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Settoon Towing, L.L.C. v. Marquette Transportation Co.
859 F.3d 340
| 5th Cir. | 2017
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Background

  • Collision on Feb. 22, 2014: Settoon’s tow (tanker barges) and Marquette’s tow (grain barges) entered a radio "one-whistle" overtaking agreement on the lower Mississippi; barges collided, spilling ~750 barrels of crude and closing a 70-mile stretch of river for ~48 hours.
  • Coast Guard designated Settoon as the OPA "Responsible Party," so Settoon performed and paid for cleanup and related claims under the Oil Pollution Act (OPA).
  • Settoon filed limitation proceedings; Marquette filed a claim; Settoon counterclaimed seeking contribution from Marquette under the OPA and maritime law.
  • The district court found both parties negligent and apportioned fault 65% to Marquette, 35% to Settoon, and held that a Responsible Party can obtain contribution under the OPA for purely economic cleanup costs.
  • Marquette appealed, arguing (1) OPA does not permit a Responsible Party to obtain contribution for purely economic damages (invoking Robins Dry Dock limitation), and (2) the apportionment of fault was clearly erroneous.

Issues

Issue Plaintiff's Argument (Settoon) Defendant's Argument (Marquette) Held
Whether OPA permits a Responsible Party to obtain contribution for purely economic damages (cleanup costs) OPA §2709 authorizes contribution “under this Act,” so a Responsible Party can recover apportioned shares of all costs it paid, including purely economic losses; Congress broadened recovery beyond Robins Dry Dock. Section 2709 merely preserves contribution but contribution rights arise from general maritime law, which (per Robins Dry Dock) bars recovery for purely economic loss; OPA only provides subrogation when a third party is solely at fault. Court: OPA allows contribution “under this Act,” including for purely economic cleanup costs; Section 2709 is a self-contained grant of contribution against those "liable or potentially liable" under the Act.
Proper standard/meaning of "potentially liable" under OPA for contribution suits "Potentially liable" should include parties who had a role in causing the discharge and thus may be sued for contribution even before final fault determinations. "Potentially liable" should not be read to create OPA-based contribution where liability otherwise is governed by general maritime law and Robins Dry Dock. Court: "Potentially liable" includes those who may be liable under the Act (analogous to CERCLA interpretation), permitting contribution claims against joint tortfeasors under OPA.
Whether the OPA’s savings clause preserves maritime law over OPA contribution provision OPA’s savings clause preserves maritime law only where OPA is silent; where OPA addresses contribution (§2709), OPA controls. Savings clause means admiralty remedies (including maritime contribution rules) remain available, limiting OPA’s effect. Court: Savings clause does not override explicit OPA contribution provision; OPA displaces maritime rule to the extent it speaks to contribution.
Whether district court’s apportionment (65% Marquette / 35% Settoon) was clearly erroneous Settoon advanced evidence supporting apportionment (district court saw credibility and factual weight). Marquette argued overtaken/give-way vessel (Settoon) should bear greater or majority fault based on precedent. Court: Apportionment not clearly erroneous; appellate review is deferential and district court’s fact-findings stood.

Key Cases Cited

  • Sobranes Recovery Pool I, LLC v. Todd & Hughes Constr. Corp., 509 F.3d 216 (5th Cir.) (standard for de novo review of statutory interpretation)
  • Tokio Marine & Fire Ins. Co. v. FLORA MV, 235 F.3d 963 (5th Cir.) (standard for reviewing apportionment of fault in maritime collision)
  • Robins Dry Dock & Repair Co. v. Flint, 275 U.S. 303 (1927) (traditional maritime bar on recovery of purely economic loss)
  • Louisiana ex rel. Guste v. M/V TESTBANK, 752 F.2d 1019 (5th Cir.) (application of Robins Dry Dock in this circuit)
  • United States v. Am. Commercial Lines, L.L.C., 759 F.3d 420 (5th Cir.) (discussing Responsible Party status under OPA)
  • Unocal Corp. v. United States, 222 F.3d 528 (9th Cir.) (interpreting OPA subrogation when a third party is solely at fault)
  • OHM Remediation Servs. v. Evans Cooperage Co., 116 F.3d 1574 (5th Cir.) (interpreting "liable or potentially liable" under CERCLA contribution provision)
  • Crowley Marine Servs., Inc. v. Maritrans, Inc., 530 F.3d 1169 (9th Cir.) (example of appellate allocation of fault in overtaking collision)
Read the full case

Case Details

Case Name: Settoon Towing, L.L.C. v. Marquette Transportation Co.
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Jun 9, 2017
Citation: 859 F.3d 340
Docket Number: 16-30459
Court Abbreviation: 5th Cir.