Justia Admiralty & Maritime Law Opinion Summaries

Plaintiff filed suit against Chevron and Edison in Texas state court after he was captured by pirates and tortured. Chevron removed to federal court and the district court subsequently granted Chevron's motion for summary judgment, denying plaintiff's motion for leave to amend. The court vacated and remanded, concluding that the notice plaintiff gave of his intent to amend his complaint was sufficient under circuit precedent, and plaintiff's amended claims would not have been futile. View "Thomas v. Chevron" on Justia Law

Plaintiff filed suit against the County after he suffered injuries while aboard a vessel traveling in the Coral Park Canal, a drainage canal in the County. The district court dismissed the complaint for lack of subject-matter jurisdiction. At issue is whether a canal is navigable for purposes of admiralty jurisdiction, 28 U.S.C. 1333, if an artificial obstruction prevents vessels from using the canal to conduct interstate commerce. Because the Coral Park Canal cannot support interstate commerce, the court concluded that it cannot satisfy the location requirement of admiralty jurisdiction. The court concluded that extending jurisdiction to waters incapable of commercial activity serves no purpose of admiralty jurisdiction. Therefore, the court agreed with the district court that plaintiff's injuries did not occur on navigable waters for purposes of admiralty jurisdiction because an artificial obstruction prevents vessels from traveling from the Coral Park Canal to places outside of Florida. View "Tundidor v. Miami-Dade County" on Justia Law

A recreational boating accident killed four adults. The boat had been rented from Aramark Sports and Entertainment Services, LLC. Because the accident occurred on navigable waters, the case fell within federal admiralty jurisdiction. Anticipating that it would be sued for damages, Aramark filed in the United States District Court for the District of Utah a petition under the Limitation of Liability Act, which permitted a boat owner to obtain a ruling exonerating it or limiting its liability based on the capacity or value of the boat and freight. The district court denied the petition, leaving for further proceedings the issues of gross negligence, comparative fault, and the amount of damages. Aramark appealed the denial. After review, the Tenth Circuit held the district court erred in its application of admiralty principles of duty and remanded for further proceedings. View "In re: Aramark Sports" on Justia Law

In 2006, the district court adopted a consent order to resolve Dispatch's suit for an accounting of the gold from the S.S. Central America shipwreck. The order required defendants to produce financial documents regarding the period starting January 1, 2000. The court later issued a contempt order, citing defendants’ failure to produce an inventory of the gold recovered and sold. Defendants then produce an inventory of gold that they sold to California Gold Group from February 15 to September 1, 2000. They did not produce any prior inventories, which would have provided a complete accounting of treasure recovered from the ship. At a 2007 contempt hearing, the parties argued about whether the defendants possessed any earlier inventories. The court issued another contempt order in 2009. Defendants continued to assert that they had no such inventories. In 2013, Dispatch obtained the appointment of a receiver that it had first sought in 2008 to take control of and wind down the defendants. The receiver recovered found numerous inventories created before the California Gold sale, in a duplex owned by defendants' attorney and leased to defendants. The court concluded that defendants’ attorney engaged in bad-faith conduct, rejected Dispatch’s request for $1,717,388 (its total litigation expenses) and limited sanctions to the cost of pursuing the motion for sanctions, plus the expenses to uncover the fraud and locate the inventories. Dispatch submitted bills for $249,359.85. The Sixth Circuit affirmed a reduced award of $224,580. View "Williamson v. Recovery Ltd. P'ship" on Justia Law

Ficarra filed suit against petitioner, asserting claims of negligence stemming from a tort involving a vessel on navigable waters. More specifically, the case involves a diving accident off a recreational vessel anchored in shallow but navigable lake waters. The district court concluded that there was no admiralty jurisdiction here and reasoned that a recreational injury occurring on a recreational vessel anchored in a shallow recreational bay of navigable waters could not disrupt maritime commerce and did not bear a sufficient relationship to traditional maritime activity. Although the court concluded that the district court correctly articulated the Supreme Court’s modern test for admiralty tort jurisdiction, the court respectfully disagreed with its conclusion that jurisdiction is lacking here. The Supreme Court instructed the court that, “ordinarily,” “every tort involving a vessel on navigable waters falls within the scope of admiralty jurisdiction.” Therefore, petitioner's appeal of the dismissal of his petition seeking exoneration from or limitation of liability was proper, and the district court has jurisdiction over that petition. The court reversed and remanded. View "In Re Petition of Bruce Germain" on Justia Law

Defendant pleaded guilty to one count of conspiring to distribute cocaine while on board a vessel subject to the jurisdiction of the United States, in violation of the Maritime Drug Law Enforcement Act (MDLEA), 46 U.S.C. 70503(a)(1), 70506(b). The court rejected the government's contention that it should review only for plain error where the district court’s subject matter jurisdiction is a question of law that the court reviews de novo even when it is raised for the first time on appeal. In this case, the district court did not expressly make any factual findings with respect to its jurisdiction. In the plea agreement, defendant does not admit to facts that give rise to jurisdiction. The agreement does not state, for example, that defendant and his coconspirators failed to “make a claim of nationality” upon request when United States officials apprehended them. Instead, it asserts that defendant was on a vessel subject to the United States’ jurisdiction. The court concluded that a limited remand is the proper course of action in this case. Therefore, the court remanded the case to the district court for the limited purpose of determining whether subject matter jurisdiction exists. View "United States v. Gonzalez Iguaran" on Justia Law

