United States v. Dixie Carriers, Inc., Water Quality Insurance Syndicate, M/v Dixie Buccaneer and T/b Abc 2311, in Rem

736 F.2d 180, 1985 A.M.C. 815, 14 Envtl. L. Rep. (Envtl. Law Inst.) 20602, 21 ERC (BNA) 1165, 1984 U.S. App. LEXIS 20575, 21 ERC 1165
Court of Appeals for the Fifth Circuit·Decided July 12, 1984·No. 83-3321·Published·Cited by 7 cases

Opinions

TATE, Circuit Judge:

The defendants, Dixie Carriers, Inc., Water Quality Insurance Syndicate, M/V Dixie Buccaneer, and the T/B ABC-2311 (hereinafter singularly referred to as “Dixie Carriers”) appeal from the grant of a money judgment in favor of the plaintiff, the United States, in the Government’s suit to recover its pollution cleanup costs resulting from an oil spill from Dixie Carriers’ barge. The issue presented by this appeal is whether the district court properly allowed the United States to recover against the defendant the full amount of the tonnage maximum permitted under the Federal Water Pollution Control Act, 33 U.S.C. § 1321(f) (hereinafter “the Act”), i.e., $121,-600,1 without first crediting to Dixie Carriers the costs incurred by it in its initial cleanup operations {i.e., some $108,000)2 [182] before the Government took over and completed the cleanup of the oil discharge. Finding that the provisions of the Act negate an intention to allow such credit, we affirm the denial.

The United States originally filed this suit urging various theories of recovery3 and seeking judgment in the sum of $945,-043.53, representing its entire costs in the cleanup operation. On the defendants’ motion for partial summary judgment, the district court held, 462 F.Supp. 1126 (E.D.La. 1978), and this court affirmed, 627 F.2d 736 (5th Cir.1980), that § 1321(f) of the Act provides the government’s exclusive remedy against Dixie Carriers.4

At the time the other claims of the government were dismissed by summary judgment, the question of whether Dixie Carriers’ voluntary payment toward cleaning up the oil should be credited against its liability to the government was left open. Dixie Carriers, supra, 462 F.Supp. at 1127 n. 1. After this court’s affirmance of the summary judgment dismissing claims on other theories against the government based, the credit issue was decided and is the subject of the present appeal.

The district court entered judgment against the defendants in the sum of $121,-600.00, its statutory non-fault limited liability under § 1321(f) of the Act, plus legal interest and costs without allowing credit for its own cleanup expenditures.

On appeal, Dixie Carriers principally contends that it should have been allowed this credit of $108,465.86. Dixie Carriers contends that a credit is due, both A) because denial of the credit would frustrate the legislative purposes of the Federal Water Pollution Control Act (the statutory purpose contention), and B) because it relied to its detriment upon a Coast Guard telegram that allegedly advised it mistakenly that Dixie Carriers had a legal responsibility to remove the spill (the estoppel contention).

Context Facts

On Saturday, June 22, 1974, a barge, owned and operated by Dixie Carriers, drifted against a pier of the Huey P. Long Bridge while being towed up the Mississippi River near New Orleans, Louisiana. As a consequence, approximately 1,265,000 gallons of oil spilled from the barge into the river.

The manager of operations for Dixie Carriers, A. J. Morriz, testified at his deposition that he first learned of the accident from the Dixie Carriers’ port captain, Milton DeRocha, on the afternoon of the accident. At that time, DeRocha suggested to Morriz that something be done to move the barge as soon as possible. A short time later, a representative of the Coast Guard contacted Morriz by telephone and informed him that the barge was leaking oil and that arrangements should be made to protect the water intakes and start cleaning up. Morriz testified that he then called a cleanup company to begin the cleanup operation.5

Additionally, the Coast Guard sent a telegram on June. 22 to Dixie Carriers advising it that “under the provisions of the Federal Pollution Control Act” Dixie Carriers was responsible for removal of the oil. This telegram was apparently received some two days after the accident.6

[183] On Monday, June 24,1974, Dixie Carriers notified the Coast Guard that it was discontinuing its involvement in cleanup operations because the costs ($108,465.86) were approaching the tonnage limitation ($121,-600.00) under 33 U.S.C. § 1321(f)(1). Following this notice, the government continued the operation, incurring an additional $954,403.53 in cleanup costs.

On appeal, as earlier noted, Dixie Carriers contends that the district court erred in failing to grant it a $108,465.86 credit toward the tonnage limitation of $121,600.00 for which under § 1321(f) it was held liable to the government, advancing both (A) statutory purpose and (B) estoppel arguments.

A. The Statutory Purpose Contention

Dixie argues that the legislative purpose of the Federal Water Pollution Control Act is frustrated by the district court’s holding and that, therefore, we should reverse the district court’s construction that the Act evidences no legislative intention to permit a discharger to obtain credit, against its § 1321(f) liability to the government, for cleanup costs voluntarily assumed by it. The primary purposes of the Act are to “expedite oil pollution cleanup and to establish a workable scheme for limiting and distributing liability.”7 Tug Ocean Prince, Inc. v. United States, 584 F.2d 1151, 1162 (2d Cir.1978), cert. denied, 440 U.S. 959, 99 S.Ct. 1499, 59 L.Ed.2d 772 (1979). Dixie maintains that the district court’s holding operates as a disincentive to polluters to act immediately, since any funds expended in voluntary efforts to contain a spill would not be credited against the spiller’s ultimate liability under the Act. Indeed, it is argued, the “conscientious spiller” who immediately spends money to minimize the spill’s consequences would be effectively “punished”, while the indifferent polluter who does nothing but notify the Coast Guard would be held to a lesser degree of financial responsibility.

We reject this contention, because, first, the statute does not provide for a credit, nor does the legislative history suggest that, as a policy matter, a credit was intended, and because, second, the allegedly “anomalous” results suggested by Dixie Carriers, i.e., that denial of a credit would prolong the cleanup process by discouraging spillers from taking any immediate steps, is not shown to be a persuasive reason to supply to a discharger a judicial remedy not contemplated by the statute itself.

Free access — add to your briefcase to read the full text and ask questions with AI

United States v. Dixie Carriers, Inc., Water Quality Insurance Syndicate, M/v Dixie Buccaneer and T/b Abc 2311, in Rem, 736 F.2d 180, 1985 A.M.C. 815, 14 Envtl. L. Rep. (Envtl. Law Inst.) 20602, 21 ERC (BNA) 1165, 1984 U.S. App. LEXIS 20575, 21 ERC 1165 (5th Cir. 1984).

736 F.2d 180 (United States v. Dixie Carriers, Inc., Water Quality Insurance Syndicate, M/v Dixie Buccaneer and T/b Abc 2311, in Rem) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related