Holifield v. BP America, Inc.

Decision Date19 June 1991
Docket NumberCV-90-733-RJK,CV-90-1151-RJK,CV-90-2619-RJK,CV-91-334-RJK and CV-91-515-RJK.,No. CV-90-722-RJK,CV-90-722-RJK
Citation786 F. Supp. 840
CourtU.S. District Court — Central District of California
PartiesChet HOLIFIELD, an Individual, Don Slaven, an Individual, Yeriko Nitta, d/b/a the Seacliff Motel on Behalf of Themselves and All Others Similarly Situated, Plaintiffs, v. BP AMERICA, INC.; BP Oil Shipping Co., USA; American Trading Transportation, Co. Inc.; American Trading and Production Corp.; and the Trans-Alaska Pipeline Liability Fund; Golden West Refining Company and Brandenburger Marine, Inc., Defendants. Branko SINDICICH, Vicko T. Fiamengo, Sal Manzeralla, Donald Kusar, Sam Karr, Carlo Benares, Vito Battaglia, Steve Mardesich, Steven Mardesich, Angelo LoGrande, Terry Wilmarth, Dominic J. Balestreri, Salvatore Russo, Peter LoGrande, Crescenzo Iacono, Sam Randazzo, and John Dorio, Plaintiffs, v. BRITISH PETROLEUM PLC, a foreign corporation, B.P. North America Inc., a Delaware Corporation, B.P. North America Petroleum, Inc., a Delaware Corporation, and American Trading and Transportation Co., a Maryland Corporation, Defendants. In the Matter of the Complaint of AMERICAN TRADING TRANSPORTATION CO., INC., Owner of the Steam Tanker, AMERICAN TRADER, for Exoneration from or Limitation of Liability. SPORTFISHING ASSOCIATION OF CALIFORNIA, INC., et al., Plaintiffs, v. BP AMERICA, INC.; BP Oil Shipping Co., USA; American Trading Transportation, Co., Inc.; American Trading and Production Corp., and the Trans-Alaska Pipeline Liability Fund; Golden West Refining Company and Brandenburger Marine, Inc., Defendants. STATE FISH COMPANY, INC., the St. Joseph Association, Inc., John Aiello; Bill Hargrave, Santa Maria Fishing, Inc., Vito A. Gioiello, Anna Maria, Inc., Attillo Gioiello, Bernard J. Mattera, Qualy Pak Foods, Inc., Sea Scout, Inc., and Ferrigino Enterprises, Inc., Plaintiffs, v. BP AMERICA, INC., BP Oil Shipping Co., USA, American Trading Transportation, Co., Inc., American Trading and Production Corp., and the Trans-Alaska Pipeline Liability Fund; Golden West Refining Company and Brandenburger Marine, Inc., Defendants. STEVE P. RADOS, INC., a California Corporation, Plaintiff, v. BP OIL SHIPPING COMPANY, USA, a corporation, and BP Oil Supply Company, a Corporation, Defendants.

Robert E. Coppola, William P. Barry, Kenneth E. Johnson, Baker & Hostetler, McCutchen Black, Long Beach, Cal., for BP Oil Shipping Co. USA, BP Oil Supply Co. and BP America, Inc.

John S. Gray, Law Offices of John S. Gray, Fountain Valley, Cal., for Newport Sailing Club, Inc.

Daniel E. Lungren, Atty. Gen., Roderick E. Walston, Chief Asst., Sylvia Cano Hale, Deputy, Office of Atty. Gen., Los Angeles, Cal., Dennis M. Eagan, Linus Masouredis, Deputies, Oakland, Cal., for State of Cal.

Gail Hutton, City Atty., Huntington Beach, Cal., Law Offices of James H. Ackerman, Long Beach, Cal., for City of Huntington Beach.

Philip D. Kohn, City Atty., Rutan & Tucker, Costa Mesa, Cal., for City of Laguna Beach.

Joseph M. Murphy, Newport Beach, Cal., for Jack Morici.

Thomas M. Crehan, San Pedro, Cal., for G. Nazzareno, Inc., Sea Queen, Inc., Bimbo, Inc., United Food Processors, Ltd., The Fishermen's Ass'n of San Pedro, Trama Fishing Co., Inc., Maria Fishing, Inc., St. George II, Inc., Maria T., Inc., N.N.P.F. Enterprises, Inc., Fiore Enterprises, Inc., Nonna Maria Fishing, Inc. and Ingrande Palma, Inc.

