Tug Blarney, LLC v. Ridge Contracting, Inc.
Tug Blarney, LLC v. Ridge Contracting, Inc.
Opinion of the Court
ORDER RE MOTIONS FOR SUMMARY JUDGMENT
This case arises out of circumstances related to the sinking of the tug ARIES in June 2011. The ARIES was owned by Third-Party Defendant C & K Marine LLC (“C & K”) and pulling a barge carrying equipment owned by Ridge Contracting, Inc. and Ridge Equipment, LLC. (Ridge Contracting and Ridge Equipment are together referred to as the “Ridge Defendants.”) After the ARIES sank, the tug BLARNEY and her crew went to its assistance and towed the barge and the Ridge Defendants’ cargo to Nome. Plaintiff Tug Blarney, LLC (“Tug Blarney”) owns the BLARNEY, but had chartered it to C & K. Brian Campbell and Kevin Kennedy own both Tug Blarney and C & K.
On May 4, 2012, Tug Blarney initiated this action for salvage against Ridge Contracting.
Ridge Contracting filed a third-party complaint against C & K seeking indemni
Tug Blarney and C & K have initiated a separate action against various insurance companies in the United States District Court for the Western District of Washington.
Before this Court are three motions for summary judgment:
• At Docket 76, Third-Party Defendant C & K moves for summary judgment against Ridge Contracting, seeking the dismissal of Ridge Contracting’s claims for indemnification and the dismissal of the remaining breach of contract claims.7
• At Docket 88, the Ridge Defendants move for partial summary judgment on Ridge Contracting’s breach of contract claims against C & K, and on C & K’s and Tug Blarney’s salvage claims against the Ridge Defendants, as well as the Crew’s salvage claim against Ridge Equipment.8
• At Docket 96, C & K, Tug Blarney, and the Crew (together, the “Salvage Claimants”) move for partial summary judgment on the issue of “pure” salvage.9
These motions raise overlapping issues, which can be grouped into three categories: (1) indemnification; (2) salvage; and (3) breach of contract (other than the indemnification clause). Oral argument was not requested on any of the motions and was not necessary to this Court’s determination of these motions.
FACTUAL BACKGROUND
I. The Charter and Freight Agreement between Ridge Contracting and C & K.
Ridge Contracting was engaged to work on construction projects for the summer of 2011 in Alakanuk, Alaska.
Prior to entering into the Charter Agreement, C & K had executed with Tug Blarney a five-year “bareboat or demise” charter for the tug BLARNEY.
11. The Voyage and Sinking of the ARIES; the BLARNEY Recovers the Barge.
In May 2011, C & K bareboat chartered the barge KRS 240-5 (the “Barge”) from Heko Services, Inc.
On June 26, 2011, at a location about 100 miles from the Pribilof Islands, the ARIES began listing.
As noted above, C & K had also bare-boat chartered the BLARNEY.
I could have got too close to the barge, going by the front of it, had a swell throw me into it. I could have ended up on top of the wire leaning down to the ARIES. I could have got either one [of the tow wires] in our wheel.
I was worried about hitting the barge, and then somebody could have got hurt if something had broken on the deck, the stopper wires.
[I]n this situation, there was more risk [than is normally present when handing off tow lines] because we were at sea in a swell, so there’s more motion, there’s more going on. So it was riskier than making tow or breaking tow or handing off a barge in Elliot Bay.33
Crewmember Kenoyer stated, “[w]e didn’t have to do [the salvage operation]. It was — any one of us could have called the entire operation off and would have just left.”
Between June 29 and July 2, 2011, the BLARNEY towed the Barge to Nome.
JURISDICTION
This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1381 and 1333.
SUMMARY JUDGMENT STANDARD
Federal Rule of Civil Procedure 56(a) directs a court to “grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” The burden of showing the absence of a genuine dispute of material fact initially lies with the moving party.
When considering a motion for summary judgment, a court must accept as true all evidence presented by the non-moving party and draw “all justifiable inferences” in the non-moving party’s favor.
DISCUSSION
I. Indemnification (Motions at Docket 76 and 83).
At Docket 76, C & K moves for summary judgment against Ridge Contracting, seeking dismissal of Ridge Contracting’s indemnification claim. At Docket 83, Ridge Contracting moves for summary judgment on the closely related question of
A. Maritime Contract Interpretation.
“As a general rule, admiralty law applies to all maritime contracts.”
B. C & K must indemnify, protect, defend, and hold harmless Ridge Contracting for the salvage claims.
Ridge Contracting asserts that Clause 10.1 of the Charter Agreement concerning “Liabilities and Indemnities” governs whether C & K must indemnify Ridge Contracting for salvage services. This clause provides:
10.1 C & K. Notwithstanding anything else contained in this Agreement, Ridge [Contracting] shall not be responsible for loss of or damage to the property ... of C & K ..., including any Tug, or for personal injury or death of any employee of C & K ..., arising out of or in any way connected with the performance of this Agreement, ... even if such loss, damage, injury or death is caused wholly or partially by unseaworthiness of any vessel and C & K shall indemnify, protect, defend and hold harmless Ridge [Contracting] from any and against all claims, costs, expenses[,] actions, proceedings, suits, demands and liabilities whatsoever arising out of or in connection with such loss, damage, personal injury or death.51
Ridge Contracting interprets the indemnification portion of Clause 10.1 to apply when three factors are present: (1) there is loss or damage to the property of C & K; (2) the loss or damage “aris[es] out of or in connection with” performance of the Charter Agreement; and (3) there is a claim, cost, expense, action, proceeding, suit, demand, or liability “arising out of or in connection with” that loss or damage.
C & K asserts that the parties did not intend for C & K to indemnify Ridge Contracting for a salvage claim.
