Ryan Stevedoring Co. v. Pan-Atlantic Steamship Corp.,
I.
In the early morning of September 21, 1996, the MTV CENTURY cruise ship, owned by Celebrity Cruises, Inc. (“Celebrity”), arrived in Port Everglades, Florida and was secured to the pier at Terminal 19, which was owned and operated by the Port Everglades Port Authority (the “Port Authority”), a department of Broward County, Florida.
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The ship was properly moored and remained so throughout the day. After the ship was moored, a Port Authority terminal lead service worker, Elaine Lyons — acting pursuant to a prearranged agreement in which the Port Authority agreed to provide Celebrity with certain services, including a passenger loading bridge and gangway, in exchange for a $5.35 per embarking passenger fee
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—moved a passenger loading bridge into position on the M/V CENTURY to pre
Passengers began boarding the M/V CENTURY later that afternoon. In order to board the ship, passengers walked from the terminal through the covered passenger loading bridge, crossed over the uncovered gangway, and stepped onto the ship. Once they crossed the gangway, passengers were greeted by Celebrity social hostesses. As the passengers filed through the loading bridge and onto the ship, the weather started to turn sour, with light rain and 15-20 knot winds. Due to the rain, passengers traversed the exposed gangway one at a time. Celebrity continued to load passengers despite the inclement weather.
At approximately 3:25 p.m., with the rain now pouring and winds blowing very hard, passenger John Vierling and his wife proceeded to the end of the loading bridge and prepared to cross the gangway. Vier-ling’s wife went first and successfully stepped aboard the M/V CENTURY. As Vierling walked across the gangway, however, a sudden gust of wind approaching forty-five miles an hour pushed the ship away from the dock. The distance the ship moved from the dock exceeded the length of reserve gangway in the vestibule of the passenger loading bridge, 5 causing the gangway to pull out of the end of the bridge. The gangway, with Vierling clinging to its hand-rails, swang down and slammed into the side of the ship. The impact severely injured Vierling’s face, knocked loose his grip of the hand-rails, and caused him to fall approximately forty-five feet into the water below. He was safely rescued and taken to the hospital where he remained for several days.
Vierling subsequently filed suit against Celebrity and the Port Authority to recover damages for his injuries.
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Celebrity answered the complaint and denied any wrongdoing. In addition, it filed a two-count cross-claim against the Port Authority, seeking indemnification for any damages it may be required to pay Vierling.
The Port Authority responded to both Vierling’s complaint and Celebrity’s cross-claim by fifing motions to dismiss based on the doctrine of sovereign immunity. While the motions were pending, the Port Authority answered the complaint and cross-claimed against Celebrity for indemnification with respect to any damages it may be required to pay Vierling. 9 As to the complaint, the Port Authority denied any wrongdoing and put forth fourteen affirmative defenses, including that Vierfing’s injuries were caused by parties (including Celebrity) not under the control or supervision of the Port Authority. As to Celebrity’s cross-claim, the Port Authority denied the allegations of both counts of the cross-claim, except the allegation that it “owned, operated, and maintained the passenger loading bridge and portable brow or gangway.” The Port Authority also asserted twelve affirmative defenses against the counts. 10 The affirmative defense relevant here is the allegation that the Port Authority enjoyed sovereign immunity.
After the parties joined issue, the case went to mediation, the court denied the Port Authority’s motions to dismiss based on sovereign immunity, and Celebrity settled with Vierling. Celebrity also moved for summary judgment on the second count of its cross-claim, based on the implied warranty of workmanlike performance. The Port Authority’s response to Celebrity’s motion assumed that an implied warranty existed and argued that Celebrity could not recover because its “active negligence” caused Vierfing’s injuries. As part of its response, therefore, the Port Authority moved the court to grant it summary judgment on the second count of Celebrity’s cross-claim.
