Justia Civil Procedure Opinion Summaries

In this case, a law firm, Thompson, MacColl & Bass, LLC, P.A. (TM&B), was sued by its former client, ST Engineering Marine, Ltd. (STEM), for professional negligence. STEM owned a vessel that was arrested due to several entities, including Sprague Operating Resources, LLC (Sprague), asserting maritime liens for unpaid services. STEM had sought advice from TM&B to analyze these lien claims. TM&B advised STEM that Sprague's lien was valid and should be paid. Acting on this advice, STEM paid Sprague and subsequently sued TM&B, alleging that TM&B's advice was negligent as it failed to consider the unsettled state of relevant maritime lien law.The United States Court of Appeals for the First Circuit affirmed the decision of the United States District Court for the District of Maine, which had found in favor of STEM. The Court of Appeals held that TM&B breached its duty of care to STEM by failing to conduct adequate legal research and by not appropriately counseling STEM about the uncertainty of Sprague's lien claim. The court also found that TM&B's negligence was the actual and proximate cause of STEM's loss, concluding that STEM would have prevailed in contesting Sprague's lien claim but for TM&B's erroneous advice. The court ordered TM&B to pay STEM $261,839.04 in damages. View "ST Engineering Marine, Ltd. v. Thompson, MacColl & Bass, LLC, P.A." on Justia Law

In a collision between two vessels on the Mississippi River, the United States Court of Appeals for the Fifth Circuit ruled that Louisiana law, not general maritime law, governs the burden of proof for the pilot's error.On January 3, 2019, the M/V STRANDJA, piloted by Captain Robert Johnson, drifted from its anchorage into the middle of the river, colliding with the M/V KIEFFER E. BAILEY, owned by Marquette Transportation Company Gulf-Inland LLC. The collision caused damage to both vessels. Marquette brought claims against STRANDJA's owner, Balkan Navigation Ltd, and manager, Navigation Maritime Bulgare JSC (collectively referred to as "Balkan"), alleging their negligence caused the collision.A jury found that Marquette was not negligent and that Balkan and Captain Johnson were each 50% at fault. The jury awarded Marquette $114,000 in damages and awarded Balkan $0 in damages. Both Balkan and Captain Johnson appealed the judgment.The Fifth Circuit affirmed the judgment that Marquette was not negligent, and therefore not liable for the accident. However, the court found that the district court erred in instructing the jury to apply general maritime law, which only requires a finding of ordinary negligence by a preponderance of the evidence, to the claim against Captain Johnson. Instead, the court held that Louisiana law, which requires clear and convincing evidence of gross negligence or willful misconduct, should have been applied.As a result, the court vacated the judgment against Balkan and Captain Johnson and remanded the case for a new trial, applying the correct standard of proof under Louisiana law. The court also ordered Marquette to amend its complaint within 14 days to allege admiralty jurisdiction as the jurisdictional basis for its claim against Balkan. View "Marquette Transportation Company Gulf-Inland, L.L.C. v. Navigation Maritime Bulgare" on Justia Law

N&W Marine Towing (N&W) filed in federal district court a verified complaint in limitation (the Limitation Action), pursuant to the Limitation of Liability Act of 1851 (Limitation Act) and Rule F of the Supplemental Rules for Certain Admiralty and Maritime Claims. The complaint filed in N&W’s Limitation Action alleged that on February 29, 2020, the M/V Nicholas, which is owned by N&W, was towing six barges up the Mississippi River when the wake of a cruise ship, the Majesty of the Seas, caused one of the Nicholas’s face wires to break. After dismissing N&W from the case, no claims remained in the State Court Petition because Wooley had settled his claims against the other defendants. Therefore, the district court severed Wooley’s State Court Petition from the Limitation Action and dismissed it. The district court retained jurisdiction over the Limitation Action but stayed and administratively closed it to allow Wooley to pursue any claims available to him against N&W in Louisiana state court pursuant to the saving to suitors clause. N&W and Wooley cross-appealed.   The Fifth Circuit affirmed. The court determines that a nondiverse defendant was improperly joined, the improperly joined defendant’s citizenship may not be considered for purposes of diversity jurisdiction, and that defendant must be dismissed without prejudice. After determining that N&W had been improperly joined, the district court correctly considered only the citizenship of the properly joined State Court Petition defendants. As they were diverse from Wooley, removal based on diversity jurisdiction was permitted. View "Wooley v. N&W Marine Towing" on Justia Law

