In Re: BOPCO, L.P.
2:11-cv-03137
E.D. La.Sep 10, 2013Background
- On April 13, 2011 the M/V MR. JOE (operated by BOPCO and piloted by Tyrell DuPont) collided with Ryk Frickey's small vessel at an intersection in Point à La Hache, LA; visibility was clear but marsh grass partially obstructed views.
- The MR. JOE had an operational radar system that was not being used at the time; BOPCO had an internal policy discouraging daytime radar use.
- DuPont admitted he had not been trained by BOPCO on the Coast Guard Rules of the Road and did not hold a boating license; his understanding of the rules was vague at trial.
- The jury found BOPCO negligent and Frickey contributorily negligent (75% BOPCO / 25% Frickey) and awarded Frickey $830,071.78 in damages (medical, lost earning capacity, pain and suffering, mental anguish).
- BOPCO sought limitation of liability under the Limitation of Liability Act; the Court reserved that issue for bench determination after the jury verdict.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether BOPCO may limit liability under the Limitation of Liability Act (privity or knowledge) | BOPCO had privity/knowledge because it failed to train DuPont and promulgated a policy forbidding daytime radar use, both of which caused the collision | This was pilot error / a mistake of navigation for which owner may limit liability if it used reasonable care in selecting/supervising the master | Denied — Court found owner had privity/knowledge due to failure to train and an explicit policy advising against radar use, so limitation not allowed |
| Whether the failure to use radar was excusable as discretionary (i.e., not a management-caused unseaworthy condition) | Radar nonuse violated Rules of the Road (Rule 7(b)); company policy caused the nonuse and thus contributed to liability | Radar was unnecessary on a clear day and marsh grass may have prevented radar detection, so radar nonuse did not cause collision | Court held radar should have been used; policy discouraging daytime radar was negligent and contributed causally; radar likely would have given early warning |
| Whether prejudgment interest should be awarded | Frickey sought prejudgment interest at 5.5% on the award | BOPCO opposed | Denied — Court could not segregate past vs. future damages from the verdict form, and seamen recover prejudgment interest only for past damages; plaintiff waived objection to form |
Key Cases Cited
- In re Omega Protein, Inc., 548 F.3d 361 (5th Cir. 2008) (owner must prove lack of privity or knowledge to limit liability when vessel negligence causes loss)
- Trico Marine Assets, Inc. v. Diamond B Marine Servs., Inc., 332 F.3d 779 (5th Cir. 2003) (examples of owner privity/knowledge: failure to provide lookout, train captain, inspect logs, employ safety manager)
- Brister v. A.I., Inc., 946 F.2d 350 (5th Cir. 1991) (corporate knowledge imputed where officers knew or should have known of dangerous conditions; owner bears burden to show lack of privity)
- Matheny v. Tennessee Valley Authority, 557 F.3d 311 (6th Cir. 2009) (distinguishing owner liability for mistakes of navigation where owner reasonably relied on a competent, trained captain)
- In re Kristie Leigh Enter., Inc., 72 F.3d 479 (5th Cir. 1996) (owner failed to show lack of privity or knowledge; limitation denied)
- In re MO Barge Lines, Inc., 360 F.3d 885 (8th Cir. 2004) (pilot error may permit limitation where owner reasonably hired a competent operator)
