Violation of Inland Navigation Rules Nixes OPA 90 Limitation for Vessel Owner

Kirby Inland Marine v. FPG Shipholding Co., 2021 U.S. Dist. LEXIS 127197 *; 2021 WL 2877454 (S.D. Tx. July 8, 2021, Brown, J.)

As a result of a collision in the Houston Ship Channel between the tug VOYAGER, with two barges in tow, and the tanker GENESIS RIVER.^[1] As a result of the collision between GENESIS RIVER and two barges in tow of VOYAGER, one barge capsized and the other nearly split apart causing reformate to flow into the channel causing damage to the environment and generating numerous third party damage claims.^[2] After trial on the merits, the court held that GENESIS RIVER was solely at fault and had also violation numerous Inland Navigation Rules of the Road.^[3]

In addition to seeking limitation under the Shipowner’s Limitation of Liability Act^[4] and the owner of the tug and barges also asserted limitation under the Oil Pollution Act of 1990 (OPA90).^[5] Pursuant to OPA 90, the court noted that the Responsible Party is the party which is the source of the discharge.^[6] However, the RP may shift all liability if it proves the discharge was the sole fault of a third party.^[7] The trial court held that GENESIS RIVER was soley at fault and failed to prove that either VOYAGER or BW OAK caused or contributed to the collision. Also, as GENESIS RIVER violated three Inland Navigation Rules which were intended to prevent oil spills, the liability limitation of OPA 90 also did not apply.^[8]

The parties stipulated to the amount of damages. Judgment was entered for Kirby in the amount of $17,398,488, representing $7,936,897 in collision damages and $9,461,591 in spill-response damages.^[9]

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^[1] The owners and managers of BW OAK were sued as third-party defendant by BW OAK but was exonerated from any liability. 2021 U.S. Dist. LEXIS 127197 at *19.

^[2] 2021 U.S. Dist. LEXIS 127197 *8.

^[3] Rules 6, 7, and 9 of the Inland Navigation Rules. 2021 U.S. Dist. LEXIS 127197 at *19

^[4] 46 U.S.C. §§ 30501 - 30512

^[5] 33 U.S.C. § 2701 et seq. 2021 U.S. Dist. LEXIS 127197 at *8

^[6] 2021 U.S. Dist. LEXIS 127197 at *17

^[7] 2021 U.S. Dist. LEXIS 127197 at *17-18

^[8] Citing United States v. Am. Comm. Lines, 875 F.3d 170 (5th Cir. 2017) and ., In re Settoon Towing, LLC, 2016 U.S. Dist. LEXIS 202884, 2016 WL 9447753 (E.D. La. 2016)

^[9]   2021 U.S. Dist. LEXIS 127197 at 22