Juno SRL v. S/V Endeavour

• Decision Date: 05 May 1995
• Docket Number: Nos. 95-1426,94-2193,s. 95-1426
• Citation: 58 F.3d 1
• Parties: JUNO SRL, et al., Plaintiffs Appellants, v. S/V ENDEAVOUR, et al., Defendants-Appellees. JUNO SRL, et al., Plaintiffs-Appellees, v. S/V ENDEAVOUR, et al., Defendants-Appellants. . Heard
• Court: U.S. Court of Appeals — First Circuit

Page 1

58 F.3d 1

1995 A.M.C. 2678

JUNO SRL, et al., Plaintiffs Appellants, v. S/V ENDEAVOUR, et al., Defendants-Appellees.

JUNO SRL, et al., Plaintiffs-Appellees, v. S/V ENDEAVOUR, et al., Defendants-Appellants.

Nos. 95-1426, 94-2193.

United States Court of Appeals First Circuit.

Heard May 5, 1995.

Decided June 9, 1995.

Michael X. Savasuk, with whom Bradley & Savasuk, was on brief, for appellants Juno SRL, et al.

Bradford D. Conover, with whom Dickerson & Reilly, was on brief, for appellees S/V Endeavour, et al.

Before TORRUELLA, Chief Judge, BOWNES, Senior Circuit Judge, and STAHL, Circuit Judge.

TORRUELLA, Chief Judge.

This case presents issues of first impression before this Court. The first issue is what weight private rules and procedures should have in determining the liability of sailing vessels that collide while engaged in the sport of yacht racing. The second issue is what forum shall assess the damages that result from such circumstances.

The district court decision is reported. Juno v. S/V Endeavour, 865 F.Supp. 13 (D.Me.1994). That court ruled that the S/V CHARLES JOURDAN was liable to the S/V ENDEAVOUR after a collision between the two vessels, but found that the ENDEAVOUR was 40% at fault in causing the encounter. It also concluded that the CHARLES JOURDAN suffered $10,000 in damages, from which sum the court deducted its 60% finding of fault, and dismissed all other claims for compensation by both the CHARLES JOURDAN and the ENDEAVOUR. For the following reasons, we reverse on the issue of liability and affirm in all other respects.

BACKGROUND

On October 3, 1992, the CHARLES JOURDAN, a seventy-two foot sloop, was racing in the La Nioulargue Regatta, which included a series of sailing races in and around the Bay of Saint Tropez, off southern France. The Sailing Instructions of the Regatta provided that it would be conducted pursuant to the 1989-1992 edition of the International Yacht Racing Rules (IYRR). Also competing in this Regatta on a different course was the ENDEAVOUR, a restored "J" class sloop 120 feet in length overall. Both race courses, however, converged at a mark designated as "A," located at the entrance to Saint Tropez Bay. CHARLES JOURDAN's course called upon it to round Mark A to port on its way to the finish line at Bouillabaisse Buoy, while the ENDEAVOUR was required to finish its course at Mark A.

As CHARLES JOURDAN headed for Mark A on a starboard spinnaker reach, another competing racing yacht, LA POSTE, was on a similar tack, overlapping CHARLES JOURDAN in close proximity to leeward. Pursuant to IYRR 37.1, ¹ the CHARLES JOURDAN, being the windward vessel, was the burdened vessel and was required to keep clear of LA POSTE. While racing along at eleven knots in this position, CHARLES JOURDAN caught up with ENDEAVOUR, who was sailing slower at seven knots and was to windward of CHARLES JOURDAN converging on a course approximately 40? from that of CHARLES JOURDAN.

Because the CHARLES JOURDAN believed it had right of way as leeward yacht over the ENDEAVOUR, its crew hailed the ENDEAVOUR seeking to alter its course. Although the crew of ENDEAVOUR acknowledged the hail, it failed to change course until a last minute attempt was made by the master of the ENDEAVOUR to alter its direction to windward. The boom of the ENDEAVOUR, which was held in place by a preventor, and thus could not be sheeted in, struck CHARLES JOURDAN's backstay, damaging the backstay and rigging.

Pursuant to the IYRRs and the Regatta's Sailing Instructions, the CHARLES JOURDAN filed a protest against the ENDEAVOUR. An International Jury was convened, ² and a hearing was conducted at which evidence was presented and arguments made by representatives of both vessels. The International Jury found that ENDEAVOUR was at fault for failing to meet its burden as the windward yacht under IYRR 37.1. See supra note 1. In a written decision, which was notified to the parties, the International Jury disqualified the ENDEAVOUR from the race. ³

Various incidents happened thereafter which are not presently relevant. Suffice it to say that the owners of CHARLES JOURDAN caught up with the ENDEAVOUR sometime in September 1993, in Maine, and proceeded to file the present action, and to arrest said vessel. The owners of CHARLES JOURDAN claimed that ENDEAVOUR is liable in damages to them because of ENDEAVOUR's violation of IYRR 37.1, as well as the provisions of Article 12 and 13 of the Convention on the International Regulation for the Prevention of Collisions at Sea ("COLREGS"), 33 U.S.C. Secs. 1601 et seq., 33 C.F.R. Sec. 80.01 et seq. They claimed the right to be compensated for damage to the CHARLES JOURDAN, and for loss of business and sponsors resulting from the vessel being incapacitated after the collision. In its answer, the owners of ENDEAVOUR denied liability and counterclaimed for damages for loss of business, and for the alleged false arrest of the vessel.

