Justia U.S. 5th Circuit Court of Appeals Opinion Summaries

WFS Singapore filed suit attempting to recover a debt arising from the supply of fuel oil bunkers in Singapore to a Panamanian-flag vessel, which is beneficially owned by a United States company, operated and managed by a United States company, and which was chartered by a German company. The court affirmed the district court's conclusion and substantially with its reasoning. The district court, on summary judgment, applied Singapore law to the formation of the fuel sales contract, enforced the parties’ choice of law as the “General Maritime law of the United States,” and concluded that the vessel lien under the Federal Maritime Lien Act, 42 U.S.C. 31341 and 31342, was enforceable. View "World Fuel Serv. Singapore PTE v. Bulk Juliana MV" on Justia Law

Malin filed suit against OSA for the balance of its unpaid invoices for work, services, materials, and supplies that it had provided to OSA at the request of Con-Dive. The court affirmed the district court's denial of OSA's motion to vacate the attachment, concluding that, under Texas law, title to the bunkers at issue passed to OSA on delivery. OSA held title to the bunkers at the time of Malin's attachment, and title to property unquestionably suffices as an attachable interest under Supplemental Admiralty Rule B. Therefore, the district court had personal jurisdiction over OSA by virtue of the attachment of the bunkers on the vessel that it had chartered. The court affirmed the district court’s determination that no material issues of fact exist as to whether OSA received and ratified the invoices, including their interest and attorneys fees provisions. Thus, the court concluded that the district court committed no error in granting summary judgment for Malin. The court affirmed the judgment. View "Malin Int'l Ship Repair v. Oceanografia, S.A. de C.V." on Justia Law

Defendant appealed his conviction for failing to maintain an oil record book aboard a foreign-flagged merchant sea vessel, in violation of 33 U.S.C. 1908(a) and 33 C.F.R. 151.25. The district court denied defendant's motion for judgment of acquittal under Rule 29 of the Federal Rules of Criminal Procedure. The court reversed, concluding that the plain language of 33 C.F.R. 151.25 states that only the “master or other person having charge of the ship” has a duty to maintain the record book. The government concedes that defendant was not the “master or other person having charge” of the vessel at issue. The court vacated the conviction and remanded for entry of acquittal. View "United States v. Fafalios" on Justia Law

Petrobras and Underwriters filed suit against Vicinay, the manufacturer of an underwater tether chain that broke just after being installed to secure the piping system for oil production from the Outer Continental Shelf of the Gulf of Mexico. The district court granted summary judgment for Vicinay based upon the maritime law economic loss doctrine. Underwriters then sought leave to amend their complaint, alleging, for the first time, that Louisiana law, not maritime law, applied to this dispute under the Outer Continental Shelf Lands Act (OCSLA). 43 U.S.C. 1333(a)(2). The court held that the choice of law prescribed by OCSLA is statutorily mandated and is consequently not waivable by the parties. The court also held that the applicable law is that of the adjacent state of Louisiana, not admiralty law. Accordingly, the court reversed the lower court's denial of Underwriters' motion to amend and remanded for application of Louisiana law. View "Petrobras America Inc. v. Vicinay Cadenas, S.A." on Justia Law

This dispute arose from injuries sustained by a platform worker employed by Vertex. Continental appealed the district court's final judgment in favor of Tetra and Maritech, requiring Continental and its codefendant insured, Vertex, to indemnify them. The court concluded that the summary judgment record is inadequate to determine whether the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1333(a)(1), (a)(2)(A), requires the adoption of Louisiana law as surrogate federal law where the court cannot determine whether there is an OCSLA situs, the court cannot determine whether federal maritime law applies, and the Louisiana Oilfield Indemnity Act (LOIA), La. Rev. Stat. Ann. 9:2780, is consistent with federal law. Accordingly, the court concluded that neither party is entitled to summary judgment as to whether LOIA must be adopted as surrogate federal law under OCSLA. The court remanded to the district court to determine the dispositive issue of whether Louisiana law must be adopted as surrogate federal law. View "Tetra Tech. v. Vertex Servs." on Justia Law