On August 31, 2020, N&W Marine Towing (N&W) filed in federal district court a verified complaint in limitation, Case No. 2:20-cv-2390 (the Limitation Action), pursuant to the Limitation of Liability Act of 1851 (Limitation Act) and Rule F of the Supplemental Rules for Certain Admiralty and Maritime Claims. The Limitation Act provides that once a shipowner brings a limitation action “all claims and proceedings against the owner related to the matter in question shall cease.” The district court issued a Stay Order. Wooley, Turn Services (Wooley’s employer), and Royal Caribbean Cruises (RCC) (the owner of the Majesty of the Seas) all filed claims against N&W in the Limitation Action. N&W and Wooley cross-appeal. Seeking to remain in federal court. On cross-appeal, Wooley contends that the outcome of the case was correct, but if this court were to determine that N&W was properly joined, then Wooley contends the district court erred in denying his motion to remand. The main issue on appeal is whether the district court erred in dismissing an improperly joined, nondiverse defendant when the only independent jurisdictional basis for removal was admiralty jurisdiction.   The Fifth Circuit affirmed. The court explained that, like in Flagg, the Louisiana state court here would have had no choice but to dismiss Wooley’s claims against N&W because of the district court’s Stay Order. The district court could have retained jurisdiction over claims against RCC had RCC remained in the case. However the federal court could not retain jurisdiction over claims against a nondiverse defendant (N&W) without some other basis for federal jurisdiction over those claims. View "Trey Wooley v. N&W Marine Towing" on Justia Law

Plaintiff fell while stepping from a dock to a boat. He sued his employer—a yacht club in Long Beach—under federal admiralty law. The trial court sustained the club’s final demurrer to the second amended complaint. The court ruled there was no admiralty jurisdiction.   The Second Appellate District affirmed the court’s ruling without deciding about admiralty jurisdiction. The court explained that Congress in 1984 specified employees covered by state workers’ compensation law working at a “club” are covered by state workers’ compensation law and not federal law if they are eligible for state workers’ compensation. The court wrote that Plaintiff concedes the yacht club is a “club.” Federal law thus makes California state workers’ compensation law paramount, which means Plaintiff’s exclusive remedy is workers’ compensation. The court wrote that a core part of the state workers’ compensation bargain is that injured workers get speedy and predictable relief irrespective of fault. In return, workers are barred from suing their employers in tort. Thus, the trial court correctly dismissed Plaintiff’s tort suit against his employer. View "Ranger v. Alamitos Bay Yacht Club" on Justia Law

The United States Maritime Administration (“MARAD”) approved a shipping company’s request to replace two vessels operating in the Pacific trade within the Maritime Security Program. Matson Navigation Co., a competitor in the Pacific, petitions for review of the replacements. As a source of jurisdiction, Matson points to the Hobbs Act, under which the DC Circuit had original jurisdiction over some acts of MARAD.   The DC Circuit reversed two orders of the district court, consolidated with these petitions, that held jurisdiction over Matson’s claims under the Administrative Procedure Act (“APA”) and was exclusive in the court of appeals. The court wrote that Matson was not a “party” to the replacement proceedings for either vessel, therefore, the court denied the petitions for direct review. The court explained that whether a case begins in district court or is eligible for direct review in the court is a policy decision that is for “Congress rather than us to determine.” The court wrote that as Matson’s counsel stated at oral argument, the company is just “trying to get review.” Because sending limited comments based on limited information to an informal agency proceeding does not confer “party” status under the Hobbs Act, that review starts in the district court. View "Matson Navigation Company, Inc. v. DOT" on Justia Law

Barges around Pensacola Bay were slammed around during Hurricane Sally, leading to significant damage—including to the Pensacola Bay Bridge, which was closed for months. Skanska, the construction company that owned the barges (and was working on replacing the Bay Bridge) faced hundreds of potential lawsuits. Some were directly related to property damage, but most were economic loss claims from nearby businesses that lost customers during the months-long closure of the bridge. Skanska filed what are called petitions for limitation of liability, one for each of its 28 barges. These petitions invoked the Limitation Act. the district court decided that Skanska could not limit its liability because its own corporate officials were responsible for the negligent acts that led to the barges getting loose in the storm. It dismissed the Limitation Act petitions—freeing the claimants to pursue litigation in state court. Skanska says the district court acted too fast and also disputed several of the district court’s other decisions.   The Eleventh Circuit affirmed. The court explained that Limitation Act allows a federal court to take over all negligence claims to preserve the vessel owner’s right to limit its liability and then proportionally distribute the available assets to the successful claimants. But only to the extent necessary to protect the right to limitation; it does not create an independent right to have the full merits of each individual claim decided in federal court when no limitation is available. Further, the court concluded that it saw no reversible error in the district court’s evidentiary rulings, its findings of fact, or its spoliation sanctions. View "Skanska USA Civil Southeast, Inc. and Skanska USA v. Bagelheads, Inc., et al." on Justia Law