The district court accepted the Port Authority’s argument, denied Celebrity’s motion for summary judgment, and granted the Port Authority summary judgment on the second count of Celebrity’s cross-claim. The record, according to the court, established that Celebrity was “actively” negligent — namely, by failing to keep the MTV
With this ruling in hand, the Port Authority settled with Vierling and moved the court to grant it summary judgment on its cross-claim against Celebrity. The cross-claim was based on the theory that Celebrity’s negligence caused Vierling’s injuries and that Celebrity’s contract with the Port Authority, as evidenced in Port Everglades Tariff 11, expressly provided that Celebrity would indemnify the Authority for “claims, charges, expenses, penalties and damages arising out of any accident or other occurrence causing injury to any persons.”
The district court denied the Port Authority’s motion, taking the same approach it had used in disposing of Celebrity’s motion for summary judgment. It found that the Port Authority was “actively” negligent in the manner in which it had positioned the passenger loading bridge and gangway at the time Vierling was boarding the M/V CENTURY, and that such negligence was a proximate cause of Vierling’s injuries. 12
Celebrity now appeals the district court’s decision granting the Port Authority summary judgment on the second count of Celebrity’s cross-claim, which sought indemnification on the theory that the Port Authority breached its implied warranty of workmanlike performance. Celebrity contends that had the district court applied contract law, which underpins the Ryan doctrine, instead of tort law, it would have denied the Port Authority’s motion for summary judgment. The Port Authority cross-appeals, contending that the district court erred in failing to find that it was protected from suit by virtue of sovereign immunity. 13
We initially address the issue of whether the Port Authority is entitled to sovereign immunity. Concluding that it is not, we consider whether the Port Authority owed Celebrity a duty of workmanlike performance and, if it did, whether the record contains evidence (sufficient to withstand a motion for summary judgment) that the Authority breached that duty and that such breach was a proximate cause of Vi-erling’s injuries.
II.
The Eleventh Amendment provides;
The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State. 14
In our view, all three factors point away from Eleventh Amendment immunity here. First, Florida law treats the Port Authority as an entity of the county and not of the state.
15
See Mt. Healthy City
Overall, there is remarkably little difference between the Port Authority here, and the port authority in
Hess v. Port Auth. Trans-Hudson Corp.,
III.
Every contract involving the rendering of services includes the implied promise to perform those services with reasonable care, skill, and safety.
See Williston on Contracts
§ 62:25 (4th ed.2002). The applicability of this horn-book rule to maritime service contracts was first enunciated in
Ryan Stevedoring Co. v. Pan-Atlantic Steamship Corp.,
Subsequent to
Ryan,
courts have concluded that the warranty of workmanlike performance, and the right to indemnification for a corresponding breach, also runs from a wharfinger, or dockowner, to a shipowner.
See Oglebay Norton Co. v. CSX Corp.,
We think it clear that the warranty of workmanlike performance runs from wharfingers, such as the Port Authority, to shipowners, such as Celebrity, for whom it provides services. While the extent of the warranty is largely determined by the nature of the services undertaken by the wharfinger, the implied warranty relates to the conditions of the berths, the removal of dangerous obstructions, and the furnishing of safe means of egress and ingress to berthed ships.
See Sims v. Chesapeake & Ohio Ry. Co.,
Even if it is found to have breached its duty of workmanlike performance, the Port Authority contends Celebrity is not entitled to indemnification for four reasons. We address these reasons in turn and conclude that none are persuasive.
First, the Port Authority contends that Celebrity’s retention of control over the M/V CENTURY while it was berthed precludes it from being reimbursed.
See Groupe Chegaray/V. De Chalus v. P&O Containers,
We think the Port Authority’s argument completely misses the point. The Authority had the exclusive control over the positioning and operation of the passenger loading bridge and gangway. It is the improper positioning of the bridge and gangway that is at issue. Because there is absolutely no evidence suggesting that Ce
Second, the Port Authority, like the district court, asserts that a straightforward application of tort law defeats Celebrity’s claim: Celebrity’s negligent failure to monitor and prepare for bad weather precludes it from receiving indemnification. Celebrity’s negligence or non-negligence, however, has no bearing on its right to indemnification. Celebrity’s recovery for indemnity is based upon an agreement between it and the Port Authority; tort principles are therefore inapplicable.
