The application of the doctrine of laches also requires reference to or consideration of the analogous statute of limitations.”

DeSilvio, supra, 701 F.2d at 15 (quoting Public Administrator of the County of New York v. Angela Compania Naviera, 592 F.2d 58, 63-64 (2d Cir.), cert. dism’d, 443 U.S. 928, 100 S.Ct. 15, 61 L.Ed.2d 897 (1979)). “ ‘[W]hen the suit has been brought after the expiration of the state limitation period, a court applying maritime law asks why the case should be allowed to proceed; when the suit, although perhaps long delayed, has nevertheless been brought within the state limitation period, the court asks why it should not be.’ ” DeSilvio, supra, 701 F.2d at 16 (quoting Larios v. Victory Carriers, Inc., 316 F.2d 63, 66 (2d Cir.1963)). No presumption of prejudice is to be inferred from the passage of the statute of limitations time period. See DeSilvio, supra, 701 F.2d at 16.

[223]*223In the case at bar, the applicable analogous state statute of limitations is the three-year period established in New York Civil Practice Law and Rules § 214(4), which period has elapsed. However, “[i]t is well settled ... that laches as a defense to an admiralty suit is not to be measured by strict application of statutes of limitations____ This does not mean, of course, that the state statutes of limitations are immaterial in determining whether laches is a bar, but it does mean that they are not conclusive, and that the determination should not be made without first considering all the circumstances bearing on the issue.” Czaplicki v. The Hoegh Silver-cloud, 351 U.S. 525, 533, 76 S.Ct. 946, 951, 100 L.Ed. 1387 (1956).

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770 F. Supp. 220, 1991 U.S. Dist. LEXIS 11599, 1991 WL 162889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-brands-co-v-mv-isla-plaza-nysd-1991.