Facts

On Feb. 12, 2008, plaintiff Aukai Collins, was working on the M/V Faithful, allegedly as an employee of defendant Curtis Lind dba CalEquipment, while it was stationed at a wharf in Alameda Point. Plaintiff was working on the rear of the main deck removing plywood when the railing he was holding onto gave way. Plaintiff fell down approximately 15 feet onto the deck of the fantail, which was cluttered with debris and piled anchor chains.

Defendant Al Bouraq Aviation Inc., a dissolved Delaware Corporation, had abandoned the M/V Faithful at the wharf in Alameda Point. Al Bouraq was alleged to have been a shell corporation wholly controlled by Dr. Abdullah Alanizi, a Saudi Arabian national who resides in the United Kingdom.

Transatlantic Aviation was brought in as a defendant in this case, under an alter ego theory, because default judgment against Al Bouraq Aviation, would have been insufficient to reach the assets of Dr. Alanizi and his trust and holding company. After plaintiff filed a Request for Entry of Default as to Al Bouraq Aviation, Al Bouraq Aviation set the default aside and defended the case under a reservation of rights.

The M/V Faithful had been moored at the wharf without a license agreement or the city's consent, since approximately September 2005. The City of Alameda and its various subdivisions attempted to negotiate with the owners of the M/V Faithful, Al Bouraq Aviation and Dr. Abdullah Alanizi, to enter into a license agreement and removal of the ship, but were unsuccessful. The city served the owners with notices pursuant to California Harbor & Navigation Code section 526 prior to removing the vessel and obtained such authority through sections 522 and 523 once all notice periods had expired.

On Jan. 22, 2008, the Alameda Reuse and Redevelopment Authority, a Joint Powers Authority established by the City of Alameda, and the City Improvement Commission, the redevelopment agency, under the California Joint Powers Act as set forth in Title 1, Division 7, Chapter 5, Article 1 of the Government Code of the State of California (Government Code section 6500 et seq.) entered into a "Contractor Agreement" with Curtis Lind dba CalEquipment. The purpose of this agreement was for Lind to remove the M/V Faithful to a mooring space he owned to Rio Vista, which would be sufficient to accommodate vessels of this size. Lind works as an independent consultant, equipment broker and marine salvager.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that Dr. Alanizi used the corporate form to evade his individual liability to third parties, including the plaintiff and the City of Alameda. Al Bouraq Aviation's act of dumping this derelict vessel was actually the act of Dr. Alanizi, both individually and as trustee of the Alanizi trust, and that of Transatlantic Aviation Ltd., a British Virgin Islands Corporation.

DEFENDANT'S CONTENTIONS:
Plaintiff's status as an employee was disputed by Curtis Lind dba CalEquipment, who did not have workers' compensation insurance.

Curtis Lind argued that plaintiff was not authorized to work on the M/V Faithful and had come onboard simply to discuss the possibility of future work.

Defendants argued that plaintiff assumed the risk of falling by not taking necessary safety precautions and waling on the outer edge of the railing.

City defendants argued that they owed no duty to plaintiff and had no control over the M/V Faithful because they had turned over to Curtis Lind to be disposed of.

Specials in Evidence

$28,000 (Medi-Cal lien)

Injuries

Plaintiff suffered left tibial plafond fracture requiring open reduction internal fixation. Plaintiff's prosthetic right leg, which he received in combat overseas when fighting was damaged in the fall and had to be replaced at a costs of $8,000.

Result

The case settled for $215,000 ($120,000 from Curtis Lind dba CalEquipment; $10,000 personal contribution from Curtis Lind; $45,000 from City of Alameda, City Improvement Commission of Alameda and Alameda Reuse & Redevelopment Authority; $20,000 from Al Bouraq Aviation Inc.; $20,000 from Transatlantic Aviation Ltd.)

Other Information

MEDIATOR: Hon. Ronald W. Sabraw, JAMS, San Francisco.