After a lively and mostly unnecessary round of discovery, the matter went to trial on the admiralty side of the bench. The district court found that because the IYRRs are the rules of a private racing organization, they "do not and cannot preempt the application of the COLREGS which have been adopted by treaty to govern worldwide." Juno, 865 F.Supp. at 17. The court thus ignored the findings of the International Jury and concluded that, under COLREGS Rule 13, 33 U.S.C. foll. Sec. 1602, ⁴ CHARLES On the question of consequential damages, the district court dismissed all claims for loss of charter and sponsorship income by all parties, for lack of proof. The court reached a similar conclusion regarding the counterclaims. The court made a determination of physical damages in the amount of $10,000 to the CHARLES JOURDAN caused by the collision, which was reduced to $4,000. This appeal ensued.

JOURDAN was an overtaking vessel required to keep clear of ENDEAVOUR. Pursuant to the "Pennsylvania Rule" ⁵ the CHARLES JOURDAN was presumed at fault. Nevertheless, the court found that, under COLREGS Rule 8, 33 U.S.C. foll. Sec. 1602, ⁶ the ENDEAVOUR's failure to take action to avoid the collision "was a significant cause of the accident," and found it 40% at fault. Juno, 865 F.Supp. at 18.

ANALYSIS

A. Standard of Review

Our standard for reviewing a district court's findings of fact and conclusions of law made in conjunction with a bench trial is well settled. We review claimed errors of law de novo. Williams v. Poulos, 11 F.3d 271, 278 (1st Cir.1993); Blanchard v. Peerless Ins. Co., 958 F.2d 483, 487 (1st Cir.1992). The district court's findings of fact, however, will not be set aside unless they are demonstrated to be clearly erroneous. Williams, 11 F.3d at 278; Fed.R.Civ.P. 52(a). In other words, we will give such findings effect unless, after carefully reading the record and according due deference to the trial court, we form "a strong, unyielding belief that a mistake has been made." Cumpiano v. Banco Santander Puerto Rico, 902 F.2d 148, 152 (1st Cir.1992). Where there are two permissible views of the evidence, the interpretation assigned by the trial court will therefore be adopted. Williams, 11 F.3d at 278.

The clearly erroneous standard also ordinarily applies to our review of a district court's resolution of mixed questions of law and fact. Id. In such situations, however, we are obligated to determine whether the court's decision was infected by legal error. If a trial court bases its findings upon a mistaken impression of applicable legal principles, the reviewing court is not bound by the clearly erroneous standard. Id.

B. The Contractual Nature of the Sailing Instructions and the IYRR

The history of the COLREGS shows that they were enacted because of the need to establish a code of international rules of the road for maritime traffic throughout the world. See H.R.Rep. No. 447, 95th Cong., 1st Sess. 1977, reprinted in 1977 U.S.C.C.A.N. 509. However, nothing in their history, or in the public policy issues that led to their enactment, indicates that they were meant to regulate voluntary private sports activity in which the participants have waived their application and in which no interference with nonparticipating maritime traffic is implicated. Therefore, by entering a regatta with sailing instructions which unambiguously set forth special, binding "rules of the road," the participants waive conflicting Surprisingly, considering the extent and history of the maritime and yachting tradition within its jurisdiction, we can find no published cases of this circuit regarding the issues raised by this appeal. In fact, even outside the First Circuit there is a dearth of applicable jurisprudence, although older reported English cases reveal that these questions have not altogether avoided judicial scrutiny over the years.

COLREGS and must sail in accordance with the agreed-upon rules. We base this conclusion not only on the nature and history of both the COLREGS and the private activity in question, but also because of the strong public policy in favor of the private settlement of disputes.

The cases that we have found, however, are helpful to the extent that they establish the principle--with which we are in full accord--that when one voluntarily enters a yacht race for which published sailing instructions set out the conditions of participation, a private contract results between the participants requiring their compliance therewith. See De Sole v. United States, 947 F.2d 1169, 1173 (4th Cir.1991); Clark v. The Earl of Dunraven, the Satanita, [1897] A.C. 59, 64, 66; Meggeson v. Burns, [1972] 1 Lloyd's Rep. 223; Clarke v. Thayer, 14 A.D. 510, 43 N.Y.S. 897, 898 (1897).

The legally binding nature of the obligations created by the IYRR and the sailing instructions is not altogether a new or revolutionary concept. In 1897, in The Satanita, A.C. at 64-66, a case involving a collision between two racing yachts sailing under the rules of the Yacht...