Met Life v. Commonwealth, 1st Cir. (1998)
Met Life v. Commonwealth, 1st Cir. (1998)
Met Life v. Commonwealth, 1st Cir. (1998)
No. 97-1321
THE COMPLAINT OF
Plaintiff - Appellant,
____________________
Plaintiffs - Appellees,
v.
Defendants - Appellees.
____________________
No. 97-1322
Plaintiffs - Appellants,
____________________
Plaintiffs - Appellees,
v.
Defendants - Appellees.
____________________
____________________
Before
_____________________
were
on
brief
for
appellant
Metlife
Capital
Corporation.
John M. Woods, with whom
_____________
& Wood,
______
William A. Graffam,
___________________
and
Jim nez
_______
Graffam & Lausell were on brief for appellant Bunker Group, Inc.
_________________
Mee Lon Lam,
___________
Civil
Attorney, were
Division,
on
Civil Division,
and
brief for
Guillermo Gil,
______________
appellee United
United
States of
America.
Antonio J. Rodr guez,
______________________
with
whom
Rice Fowler,
____________
Jos
A.
________
Rico,
for appellee
____________________
____________________
-2-
TORRUELLA,
TORRUELLA,
consolidated for
Chief
Judge.
Chief
Judge.
_____________
appeal, challenge
These
two
the district
court's ruling
repealed
the Limitation
("Limitation Act"),
of Shipowner's
46 U.S.C.
app.
Liability
181-96,
actions,
2701-61,
Act of
as to
1851
oil spill
the OPA.
We
hold that
costs
claims arising
and
damages)
procedural
claims
law of
under
Admiralty
are
not
subject
the Limitation
Rule
of the
and Maritime
(for pollution
to
Act
or to
Supplemental
Claims
the
of the
removal
substantive
or
the concursus
of
Rules
Federal
for
Rules of
Certain
Civil
I.
I.
BACKGROUND
BACKGROUND
EMILY
S and
barge
off
the barge
of Punta
MORRIS J.
Escambr n,
BERMAN parted,
San
Juan,
grounding the
Puerto Rico.
The
"Commonwealth").
damages action
in
the
United States
District
Court
filed a
for
the
("BGPR"); (iii)
and the
co-demise charterer
of the EMILY
-3-
S New
J. BERMAN
England Marine
Corporation
("MetLife");
and (v)
OPA,
general
federal
Subsequently,
several
the
EMILY S and
maritime
other
EMILY
in rem.
__ ___
The
law,
and
Puerto
civil actions
were
Rico
filed
the
law.
in the
a variety of
theories for
damages.
Each
of these actions
was
Within
six months
of the
oil
spill, the
appellants
NEMS, BGI,
filed a
complaint
under
Act
seeking
exoneration from or
the
Limitation
and
limitation of liability.
Rule
At
F,
action
under
the Limitation
Act.
On
a notice
actions
of injunction, or
and an order
August 25,
to claimants
1994,
of the
the
limitation
claims
arising out
of the
grounding
of the
a concursus
of all claims
NEMS,
BGPR,
BGI,
provided notice
to
and
MetLife
(the
actual claimants
claimants in a Notice of
on August
in a single
for
consolidated proceeding.
"Limitation
as
well as
Plaintiffs")
to
potential
barge except
them to
on or
At
the
conclusion
of
the
monition
period,
the
-4-
Limitation
all
persons
claimants,
who
failed
to
file.
Subsequently,
numerous
"Government"),
seeking recovery
filed
actions
in
the
limitation
proceedings,
In their claims,
the
be subject
to concursus.
Rico,
Hilton International of
Hotel Development
under
seal
in
administrative
National
Hilton
the
limitation
claims, which
Pollution Funds
claimants
relief in
an
injunction
order
moved the
issued
Center ("NPFC"),
simultaneously
order to
proceedings
had already
On June
suspending
issued in
the
August
the limitation
been
claims
while
the
pending.