Plaintiffs filed these consolidated cases, alleging exposure to asbestos aboard vessels operated or owned by the various defendants. At issue was whether the cases, originally filed in state court, properly belong in federal court. Defendants argue that removal was warranted under the Federal Officer Removal Statute, 28 U.S.C. 1442(a)(1). In adopting the magistrate judge’s report and recommendation, the district court found that defendants failed to establish an adequate causal link because plaintiffs’ claims were “analogous” to “failure to warn cases” where the government owns a work space infected with asbestos and the civilian contractor operating the facility fails to warn of the danger or otherwise mitigate the risk. The court found that the evidence suggests that the Federal Officer Defendants operated the vessels in a largely independent fashion and, at a minimum, were free to adopt the safety measures plaintiffs now allege would have prevented their injuries. The court concluded that the district court properly found that remand was proper based upon this ground. Accordingly, the court affirmed the judgment. View "Bartel v. Alcoa Steamship Co." on Justia Law

After plaintiff, an employee of Shore, was hurt while working on a derrick barge operated by McDermott, plaintiff filed suit against both Shore and McDermott under the Jones Act, 46 U.S.C. 30104. Plaintiff also filed suit against Shore for cure under maritime law. The district court entered judgment against McDermott and Shore. Both defendants appealed. McDermott asks the court to render judgment, reducing the future lost wages award from $300,000 to $209,533. Plaintiff’s own expert economist determined that his net future lost wages would be $209,533 if he worked as an unarmed security guard and retired at age 55.8. Therefore, the court reversed as to this issue and found it appropriate to render judgment in the amount of $209,533 for future lost wages. The court affirmed in all other respects, including issues of Jones Act liability, comparative negligence, future general damages, and cure. View "Barto v. Shore Construction" on Justia Law

After plaintiff was shot and seriously injured by a Nigerian gunman who invaded the drilling rig plaintiff was working aboard, he filed suit alleging that the negligence of other rig hands caused his injury and that GSF, a corporate parent and indirect subsidiary of the drilling company, was vicariously liable for such negligence under the general maritime law. The district court granted summary judgment for GSF. The court affirmed the judgment, concluding that GSF may not be held vicariously liable for the rig hands’ alleged negligence because no reasonable jury could find an employment relationship between GSF and the rig hands. The court found that the record contains no evidence of most of the factors that would support a finding of an employment relationship where there is no evidence that GSF had the right to direct the rig hands or to control the details of their work; there is no evidence that GSF hired or had the right to fire the rig hands; and there is no evidence that GSF furnished the rig or the equipment used on the rig. View "Johnson v. PPI Tech. Serv., L.P." on Justia Law

Plaintiff, an employer of Max Welders, was working as the borrowed employee of Wild Well, a subsidiary of Superior, when he sustained injuries while welding on an offshore platform. Plaintiff filed suit against all defendants under, inter alia, the Jones Act, 46 U.S.C. 30104. Superior and Wild Well filed a cross-claim for indemnity from Max Welders pursuant to a Master Service Agreement (MSA) or, in the alternative, Vessel Boarding, Utilization and Hold Harmless Agreement (VBA) between Superior and Max Welders. The court affirmed the district court's grant of summary judgment to defendants on the Jones Act claims because it found that plaintiff is not a Jones Act seaman. The court also affirmed the district court's grant of summary judgment to Max Welders on indemnity because 1) the MSA was void under Louisiana law and 2) the VBA did not apply to plaintiff’s work. View "Wilcox v. Max Welders, L.L.C." on Justia Law

Comar filed suit against vessel-owning LLCs after the LLCs decided to terminate an agreement with Comar in which Comar would manage the vessels on behalf of the LLCs. JPMorgan and Allegiance provided the financing for the vessel purchases and intervened to defend their preferred ship mortgages. The district court granted summary judgment in favor of JPMorgan and Allegiance. The court concluded that the district court correctly concluded that breach of the management agreements did not give rise to maritime liens; the court affirmed the district court’s grant of summary judgment in favor of Allegiance and JPMorgan; and the court did not reach whether the district court’s alternate holding that Comar was a joint venturer and therefore foreclosed from asserting a maritime lien was erroneous. The court also concluded that the district court did not commit reversible error in concluding that the termination-fee provision is unenforceable; the district court’s award to Comar is plausible in light of the record and not clearly erroneous; the district court did not clearly err in finding that Comar acted in bad faith when arresting the vessels and did not rely on legal advice in good faith; the district court did not clearly err in denying lost-profit and lost-equity damages; and the court concluded that the district court did not commit any other errors. Accordingly, the court affirmed the judgment. View "Comar Marine, Corp. v. Raider Marine Logistics" on Justia Law