20. General Average: In the event of accident, damage, or disaster before or after the commencement of the service hereunder resulting from any cause whatsoever, ... Ridge [Contracting] or the tug and/or barge and/or of the cargo aboard it, if any, shall contribute with C & K in general average to the payment of any sacrifices, losses, or expenses of a general average nature that may be made or incurred, and shall pay salvage and special charges incurred in respect to the venture. Salvage services or assistance rendered to the venture by another vessel owned by or in the service of C & K shall be paid for according to C & K’s salvage rate above as fully as if such vessel were owned by or in the service of strangers.55
C & K asserts that through Clause 20, despite Clause 10.1, “C & K and Ridge Contracting expressly agreed that Ridge Contracting would be responsible for paying any salvage award, even if the salvage was performed by another C & K-owned vessel.”
The Court agrees with Ridge Contracting’s interpretation of Clause 10.1. C & K’s arguments that Clause 10.1 should not apply are not persuasive. Clause 10.1 specifically states that it applies “[n]otwith-standing anything else contained” in the Charter Agreement, and so it applies notwithstanding Clause 20’s reference to salvage. Furthermore, interpreting Clause 10.1 in the manner proposed by Ridge Contracting does not render meaningless the general average clause. There might be circumstances in which there is no loss or damage to C & K’s property (making Clause 10.1 inapplicable), and yet salvage services are nevertheless required (making Clause 20 applicable).
C & K also asserts that Ridge Equipment is not entitled to indemnification under the Charter Agreement because it is not a party to the Charter Agreement.
Accordingly, the Court will deny C & K’s motion at Docket 76 for summary judgment dismissing Ridge Contracting’s claim for indemnification. The Court will grant Ridge Contracting’s motion for summary judgment at Docket 83 with respect to C & K’s duty to indemnify. Ridge Contracting is entitled to be indemnified, protected, defended, and held harmless by C & K from all claims, costs, expenses, and liabilities incurred as a result of the salvage claims against Ridge Contracting in this action. The scope of such indemnification and associated rights is to be determined at trial.
II. Salvage (Motions at Dockets 83 and 96).
C & K, Tug Blarney, and the Crew seek a salvage reward from the Ridge Defendants. At Docket 96, they move for partial summary judgment on the issue of “pure” salvage.
The Ridge Defendants assert various defenses to the salvage claims, including: (a) the parties to the Charter Agreement agreed that salvage would be paid at a contracted rate, and so a claim for “pure” salvage is barred and a claim for pure salvage would nevertheless fail; (b) Tug Blarney cannot recover salvage because it had bareboat chartered the BLARNEY to C & K, and lacked control over the BLARNEY; (c) Ridge Equipment cannot be liable for salvage because it had no interest in the cargo; and (d) C & K placed the cargo in danger by utilizing the unseawor-thy ARIES, so C & K “cannot ... claim a reward for rescuing it.”
For the following reasons, the Court will grant the motion for salvage at Docket 96 as to the Crew, with the amount and distribution of any reward to be determined at trial. The Court will deny the motion for salvage at Docket 96 as to C & K and Tug Blarney because of remaining material questions of fact concerning defense (d). The Court will deny the Ridge Defendants’ motion at Docket 83 insofar as it “seek[s]
A. This case concerns “pure” salvage.
“The right to a salvage award for saving a ship dates back for centuries.”
To establish a claim for “pure” salvage, a salvor must demonstrate:
(1) a maritime peril from which the ship or other property could not have been rescued without the salvor’s assistance; (2) a voluntary act by the salvor; that is, he must be under no official or legal duty to render the assistance; and (3) the act must be successful in saving, or in helping to save, at least a part of the property at risk.67
In Bartholomew v. Crowley Marine Services, Inc., the Ninth Circuit explained that, like a salving crewmember, the owner of a salving vessel may recover salvage “for putting an expensive ship at risk.”
A salvage contract precludes a right to “pure” salvage.
The Salvage Claimants assert that this case involves pure salvage. The Ridge Defendants assert that C & K is not entitled to a pure salvage award because the Charter Agreement between C & K and Ridge Contracting fixed the price for salvage services.
Clause 20 of the Charter Agreement asserts that “[s]alvage services or assistance rendered to the venture [between C & K and Ridge Contracting] by another vessel owned by or in the service of C & K shall be paid for according to C & K’s salvage rate above as fully as if such vessel were owned by or in the service of strangers.”
Accordingly, the Ridge Defendants have not demonstrated the existence of a contract for salvage services between C & K and Ridge Contracting. The Court will deny the motion for partial summary judgment at Docket 88 with respect to its assertion that C & K is precluded by the Charter Agreement from asserting a pure salvage claim against Ridge Contracting. The Court next addresses the three elements required to establish a right to pure salvage.
1. Marine Peril.
A marine peril exists “when a vessel is exposed to any actual or apprehended danger which might result in her destruction.”
The Ninth Circuit’s decision in Steamer Avalon Co. v. Hubbard S.S. Co., though decided in 1919, is instructive.
It is evident that a disabled steamship without wireless equipment, lying in the trough of the sea, unable to keep her head up to the wind, and carrying a deckload some 16 feet high, is in some degree of peril.80
The Ninth Circuit remanded, however, because it concluded that the trial court’s salvage award was too low. Although the Steamer Avalon’s peril was “diminished” because of favorable weather conditions and because the steamer was “in an ocean path not infrequently traveled by vessels,”
Here, the Salvage Claimants assert the Barge’s cargo was “imperiled” because “[i]t was stranded, tethered to a sunken tug, unable to be moved without assistance and subject to the possibility of loss or damage unless someone came to its aid.”