A collective-bargaining agreement between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), an association of carriers and other employers, earmarks all container loading and unloading work on the East and Gulf Coasts for the union’s members. So when USMX-affiliated ships docked at a new South Carolina terminal that used non-union lift operators, the union sued USMX and its carrier members for damages. Soon enough, USMX’s carrier members stopped calling at that terminal. At issue is whether the ILA’s lawsuit—and a separate provision of its contract with USMX—violate the National Labor Relations Act. The National Labor Relations Board held that they don’t, and the South Carolina State Ports Authority petitioned for review.   The Fourth Circuit agreed with the Board and denied the petition. The court agreed that USMX and the ILA haven’t made an agreement that violates Section 8(e). Moreover, the court explained that the Board rationally held that the ILA’s lawsuit against USMX sought to preserve its coastwide jurisdiction over loading and unloading work, so it didn’t violate the Act. And the Board and ALJ correctly concluded that Section 7(b) of the Master Contract didn’t constitute an illegal hot-cargo provision, whether by its text or by tacit agreement. View "South Carolina State Ports Authority v. NLRB" on Justia Law

Plaintiff worked as a longshoreman as early as 1998 and worked regularly for Cooper from 2008 through the date of his injury on June 22, 2018, never going more than a week and a half without working. He performed various jobs including operating a front-end loader and track hoe, flagging cranes, and loading barges. Employer classified Plaintiff as a non-assigned employee, meaning he was not assigned to a specific vessel. Employer has other employees who are assigned to vessels.Plaintiff was hurt when he fell to the deck of a ship he was working on. He filed suit against Employer in federal district court in November 2020, alleging that he was a seaman and a member of the crew, and bringing claims of Jones Act negligence, failure to pay maintenance and cure, and unseaworthiness. In the alternative, Plaintiff alleged that if he was not a seaman and was covered by the LHWCA.The District Court found Plaintiff failed to cite evidence that showed a genuine dispute of material fact as to whether he was a seaman and, alternatively, as to vessel negligence.The Fifth Circuit affirmed, finding that Plaintiff did not have a connection to the ship he was working on at the time he was injured, and that he could not establish vessel negligence. View "Johnson v. Cooper T. Smith Stevedoring" on Justia Law

Deltech Corp. (“Deltech”), a chemical manufacturer, joins here with Stolt-Nielsen USA, Inc., and Stolt Tank Containers B.V. (together, “Stolt”), a shipping concern, to challenge the district court’s determination that they alone bear liability for damages caused by an explosion and fire that took place in June 2012 aboard the ocean-going vessel M/V MSC Flaminia. In the first phase of a three-part proceeding, the district court addressed the causes of the explosion. It determined that the decision to ship DVB-80 from New Orleans Terminal rather than a northeastern port, the early filling of the DVB-80 containers and their early transport to New Orleans Terminal, the conditions in which the tanks of DVB-80 were kept at New Orleans Terminal, and their placement and stowage onboard the Flaminia were the primary causes of the explosion. It exculpated other parties to the shipping transaction from legal liability. It is this decision that Deltech and Stolt challenge now in an interlocutory appeal.   The Second Circuit affirmed in part and reversed in part. The court reversed the district court’s determination that Deltech and Stolt are strictly liable under Section 4(6) of the Carriage of Goods at Sea Act (“COGSA”), but the court affirmed its ruling that Deltech and Stolt are liable under a failure-to-warn theory pursuant to Section 4(3).  As to the other defendants, the court affirmed the district court’s conclusion that the carrier and related shipowner interests were not negligent in their treatment of the shipment and that New Orleans Terminal too, was not negligent. The court also affirmed the district court’s determination that Stolt has not stated a claim against its subcontractor. View "In re: M/V MSC Flaminia" on Justia Law