WI buys furniture wholesale. OEC provided WI with non-vessel-operating common carrier transportation services. WI signed an Application for Credit that granted a security interest in WI property in OEC’s possession, custody or control or en route. As required by federal law, OEC also publishes a tariff with the Federal Maritime Commission, which provides for a Carrier’s lien. WI filed voluntary Chapter 11 bankruptcy petitions. OEC sought relief from the automatic stay, arguing that it was a secured creditor with a possessory maritime lien. OEC documented debts of $458,251 for freight and related charges due on containers in OEC’s possession and $994,705 for freight and related charges on goods for which OEC had previously provided services. The estimated value of WIs’ goods in OEC’s possession was $1,926,363. WI filed an adversary proceeding, seeking release of the goods. The bankruptcy court ruled in favor of WI, citing 11 U.S.C. 542. The district court affirmed, holding that OEC did not possess a valid maritime lien on Pre-petition Goods. The Third Circuit reversed, noting the strong presumption that OEC did not waive its maritime liens on the Prepetition Goods, the clear documentation that the parties intended such liens to survive delivery, the familiar principle that a maritime lien may attach to property substituted for the original object of the lien, and the parties’ general freedom to modify or extend existing liens by contract. View "In re: World Imports LTD" on Justia Law

An Automated Maritime Telecommunications System (AMTS) is a U.S. communication service between land and vessels in navigable waterways, existing on specific broadcast frequencies. Advances in technology have greatly expanded the potential uses of AMTSs. Under the original site-based system, small geographic regions were defined by location and the waterway served and the FCC provided licenses at no cost to the first applicant. In 2000, the FCC stopped issuing site-based licenses and began issuing licenses by competitive bidding; it divided the U.S. into 10 regions and, at public auctions, sold “geographic” licenses for two blocks of AMTS frequencies in each region. Although geographic licensees may generally place stations anywhere within their region, they may not interfere with the functioning of existing site-based stations, so the location of a site-based station creates a gap in a geographic licensee’s coverage area. Plaintiffs obtained geographic licenses in areas overlaying pre-existing site-based licenses. Site-based operators refused to provide plaintiffs with the operating contours for their site-based locations within plaintiffs’ geographic locations. Plaintiffs filed suit, alleging violation of the Federal Communications Act and the Sherman Antitrust Act. The Third Circuit affirmed dismissal of the FCA claims and a determination that no antitrust conspiracy existed. Plaintiffs did not identify particular actions that were determined by the FCC to be unreasonable or unjust and, therefore, do not possess a private right of action. View "Havens v. Mobex Network Servs., LLC" on Justia Law

An Automated Maritime Telecommunications System (AMTS) is a U.S. communication service between land and vessels in navigable waterways, existing on specific broadcast frequencies. Advances in technology have greatly expanded the potential uses of AMTSs. Under the original site-based system, small geographic regions were defined by location and the waterway served and the FCC provided licenses at no cost to the first applicant. In 2000, the FCC stopped issuing site-based licenses and began issuing licenses by competitive bidding; it divided the U.S. into 10 regions and, at public auctions, sold “geographic” licenses for two blocks of AMTS frequencies in each region. Although geographic licensees may generally place stations anywhere within their region, they may not interfere with the functioning of existing site-based stations, so the location of a site-based station creates a gap in a geographic licensee’s coverage area. Plaintiffs obtained geographic licenses in areas overlaying pre-existing site-based licenses. Site-based operators refused to provide plaintiffs with the operating contours for their site-based locations within plaintiffs’ geographic locations. Plaintiffs filed suit, alleging violation of the Federal Communications Act and the Sherman Antitrust Act. The Third Circuit affirmed dismissal of the FCA claims and a determination that no antitrust conspiracy existed. Plaintiffs did not identify particular actions that were determined by the FCC to be unreasonable or unjust and, therefore, do not possess a private right of action. View "Havens v. Mobex Network Servs., LLC" on Justia Law

WFS Singapore filed suit attempting to recover a debt arising from the supply of fuel oil bunkers in Singapore to a Panamanian-flag vessel, which is beneficially owned by a United States company, operated and managed by a United States company, and which was chartered by a German company. The court affirmed the district court's conclusion and substantially with its reasoning. The district court, on summary judgment, applied Singapore law to the formation of the fuel sales contract, enforced the parties’ choice of law as the “General Maritime law of the United States,” and concluded that the vessel lien under the Federal Maritime Lien Act, 42 U.S.C. 31341 and 31342, was enforceable. View "World Fuel Serv. Singapore PTE v. Bulk Juliana MV" on Justia Law