There may be questions of fact as to whether weather conditions were favorable, whether the ARIES acted as an adequate anchor for the Barge, and whether the Barge was in danger of sinking as a result of being holed by the ARIES. But the Barge faced at least some marine peril because it was without power, unmanned, stranded in the Bering Sea 100 miles from shore, and unable to respond to any changing conditions. Furthermore, the Barge was tethered to the sunken ARIES, and the recovery of the towline, whenever it might occur, would involve at least some challenging work on behalf of a crew.
2. Voluntary Service.
A “salvor’s act must be voluntary such that he must be under no official or legal duty to act.”
i. The Sue and Labor clause did not require the BLARNEY to undertake the recovery of the Ridge Defendants’ cargo.
C & K and Tug Blarney maintained a hull and machinery insurance policy for the ARIES and the BLARNEY (policy PS & F 0429). The parties appear to agree that this insurance policy covered the Barge, as well.
In case of any loss, misfortune or potential liability it shall be lawful and necessary for the Assured, their factors, servants and assigns to sue, labor and travel to safeguard and prevent any liability, on the part of the vessel and/or Assured named herein, without prejudice to this insurance to the charges thereof this Company will contribute as hereinafter provided. It is agreed that the acts of the Assured or this Company or their agents shall not be considered as affirming or denying liability under this Policy; but such acts shall be considered as done for the benefit of all concerned and without prejudice to the rights of either party.
In the event of expenditures under this Sue & Labor clause, this Company will pay expenses incurred to avoid, reduce, and/or alleviate potential or actual liability on the part of the vessel and/or Assured named herein.91
The Ridge Defendants assert that C & K and Tug Blarney should be precluded from recovering for salvage from them because C & K and Tug Blarney were required to recover the Barge by the Sue and Labor clause. To support this argument, the Ridge Defendants refer the Court to the litigation pending in the Western District of Washington, in which C & K and Tug Blarney make various claims, including claims for reimbursement, from various defendant insurance companies for the BLARNEY’S efforts to recover the Barge.
There is limited Ninth Circuit precedent on the issue of when preexisting duties might preclude a claim for salvage, but the Southern District of New York has acknowledged that “[although there are instances in which a would-be salvor’s preexisting duty to act defeats his claim, those cases are rare.”
Here, the ARIES sank, while the Barge remained afloat. Even if the Sue and Labor clause were to be interpreted to require that C & K and Tug Blarney attempt to recover the Barge, that clause did not require that they attempt to recover the Ridge Defendants’ cargo. Thus, the Sue and Labor clause did not create a preexisting duty for C & K or Tug Blarney to either of the Ridge Defendants that contractually obligated the BLARNEY to undertake the recovery of the Ridge Defendants’ cargo.
The Ridge Defendants have not otherwise provided any authority that a sue and labor clause in a hull insurance policy requires a ship owner to send its ship to assist in the recovery of cargo on the insured vessel. And this argument seems inconsistent with the Ninth Circuit’s decision in Bartholomew, where it held that it is irrelevant to a potential salvage award whether a salving ship is owned by the same owner as the salvaged ship.
ii. The bareboat charter with Heko Services did not require C & K to send the BLARNEY to recover the Ridge Defendants’ cargo.
The Ridge Defendants assert that C & K had a preexisting duty to recoup the Barge because of its bareboat charter with Heko Services.
The Charter Agreement required C & K to transport certain cargo for Ridge Contracting. But as the Court concluded in section II.A above, the Charter Agreement did not include a contract for salvage services.
iv. The Crew acted voluntarily for purposes of salvage.
A crew “could not properly ... be[ ] required by their vessel master to put themselves in danger” through a salvage operation when they are not trained to perform such work and are not contracted to perform such work.
3. Success.
“A salvage award is proper where there was ‘[sjuccess in whole or in part, or that the service rendered contributed to such success.’ ”
Ridge Contracting asserts the salvage services rendered were not successful because the BLARNEY initially took the Barge to Nome, which “was not suitable as a place of safety,” and because the cargo was not accessible to the Ridge Defendants for several weeks.
B. The bareboat charter between C & K and Tug Blarney does not preclude Tug Blarney’s recovery.
In May 2009, Tug Blarney and C & K entered into a standard bareboat charter with a five-year term.
C. Ridge Equipment’s defense based on its lack of interest in the cargo is unpersuasive.
Ridge Equipment is a holding company for Ridge Contracting.
In San Francisco Bar Pilots v. Vessel Peacock, the Ninth Circuit held:
It is a well-established rule of American salvage law that anyone who may be liable for the loss of or damage to property is liable for an award for its salvage. Thus, a bailee of property may be held liable for a salvage award. Therefore, liability for a salvage award properly extends against one who has a direct pecuniary interest in the property which is the subject of the award.117
The court further held that, “[w]here the existence of a direct pecuniary interest in property has been established, it is error for the trial court to deny a salvage award.”
As noted by C & K, Ridge Equipment seeks to use the San Francisco Bar Pilots
D. Questions of fact preclude summary judgment concerning whether C & K placed the cargo in danger by utilizing an unsea-worthy vessel.
The Ridge Defendants assert that C & K is not entitled to salvage because it caused or contributed to the marine peril by utilizing an unseaworthy vessel.
III. Breach of Contract (Motions at Dockets 76 and 83).
Ridge Contracting’s third-party complaint asserts a claim for breach of contract against C & K.
(1) C & K breached Clause 10.1 by failing to indemnify, protect, defend, and hold harmless Ridge Contracting. This is addressed in section I above.
(2) C & K breached Clause 11, which required C & K to “maintain the Tug tight, staunch, strong in good order and condition,” and “the unexplained sinking of the ARIES may give rise to a presumption of unseaworthiness.”123
(3) C & K breached Clause 2 by failing to complete the four phases of transport.124
The Ridge Defendants’ motion at Docket 83 seeks relief on these grounds, and also asserts:
(4) C & K breached the Charter Agreement by seeking “pure” salvage when salvage is accounted for in the Charter Agreement. This is addressed in section II above.