Gregory W. Stepanicich, City Atty., City of Seal Beach, Quinn M. Barrow, Michael G. Colantuono, Richards, Watson & Gershon, Los Angeles, Cal., for City of Seal Beach.

Michael F. Minchella, Monteleone & McCrory, Universal City, Cal., Dennis J. Kelly, Anita Benjamin, Kelly, Cox, Wootton, Welch, Gill & Sherburne, San Francisco, Cal., for Steve P. Rados, Inc.

Francis J. MacLaughlin, White & Case, Los Angeles, Cal., James Robertson, A. Stephen Hut, Jr., Alan N. Braverman, Wilmer, Cutler & Pickering, Washington, D.C., for the Trans-Alaska Pipeline Liability Fund.

Jack Corinblit, Marc M. Seltzer, Gretchen Nelson, Corinblit & Seltzer, Los Angeles, Cal., Merrill G. Davidoff, Harold Berger, Daniel Berger, Peter Nordberg, Berger & Montague P.C., Philadelphia, Pa., Christina A. Snyder, Katten Muchin Zavis & Weitzman, Los Angeles, Cal., Stephen D. Oestreich, Ellen P. Chapnick, Wolf, Popper, Ross, Wolf & Jones, New York City, for Chet Holifield and Don Slaven as class representatives.

Adrian Kuyper, County Counsel, Carol D. Brown, Deputy, County of Orange, Michael R. Capizzi, Dist. Atty., Jan J. Nolan, Deputy, County of Orange, Santa Ana, Cal., for County of Orange.

Robert H. Burnham, City Atty., Robin Flory, Asst., City of Newport Beach, Newport Beach, Cal., for City of Newport Beach.

Joseph N. Mirkovich, Carlton E. Russell, Russell & Mirkovich, Long Beach, Cal., for Brandenburger Marine, Inc.

George J. Tomlinson, Santa Barbara, Cal., for Peter Guglielmo and Aneillo Guglielmo.

Erich P. Wise, Nicholas S. Politis, Michael J. Swain, Angelo F. Piersanti, Graham & James, Long Beach, Cal., for Golden West Refining Co.

Stewart M. Gerson, Ricard B. Stewart, Asst. Attys. Gen., Robert L. Brosio, U.S. Atty., Roger E. West, First Asst. Chief, Los Angeles, Cal., Philip A. Berns, Atty. in Charge, Bob Cunningham, Karen Dworkin, U.S. Dept. of Justice, San Francisco, Cal., for U.S.

Howard D. Sacks, San Pedro, Cal., for Salvatore Russo, Steven A. Panto, Donna L. Panto, Steven J. Panto, Danielle D. Panto, Salvatore Manzella, Tommy Manzella, Sam Carr, Steve Mardesich, Angelo LoGrande, Jo LoGrande, Peter Paul LoGrande, Benedetto LoGrande, Vicko T. Fiamengo, Frank Fricia, Mildred Fricia, Gregory Kuglis, Andrew Kuglis, Steven Burklund, Frank Iacono, Joe Cracchiolo, Vincent Ferrera, Carl Gassaway, John M. Doherty, Guiseppe Russo, Vince Lauro, Joe Caruso, Frank Trama, Jack MacDowd, Jim Grammatico, Vito Rinaudo, Branko Sindicich, Vito Battaglia, Don A. Kusar, Dominic Balestrieri, Crescenzo Iacono, Sam Randazzo, John Dorio and Robert Barker II.

Patrick Marley, Cole & Marley, Los Angeles, Cal., for Sport Fishing Ass'n of California and United Anglers of California.

Fred J. DiBernardo, San Pedro, Cal., George V. Allen, Jr., Jeffrey L. Yablon, Maryelena Pardo, Shaw, Pittman, Potts & Trowbridge, Washington, D.C., for State Fish Co., Inc., The St. Joseph Ass'n, Inc., John Aiello, Bill Hargrave, Santa Maria Fishing, Inc., Vito A. Gioiello, Anna Maria, Inc., Attillo Gioiello, Bernard J. Mattera, Qualy Pak Foods, Inc., Sea Lanes II, Inc., Sea Scout, Inc. and Ferrigino Enterprises, Inc.

