UNION PACIFIC RAILROAD COMPANY, Appellant, v. KIRBY INLAND MARINE, INC. OF MISSISSIPPI, a/k/a/ Brent Transportation Company, in personam and the M/V Miss Dixie, its engines, tackle, fixtures and appurtenances, etc., in rem, Appellees.
No. 01-3334.
United States Court of Appeals, Eighth Circuit.
Submitted: May 13, 2002. Filed: July 11, 2002.
Rehearing and Rehearing En Banc Denied: Aug. 15, 2002.
296 F.3d 671
Before BOWMAN, BYE, Circuit Judges, and NANGLE, Senior District Judge.
The judgments of the District Court are affirmed in all respects.
RICHARD S. ARNOLD, Circuit Judge, concurring in part and dissenting in part.
I agree that summary judgment was properly entered for defendant on the claim for tortious interference with contract, and I therefore join parts I and II of the Court‘s opinion.
I also join part VI of the Court‘s opinion, having to do with taxation of costs.
As to the claim for tortious interference with a prospective business relationship, however, I respectfully dissent. In my view, when this record is considered in the light most favorable to ACT, as it must be on this appeal, there is a genuine issue of material fact as to Sylvan‘s motivation. Questions of motive are particularly delicate, and summary judgment should be used more sparingly on such questions than on most others. The memorandum prepared by Michelle Ford, which the Court does not hold inadmissible, is sufficient evidence to support ACT‘s position at this preliminary stage of the case. Ms. Ford was instructed to prepare a document describing the history of Sylvan‘s dealings with NASD. She did what she was told to do. That she was a summer intern, had little knowledge of the business, and had no experience in computer-based testing, ante at 667, are considerations going to the weight of her evidence, not its admissibility. Certainly there is evidence to the contrary, and a jury could have chosen to disregard Ms. Ford‘s conclusions. Indeed, one may go so far as to say, if one wishes, that ACT would probably lose this case, were it tried to a jury. But that is not the standard we are to apply at this juncture. I cannot say it would have been irrational, when all of this record, including Ms. Ford‘s memoran-dum, is considered, for a jury to find that Sylvan was predominantly motivated by a desire to injure ACT. Among other things, the deal made with NASD was below Sylvan‘s cost, certainly a potent fact. The directed-verdict standard, or, as we have learned to say, the standard on motions for judgment as a matter of law, is the same as the standard to be applied on motions for summary judgment. This case should have gone to trial on the issue of motivation.
For many of the same reasons, I also dissent from the Court‘s affirmance of summary judgment for the defendant on the claim under
Steven B. Belgrade, argued, Chicago, IL (Richard P. Girzadas, on the brief), for appellee.
NANGLE, Senior District Judge.
Appellant Union Pacific Railroad Company appeals from the district court‘s conclusions of law and final judgment in the instant case. For the reasons discussed below, we reverse in part and affirm in part the district court‘s opinion.
I. Background
A. Background Facts
The parties stipulated to the following underlying facts. The Clinton Railroad Bridge (the “Clinton Bridge“), was constructed in 1907. Pursuant to
Kirby Inland Marine, Inc. (“Kirby“) is the owner and operator of the M/V MISS DIXIE, a river barge towboat in operation on the Mississippi River. On May 5, 1996, the M/V MISS DIXIE and/or its tow allided with the Clinton Bridge causing damage to the bridge and the M/V MISS DIXIE. On October 10, 1999, Appellant filed the instant action alleging the damage to its bridge was caused by the negligence of the crew of the M/V MISS DIXIE and/or by the unseaworthiness of that vessel. Appellees denied that the crew was negligent or that the vessel was unseaworthy and asserted that Appellant itself was negligent in the construction, design, care and maintenance of the Clinton Bridge.