(5) C & K breached the Charter Agreement by failing to obtain and maintain insurance.
C & K moves for summary judgment dismissing Ridge Contracting’s breach of contract claim on the bases that the ARIES was in seaworthy condition, and that the Charter Agreement excused C & K’s performance under the force majeure
A. Breach of Contract as to Seaworthiness (Motions at Dockets 76 and 83).
1. Allegations Concerning Due Diligence and Seaworthiness of the ARIES.
The parties dispute whether the ARIES was seaworthy when it began its journey from Dutch Harbor to Nome. C & K presents evidence of what it describes as its “due diligence” to confirm seaworthiness, and the Ridge Defendants present evidence concerning • mechanical and other problems aboard the ARIES:
• Prior to C & K’s purchase of the ARIES, the Coast Guard examined the tug and posted a sticker in its pilot house, valid through February 2013, stating that the ARIES passed the Coast Guard’s safety test.126
• When Mr. Kennedy finalized purchase of the ARIES in May 2011, he performed a survey of the boat over a two-day period in Portland, Oregon.127 He operated the ARIES up and down a river in Portland and took the vessel on what he described as a 38 hour “shakedown cruise” from Portland to Seattle.128 Mr. Kennedy found the tug to be in “excellent operational condition.”129
• On May 15, 2011, Rodger Morris from the National Association of Marine Surveyors performed a “pier side” inspection of the ARIES for purposes of obtaining insurance for the ARIES.130 He concluded that the boat was in “good condition,” and testified that it “looked like a great boat to [him].”131
• On May 17, 2011, James Hicks, owner of Aqua Dive Services, performed an underwater visual inspection of the ARIES’ hull.132 Through a live-feed underwater video, a person on shore simultaneously viewed the inspection site while Mr. Hicks performed the underwater inspection.133 Mr. Hicks found the ARIES was a missing shoe and pintle, which he repaired.134
• While in Seward, Alaska, Mr. Kennedy learned that the “the watertight doors [on the ARIES] nee[ed] new rubber” and that the tug needed a new gearbox.135 Those repairs were made in Seward.
• While the ARIES was docked in Seward, Captain Mike Church fell from the pier, hit his head, and ultimately*1275 died.136 Replacement Captain Douglas Pine conducted a visual inspection of the ARIES, and concluded that he was “comfortable operating the vessel with the crew on board.” Captain Pine also conducted “sea trials” and drills with the ARIES, and found she “was ready to take on ... the task that she had been assigned.”137
• While docked in Dutch Harbor, one of the ARIES deckhands was injured when an ARIES tow wire came loose and hit him in the cheek.138
• Russell Johnson, engaged as an expert witness by counsel for the Ridge Defendants, had personal experience with the ARIES, but only between 1997 and 2000.139 Mr. Johnson believed the ARIES was seaworthy at that time, but this dated opinion merits little weight.
• On June 26, 2011, the ARIES sank. On that day, the seas were eight to ten feet, the winds were twenty-five knots out of the southeast, and visibility was good.140 Captain Pine testified that these weather conditions should have been within the ARIES’ operational capabilities.141 There is no conclusive explanation as to why the vessel sank.
2. Questions of fact preclude summary judgment as to whether C & K breached the Charter Agreement by failing to exercise due diligence and maintain the ARIES in seaworthy condition (Motions at Dockets 76 and 83).
The Ridge Defendants move for summary judgment on the basis that C & K breached the Charter Agreement by utilizing an unseaworthy vessel.
The Court need not determine, at this point, the standard for determining seaworthiness, or on which party the burden rests.
B. The Ridge Defendant’s claim for breach of contract for failure to transport the cargo and C & K’s force majeure and related defenses (Motions at Dockets 76 and 83).
The Ridge Defendants assert that C & K breached Charter Agreement Clauses 1-6 because C & K failed to complete Phase I of the Charter Agreement which required transporting and delivering Ridge Contracting’s cargo to Alakanuk, and C & K did not perform Phases II-IV.
The Charter Agreement’s force majeure clause provides:
21. Force Majeure: Neither C & K nor the Tug shall be responsible for any loss or damage, or delay or failure in performing hereunder arising from: act of God, act of war, act of public enemies, pirates or thieves, arrest or restraint of princes, rulers, dictators, or people, or seizure under legal process ...; strikes or lockouts or stoppages or restraints of labor from whatever cause, either partial or general; or riot or civil commotion.150
This force majeure clause is limited to specific events. But C & K suggests that the force majeure clause should be read more broadly, like the force majeure clause in Facto v. Pantagis, a 2007 decision from the Superior Court in New Jersey, which excused a ship’s performance after a bench trial because of a power failure.
The Court need not determine the standard for commercial impracticability at this juncture because material questions of fact preclude summary judgment under either approach advocated by the parties. For instance, the parties dispute whether the sinking of the ARIES made performance of the contract impracticable. The Ridge Defendants assert that C & K was required to perform the Charter Agreement regardless of the fate of the ARIES because the agreement required only that C & K “mobilize” one of a “number of ocean going tugs and barges” owned by C & K. But C & K presents evidence that C & K purchased the ARIES specifically to perform the Charter Agreement, and that Ridge Contracting knew this “right about the time [it] was signing [the] contract.”
C. Breach of Contract as to Insurance (Motion at Docket 83).
Clause 18 of the Charter Agreement provides that “C & K and Ridge [Contracting] agree to obtain and maintain insurance with reputable underwriters, on recognized insuring forms, the type and amount of coverages stated in Exhibit D of th[e Charter] Agreement.”