Italia Societa per Azioni di Navigazione v. Oregon Stevedoring Co.,
Third, the Port Authority claims that .our decision in
Smith & Kelly Co. v. S/S Concordia TADJ,
The case at hand involves the typical pierside accident. It also involves negligent conduct by a maritime contractor, an area where courts are especially apt to apply
Ryan
indemnity. Thomas J. Schoenbaum,
Admiralty and Maritime Law
§ 6-19 (3d ed.2001) (citing the first, third, and ninth circuits). The concerns expressed in
Smith & Kelly
on which the Port Authority heavily relies — a hesitation to “extend[ ] the Ryan-type indemnity ‘beyond those controversies involving the special rules governing the obligations and liability of shipowners which necessitated its formulation and justify its application.’ ”
Smith & Kelly,
Finally, the Port Authority contends that indemnity based upon a breach of an implied warranty of workmanlike performance is unavailable where the shipowner is seeking indemnity for damages paid to an injured passenger, instead of an injured seaman.
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The Port Authority grounds its argument in the fact that indemnity based on a breach of workmanlike performance has historically been allowed where the shipowner is held absolutely liable for a breach of the warranty of seaworthiness owed to seamen.
22
Since passengers are not covered by the warranty of seaworthiness, Kor
nberg v. Carnival Cruise Lines, Inc.,
We acknowledge that in most cases that have allowed shipowners a right to indemnity, the shipowner’s liability to the injured person was absolute (and based on a breach of the warranty of seaworthiness). We also realize that language in some of our opinions suggests that
Ryan
indemnity is only allowed where shipowners are subject to absolute liability.
See e.g., Whisenant v. Brewster-Bartle Offshore Co.,
As for common sense, if we were to adhere to the Port Authority’s view, we
Thus, we see no reason why indemnity should not be awarded in proper cases when the shipowner’s Lability to the injured person was based on some species of fault.
See
Wilham B. Daly, Jr.,
Contribution and Indemnity: The Quest for Uniformity,
68 Tul. L.Rev. 501, 527 (1994). A determination of whether a shipowner is entitled to indemnification should turn on whether its Labibty was foreseeable when the contractor performed in less than a workmanlike manner. As the Supreme Court has said, if a contractor renders a “substandard performance which led to foreseeable liabiLty of [the shipowner], the latter was entitled to indemnity....”
Weyerhaeuser S.S. Co.,
There is little doubt that Celebrity’s La-bility to Vierbng was foreseeable. A high degree of care is demanded of common carriers toward their passengers.
McCormick Shipping Corp. v. Stratt,
The hollowness of the Port Authority’s position is abundantly clear. We reject it and conclude that Celebrity is entitled to indemnification if the trier of fact finds (1) that the Port Authority breached its warranty of workmanlike performance by improperly positioning the passenger loading bridge and gangway, and (2) that such breach was the cause of Vierling’s injury.
IV.
The district court judgment is accordingly VACATED, and the case is REMANDED for further proceedings.
SO ORDERED.
Notes
. Since 1994, the Port Authority has officially been known as Port Everglades Department, a department of Broward County, Florida.
. Port Everglades Tariff 11 evidences the contractual relationship between the Port Authority and all incoming vessels. The tariff provides the rules and regulations of the port; all users are bound by its terms. The tariff requires, among other things, that all vessels desiring a birth at Port Everglades apply for certain services, including the furnishing and operation of passenger loading bridges.
. The positioning of the passenger loading bridge by sight was Lyons's usual practice. It was also how she was trained by her Port Authority supervisors. No specific guidelines or measurements regarding the correct distance from the ship were given. As Lyons described the positioning process: "I just have my own vision of where to stop.”
. The gangway had a design length of nine feet. The manufacturer’s instructions stated that the passenger loading bridge should be positioned two feet from the side of the vessel, leaving seven feet of reserve gangway in the vestibule of the passenger loading bridge. Since Lyons positioned the bridge from three to six feet from the vessel, the amount of reserve gangway was reduced from seven feet to anywhere between six and three feet, a 14.3% and 57.1% reduction, respectively.
. The actual distance the JWV CENTURY moved from the dock is disputed. Most witnesses put the movement at four to six feet, while one witness recalls the vessel moving up to nine feet. If the jury finds that the vessel moved four to six feet, then the reserve gangway when the bridge was properly positioned (seven feet) would have sufficed to prevent the separation of the gangway from the bridge. If, on the other hand, the jury finds the distance to have been nine feet, then the movement of the vessel would have been too great even for a properly positioned bridge.
