In re Unterweser Reederei, GMBH, 68-290 Civ. T.

• Decision Date: 27 February 1969
• Docket Number: No. 68-290 Civ. T.,68-290 Civ. T.
• Citation: 296 F. Supp. 733
• Parties: In the Matter of the Complaint of UNTERWESER REEDEREI, GMBH, for exoneration from, or limitation of liability as owner of the M/S BREMEN.
• Court: U.S. District Court — Middle District of Florida

296 F. Supp. 733

In the Matter of the Complaint of UNTERWESER REEDEREI, GMBH, for exoneration from, or limitation of liability as owner of the M/S BREMEN.

No. 68-290 Civ. T.

United States District Court M. D. Florida, Tampa Division.

February 27, 1969.

David C. G. Kerr, of Macfarlane, Ferguson, Allison & Kelly, Tampa, Fla., Warren Faris, of Faris, Ellis, Cutrone, Gilmore & Lautenschlaeger, New Orleans, La., for plaintiff.

Dewey R. Villareal, Jr., of Fowler, White, Collins, Gillen, Humkey & Trenam, Tampa, Fla., James K. Nance, of Baker, Botts, Sheppard & Coates, Houston, Tex., for defendant.

ORDER

KRENTZMAN, District Judge.

THIS CAUSE came on for consideration upon a Motion for Injunction filed by Zapata Offshore Company, claimant, and a Motion to Stay filed by Unterweser Reederei, plaintiff. The Court having reviewed the excellent briefs submitted and having heard argument of counsel, determines that the injunction prayed for should be granted, and the Motion to Stay should be denied. As the basis for this determination the Court makes the following observations and conclusions.

I

STATUS OF PROCEEDING

The present controversy finds its origin in a mishap that occurred in the Gulf of Mexico on January 9, 1968. On January 12, 1968, Zapata Off-Shore Company filed its complaint against Unterweser Reederei, GMBH and the M/S BREMEN in this Court, the case being docketed as 68-21 Civ.T., for damages allegedly sustained by its drill rig CHAPARRAL while in tow of Unterweser's Tug BREMEN. Unterweser responded to the complaint by filing a motion to dismiss for lack of jurisdiction, contending that by virtue of a provision in the towage contract with Zapata the forum for any litigation should be the "London Court of Justice." The motion sought, alternatively, an order declining jurisdiction or an order staying further prosecution of proceedings in 68-21 Civ.T. The Court denied these motions in its Order of July 29, 1968.

After the Zapata complaint was filed in this Court, Unterweser instituted an action against Zapata in the High Court of Justice in London, England, February 21, 1968. In the London suit Unterweser claimed hire and other moneys due under said contract of towage and for damages for breach of contract. Later, on July 2, 1968, Unterweser filed its complaint in this cause, 68-290 Civ.T. seeking exoneration from or limitation of liability arising out of the mishap of January 9, 1968. On July 5, 1968, the Court entered an injunction restraining the prosecution of all other claims and proceedings arising from the events occurring on January 9, 1968.

On July 8, 1968, Zapata filed its claim in this action asserting the same cause of action as alleged in its original complaint in 68-21 Civ.T., and on July 24, 1968, Zapata filed its answer to the complaint.

On August 28, 1968, Unterweser filed its objection to Zapata's claim and also its counterclaim against Zapata, alleging in Count I the same claim as asserted by it in the London suit above mentioned, and in Count II Unterweser alleged a salvage cause of action.

Unterweser continued to pursue its action in the London Court and Zapata sought injunction relief in this Court on September 19, 1968. Unterweser has responded and on October 2, 1968, moved to stay further prosecution of the claim filed by Zapata in this suit. Zapata has not filed answer in the London Court and has not joined issue.

Unterweser states the issue to be decided by the Court thusly:

"Whether a District Court sitting in Admiralty in a limitation proceeding has jurisdiction under any circumstances, to enjoin the petitioner in the limitation proceeding from prosecution of an action in a foreign country against a claimant in the limitation action?"

Limitation proceedings are considered to be equitable in nature. Cases: A. C. Dodge, Inc. v. J. M. Carras, Inc., 218 F.2d 911 (2 Cir. 1955); The Salvore, 36 F.2d 712 (2 Cir.1929); Hartford Accident & Indemnity Co. v. Southern Pacific Co. 273 U.S. 207, 47 S. Ct. 357, 71 L.Ed. 612, 1927; Benedict on Admiralty, § 479 (6th Ed.1940).

The Court having once taken jurisdiction in the limitation proceedings may proceed to determine all matters relating to the controversy. As stated in Hartford Accident Co. v. Southern Pacific Co., supra, the limitation action is:

"* * * an equitable suit to the extent that the admiralty court, having the broadest of powers to do exact justice between the parties, may take any such action in the case as justice demands * * *."

The question of enjoining prosecution of litigation in another forum has been considered in several of the above cases. It seems clear that one, when seeking to take advantage of the limitation statutes, § 181 et seq. Title 46, U.S.C. should be required to "do equity" by refraining from litigating the same controversy in other courts. The cases on this issue all regard the determination of whether or not the ship owner may be allowed to proceed simultaneously in the other forum as being based upon equitable considerations. In The Salvore, supra, and A. C. Dodge, Inc. v. J. M. Carras, Inc. supra, the Second Circuit Court of Appeals held that the ship owner could not seek limitation of or exoneration from liability in the District Court while at the same time litigating in other courts. A contrary result was reached in Petition of A/S J. Ludwig Mowinckels Rederi, 268 F.Supp. 682, (So.Dist.N.Y.1967). In that case the collision occurred off the coast of France and action was started in England in the High Court of Justice and the court pointed out that many of the claims were being litigated in the London Court. The Court also pointed out that since other suits by cargo claimants against both ship owners were pending in the French Courts, there could not...