The Ridge Defendants assert that C & K breached this clause of the contract by failing to maintain insurance for its obli
In sum, Ridge Contracting asserts that C & K did not purchase appropriate insurance, while C & K asserts that the insurance it purchased was adequate. The insurance policy in the record includes several clauses concerning indemnification, but a letter from an attorney for the insurance companies suggests that the policy was not intended to cover the type of indemnification sought by Ridge Contracting.
C & K also asserts that because Ridge Contracting is benefiting from the insurance, it cannot demonstrate that it suffered any damages&emdash;a requirement for a breach of contract claim&emdash;even if C & K had breached the contract.
CONCLUSION
For the foregoing reasons, the Court finds:
1. Third-Party Defendant C & K’s motion at Docket 76 for summary judgment seeking dismissal of Ridge Contracting’s third-party complaint against C & K, including its claims for indemnification and breach of contract, is DENIED.
2. At Docket 83, the Ridge Defendants move for partial summary judgment on Ridge Contracting’s claim against C & K for breach of contract, dismissing C & K and Tug Blarney’s salvage claims against
a. C & K is required to indemnify, protect, defend, and hold harmless Ridge Contracting from the salvage claims asserted in this action. Accordingly, the Court GRANTS the motion with respect to Ridge Contracting’s interpretation of Clause 10.1. The extent of any breach of this clause of the contract and the scope of damages is to be determined at trial.
b. With respect to Ridge Contracting’s request for summary judgment on its other breach of contract claims, as well as the Ridge Defendants’ motion for summary judgment dismissing the salvage claims, the Court DENIES the motion.
3. The Salvage Claimant’s motion at Docket 96 for summary judgment on the pure salvage claims asserted against the Ridge Defendants is GRANTED with respect to the Crew, with the amount and distribution of salvage to be determined at trial. The motion is DENIED with respect to C & K and Tug Blarney because there are material questions of fact as to the ARIES’ seaworthiness.
. Docket 1 (Compl.).
. Docket 34 (Second Am. Compl.).
.Docket 66 (Third Am. Compl. (the "TAC”)). Ridge Equipment is a holding company that
. Docket 42 (Ridge Contracting Third-Party CompL).
. Docket 47 at 5 (C & K Answer to Third-Party CompL and Counterclaim); Docket 68 (C & K Cross-Claim against Ridge Equipment). C & K filed its claim against Ridge Equipment as a crossclaim, but generally “a crossclaim may not be asserted against a party on the opposite side of the action.” Wright & Miller, 6 F.3d. Prac. & Proc. Civ. § 1431 (3d ed.). C & K does not explain under what Federal Rule of Civil Procedure it intended to file its claim against Ridge Equipment, but the Court may exercise jurisdiction over this counterclaim through Rule 13(b). See also Docket 75 (Answer to Crossclaim).
. See Tug Blarney LLC et al. v. Nat’l Cas. Co. et al., No. 2:13-cv-01697-RSM (W.D. Wash., filed Sept. 19, 2013).
. Docket 76 (C & K Mot.); Docket 80 (Ridge Contracting Opp’n to C & K Mot.); Docket 85 (C & K Reply).
. Docket 83 (Ridge Mot.); Docket 89 (Salvage Claimants Opp’n to Ridge Mot.); Docket 94 (Ridge Reply).
. Docket 96 (Salvage Claimants Mot.); Docket 101 (Ridge Opp’n to Salvage Claimants Mot.); Docket 105 (Salvage Claimants Reply).
. Docket 81-1 at 3, 15:11-16:8 (Ex. 1 to Jones Deck: McLaughlin Dep.).
. See Docket 78-3 at 4 (Ex. C to Scheer Decl. # 1: Charter Agreement). The Charter Agreement states it was effective May 6, 2010, but the parties agree it was actually executed in May 2011.
. Docket 78-3 at 4-7 (Charter Agreement, Cls. 1-6).
. See Docket 84-2 at 37 (Ex. 2 to Jones Deck: Standard Bareboat Charter between Tug Blarney and C & K). A bareboat charter "places the possession, control and management of the vessel in the lessee.” Docket 47 at 4 ¶ 16 (C & K Answer to Third-Party Compl. and Counterclaim); Docket 51 at 2 ¶ 16 (Answer).
. Docket 78-1 at 6, 37:17-38:4 (Ex. A to Scheer Deck # 1: Kennedy Dep.).
. Docket 85 at 13 (C & K Reply); Docket 86-3 at 23-24, 27:24-28:2 (Ex. C to LaRiviere Deck: McLaughlin Dep.).
. Docket 84 — 2 at 28 (Ex. 2 to Jones Deck: Standard Bareboat Charter between Heko Services and C & K).
. Docket 66 at 3 ¶ 14(TAC); Docket 74 at 3 ¶ 14 (Answer).
. Docket 84-9 (Ex. 9 to Jones Deck: Summary Appraisal Report of Machinery and Equipment); Docket 90-19 at 6 (Ridge Contracting Interrogatory Objections, Answers, and Responses) (“Ridge[ Contracting's] ownership interest in the Cargo is in the form of a leasehold interest.”); Docket 84 — 9 at 5, at 25:20-26:1 (Ex. 9 to Jones Deck: McLaughlin Dep.) (these lease agreements are not in writing).
. Docket 66 at 3 ¶ 15(TAC); Docket 74 at 3 ¶ 15 (Answer) (admitting in relevant part).
. Docket 90-20 at 5, 54:12-55:1 (Ex. T to Scheer Deck # 2: Pine Dep.).
. Id. at 5, 56:20-23.
. Docket 66 at 3 ¶ 16(TAC); Docket 74 at 3 ¶ 16 (Answer) (admitting in relevant part).
. Docket 66 at 4-5 ¶ 19(TAC); Docket 74 at 3-4 ¶ 19 (Answer) (admitting in relevant part); see also Docket 90-20 at 5, 55:14-25 (Ex. T to Scheer Deck # 2: Pine Dep.).