. The complaint also named Wollard Airport Equipment Company, the manufacturer of the passenger loading bridge and gangway, as a defendant. Wollard is not a party in this appeal.
. The first count was based on a breach of duty owed to Vierling. Celebrity did not allege a breach of duty owed to it. Consequently, Celebrity could not have recovered from the Port Authority on its negligence claim. Regardless, the first count is not implicated in this appeal.
. Celebrity alleged that the contractual relationship between the parties impliedly warranted a duty of workmanlike performance.
. As explained infra, the Port Authority’s cross-claim was based on a contractual indemnification provision contained in Port Everglades Tariff 11.
. Many were duplicative. The only affirmative defense relevant here is that set out in the text.
. When the district court decided to base its decision on tort law rather than contract law, it should have first determined whether the second count of Celebrity’s cross-claim stated a claim for negligence against the Port Authority — specifically, whether that count alleged that the Authority owed Celebrity a duty to exercise due care in boarding M/V CENTURY'S passengers. No such allegation was made; thus, the count failed to state a claim against the Port Authority.
. By implication, in denying the Port Authority’s motion for summary judgment on the Authority’s cross-claim against Celebrity, the court granted Celebrity summary judgment on that cross-claim.
. The Port Authority is not appealing the district court’s decision granting Celebrity summary judgment on the Port Authority’s cross-claim for indemnification.
. The Port Authority begins its reply brief by stating that its "claim of immunity from suit in the instant admiralty action is not based on the Eleventh Amendment, but rather on state sovereign immunity.” The remainder of its • brief, however, indicates that it is in fact asserting the sovereign immunity the Eleventh Amendment provides. The Port Authori
. The Port Authority points out that the Florida Supreme Court has determined that counties are arms of the state,
Keggin
v.
Hillsborough County,
. The Port Authority refers us to the fact that it is funded by the Florida Seaport Transportation and Economic Development Program (FSTEDP), and argues the receipt of funds from this entity indicates it is an arm of the State of Florida. There is no evidence, however, regarding the amount of funds, if any, the Port Authority has received from FSTEDP. What is clear is that despite the amount received, the Authority does not rely on FSTEDP funds to operate or satisfy liabilities or claims. Regardless, it is not the receipt of money that affects the analysis, but whether the Port Authority acts independently of the state.
See Mt. Healthy,
. The Port Authority generated over $14.4 million in cruise-related revenues in the fiscal year following the 1996 accident. It has continued to grow since then.
. In
Bonner v. City of Prichard,
. The Port Authority attempts to shore up its Celebrity-maintained-control argument by noting that Celebrity's regulations required its crew members to maintain a watch over the positioning and fastening of the gangway. The Supreme Court in
Ryan,
however, clearly rejected the notion that the shipowner's authority to supervise and correct a contractor’s performance defeats the shipowner's claim for indemnity.
Ryan Stevedoring Co.,
.This is not to say that vessel negligence which seriously impedes the contractor's performance cannot defeat an indemnity recovery.
See Gator Marine Service Towing, Inc. v. J. Ray McDermott & Co.,
. "A person is considered a passenger when she pays fare or other consideration for travel on a public carrier under an express or implied contract.” Benedict on Admiralty § 10.04[A] (7th ed.2002). A seaman, by contrast, is one "engaged or employed in any capacity on board a vessel....” Id. at § 7.01[C][l][d][ii] (citation omitted).
. Under the general maritime law, shipowners are held to an implied warranty that their vessel is reasonably fit for its intended purpose. Schoenbaum, supra at § 5-9. "The duty to furnish a seaworthy vessel is absolute and nondelegable, and its breach gives rise to liability for unseaworthiness....” Id. (footnote omitted).
. Lyons could sleep on the job even though the Port Authority was charging Celebrity $5.35 for every passenger boarding the M/V CENTURY.
.
Carriers are also forbidden, as a matter of public policy, from using contracts to limit their liability for negligence to their passengers. 46 U.S.C. § 183c;
Kornberg,
