Slaven v. BP America, Inc.

• Decision Date: 10 February 1992
• Docket Number: CV 91-0334-RJK and CV 91-0515-RJK.,CV 90-0733-RJK,CV 90-1151-RJK,CV 90-2619-RJK,No. CV 90-0722-RJK,CV 90-0722-RJK
• Citation: 786 F. Supp. 853
• Court: U.S. District Court — Central District of California
• Parties: Donald SLAVEN; Salvatore Russo; Carl Gassaway; Yeriko Nitta, d/b/a the Seacliff Motel; Salvatore Manzella; Steven Panto and Donna Panto; Heinz Pet Products Company, A Division of Star-Kist Foods, Inc., a California Corporation; Gregory Kuglis; and Jack Morici, On Behalf of Themselves and All Similarly Situated, Plaintiffs, v. BP AMERICA, INC.; BP Oil Shipping Co., U.S.A.; BP Oil Supply Company; American Trading Transportation Company, Inc.; American Trading and Production Corp.; the Trans-Alaska Pipeline Liability Fund; Golden West Refining Company; and Brandenburger Marine, Inc., Defendants.

786 F. Supp. 853

Donald SLAVEN; Salvatore Russo; Carl Gassaway; Yeriko Nitta, d/b/a the Seacliff Motel; Salvatore Manzella; Steven Panto and Donna Panto; Heinz Pet Products Company, A Division of Star-Kist Foods, Inc., a California Corporation; Gregory Kuglis; and Jack Morici, On Behalf of Themselves and All Similarly Situated, Plaintiffs, v. BP AMERICA, INC.; BP Oil Shipping Co., U.S.A.; BP Oil Supply Company; American Trading Transportation Company, Inc.; American Trading and Production Corp.; the Trans-Alaska Pipeline Liability Fund; Golden West Refining Company; and Brandenburger Marine, Inc., Defendants.

Nos. CV 90-0722-RJK, CV 90-0733-RJK, CV 90-2619-RJK, CV 90-1151-RJK, CV 91-0334-RJK and CV 91-0515-RJK.

United States District Court, C.D. California, In Admiralty.

February 10, 1992.

COPYRIGHT MATERIAL OMITTED

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, Deputy, Linus Masouredis, Deputy, 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., 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 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, 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. Sachs, 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 Assn. 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., St. Joseph Assn, 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.

I. INTRODUCTION

On November 4, 1991, the Court heard oral argument on the following motions:

1. Motion of defendant Trans-Alaska Pipeline Liability Fund ("Fund") for judgment on the pleadings pursuant to Fed. R.Civ.P. Rule 12(c) on the claims asserted in CV 91-334 by State Fish Company, Inc. and Qualy Pak Foods, Inc. and in CV 90-722 by Nitta d/b/a the Seacliff Motel, Heinz Pet Products Company, and all other plaintiffs who are not commercial fishermen and did not suffer physical injury to their persons or property.

2. Motion of defendants BP America, Inc., BP Oil Shipping Co., U.S.A., and BP Oil Supply Company ("BP") for Rule 12(c) judgment on the pleadings on all claims in CV 90-722, CV 90-733, CV 91-334, and CV 91-515.

3. Motion of defendant American Trading Transportation Company, Inc. ("ATTRANSCO") to join in BP's Motion for 12(c) judgment in CV 90-722.

4. Motion of defendant Golden West Refining Company for dismissal for failure to state a claim upon which relief may be granted pursuant to Fed.R.Civ.P. Rule 12(b)(6) in CV 90-722 of Counts 4 & 6 as asserted by plaintiffs Slaven, Gassaway, Nitta, Heinz and Kuglis and Count 5 as to all plaintiffs.

5. Motion of defendant Golden West for 12(c) judgment in CV 91-334.

6. Motion of defendant Golden West for 12(b)(6) dismissal in CV 91-515.

The Court took the matters under submission.

The disposition of these motions depends primarily upon the resolution of legal issues that are common to all the motions. Therefore, the court shall address the legal issues and then rule on each of the individual motions accordingly.

A. Background

On 6/19/91 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 applies. The two requirements for maritime jurisdiction are met since the oil spill 1) is a wrong that occurred on the high seas or navigable waters, and 2) bears a significant relationship to a traditional maritime activity, here operating a vessel and engaging in maritime commerce. See Executive Jet Aviation, Inc. v. Cleveland, 409 U.S. 249, 93 S.Ct. 493, 504, 34 L.Ed.2d 454 (1972); East River S.S. Corp. v. Transamerica Delaval, Inc., 476 U.S. 858, 106 S.Ct. 2295, 2298, 90 L.Ed.2d 865 (1986).

B. Standards for Rule 12(c) and 12(b)(6) Motions

In a Rule 12(b)(6) motion, "a complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief." Conley v. Gibson, 355 U.S. 41, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957). In a Rule 12(c) motion for judgment on the pleadings, the moving party must show that there are no material issues of fact to be resolved and that it is entitled to judgment as a matter of law. General Conference Corp. of Seventh-Day Adventists v. Seventh-Day Adventist Congregational Church, 887 F.2d 228, 230 (9th Cir.1989), cert. den., 493 U.S. 1079, 110 S.Ct. 1134, 107 L.Ed.2d 1039 (1990) (citing 5 C. Wright & A. Miller, Federal Practice and Procedure: Civil § 1368 (1969)). All the facts alleged in the complaint must be taken as true, and all reasonable inferences must be made and all doubts resolved in favor of the non-moving party. Id. Moreover, courts are reluctant to grant these motions where unsettled questions of law are involved. Electrical Construction & Maintenance Co. v. Maeda Pacific Corp., 764 F.2d 619, 623 (9th Cir.1985) (quoting from 5 C. Wright & A. Miller, Federal Practice and Procedure: Civil § 1357 (1969)).

II. DID TAPAA DISPLACE OR INCORPORATE THE PRIOR JUDGE MADE ADMIRALTY RULE OF ROBINS DRY DOCK?

A. Introduction

The disposition of the bulk of these motions rests upon whether the various plaintiffs may collect damages for economic losses in the absence of physical injury on claims asserted under TAPAA and other federal and state law.

The starting point is Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303, 48 S.Ct. 134, 72 L.Ed. 290 (1927), which established a federal maritime law rule that there can be no recovery for economic losses in the absence of compensable physical injury to the person or property. Id. at 135. The Court must determine what effect TAPAA, as subsequent legislation, has had upon this judge made rule.

B. Discussion

1. Statutory Scheme

43 U.S.C. § 1653(c)(1) of TAPAA creates a TAPAA cause of action in strict liability against the owner and/or operator of the vessel and the Fund. The maximum recoverable on these (c)(1) claims is $100 million. If the claims exceed that, they are prorated. § 1653(c)(3). For simplicity, the Court will refer to these causes of action as the (c)(1) claims.

(c)(8) provides that, if the accident was caused by negligence or the...