. Docket 84-2 at 37 (Standard Bareboat Charter between Tug Blarney and C & K).
. Docket 90-16 at 3, 37:4-10 (Ex. P to Scheer Decl. # 2: Hilty Dep.).
. Id. at 4, 38:25-40:6.
. Id.
. Docket 102-7 at 13, 25:11-26:12 (Ex. 10 to Jones Deck: Kenoyer Dep.).
. Docket 90-16 at 4, 40:7-16.
. Id. at 7, 47:3-48:21.
. Id.; Docket 66 at 5-6 ¶ 21-25(TAC); Docket 74 at 4 ¶ 21-25 (Answer) (admitting in relevant part).
. Docket 90-16 at 46:3-48:11 (Hilty Dep.).
. Id. at 7, 51:10-54:13.
. Docket 99-2 at 2, 50:17-22 (Ex. B to Scheer Deck # 3: Kenoyer Dep.).
. Docket 78-1 at 8-9, 98:12-101:7 (Kennedy Dep.); Docket 66 at 6 ¶ 30(TAC); Docket 74 at 5 ¶ 30 (Answer).
. Docket 90-16 at 10, 79:6-12 (Hilty Dep.).
. See Docket 90-19 at 7-8 (Ex. S to Scheer Deck # 2: Plaintiff’s First Set of Interrogatories and Ridge Contracting's Objections, Answers, and Responses).
. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); In re Oracle Corp. Sec. Litig., 627 F.3d 376, 387 (9th Cir. 2010).
. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248-49, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Oracle Corp., 627 F.3d at 387.
. Id. at 248-49, 106 S.Ct. 2505.
. Id. (citing First Nat’l Bank of Ariz. v. Cities Serv. Co., 391 U.S. 253, 88 S.Ct. 1575, 20 L.Ed.2d 569 (1968)).
. Id. at 255, 106 S.Ct. 2505 (citing Adickes v. S.H. Kress & Co., 398 U.S. 144, 158-59, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970)).
. Id. at 248, 106 S.Ct. 2505.
. Scott v. Harris, 550 U.S. 372, 380, 127 S.Ct. 1769, 167 L.Ed.2d 686 (2007) (citing Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986)).
. Anderson, 477 U.S. at 249-50, 106 S.Ct. 2505 (citing Dombrowski v. Eastland, 387 U.S. 82, 87 S.Ct. 1425, 18 L.Ed.2d 577 (1967); Cities Serv., 391 U.S. at 290, 88 S.Ct. 1575).
. Aqua-Marine Constructors, Inc. v. Banks, 110 F.3d 663, 670 (9th Cir. 1997) (citing Ins. Co. v. Dunham, 78 U.S. (11 Wall.) 1, 29, 20 L.Ed. 90 (1870)).
. Aqua-Marine, 110 F.3d at 671 (citing Ingersoll Milling Mach. Co. v. M/V Bodena, 829 F.2d 293, 302 (2d Cir. 1987)).
. Id. (citing Chembulk Trading LLC v. Chemex Ltd., 393 F.3d 550, 555 (5th Cir. 2004)).
. Starrag v. Maersk, Inc., 486 F.3d 607, 616 (9th Cir. 2007) (internal quotation marks omitted).
. See Fontenot v. Mesa Petroleum Co., 791 F.2d 1207, 1214 (5th Cir. 1986).
. Docket 78-3 at 8 (Charter Agreement, Cl. 10.1) (emphasis added).
. Docket 80 at 11-124 (Ridge Contracting Opp'n to C & K Mot.); Docket 83 at 19 (Ridge Mot.).
. See Docket 83 at 19 (Ridge Mot.) (compiling cases).
. Docket 77 at 16-17 (C & K Memo, in Support of Mot. for Summary Judgment).
. Docket 78-3 at 13 (Charter Agreement, Cl. 20).
. Docket 77 at 5 (C & K Memo, in Support of Mot. for Summary Judgment).
. Mat 17.
. Docket 80 at 13-14 (Ridge Contracting Opp’n to C & K Mot.).
. Id. at 11-14; Docket 83 at 19 (Ridge Mot.).
. Docket 77 at 16-17 (C & K Memo, in Support of Mot. for Summary Judgment).
. Docket 80 at 14 (Ridge Contracting Opp'n to C & K Mot.).
. The conclusion here that C & K is required to indemnify, protect, defend, and hold harmless Ridge Contracting may affect the significance of the Court's decision on Ridge Contracting’s breach of contract claims, discussed infra. The interplay of these determinations and how it may affect the parties' financial obligations is not yet before the Court.
. The Ridge Defendants assert that the Court should strike the motion as to C & K because, after C & K’s motion at Docket 76, it is C & K’s second motion for summary judgment, in violation of District of Alaska Local Rule 56.1. D.Ak. L.R. 56.1 (“A motion for summary judgment must contain all the grounds upon which the moving party relies and address all causes of action or affirmative defenses raised in the pleading challenged.”). But as noted by C & K, Local Rule 56.1 does not specifically address third-party complaints. Docket 105 at 3 (Salvage Claimants Reply). Therefore, C & K’s motion at Docket 96 is not in strict violation of the rule. Accordingly, the Court will consider the motion on its merits.
. Docket 94 at 16 (Ridge Def. Reply).
. Docket 83 (Ridge Mot.); Docket 101 (Ridge Opp’n to Salvage Claimants Mot.).
. Bartholomew v. Crowley Marine Servs., Inc., 337 F.3d 1083, 1085 (9th Cir. 2003) (citing The Blackwall, 77 U.S. 1, 13, 10 Wall. 1, 19 L.Ed. 870 (1869)).