To prove Appellant‘s negligence, Appellees proffered a Coast Guard‘s Order to Alter, issued on February 28, 1996, which found that the Clinton Bridge was “an unreasonable obstruction to navigation.” The Order to Alter was issued pursuant to the Truman-Hobbs Act,
The parties entered into a settlement agreement; however, the agreement was predicated on the district court deciding one specific legal issue: “Does the Truman-Hobbs Act finding that the bridge is ‘an unreasonable obstruction to navigation’ render inapplicable any presumption that negligence of the barge crew was the cause of an allision between a moving vessel and a stationary bridge.” Union Pac. R.R. Co. v. Kirby Inland Marine et al., No. 3-99-CV-80185, slip op. at 1, 2001 WL 1689710 (S.D.Iowa Aug. 13, 2001) The presumption in question is the longstanding Oregon rule which raises a presumption that a vessel‘s crew was negligent when a vessel strikes a stationary object such as a bridge. The Oregon, 158 U.S. 186, 197, 15 S.Ct. 804, 39 L.Ed. 943 (1895). Under the parties’ settlement agreement, if the district court concluded that the Oregon rule does apply, then Kirby would pay an agreed amount; alternatively, if the district court concluded that the Oregon rule does not apply, then Kirby would pay a smaller agreed amount. Thus, the pri
B. District Court‘s decision
Although the district court initially stated that the Oregon rule should apply, the district court eliminated the presumption by invoking the Pennsylvania rule which is another longstanding admiralty principle. Under the Pennsylvania rule, “[w]here any party violates a statutory or regulatory rule designed to prevent collisions, that party has committed per se negligence ... and [that party] has the burden of proving that its statutory fault was not a contributing cause of the accident.” Union Pac. R.R. Co. v. Kirby Inland Marine et. al, No. 3-99-CV-80185, slip op. at 3, 2001 WL 1689710 (S.D.Iowa Aug. 13, 2001) (citing The Pennsylvania, 19 Wall. 125, 86 U.S. 125, 136, 22 L.Ed. 148 (1873)). The district court concluded that Appellant violated
The district court also concluded that the Coast Guard‘s Order to Alter was admissible pursuant to
II. Discussion
A. The Oregon Rule
We will first consider whether the district court erred by invoking the Pennsylvania rule to trump the Oregon rule and shift the burden of persuasion back to Appellant. We review the district court‘s conclusions of law de novo. Wiles v. Capitol Indem. Corp., 280 F.3d 868, 870 (8th Cir.2002) (citing Lewis v. Wilson, 253 F.3d 1077, 1079 (8th Cir.2001)).
For the Pennsylvania rule to apply, three elements must exist: (1) proof by a preponderance of the evidence of violation of a statute or regulation that imposes a mandatory duty; (2) the statute or regulation must involve marine safety or navigation; and (3) the injury suffered must be of a nature that the statute or regulation was intended to prevent. Folkstone Mar. Ltd. v. CSX Corp., 64 F.3d 1037, 1047 (7th Cir.1995) (emphasis added). The Truman-Hobbs Act does not satisfy the prerequisites of the Pennsylvania rule because it was not drafted: (1) to maintain marine safety; (2) to impose a specific duty; or (3) to prevent a specific sort of injury.
We find that the Truman-Hobbs Act is a funding statute and not a safety statute. Congress stated that it drafted the Truman-Hobbs Act “to provide an orderly method for the just apportionment of the cost of the reconstruction or alteration of bridges over navigable waters where navigation conditions require such reconstruction or alteration of bridges heretofore built in accordance with law....” House Report No. 1447, August 2, 1939, 76th Cong. 1st Sess.