The
were
district
court for
they withdrew
the district
25,
their
filed with
claims if
28, 1996,
Puerto
1994
proceedings.
order
This
court
of
order
allows
"any
claims
for
oil
barge
MORRIS
J.
BERMAN
independently
of
the
Subsequent to the
issuance of
removal
costs or
damages
January 7,
limitation
administrative
on
spill
of
1994
to
liability
the order,
be
proceedings."
the Hilton
-5-
NPFC.
However,
asserted
claimants
with their
their motions
BGI, BGPR,
1996 order.
question now
-6-
II.
II.
Interpretations
subject to de
__
novo review.
____
of
DISCUSSION
DISCUSSION
federal
statutes
See Strickland
___ __________
and
rules
v. Commissioner, Me.
_________________
A.
A.
are
The
Limitation
shipbuilding and
shipping
Act
to induce
industry.
See
___
investment in
273 U.S.
out of the
post-accident value of
U.S.C.
1851
to promote
the growing
American
207 (1927).
The law
v.
permits the
voyage of his
or her vessel
to the
See 46
___
183, 186.
Rule
limitation action.
later
in
damages arising
was enacted
than
governs
The
six months
the
filing
and
after
receipt
of a
adjudication
file a
claim
of
complaint no
as
well as
See
___
Rule F(1).
417 (1954),
to pursue
relief in
F(3),
F(7).
Concursus is
economical disposition to
415.
of
intended
controversies."
the Limitation
Act.
to provide
and
U.S. at
See, e.g.,
___ ____
See Rule
___
a "prompt
Cushing, 347
_______
Thomas J.
-7-
Schoenbaum,
Limitation Act's
substantial
to limit
claims
repealed
the act,
by contract").
However, Congress
and therefore,
that put
courts continue to
has
never
apply it.
The Oil
1989
Exxon
comprehensive
Pollution Act
Valdez
tanker
compensation and
was passed in
disaster
and
the wake
created
liability scheme
of the
more
for oil
spill
the
OPA, the
Federal
Water
provided
liability
Control
Act
limitations
imposes
Pollution
for federal
oil spills.
See
___
id.
__
Prior to
("FWPCA")
1251-1387,
pollution
removal
1321(c).
The OPA
oil is discharged.
See 33 U.S.C.
___
2702(a).
Responsible parties
id.
__
See
___
2701(32).
The
OPA limits
the
liability of
Id.
__
responsible parties
2704(a)(1).
For
all other vessels, the limit is the greater of $600 per gross ton
or $500,000.
unlimited
Id.
__
2704(a)(2).
Responsible parties
may face
willful misconduct.
-8-
liability limits.
See id.
___ __
2718(a), 2718(b).
claims
brought under the OPA after they have first been presented to the
responsible party,
the
if the
defense,
or
reached.
See 33 U.S.C.
___
responsible party
liability limit
under
is
the
entitled to
statute has
2708(a), 2713(b)(1)(B).
been
See generally
___ _________
B.
B.
The
OPA specifically
addresses its
relationship with
and
provisions
of
this
responsible
party
for
subject
to
chapter,
a
vessel
the
each
or
of a
costs and
subsection
(b)
damages specified
that
result
from
in
such
incident.
33 U.S.C.
that
Limitation Act,
but does
not eviscerate
the
preexisting limitation
Limitation
available
Act
concursus
remains
to
responsible
parties.
However, a
plain reading
of
the subsection
suggests
See In re
___ _____
-9-
accord In
______ __
procedural
rules
incorporated
into
Aug.
the
Accordingly, the
Limitation
Act
are
inapplicable as well
language
in
to such
the FWPCA,
claims.
courts
In interpreting
have
held
that the
Act to
claims by the
costs.
See
___
Limitation
Alaska 1981).
See also
_________
to damages
statute's
pollution removal
(D.
similar
law").