. Sea Tow Portland/Vancouver v. HIGH STEAKS, No. 06-cv-985, 2007 A.M.C. 2705, 2708 (D.Or. 2007) (citing U.S. Dominator, Inc. v. Factory Ship Robert E. Resoff, 768 F.2d 1099, 1104 (9th Cir. 1985), superseded by statute on other grounds).
. 337 F.3d at 1084.
. Id. at 1089; see also Markakis v. S/S Volendam, 486 F.Supp. 1103 (S.D.N.Y. 1980) (though same ship owner owned both STAR and SUN, and owner instructed crew of STAR to go to assist the stranded SUN, actions of STAR’s master and crew were nevertheless voluntary for purposes of salvage).
. Evanow v. M/V Neptune, 163 F.3d 1108, 1115 (9th Cir. 1998).
. Id. at 1115 (citing Kimes v. United States, 207 F.2d 60, 64 (2d Cir. 1953)).
. Id.
. Docket 83 at 3-4 (Ridge Mot.); Docket 101 at 23-24 (Ridge Opp’n to Salvage Claimants Mot.).
. Docket 78-3 at 13 (Charter Agreement, Cl. 20).
. Evanow, 163 F.3d at 1114 (quoting Faneuil Advisors, Inc. v. O/S Sea Hawk, 50 F.3d 88, 92 (1st Cir. 1995)).
. F.D.S. Marine, LLC v. Shaver Transp. Co., No. 00-cv-1245-ST, 2001 WL 34045718, at *9 (D.Or. May 25, 2001) (quoting The Plymouth Rock, 9 F. 413, 416 (S.D.N.Y. 1881)). See also Markakis, 486 F.Supp. at 1108 (quoting Gilmore & Black, The Law of Admiralty, § 8-2, at 536-37 (2d ed. 1975)) ("The prototypical act (of salvage) is rescuing a ship in peril at sea and towing her to a place of safety.... If she was not under command, unable to navigate or to reach port unaided, the service will be considered salvage even though the ship was not in imminent danger of destruction and even though the towage itself was calm and uneventful.”).
. Evanow, 163 F.3d at 1115 (citing Clifford v. M/V Islander, 751 F.2d 1, 5 (1st Cir. 1984)).
. 255 F. 854 (9th Cir. 1919).
. Id. at 855.
. Id. at 856.
. Id.
. Id.; see also HIGH STEAKS, 2007 A.M.C. at 2708 (after trial, finding there was marine peril in part because ship was not under its own power, even when it was being controlled by an “electric thruster” or rescue boat); Navigazione Generale Italiana v. Spencer Kellogg & Sons, 92 F.2d 41, 44 (2d Cir. 1937) ("[W]hen a vessel is stranded she and her cargo are practically always in substantial peril. Such a vessel is helpless because she cannot pursue her intended voyage or deal effectively with any emergency which may arise.”).
. Docket 97 at 22 (Memo, in Support of Salvage Claimants Mot. For Partial Summary Judgment).
. Docket 101 at 6-14 (Ridge Opp'n to Salvage Claimants Mot.).
. Id. at 10-11.
. See Docket 90-16 at 7, 51:10-54:13 (Hilty Dep.).
. F.D.S. Marine, 2001 WL 34045718, at *11 (quoting U.S. Dominator, 768 F.2d at 1104).
. Docket 97 at 24 — 29 (Memo, in Support of Salvage Claimants Mot. for Partial Summary Judgment); Docket 105 at 6-7 (Salvage Claimants Reply).
. Docket 101 at 19-20, 24 (Ridge Opp’n to Salvage Claimants Mot.).
. Docket 83 at 33 (Ridge Mot.) (citing W.D. Washington complaint, which provides that "Policy [PS & F 0429] insured the ARIES and the Barge KRS-240-5.”); Docket 84-3 at 10 (Ex. 6 to Jones Decl.: Compl. in Tug Blarney LLC et al. v. Nat’l Cas. Co. et al., No. 2:13-cv-01697-RSM (W.D. Wash., filed Sept. 19, 2013)). But see Docket 84—6 at 8 (Subscription Policy PS & F 0429) (providing that BLARNEY and ARIES are vessels covered by hull and machinery policy).
. Docket 84-6 at 12 (Subscription Policy PS & F 0429).
. Docket 83 at 32-33 (Ridge Mot.); Docket 84-3 at 10 (Ex. 6 to Jones Deck: Compl. in Tug Blarney LLC et al. v. Nat’l Cas. Co. et al., No. 2:13-cv-01697-RSM).
. Markakis, 486 F.Supp. at 1108. An oft cited case is the Fifth Circuit’s 1893 decision in Firemen's Charitable Ass’n v. Ross, which concluded that a fireman who helped extinguish a blaze upon a ship was precluded from a salvage award because of his employment. 60 F. 456, 458-59 (5th Cir. 1893).
. Docket 83 at 31 (citing F.D.S. Marine, 2001 WL 34045718, at *11) (emphasis added).
. F.D.S. Marine, 2001 WL 34045718, at *10.
. Id. at *11.
. See Bartholomew, 337 F.3d at 1089.
. Bartholomew also supports rejecting the Ridge Defendants’ assertion that “Tug Blarney LLC acted only at the request of C & K, and was therefore not acting as a volunteer.” Docket 101 at 20 (Ridge Opp’n to Salvage Claimants Mot.).
. Docket 84-2 at 28 (Standard Bareboat Charter between Heko Services and C & K).
. Bartholomew, 337 F.3d at 1087.
. Docket 90-16 at 4, 38:25-40:6 (Hilty Dep.).
. Docket 99-2 at 2, 50:17-22 (Kenoyer Dep.).
. Evanow, 163 F.3d at 1115 (quoting The "Sabine”, 101 U.S. 384, 384, 25 L.Ed. 982 (1879)).
