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Western Pioneer Inc. v. International Specialty Inc. (Bowfin M/V)

Shipowner involved in collision was entitled to relief under Limitation of Liability Act.



Cite as

2003 DJDAR 9679

Published

May 11, 2004

Filing Date

Aug. 13, 2003

Summary

        9th U.S. Circuit Court of Appeals

        A ship owned by Western Pioneer collided with a barge owned by Signature Seafoods in the Puget Sound. Signature claimed that the collision was caused by the fatigue of the master of the Western ship. A district court disagreed and found that the sole proximate cause of the collision was the master's spontaneous negligent navigational errors. Western then sought to limit its liability under the Limitation of Liability Act. The district court held that Western was entitled to limit its liability under the act.

        Affirmed. The Limitation of Liability Act limits shipowner liability for the unseaworthiness of its vessel based on the negligence of the crew. However, the act does not protect shipowner if the negligence was within his privity or knowledge. The district court did not clearly err in finding that the collision was caused by spontaneous navigational errors, which were not within Western's privity or knowledge. Even though Western conceded that the collision was caused by the master's negligence, Signature still had the burden of proving what actions caused the accident. Thus, the act was properly applied.

        




In re: BOWFIN M/V WESTERN PIONEER, INC., as owner of the M/V Bowfin for limitation of liability, Petitioner-Appellee, v. INTERNATIONAL SPECIALTY, INC., as authorized agents for Sentry Select Insurance Company and Lloyds of London Syndicates 588,861,1209, ?Royal and Sun Alliance Insurance Company, Continental Insurance Company, and Greenwich Insurance Company; ROYAL AND SUN ALLIANCE INSURANCE CO.; CONTINENTAL INSURANCE COMPANY; GREENWICH INSURANCE CO., Claimants-Appellants, and SIGNATURE SEAFOODS, INC., owner of the Lucky Buck, Claimant.
No. 02-35534 D.C. No.CV-00-01842-JCC United States Court of Appeals Ninth Circuit Filed August 13, 2003
Appeal from the United States District Court for the Western District of Washington
John C. Coughenour, District Judge, Presiding
Argued and Submitted July 10, 2003-Seattle, Washington
Before: Thomas M. Reavley,* A. Wallace Tashima and Richard A. Paez, Circuit Judges.
Per Curiam Opinion
COUNSEL         Stanley L. Gibson, Gibson Robb & Lindh, San Francisco, California, for claimant-appellant Signature Seafoods, Inc.
        Matthew Turetsky, Schwabe, Williamson & Wyatt, Seattle, Washington, for claimant-appellant International Specialty, Inc.
        Donald K. McLean, Bauer Moynihan & Johnson, Seattle, Washington, for the petitioner-appellee.

OPINION
PER CURIAM:
        This admiralty action arises out of the collision in the Puget Sound between the Bowfin, owned by Western Pioneer, and the barge Lucky Buck, owned by Claimant Signature Seafoods. Western Pioneer initiated this Limitation of Liability Act1 proceeding following the collision. The district court held that Western Pioneer was entitled to limit its liability under the Act. We affirm.
        The Limitation of Liability Act limits shipowner liability arising from the unseaworthiness of the shipowner's vessel or the negligence of the vessel's crew unless the condition of unseaworthiness or the act of negligence was within the shipowner's "privity or knowledge."2 The shipowner has the burden of proving that the act or condition was outside its privity or knowledge after the claimant first establishes what act or condition caused the loss.3 In this case, the district court found that the sole proximate cause of the collision was "spontaneous negligent navigational errors" of the master of the tug and not the master's fatigue (for which the Claimants urged Western Pioneer was responsible). That finding is not clearly erroneous.4
        We reject the Claimants' contention that, by admitting that its master was at fault, Western Pioneer assumed the burden of negating its privity or knowledge of other acts by its master. The claimant retains the burden of proving what act caused the loss even if the shipowner concedes that its crew was negligent.5 The district court's finding resolved the limitation issues.
        AFFIRMED.



*        The Honorable Thomas M. Reavley, Senior United States Circuit Judge for the Fifth Circuit, sitting by designation.

1        46 U.S.C. app. §§ 181-196 (Supp. 2003).

2        Id. § 183(a).

3        See Carr v. PMS Fishing Corp., 191 F.3d 1, 4 (1st Cir. 1999); Hercules Carriers, Inc. v. Florida, 768 F.2d 1558, 1563 (11th Cir. 1985); In re Brasea, Inc., 583 F.2d 763, 738 (5th Cir. 1978).

4        See Churchill v. F/V Fjord, 892 F.2d 763, 770 (9th Cir. 1988).

5        See Carr, 191 F.3d at 4.


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