MS Amlin Marine NV v. Delta Marine Industries Inc
2:23-cv-00014
W.D. Wash.Jan 31, 2025Background
- The case concerns significant property damage to a luxury yacht (the TRITON) after Defendant Delta Marine Industries (Delta) used an allegedly overloaded Marine Travelift (“Big Bob”) to return the yacht to the water.
- Plaintiffs are the yacht’s insurers; they sued Delta (for gross negligence) and inspection companies Kendrick and Arxcis (for negligence and gross negligence) after Big Bob failed, dropping and partially sinking the yacht.
- Both Kendrick and Arxcis routinely inspected and certified Big Bob before the incident; neither noted problems that could have predicted the failure.
- Delta argued that claims were time-barred based on a one-year contractual limitation, but the timeline was affected by a tolling agreement for mediation and subsequent actions by both parties.
- Notably, Delta disassembled and discarded some relevant components from Big Bob after the accident, leading to allegations of evidence spoliation.
- The opinion addresses multiple summary judgment and evidentiary motions, ultimately setting several factual disputes for trial and resolving spoliation and witness exclusion disputes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are claims time-barred by contractual limitation? | Delta is estopped by its conduct during tolling/mediation period. | Tolling agreement expired; suit untimely. | Not time-barred; Delta estopped from relying on limit |
| Did Delta commit gross negligence (voiding limitation) | Knowingly overloaded lift, in reckless disregard of yacht/property. | TRITON light enough; Big Bob never overloaded; no reckless disregard shown. | Fact issues preclude summary judgment for either. |
| Do Kendrick/Arxcis owe a duty to plaintiffs? | Owed duty of reasonable care under maritime negligence. | No duty; only contracted with Delta (not plaintiffs). | Duty owed under general maritime law. |
| Did spoliation of evidence occur? | Delta's handling/alteration/disposal of components prejudiced plaintiffs' case. | No anticipated litigation at time; components not relevant or preserved in alternate form. | Delta spoliated evidence; adverse inference ordered. |
| Should expert testimony be excluded? | Delta failed to disclose experts properly; some testimony unreliable or legal conclusions. | Plaintiffs’ experts' methods faulty; some testimony irrelevant (e.g., Clean Water Act regs). | Some experts/testimony excluded on both sides. |
Key Cases Cited
- E. River S.S. Corp. v. Transam. Delaval, Inc., 476 U.S. 858 (1986) (describing general maritime law as an amalgam of common-law and newly created rules)
- Kermarec v. Compagnie Generale Transatlantique, 358 U.S. 625 (1959) (explaining the judicial duty to declare and apply general maritime law)
- Royal Ins. Co. of Am. v. Sw. Marine, 194 F.3d 1009 (9th Cir. 1999) (gross negligence voids contractual limitations in maritime contracts)
- Fraser v. Goodale, 342 F.3d 1032 (9th Cir. 2003) (on evidentiary standards at summary judgment)
- Christensen v. Georgia-Pacific Corp., 279 F.3d 807 (9th Cir. 2002) (reasonable care standard in maritime negligence)
- Yamah Motor Corp. U.S.A. v. Calhoun, 516 U.S. 199 (1996) (federal maritime law supplemented by compatible state law)