MEMORANDUM OF DECISION AND ORDER

KELLEHER, Senior District Judge.

This motion arises out of the oil spill at Golden West's offshore mooring facility in Huntington Beach on February 7, 1990. On February 6, 1990, the tanker vessel Keystone Canyon was anchored outside the California coast. The Keystone Canyon was carrying Trans-Alaskan Pipeline System ("TAPS") crude oil loaded onto it at Valdez. The Keystone Canyon lightered the TAPS oil to the American Trader which, in turn, set course for the Golden West Terminal Mooring Facility off of Huntington Beach. The American Trader planned to unload a portion of the oil at the Huntington Beach facility and then transport the rest to Long Beach.

While the American Trader was attempting to berth at the Huntington Beach facility, its hull was ruptured, resulting in about 400,000 gallons of TAPS oil spilling into the coast off of Huntington Beach.

Defendant Trans-Alaska Pipeline Liability Fund ("the Fund") has moved, pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure to dismiss for failure by Plaintiffs to state a claim. The Fund claims that Plaintiffs' claims do not come within the Trans-Alaska Pipeline Authorization Act ("TAPAA") which is the sole basis of liability that could be asserted against the Fund.

Furthermore, the Fund asserts that, even if Plaintiffs' claim falls within TAPAA, Plaintiffs have failed to exhaust their administrative remedies. Thus, the Fund asserts that Plaintiffs' motion is not properly before this Court.

Finally, the Fund moves to dismiss, in CV-90-2619-RJK, plaintiff ATTRANSCO's complaint for exoneration from or limitation of liability.

The Court heard oral argument on the matter on February 25, 1991. The Court now (1) denies the Fund's motion that TAPAA does not apply to it; (2) denies the Fund's motion that the claimants need to exhaust their administrative remedies before bringing an action in the District Court; (3) continues to keep the issue of whether TAPAA repeals the Limitation Act under submission until the Ninth Circuit decides this issue; and (4) treats this motion to dismiss as one for summary judgment.

I
A. The Fund

The Fund is a non-profit entity which may sue and be sued in its own name. It is administered by the holders of the pipeline right-of-way under the regulations promulgated by the Secretary of the Interior. The Fund is funded by the owners of the TAPS oil. The operator of the pipeline shall collect from the owner of the oil at the time it is loaded on the vessel a fee of five cents per barrel. 43 U.S.C. § 1653(c)(5). The collection shall cease when $100,000,000.00 has been accumulated in the Fund, and it shall be resumed when the accumulation of the Fund falls below $100 million dollars. Id.

The Fund is governed by a ten person board of trustees. 43 C.F.R. § 29(b)(1). The Fund trustees owe a duty to those injured by spills covered by TAPAA to evaluate their claims carefully and to offer to pay expediently all allowable claims for damage that result from covered spills.

Strict liability for all claims arising out of any one incident shall not exceed more than $100 million dollars. 43 U.S.C. § 1653(c)(3). A vessel owner or operator is strictly liable for damages which result from a discharge of TAPS oil for an amount up to, but no greater than, $14 million dollars. Id. The Fund is liable for the balance of the claims to $100 million. Id.

B. Whether the Plaintiff's Claims Come Within TAPAA

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2 cases
  • Slaven v. BP America, Inc.
    • United States
    • U.S. District Court — Central District of California
    • 10 Febrero 1992
    ...this Court held that the Trans-Alaska Pipeline Authorization Act, 43 U.S.C. § 1651 et seq. ("TAPAA"), did apply to this oil spill. 786 F.Supp. 840. All the parties agree that these consolidated cases fall under this Court's maritime jurisdiction and that therefore general maritime law appli......
  • Slaven v. American Trading Transp. Co., Inc.
    • United States
    • U.S. Court of Appeals — Ninth Circuit
    • 18 Agosto 1998
    ...the Fund's motion to dismiss, holding, inter alia, that TAPAA applies to the American Trader oil spill. See Holifield v. BP America, Inc., 786 F.Supp. 840, 847 (C.D.Cal.1991). Following an appeal by the Fund, this court affirmed the district court's ruling. See Slaven v. BP America, Inc., 9......

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