Schoenbaum, supra,
__________ _____
We find these
"[n]either the
language
history
suggests
OPA's
contrary
to the
settled law
of
cases to
OPA
provisions
applicable to
nor
state law,
be persuasive
its
should
("OPA
with respect
because
that
at 376
including common
legislative
be
FWPCA when
construed
OPA was
enacted."
Effect
William M.
Pollution Act
of 1990's
In addition to the
four
other provisions
U.S.C.
in
"notwithstanding" clause, at
the
statute
explicitly
least
repeal
the
See 33
___
-10-
(repealing the
Limitation
Act
2718(c)(1)
(repealing
liability
to
state
the
2718(c)(2)
or penalties).
to the OPA.
Limitation
The
statutory
Act
as
to
remedies);
additional
Limitation
Act
as to
outside of
to apply
"[i]f Congress'
repealed
local
(repealing the
repeal
and
subdivision);
fines
as
intent in
the Limitation
it only
with
Act,
enacting OPA
it
would
respect to
had been
not
certain
have
to completely
painstakingly
types of
actions."
When
we
consider
these
the
OPA
provisions
irreconcilably in conflict,
repealed
five
Limitation Act
as to
oil spill
which
pollution claims
"'[W]here provisions
the extent of
497,
503
repeal of the
U.S.
to
(1936)
(noting
standard
for
repeal
by
implication
is
implication)).
While
the
repeal
of
statutes
by
disfavored, see Tennessee Valley Auth. v. Hill, 437 U.S. 153, 189
___ ______________________
(1978),
inconsistent.
First,
____
of the two
the shipowner's
-11-
liability to the
freight, 46
U.S.C.
OPA contemplates
a strict
2702, 2704.
Moreover,
2704(c).
obvious
U.S.C.
imposes
See 33
___
tension.
limitation
33
U.S.C.
Only federal
proceedings.
See,
___
courts
e.g.,
____
have jurisdiction
over
Vanderheide & Scheepvaart Maats Christina B.V., 836 F.2d 750, 755
______________________________________________
(2d Cir.
1988).
In
courts jurisdiction
to decide
2717(b), 2717(c).
procedural
OPA.
Finally, the
oil pollution
cannot be
cases.
provisions of
and which is
reconciled with
33
U.S.C.
Rule F,
the
incorporated into
sections of
the
As
this
court has
interpretation
is
is consistent
noted,
to
the
give
with our
interpretation.
"chief objective
effect
to
of
statutory
legislative
will."
Liability under
this Act
notwithstanding
any
rule of
liability
govern
the law.
is established
other
This
provisions of
limitations
provision or
means that
this Act
compensation
the
would
for
under existing
statutes
-12-
H.R. Conf.
Rep. No.
U.S.C.C.A.N.
Conference
779,
781
(Joint
the
on the OPA
1851
Explanatory
Committee explaining
Senate Report
supersedes
101-653, at 103
Statement
2702(a)).
statute with
respect
to
of
the
Furthermore,
the
OPA "completely
oil pollution."
More
generally,
as
the
Ninth
Circuit
reasoned
in
provisions
U.S.C.
OPA]
of the
would
1991).
legislation
environmental
frustrate
completely
"The purpose
passed
by
Congress
F.2d at 583.
[the
of OPA,
disasters such
to eliminate liability
944
43
OPA]'s
comprehensive
as well
and
as oil
*4.
Authorization Act,
remedial nature."
Cir.
Trans-Alaska Pipeline
the
spills,
as other
states
to
was to
remedial
address
encourage
Glacier Bay,
___________
scheme is in irreconcilable
Some
claims
arising
from an
incident
in
which oil
that Act
remains in
maritime tort
U.S.C.
chapter,
2751(e)
this
("[e]xcept
chapter does
as
not
For example,
maritime claims
such as
persons or vessels.
See 33
___
otherwise
affect
provided
. .
in
admiralty
this
and
-13-
maritime law").
