Facts

Petitioner Taurus Marine, Inc. owned the tugboat TERILYN which was hired to work on a dredging and wetlands restoration project in San Pablo Bay by the claimant Manson/Dutra Joint Venture. Manson/Dutra's scow CK-7 broke her mooring line during a storm and damaged McNear's Pier owned by Marin County. The scow had been taken to a Dutra buoy by TERILYN several hours before. The next morning, Manson/Dutra personnel took charge of the removal effort. The scow ended up swinging further into and damaging the pier. Taurus Marine, Inc. filed for exoneration from or limitation of liability for damages caused by the allisions.

Manson/Dutra and Marin County settled Marin County's claims in January 2009.

The claims against Taurus Marine, Inc. by Marin County were assigned to Manson/Dutra as part of the settlement. Taurus Marine, Inc. argued that under McDermott, Inc. v. AmClyde, 511 U.S. 202 (1994), and related cases, that Manson/Dutra was barred by the general maritime law from litigating further over the pier damages and attempting to recover damages from Taurus Marine, Inc., because inter alia, under the settlement agreement Marin County did not release Taurus Marine, Inc. and TERILYN (and other potential tortfeasors) from liability.

Result

The court applied McDermott and ruled for Taurus Marine, Inc. finding that the assignment of rights from Marin County to Manson/Dutra was invalid as a matter of the general maritime law and that Manson/Dutra was barred from seeking contribution or indemnity from Taurus Marine, Inc. because Mason/Dutra had not obtained a release of Taurus Marine, Inc. when settling with Marin County.

Other Information

This ruling has been appealed to the 9th Circuit. Respondent filed a motion for reconsideration on March 28th, and expects a final decision after April 16th.