Settoon Towing, L.L.C. v. Marquette Transportation Co.

Court of Appeals for the Fifth Circuit
2017 WL 2486018, 859 F.3d 340 (2017)

ELI5:

Sections

Rule of Law:

Under the Oil Pollution Act (OPA), a statutorily designated Responsible Party is entitled to seek contribution from a partially liable third party for purely economic damages, including cleanup costs, effectively overriding the general maritime law prohibition on such recovery known as the Robins Dry Dock rule.

Facts:

The M/V Hannah C. Settoon (Settoon), towing crude oil barges, and the M/V Lindsay Ann Erickson (Marquette), towing grain barges, were both traveling downstream on the Mississippi River.
The Lindsay stopped in the river to perform a 'top around' maneuver, and the two vessels communicated via radio to establish an agreement for the Hannah to overtake the stationary Lindsay.
Consistent with the agreement, the Hannah increased speed to pass; however, before fully passing, the Hannah radioed to release the Lindsay from the hold agreement.
While the Hannah was still passing, the Lindsay began reversing into the river to start its turn.
The stern of the Lindsay collided with the portside bow of a crude-oil barge towed by the Hannah.
Approximately 750 barrels of light crude oil were discharged into the river, closing a 70-mile stretch of the Mississippi for 48 hours.
The U.S. Coast Guard designated Settoon as the strictly liable 'Responsible Party' under the Oil Pollution Act.
Settoon performed its statutory duties by funding the initial cleanup, remediation, and third-party damage claims.

Procedural Posture:

Settoon filed a Limitation of Liability proceeding in the United States District Court for the Eastern District of Louisiana.
Marquette filed a claim in the limitation proceeding, and Settoon filed a counterclaim against Marquette seeking contribution.
The District Court conducted a bench trial regarding liability and apportionment of fault.
The District Court ruled that contribution for economic damages was permitted under the OPA and allocated 65% of the fault to Marquette and 35% to Settoon.
Marquette appealed the judgment to the United States Court of Appeals for the Fifth Circuit.

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Issue:

Does the Oil Pollution Act authorize a designated Responsible Party to recover contribution for purely economic damages, such as cleanup costs, from a jointly negligent third party, notwithstanding general maritime law restrictions on such recovery?

Opinions:

Majority - Leslie H. Southwick

Yes, the Oil Pollution Act explicitly creates a statutory right to contribution that allows a Responsible Party to recover purely economic losses from a joint tortfeasor. The court rejected the appellant's argument that contribution is governed solely by general maritime law, which generally bars recovery for economic loss absent physical injury to a proprietary interest (the Robins Dry Dock rule). The court analyzed the text of OPA § 2709, noting that it permits contribution against any person 'liable or potentially liable under this Act or another law.' The court reasoned that limiting contribution only to general maritime law would render the 'under this Act' language of § 2709 superfluous. Furthermore, the court distinguished contribution from subrogation (found in § 2702), clarifying that while subrogation applies when a third party is solely at fault, contribution applies when parties share fault. The court concluded that Congress intended the OPA to streamline cleanup and internalize costs within the industry, thereby preempting traditional maritime limitations on economic damages.

Analysis:

This decision is significant because it clarifies the relationship between the Oil Pollution Act (OPA) and general maritime law, specifically regarding the Robins Dry Dock rule. By affirming that the OPA provides an independent statutory basis for contribution, the Fifth Circuit ensures that the 'Responsible Party'—who is strictly liable for immediate cleanup—is not unfairly burdened with the entire cost when other parties contributed to the accident. This ruling incentivizes rapid cleanup by designated parties, knowing they can later recover a proportionate share of costs, including purely economic cleanup expenses, from other negligent actors. It reinforces the OPA as a comprehensive remedial scheme that displaces conflicting general maritime principles.

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