The district
with the
OPA's savings
Plaintiffs'
claims
provision in
right "to
subject
Therefore,
to
the
Bunker
from
2751(e),
seek limitation
reduction
under
Group's
of
from Rule F
Limitation
liability for
those
Limitation
Act."
the
contention
that
the
without merit.
reserved the
district
arising
the Limitation Act and Rule F concursus for their non-OPA claims.
C.
C.
The
even if the
OPA supersedes
the Limitation Act, because the OPA fails to provide any guidance
on the
procedure
applies to
necessary to
implement it,
Rule F
concursus
Act.
is
To support their
framed
generally
pursuant to statute."
_______
redrafting
statute"
address
Rule F(1).
"limitation
the Supreme
of
liability
the rules,
reference to
to
Court
in Rule F
written
Limitation Act.
substituted a
In
direct
to
for Rule F.
We
conclude, however,
OPA's provisions
that Rule
limitation of liability
F's requirements
damages.
-14-
with the
Under Rule
on
F, a
only in the
not been
sued.
seized, in
any district
in which
the owner
has been
vessel has
action may be
See id.
___ __
Venue is
the vessel
See
id.
___
in
contrast,
venue is
discharge of oil or
proper
in
any
__
district in
which
the
in which the
Thus, the
while
Rule
F's
venue
U.S.C.
2717(b).
of forums
requirements
33
are
significantly
more
restrictive.
Rule
the OPA's
statute of
limitation.
to file
F(4).
in
Once
a limitation
action is
in the notice.
See Rule
___
as little as 30 days
notice.
Id.
In
__
the
instant case,
ten months
The
2717(f)(1),
seek
OPA, however,
action to
of the MORRIS J.
allows claimants
2717(f)(2).
recovery from
the
terminated approximately
BERMAN's grounding.
three years to
damages.
commence an
See 33
___
U.S.C.
Fund,
the claimant
-15-
has
six years
to
present removal
costs claims,
three
present damage
years to
Finally,
section 2717(f)(4)
subrogation actions by
subrogated claim.
One
under
subject
court imposed
See 33 U.S.C.
___
rights under
pays a
See id.
___ __
2712(h)(2).
limitation period
claims period
OPA.
F concursus,
If
oil
claimants who
spill claims
are barred
recovering against
United
States acquires
are
by the
the responsible
claim, the
for
2717(f)(4).
the
deadline from
claims.
2712(h)(1), and
concern we have
to Rule
U.S.C.
extends the
subrogation
Fund
see 33
___
Once the
all rights
of
subrogation.
See 33 U.S.C.
___
However,
at that point, the United States may then be denied access to the
proceedings against
The
appellants
respond
that,
under
Rule
F(4).
F,
the
filed."
Rule
We
claims may
be
subjecting
believe
though
that
fails to adequately
this issue
discretion
is contrary to
legislative intent.
Moreover,
even if the
the monition
-16-
period for
subrogation claims,
fund established
by the
in many
instances, the
concursus procedure
limited
will already
have
been exhausted.
Finally,
the OPA
contrary to
fails to provide
the appellants'
contention that
OPA does
establish a
claims procedure.
claims for
party or guarantor.
party
See 33 U.S.C.
___
denies liability
or the
claim is
to the Fund.
id.
__
2713(b).
procedure
is
to
"The
promote
purpose
of
settlement
within 90
responsible party in
See id.
___ __
may be presented
See
___
If the responsible
not settled
some
2713(a).
2713(c).
In
directly to
the
and
claim presentation
avoid
litigation."
Johnson v. Colonial Pipeline Co., 830 F. Supp. 309, 310 (E.D. Va.
_______
_____________________
1993).
forces
all claimants
claimant
into litigation
fails to
appear in
monition period, he
See Rule
___
F(3).
that Rule F
the limitation
In view of
action within
If a
the
these inconsistencies,
owner.
we conclude
III.
III.
For
CONCLUSION
CONCLUSION
-17-
in this opinion,
the district
-18-