The regulations implementing the Truman-Hobbs Act establish a lengthy administrative procedure for determining whether a bridge is “an unreasonable obstruction
Looking at the Truman-Hobbs Act as a whole, a
The Truman-Hobbs Act also does not satisfy the other two prerequisites of the Pennsylvania rule as it does not impose a specific duty or prevent a specific sort of injury. Once the Coast Guard concludes that a bridge violates
Also, the goal of the Truman-Hobbs Act was to decrease the cost of navigation by using government funds to alter bridges which unreasonably obstruct such navigation. Although the bridge alterations may reduce the amount of allisions, this is a collateral consequence and not a direct purpose of the Truman-Hobbs Act. To state it another way, the Truman-Hobbs Act was not designed to prevent any specific type of injury. Thus, any injury suffered in admiralty is not “of a nature that the [Truman-Hobbs Act] was intended to prevent.” Folkstone Mar. Ltd. v. CSX Corp., 64 F.3d 1037, 1047 (7th Cir.1995).
In concluding that the district court incorrectly invoked the Pennsylvania rule, we further note that the district court did not cite a single case in which a court applied the Pennsylvania rule solely because a bridge violated the Truman-Hobbs Act. In Nassau County Bridge Authority v. Tug Dorothy McAllister, 207 F.Supp. 167, 172 (E.D.N.Y.1962), the district court applied the Pennsylvania rule because the bridge tender violated
Although these cases cited
We will not invoke the Pennsylvania rule to punish a bridge owner who controls a lawful bridge. Under the Truman-Hobbs Act, a bridge labeled an unreasonable obstruction is still a lawful bridge.
In sum, we find that the district court should not have relied on a violation of the Truman-Hobbs Act to invoke the Pennsylvania rule. Accordingly, the district court erred by concluding that a violation of
We now address Appellees’ assertion that we should affirm the district court‘s judgment because the Coast Guard‘s declaration that the bridge is an unreasonable obstruction to navigation rebuts the Oregon presumption and shifts the burden of proof back to the bridge owner. In order to affirm the district court‘s judgment, we would have to conclude, as a matter of law, that the Coast Guard‘s Order to Alter rebuts the Oregon presumption. Because we believe the trier of fact should determine whether the Oregon presumption is rebutted by the Coast Guard‘s Order to Alter, we cannot affirm the district court‘s legal conclusion that the Oregon rule does not apply.
Appellees rely on I & M Rail Link, LLC v. Northstar Navigation, Inc., 198 F.3d 1012 (7th Cir.2000) to support their position that the Coast Guard‘s Order to Alter
Writing for the panel, Judge Easterbrook reversed the district court‘s grant of summary judgment and remanded the case for trial because the defendant presented sufficient evidence to raise a question of fact on the issue of negligence. Judge Easterbrook noted that the Coast Guard‘s Order to Alter was not an “unelaborated ukase,” but a conclusion based on evidence that: (1) the Sabula Bridge repeatedly is struck; and (2) the bridge‘s outdated structure does not allow modern-day vessels to navigate easily through the bridge. Id. at 1015-16. Ultimately, Judge Easterbrook concluded that:
If the Coast Guard may find the Sabula Bridge an unreasonable obstruction based on the cost and accident data, then so may the trier of fact in admiralty. ... Findings in the Coast Guard‘s report are more than adequate to overcome The Oregon‘s presumption. . . . The trier of fact must give an answer without resort to presumptions. Although the Coast Guard‘s findings may well be conclusive for some purposes . . . the question remains whether the short-comings of the bridge caused this accident.
Id. at 1016 (emphasis added) (citations omitted).
Appellees maintain that the I & M Rail Link case stands for the proposition that, as a matter of law, the Coast Guard‘s Order to Alter rebuts the Oregon presumption and thus the litigation should proceed on a level playing field. This view seems to be based on the single sentence “The trier of fact must give an answer without resort to presumptions.” We, however, interpret the Seventh Circuit‘s opinion differently.
