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766 F. Supp. 2d 797
S.D. Tex.
2011
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Background

  • Pride Wyoming, a 250-foot mat-slot jack-up, was offshore in Ship Shoal Block 283 during Hurricane Ike and was displaced and sank.
  • Wreckage settled on pipelines owned by Williams and Tennessee Gas Pipeline; Pride Offshore owned the jack-up and sought exoneration from, or limitation of liability.
  • Century Exploration asserted roughly $21 million in damages for damage to its pipelines and alleged unseaworthiness, master/crew negligence, and later recklessness and intentional misconduct.
  • Century did not allege Pride Offshore knew of Century's contract with TGPC; Pride moved for summary judgment on pleading sufficiency and economic-loss grounds.
  • The court granted Pride’s summary-judgment motion as to pleading sufficiency with leave to Century to amend, and granted summary judgment on the proprietary-interest theory.
  • Century was given until February 25, 2011 to file an amended complaint.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Adequacy of Century's amended claim for intentional interference Century argues Nautilus Marine shows knowledge of contract and intent to interfere may defeat Robins Dry Dock rule. Pride argues no Robins Dry Dock exception for intentional interference; Nautilus requires actual knowledge of contract; amendment futile. Leave to amend granted; summary judgment based on pleadings with ability to amend.
Whether Pride had knowledge of Century's TGPC contract Century contends amendment would plead Pride’s knowledge of the contract. Pride maintains inability to plausibly allege such knowledge; amendment futile. Amendment allowed to determine sufficiency; summary judgment on this ground reserved.
Proprietary interest in the damaged pipeline Century argues post-accident repair liability evidences proprietary interest supporting recovery. Century admitted no pre-damage proprietary interest; repairs liability does not create pre-damage interest. Century has no proprietary interest; Robins Dry Dock-based summary judgment granted.

Key Cases Cited

  • Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303 (U.S. 1927) (robins dry dock rule: tort relating to another's contract generally not liable to third parties)
  • Amoco Transport Co. v. S/S MASON LYKES, 768 F.2d 659 (5th Cir. 1985) (carves out exceptions to Robins Dry Dock in collision-privity contexts)
  • Nautilus Marine, Inc. v. Niemela, 170 F.3d 1195 (9th Cir. 1999) (knowledge and intent to interfere required for injunction against Robins Dry Dock; no implicit exception)
  • Norwegian Bulk Transport A/S v. Int'l Marine Terminals Partnership, 520 F.3d 409 (5th Cir. 2008) (Robins Dry Dock principle applied to maritime cases with limited exceptions)
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Case Details

Case Name: In Re the Complaint of Pride Offshore, Inc.
Court Name: District Court, S.D. Texas
Date Published: Feb 2, 2011
Citations: 766 F. Supp. 2d 797; 181 Oil & Gas Rep. 1083; 2011 U.S. Dist. LEXIS 10012; 2011 WL 338823; 2011 A.M.C. 2049; Civil Action H-08-3109
Docket Number: Civil Action H-08-3109
Court Abbreviation: S.D. Tex.
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    In Re the Complaint of Pride Offshore, Inc., 766 F. Supp. 2d 797