Justia Admiralty & Maritime Law Opinion Summaries

Havana Docks Corporation, a U.S.-based entity, obtained a usufructuary concession from the Cuban Government in 1928, granting it the right to develop and operate docks at the Port of Havana until 2004. This concession included a government promise of compensation if expropriation occurred before expiration. In 1960, following Fidel Castro’s rise to power, the Cuban Government seized control of the docks without compensating Havana Docks, prematurely terminating its concession. The Foreign Claims Settlement Commission later certified Havana Docks’ loss as approximately $9 million plus interest. Decades later, from 2016 to 2019, four major cruise lines used the Havana docks to transport passengers to Cuba, paying Cuban government-affiliated entities for access.Havana Docks sued the cruise lines under the Cuban Liberty and Democratic Solidarity Act (LIBERTAD Act) in the United States District Court for the Southern District of Florida. The cruise lines argued they could not be liable because Havana Docks’ concession would have expired in 2004 even without confiscation. The District Court disagreed, found for Havana Docks, and ordered each cruise line to pay over $100 million. The United States Court of Appeals for the Eleventh Circuit reversed this judgment, holding that liability under the Act required the defendant’s conduct to interfere with a property interest the plaintiff would have had absent confiscation, and since Havana Docks’ concession would have expired before the cruise lines’ conduct, no liability attached.The Supreme Court of the United States reviewed the case and disagreed with the Eleventh Circuit’s analysis. The Court held that, under the Act, liability attaches to anyone who traffics in physical property confiscated by the Cuban Government, not just property interests. It concluded that the cruise lines’ use of the docks constituted trafficking in confiscated property to which Havana Docks owns a claim, regardless of when Havana Docks’ concession would have expired. The Supreme Court vacated the Eleventh Circuit’s decision and remanded the case for further proceedings. View "Havana Docks Corp. v. Royal Caribbean Cruises, Ltd." on Justia Law

The Port of Los Angeles is run by a Board of Harbor Commissioners under a municipal ordinance (the tariff) and leases terminal facilities to operators that load and unload ships. Federally-licensed short-haul drayage trucks move cargo in and out of the Port. In response to concerns over proposed port expansion, the Board implemented a Clean Truck Program that involved a standard “concession agreement,” governing the relationship between the Port and drayage companies. It required a placard on each truck including a phone number and submission a plan listing off-street parking locations. Other requirements relate to financial capacity, truck maintenance, and drivers. The Board amended the tariff to make it a misdemeanor for a terminal operator to grant access to an unregistered drayage truck. An association of drayage companies sued, claiming that the requirements are expressly preempted by the Federal Aviation Administration Authorization Act of 1994 (FAAAA), 49 U.S.C. 4501(c)(1), and that even if the requirements are valid, the Port may not enforce them by withdrawing a right to operate at the Port. The district court ruled in favor of the Port. The Ninth Circuit affirmed, finding only the driver-employment provision preempted. A unanimous Supreme Court reversed in part. The FAAAA expressly preempts the placard and parking requirements, which relate to a motor carrier’s price, route, or service with respect to transporting property and “hav[e] the force and effect of law.” The Port exercised classic regulatory authority in forcing terminal operators and, therefore, trucking companies, to alter their conduct by implementing a criminal prohibition punishable by imprisonment. The Port’s proprietary intentions do not control. The Court declined to determine, in a “pre-enforcement posture” whether precedent limits the way the Port can en¬force the financial-capacity and truck-maintenance requirements. View "Am. Trucking Ass'ns., Inc. v. City of Los Angeles" on Justia Law

Lozman’s floating home was a plywood structure with empty bilge space underneath to keep it afloat. He had it towed several times before deciding on a marina owned by the city of Riviera Beach. After various disputes and unsuccessful efforts to evict him from the marina, the city brought an admiralty lawsuit in rem against the home, seeking a lien for dockage fees and damages for trespass. The district court found the floating home to be a “vessel” under the Rules of Construction Act, which defines a “vessel” as including “every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water,” 1 U. S. C. 3; concluded that admiralty jurisdiction was proper; and awarded fees and damages. The Eleventh Circuit affirmed, noting that the home was “capable” of movement over water despite subjective intent to remain moored indefinitely. The Supreme Court reversed, holding that the case was not moot, although the home has been destroyed. Lozman’s floating home is not a “vessel.” The definition of “transportation” must be applied in a practical way; a structure does not fall within its scope unless a reasonable observer, looking to the home’s physical characteristics and activities, would consider it designed to a practical degree for carrying people or things over water. But for the fact that it floats, nothing about Lozman’s home suggests that it was designed to any practical degree to transport persons or things over water. It had no steering mechanism, had an unraked hull and rectangular bottom 10 inches below water, and had no capacity to generate or store electricity. It lacked self-propulsion, unlike an ordinary houseboat. The Court considered only objective evidence to craft a “workable and consistent” definition that “should offer guidance in a significant number of borderline cases.” View "Lozman v. City of Riviera Beach" on Justia Law