In our view, the I & M Rail Link case stands for the proposition that a defendant can attempt to rebut the Oregon presumption by presenting evidence that the Coast Guard labeled the bridge an “unreasonable obstruction to navigation.” Under I & M Rail Link, a Coast Guard Order to Alter is not conclusive evidence of negligence, but merely another piece of evidence which the trier of fact may consider in determining fault in a negligence action. See I & M Rail Link, 198 F.3d at 1016 (“Although the Coast Guard‘s findings may well be conclusive for some purposes ... the question remains whether the shortcomings of the bridge cause this accident.“). Our interpretation is shared by the lower court which, on remand, tried the case in accordance with the Seventh Circuit‘s opinion. See I & M Rail Link v. Northstar Navigation, Inc., No. 98-C-50359, 2001 WL 460028, at *4 (N.D.Ill. April 27, 2001) (“It is true the Seventh Circuit referred to the previous accidents at the Sabula Bridge included in the Coast Guard‘s reports, and said the trier of fact may find the Sabula Bridge an unreasonable obstruction based on the
Our interpretation of I & M Rail Link is in accordance with longstanding precedent which allows a moving vessel to rebut the Oregon presumption by presenting evidence that the bridge was an unreasonable obstruction to navigation. Wilmington Ry. Bridge Co. v. Franco-Ottoman Shipping Co., 259 F. 166, 168 (4th Cir.1919). In Wilmington Ry. Bridge Co., the Fourth Circuit stated that the Oregon presumption may be rebutted:
by proof that the location of the stationary vessel, the obstruction of navigation by the bridge, or other causes had brought the moving vessel into an emergency not to be reasonably foreseen, and that the course taken by the navigator in the emergency was such as might well have been taken by a prudent and skillful navigator.
Id. (emphasis added).
In its own words, the district court stated that “[t]he single legal question they ask this court to answer is: Does the Truman-Hobbs Act finding that the bridge is ‘an unreasonable obstruction to navigation’ render inapplicable any presumption that negligence of the barge crew was the cause of a collision between a moving vessel and a stationary bridge?” Union Pac., No. 3-99-CV-80185 at 1. To state it another way, the district court was considering whether, as a matter of law, a Truman-Hobbs Act finding trumps the Oregon presumption. We conclude that a Truman-Hobbs Act finding does not render inapplicable the Oregon rule and therefore reverse the district court‘s conclusion to the contrary in this case.
In remanding we recognize that Appellees have produced evidence regarding the “obstructive character” of the Clinton Bridge. Appellees note that the Coast Guard‘s Detailed Report: (1) documents more than 300 allisions between the Clinton Bridge and various vessels in a ten year period; (2) emphasizes the fact that the Clinton Bridge is out of date and does not permit the smooth navigation of modern-day commercial vessels; and (3) criticizes the poor position of the Clinton Bridge.3 The parties, however, did not ask the district court to consider whether Appellees presented sufficient evidence to rebut the Oregon presumption; thus, that question is not currently before this Court. Instead, the parties posed the single legal question of whether a Truman-Hobbs Act finding that a bridge is an unreasonable obstruction to navigation renders inapplicable the Oregon presumption. We conclude that the answer to that particular question is “no.”
Accordingly, we find that the district court erred by concluding as a matter of law that the Oregon presumption does not apply. See Wilmington Ry. Bridge Co. v. Franco-Ottoman Shipping Co., 259 F. 166, 168 (4th Cir.1919). The opinion of the district court is reversed.
B. Federal Rule of Evidence 803(8)(C)
Appellant also asserts that the district court erred by admitting the Coast
The party opposing the admission of the report has the burden of proving the report‘s untrustworthiness. Moss v. Ole South Real Estate, Inc., 933 F.2d 1300, 1304 (5th Cir.1991). When considering whether a report is trustworthy, the court should not consider whether the report is credible, but rather should consider whether the report is reliable. Id. at 1306-07. “The Rule 803 trustworthiness requirement, therefore, means that the trial court is to determine primarily whether the report was compiled or prepared in a way that indicates that its conclusions can be relied upon.” Id. at 1307.
We find that the district court did not abuse its discretion by concluding that the Coast Guard‘s Order to Alter is admissible pursuant to
In sum, Appellant has not presented any evidence that the Coast Guard‘s Order to
III. Conclusion
For the foregoing reasons, the district court‘s conclusions of law and final judgment are reversed in part and affirmed in part.