Zerega Avenue Realty Corp. v. Hornbeck Offshore Transportation, LLC

882 F. Supp. 2d 496, 2012 WL 974993, 2012 U.S. Dist. LEXIS 38536
CourtDistrict Court, S.D. New York
DecidedMarch 14, 2012
DocketNo. 04 Civ. 9651 KNF
StatusPublished
Cited by3 cases

This text of 882 F. Supp. 2d 496 (Zerega Avenue Realty Corp. v. Hornbeck Offshore Transportation, LLC) 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
Zerega Avenue Realty Corp. v. Hornbeck Offshore Transportation, LLC, 882 F. Supp. 2d 496, 2012 WL 974993, 2012 U.S. Dist. LEXIS 38536 (S.D.N.Y. 2012).

Opinion

OPINION AND ORDER

KEVIN NATHANIEL POX, United States Magistrate Judge.

PROCEDURAL BACKGROUND

On October 27, 2004, the plaintiffs commenced a state-court action against the Hanover Insurance Company, Massachusetts Bay Insurance Company, Fireman’s Fund Insurance Company, Inc. (collectively the “insurance companies”) and Horn-beck Offshore Transportation, LLC (“Hornbeek”), seeking damages based on breach of contract by the insurance companies and negligence by Hornbeek. On December 8, 2004, a notice ,of removal was filed pursuant to 28 U.S.C. § 1441, asserting jurisdiction in this court under 28 U.S.C. § 1332. The insurance companies denied the allegations and filed cross-claims against Hornbeek, based on negligence. Hornbeek denied the allegations and filed counterclaims, asserting fraud. On March 22, 2006, the parties consented to jurisdiction by a United States magistrate judge, pursuant to 28 U.S.C. § 636(c) and Rule 73 of the Federal Rules of Civil Procedure. In 2006, the insurance companies entered into a settlement agreement with the plaintiffs. As the action sounded in admiralty, the Court determined that it had jurisdiction pursuant to 28 U.S.C. § 1333 and Rule 9(h) of the Federal Rules of Civil Procedure.

The amended complaint alleged that, “[o]n or about October 29, 2002 ... [d]ue to Hornbeck’s negligent operation of [its] barge, [the barge] struck Plaintiffs’ bulkhead structure,” and, “[a]s a result of Hornbeck’s negligence, Plaintiffs’ bulkhead structure collapsed causing significant damage to Plaintiffs’ property.” In the joint pretrial order, dated April 12, 2006, the plaintiffs claimed that “on or about October 29, 2002, a tug and barge owned and operated by [Hornbeek] was traveling south on the Westchester Creek. Due to defendant’s negligent operation of the tug and barge, the barge and/or debris dragged by the barge stuck or ‘allied’ with the dock structure on Plaintiffs’ property.”

In an Opinion and Order, dated October 23, 2007, 2007 WL 3125318, the Court found that Hornbeek was liable to the plaintiffs for damages arising from the collapse of the plaintiffs’ bulkhead structure, caused by the allision of the defendant’s vessel with the plaintiffs’ bulkhead structure. More specifically, the Court determined that: (a) the defendant’s barge came into contact with the plaintiffs’ bulkhead structure, creating a presumption of negligent operation of the defendant’s vessel, pursuant to The Oregon, 158 U.S. 186, 197, 15 S.Ct. 804, 809, 39 L.Ed. 943 (1895); and (b) the defendant failed to rebut the presumption of fault because it did not adduce any evidence to establish that the deterioration and unsound condition of the plaintiffs’ bulkhead structure caused its collapse. On December 4, 2007, 2007 WL 4326110, the Court denied the plaintiffs’ motion for , attorney’s fees. On January 8, 2008, a judgment was entered in favor of the plaintiffs on their negligence claim, [499]*499awarding them $1,505,353 in damages, as well as prejudgment and postjudgment interest.

Hornbeck appealed from the January 8, 2008 judgment, claiming principally that “the Court erred by applying a presumption in favor of [the plaintiffs] on the issue of causation and by excluding the testimony of Hornbeck’s experts.” Zerega Avenue Realty Corp. v. Hornbeck Offshore Transp., LLC, 571 F.3d 206, 208 (2d Cir.2009). The Second Circuit Court of Appeals held that “the Oregon rule’s presumption of fault does not shift from a plaintiff the burden of proving causation, and that the preclusion of Hornbeck’s expert testimony was an abuse of discretion.” Id. The Second Circuit found that: (i) the Court’s conclusion that “Hombeck’s tug was not operated with reasonable care” was supported fully by the evidence; (ii) the burden remained on the plaintiffs to prove “by a preponderance of the evidence that the defendant’s negligence caused the alleged damages”; (iii) precluding the expert testimony of Roderic Ellman (“Ell-man”) and Pierce Power (“Power”) was an abuse of discretion; (iv) the Court did not err in admitting the expert testimony of Steven Schneider (“Schneider”); (v) the objection, for lack of proper foundation, to admitting photographs purportedly showing sinkholes in the bulkhead that Horn-beck sought to introduce through Christopher Todino (“Todino”) was sustained properly; and (vi) the testimony and email message of John Bowie (“Bowie”), containing a statement of Laura Bruno, an agent to a party to the action, was admissible and the Court’s refusal to admit it was harmless. Id. at 211-14. The Second Circuit reversed the judgment, vacated the award and remanded the action with the following instructions:

[T]he issues of Hornbeck’s negligence and the amount of damages need not be retried. Upon remand, the Magistrate Judge should retry only the factual issue of whether the allision occurred and the issue of causation, with the burden of proof on the Plaintiffs. In doing so, the Magistrate Judge should make distinct determinations as to whether the allision, if it occurred, has been shown to have caused damage to the bulkhead and to the office building. If causation is found, as to either or both structures, the findings already made as to the amount of damages sustained by both structures may stand. Since this was a bench trial, the Magistrate Judge may rely on the existing record, supplemented by Ellman’s and Power’s testimony and whatever additional evidence the Magistrate Judge permits.

Id. at 215.

The record of the bench trial, upon remand, was reopened and additional evidence was received commencing on January 13, 2011. Evidence was also received during trial proceedings conducted on January 14 and 28, February 8, 9, 10 and 15, May 18, and June 1, 2011. When the record of the trial was reopened, the Court received, inter alia, testimony from Bowie, and expert testimony from David London (“London”), Power, Ellman and Schneider. Once the reopened trial record was closed, Hornbeck made a motion to strike the rebuttal opinion of Schneider and a motion seeking an order of contempt, or, alternatively, an order scheduling a contempt hearing based on Schneider’s failure to comply with the terms of the trial subpoena served upon him, by the defendant, on May 11, 2011; both motions were denied. Thereafter, the parties filed their respective proposed findings of fact and conclusions of law.

ADDITIONAL EVIDENCE ON REMAND

Testimony by John Bowie

Bowie was Hornbeck’s manager of logistics at the relevant time, and his responsi[500]*500bility was. to review log books of Horn-beck’s vessels.

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Bluebook (online)
882 F. Supp. 2d 496, 2012 WL 974993, 2012 U.S. Dist. LEXIS 38536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zerega-avenue-realty-corp-v-hornbeck-offshore-transportation-llc-nysd-2012.