Williams Sports Rentals Inc. v. Marian Willis

90 F.4th 1032
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 16, 2024
Docket22-16928
StatusPublished
Cited by4 cases

This text of 90 F.4th 1032 (Williams Sports Rentals Inc. v. Marian Willis) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams Sports Rentals Inc. v. Marian Willis, 90 F.4th 1032 (9th Cir. 2024).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

In re: COMPLAINT AND PETITION No. 22-16928 OF WILLIAMS SPORTS RENTALS, INC. AS OWNER OF A CERTAIN D.C. No. 2004 YAMAHA WAVE RUNNER 2:17-cv-00653- FX 140 (CF 5408 LE) FOR KJM-JDP EXONERATION FROM OR LIMITATION OF LIABILITY, ______________________________ OPINION

WILLIAMS SPORTS RENTALS INC., as Owner of a Certain 2004 Yamaha Waverunner FX 140, Petitioner-counter- respondent-Appellee, v.

MARIAN LATASHA WILLIS, on behalf of the Estate of Raeshon Williams, Respondent-counter- claimant-Appellant, v.

THOMAS SMITH; KAI PETRICH; BERKELEY EXECUTIVES, INC.; ZIP, INC., Third-party-defendants. 2 WILLIAMS SPORTS RENTALS INC. V. WILLIS

Appeal from the United States District Court for the Eastern District of California Kimberly J. Mueller, Chief District Judge, Presiding

Argued and Submitted June 8, 2023 San Francisco, California

Filed January 16, 2024

Before: Eric D. Miller and Lucy H. Koh, Circuit Judges, and Barbara M. G. Lynn,* District Judge.

Opinion by Judge Miller

SUMMARY**

Shipowner’s Limitation of Liability Act

In an action under the Shipowner’s Limitation of Liability Act, the panel vacated the district court’s order granting a jet ski owner an injunction against a state-court lawsuit concerning a fatal accident and remanded with instructions to narrow the injunction so that it barred only claims against the owner, not claims against other parties. The Limitation Act limits the liability of vessel owners for accidents that occurred without their privity or

* The Honorable Barbara M. G. Lynn, United States District Judge for the Northern District of Texas, sitting by designation. ** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. WILLIAMS SPORTS RENTALS INC. V. WILLIS 3

knowledge to “the value of the vessel and pending freight.” When a vessel owner files suit under the Limitation Act, injured parties must file their claims against the owner in the federal limitation proceeding. Here, after the jet ski owner initiated the federal limitation proceeding, the district court enjoined all other lawsuits arising from the jet ski accident. Only the decedent’s mother filed a claim against the owner in the limitation proceeding. She also filed a wrongful-death lawsuit against other defendants in California state court, and she asked the district court to dissolve its injunction so that she could add the jet ski owner to her state-court lawsuit. The district court denied the motion. In prior appeals, this court vacated and then reversed with instructions to dissolve the injunction. State-court defendants subsequently filed cross-complaints against the jet ski owner for indemnity and contribution, as well as attorney’s fees, and the district court again enjoined the “continued prosecution of any legal proceedings of any nature, except in the present proceeding, in respect to any claim arising from” the accident. The panel held that, in general, a district court has broad discretion in deciding whether to dissolve or reinstate an injunction issued under the Limitation Act, but the district court must allow a state-court lawsuit to proceed when there is only a single claimant, and that claimant enters a stipulation protecting the vessel owner’s limitation right. The panel declined to take a position on a circuit conflict regarding whether parties seeking indemnity or contribution count as separate claimants because, apart from such claims, the state-court defendants also brought claims for attorney’s fees, and, absent a stipulation, a party seeking attorney’s fees is a separate claimant. The panel held that the district court did not abuse its discretion in granting an injunction because, 4 WILLIAMS SPORTS RENTALS INC. V. WILLIS

with a limitation fund of only $5,000 to cover pending claims for wrongful death, survival, indemnity, contribution, and attorney’s fees, the district court could fairly conclude that an injunction was necessary to protect the jet ski owner’s limitation right. The panel further held, however, that the injunction was overbroad because, on its face, it prohibited the decedent’s mother from proceeding in state court on her claims against any party. The panel concluded that, under the Anti- Injunction Act, which prohibits a federal court from granting an injunction to stay proceedings in a state court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments, the district court could not enjoin the decedent’s mother from proceeding against anyone other than the vessel owner.

COUNSEL

John R. Hillsman (argued), McGuinn Hillsman & Palefsky, San Francisco, California; Anthony L. Label and Steven A. Kronenberg, The Veen Firm, San Francisco, California; for Respondent-counter-claimant-Appellant. Brian O. Felder (argued) and Ian Stewart, Wilson Elser Moskowitz Edelman & Dicker LLP, Los Angeles, California, for Petitioner-counter-respondent-Appellee. WILLIAMS SPORTS RENTALS INC. V. WILLIS 5

OPINION

MILLER, Circuit Judge:

The Shipowner’s Limitation of Liability Act (the Limitation Act), 46 U.S.C. § 30501 et seq., allows the owner of a vessel to limit its liability for accidents and to enjoin lawsuits that threaten its right to do so. After a fatal accident involving a jet ski, the district court granted the jet ski’s owner an injunction against a state-court lawsuit. We previously ordered the district court to dissolve the injunction, but the addition of new claims arising from the accident prompted the district court to reinstate it. We hold that the district court had the authority to grant an injunction but that the injunction it imposed is overly broad. We vacate and remand with instructions to narrow the injunction so that it bars only claims against the owner, not claims against other parties. I On August 13, 2016, during a corporate retreat in South Lake Tahoe, California, Raeshon Williams went for a ride on a jet ski with a co-worker, Thomas Smith. Smith allegedly turned into another vessel’s wake at high speed, throwing Williams off the jet ski and into Lake Tahoe, where he drowned. The jet ski had been rented from Williams Sports Rentals (WSR), which is not related to Raeshon Williams. Anticipating a lawsuit, WSR filed a complaint in federal district court under the Limitation Act. That statute limits the liability of vessel owners for accidents that occurred without their privity or knowledge to “the value of the vessel and pending freight.” 46 U.S.C. § 30523(a). Congress enacted 6 WILLIAMS SPORTS RENTALS INC. V. WILLIS

the statute in 1851 “primarily to encourage the development of American merchant shipping.” Lake Tankers Corp. v. Henn, 354 U.S. 147, 150 (1957); see Martz v. Horazdovsky, 33 F.4th 1157, 1166 (9th Cir. 2022). But courts have long recognized that it covers a wide range of vessels, including pleasure craft such as jet skis. See, e.g., In re Hechinger, 890 F.2d 202, 206 (9th Cir. 1989); Keys Jet Ski, Inc. v. Kays, 893 F.2d 1225, 1228–29 (11th Cir. 1990). The parties agree that the jet ski is a “vessel” to which the Limitation Act applies. When a vessel owner files a lawsuit under the Limitation Act and posts security for the limitation amount, “all claims and proceedings against the owner related to the matter in question shall cease.” 46 U.S.C.

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90 F.4th 1032, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-sports-rentals-inc-v-marian-willis-ca9-2024.