United States v. Great Lakes Dredge & Dock Co.

259 F.3d 1300, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20880, 53 ERC (BNA) 1250, 2001 U.S. App. LEXIS 16955, 2001 WL 851315
Court of Appeals for the Eleventh Circuit·Decided July 30, 2001·No. 00-12002·Published·Cited by 1 cases

Opinion

RONEY, Circuit Judge:

Defendant Great Lakes appeals the judgment against it in a suit for damages brought by the United States under the National Marine Sanctuaries Act for damage to the Florida Keys Marine Sanctuary caused by a grounded tugboat and dredge pipe. The government’s cross-appeal concerns the district court’s ruling that no primary restoration is required for the grounding site. We affirm the district court’s decision on liability, but we vacate a portion of the damages award, specifically that no action is the best alternative for addressing damage at the grounding site. We remand for further factual findings regarding this question.

I. Facts

In May 1993, Great Lakes Dredge & Dock Company (Great Lakes) hired Coastal Marine Towing (Coastal) to tow 500-foot lengths of dredge pipe and other equipment from Boca Grande to Green Cove on the East Coast of Florida. Coastal supplied two tugs, Captain Joe and Miss Ne-cie and their crews. Great Lakes supplied two assist tugs, Volunteer State and Cavalier State.

While proceeding through the Florida Keys National Marine Sanctuary, one of the pipes in a raft towed by Miss Necie dragged the sea bottom creating a pipe scar approximately 13 miles long.

The following facts caused grounding site damage which is the subject of this appeal. Due to a navigational error by *1303 Miss Necie, the flotillas got off course and Captain Joe ran aground in seven feet of water trying to pass Miss Necie. Great Lakes’ assist tug, Cavalier State, was tied to the Captain Joe. Sanctuary and state officials helped devise a plan to extricate Captain Joe. At high tide, Captain Joe was powered off the bank by a combination of its own motor and the Cavalier State. The grounding left behind a channel 120 meters long, eight to ten meters wide and two meters deep. The grounding destroyed 7,495 square meters of sea bottom, consisting of turtle grass, manatee grass and finger coral. The boats also created a large hole, or “blowhole,” 120 meters long by nine meters wide.

The United States brought this action on behalf of the U.S. Department of Commerce, National Oceanic and Atmospheric Administration (NOAA) under the National Marine Sanctuaries Act (NMSA) of 1972, as amended, 16 U.S.C. §§ 1431-1445, for the destruction caused by the grounding of the sanctuary resources, primarily seagrasses, in the marine sanctuary. The State of Florida also filed a complaint against defendants, which was consolidated with the federal case. The first day of trial, Coastal settled its claims with the United States and the State of Florida for $618,484. The settlement satisfied Florida’s claims against Great Lakes as well, and Florida is not a party to this appeal. The State of Florida did file an amicus brief in support of the United States’ positions concerning liability and damages, but argues only liability.

After an eight-day bench trial in April 1999, the district court granted in part and denied in part the relief sought by the government. The court ruled in favor of the United States on liability, finding that Great Lakes was strictly liable under the NMSA for all damages to the sanctuary. Regarding damages, the government sought compensation for implementation of both its primary restoration plan and its compensatory plan.

Under the primary restoration component of damages, the government is entitled to recover the cost of implementing its plan to restore or replace the injured resource, or the cost of acquiring the equivalent of the sanctuary resource, if it cannot be restored or replaced. See 16 U.S.C. § 1432(6)(A). Both the government and Great Lakes agreed that the pipe sóar recovered on its own in three years, so the damage caused is not a part of this appeal. As for the grounding site, the government proposed a plan to use imported sediment to fill and restore the grounding site, one of three alternative primary restoration plans considered by the government. The district court determined that another plan, the “no action” plan for the primary restoration of the grounding site was appropriate, but that the U.S. should recover the cost of physical and biological monitoring of the site.

The district court also held that the government was entitled to damages for compensatory restoration, which is compensation for the interim lost use of the resources at the pipe scar and grounding site during the period from destruction to recovery. See 16 U.S.C. § 1432(6)(A). Recovery for lost interim services is in the form of seagrass restoration projects at other suitable locations within the Sanctuary. The district court determined that the Prop Scar Restoration Program developed by the government is an appropriate compensatory restoration project that would provide seagrass services equivalent to those lost due to the injuries caused by Great Lakes at both the grounding site and the pipe scar. The court also held that the government’s reliance on the Habitat Equivalency Analysis (HEA) was appropriate to scale the compensatory seag-rass restoration project. Based on these *1304 determinations, the district court awarded to the government, its response and assessment costs; compensatory and monitoring costs; and permitting and supervision costs. The district judge required the government to recalculate the appropriate damages by simple mathematical computations based on its findings of fact. On March 1, 2000, the district court entered final judgment against Great Lakes in the amount of $368,796.97, the figure after setting off the settlement amount paid by Coastal.

On appeal, Great Lakes argues the district court erred in finding Great Lakes liable to the United States because (1) suit by the United States not authorized under common law; (2) Great Lakes was not vicariously liable for Coastal’s actions, and (3) the method used to assess restoration was faulty. On cross-appeal, the United States argues the district court erred in approving “no action” as the primary restoration plan for the grounding site.

II. Applicable Statutory Provisions.

The National Marine Sanctuaries Act governs the designation and management of federally protected marine areas of special significance. Congress enacted the NMSA in response to the increasing degradation of marine habitats and in recognition of the need to protect marine ecosystems. See S.Rep. No. 100-595, 2d Sess. 1 (1998), reprinted in 1988 U.S.C.C.A.N. 4387. The NMSA confers authority for the designation and management of marine sanctuaries on the Secretary of Commerce, 16 U.S.C. §§ 1433, 1434, who has delegated these responsibilities to the NOAA.

The NMSA imposes civil liability on “any person who destroys, causes the loss of or injures any sanctuary resource.” 16 U.S.C. § 1443.

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United States v. Great Lakes Dredge & Dock Co., 259 F.3d 1300, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20880, 53 ERC (BNA) 1250, 2001 U.S. App. LEXIS 16955, 2001 WL 851315 (11th Cir. 2001).

259 F.3d 1300 (United States v. Great Lakes Dredge & Dock Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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