. Id. at 1115 (quoting 3A Martin J. Norris, Benedict on Admiralty § 90 (7th ed. 1993) and U.S. Dominator, 768 F.2d at 1104).
. Evanow, 163 F.3d at 1115.
. See Docket 101 at 26-28 (Ridge Opp’n to Salvage Claimants Mot.).
. See Docket 90-19 at 7-8 (Ex. S to Scheer Deck # 2, Response to Interrogatory No. 4).
. See Docket 84-2 at 37 (Standard Bare-boat Charter between Tug Blarney and C & K).
. Docket 83 at 34-35 (Ridge Mot.); Docket 94 at 20-21 (Ridge Reply).
. See id.
. Docket 47 at 5 ¶ 16 (C & K Answer to Third-Party Compl. and Counterclaim); Docket 51 at 2 ¶ 16 (Answer).
. See Docket 84-2 at 37, 42 (Standard Bareboat Charter between Tug Blarney and C & K).
. Docket 78-2, 56:12-20 (Ex. B to Scheer Deck: McLaughlin Dep.).
. Docket 83 at 30 (Ridge Mot.); see also Docket 90-19 at 6 (Ridge Contracting Interrogatory Objections, Answers, and Responses) ("Ridge[Contracting's] ownership interest in the Cargo is in the form of a leasehold interest.”).
. Docket 84-9 at 2, at 7:4-26:1 (Ex. 9 to Jones Deck: McLaughlin Dep.); Docket 84-9 (Ex. 9 to Jones Deck: Summary Appraisal Report of Machinery and Equipment).
. Docket 89 at 38-39 (Salvage Claimants Opp’n to Ridge Mot.).
. 733 F.2d 680, 682 (9th Cir. 1984) (internal citations omitted).
. Id. (internal citations omitted).
. Docket 89 at 38-39.
. Docket 83 at 35 (Ridge Mot.).
. The Clarita, 90 U.S. 1, 9-10, 23 Wall. 1, 23 L.Ed. 150 (1875) (noting that whether a tug was entitled to salvage for saving a schooner from a fire depended on whether the tug wrongfully caused the schooner to be set on fire).
. Docket 42 (Ridge Contracting Third-Party Compl.).
. Id. (quoting Charter Agreement, Cl. 11).
. Id. at 4.
. Docket 76 (C & K Mot.).
. See Docket 78-5 at 16 (Ex. E to Scheer Decl. # 1: Condition and Valuation Survey).
. See Docket 78-16, 39:11-40:25 (Ex. A to Scheer Decl. # 1, Kennedy Dep.).
. Id.
. Id.
. See Docket 78-5 at 3, 6, 11:16-12-1 (Ex. E to Scheer Decl. # 1: Morris Dep.). A pier side inspection means that the boat was afloat, so Morris could not survey it below the water line.
. Id. at 12:2-6, 12:19-21, 22:25-23:3; Docket 78-5 at 6, 16 (Ex. E to Scheer Decl. • 1: Condition and Valuation Survey).
. Docket 78-7 at 6, 23:5-24:10 (Ex. G to Scheer Decl. # 1: Hicks Dep.).
. Id. at 5, 17:16-18:19.
. Id. ató, 24:11-27:11.
. Docket 84-2 at 5, 40:18-41:10 (Ex. 2 to Jones Deck: Kennedy Dep.). A gearbox is
. Id. ató, 45:17-46:10.
. Docket 78-8 at 5-6, 71:6-73:22 (Ex. H to Scheer Decl. # 1: Pine Dep.).
. See Docket 84-12 at 3, 41:23-42:24 (Ex. 12 to Jones Deck: Pine Dep.).
. Docket 78-9 at 3, 20:12-19 (Ex. I to Scheer Deck # 1: Johnson Dep.).
. Docket 81-4 at 3-4, 44:7-45:8, 47:3-24 (Ex. 4 to Jones Deck: Pine Dep.).
. Id.
. Docket 83 at 35 (Ridge Mot.).
. Id. (citing Compagnie Maritime Francaise v. Meyer, 248 F. 881, 883 (9th Cir. 1918)).
. Docket 89 at 21 (Salvage Claimants Opp’n to Ridge Mot.).
. Id. at 21-22.
. The Court invites further briefing on this standard in the trial briefs. Walston v. Lambertsen may be helpful. 349 F.2d 660, 661-62 (9th Cir. 1965) (The presumption that "if a claimant establishes that a vessel is unseawor-thy, the trial court may presume that the unseaworthiness was the proximate cause of the sinking, otherwise unexplained, of a vessel in calm seas ... has been indulged only when the claimant has been able to establish to the satisfaction of the trial court that the vessel was unseaworthy at the time it departed on its last voyage. The sea itself contains many hazards, and an inference of liability of the shipowner for the mysterious loss of his vessel should not be lightly drawn.”).
. Docket 83 at 23 (Ridge Mot.).
. Docket 47 at 3 (C & K Answer to Third-Party Compl. and Counterclaim).
. Docket 77 at 21-22 (C & K Memo, in Support of Mot. for Summary Judgment).
.Docket 78-3 at 13 (Charter Agreement, Cl. 21).
. See Docket 77 at 21; Facto v. Pantagis, 390 N.J.Super. 227, 228, 915 A.2d 59 (N.J.Super.Ct.App.Div. 2007).
. Facto, 390 N.J.Super. at 228, 915 A.2d 59.
. Docket 77 at 21-22 (C & K Memo, in Support of Mot. for Summary Judgment).
. Docket 85 at 12 (C & K Reply) (citing Wong Wing Fai Co. v. United States, 840 F.2d 1462, 1471 (9th Cir. 1988)); Docket 89 at 22-23 (same).
. Wong Wing, 840 F.2d at 1471.
. Docket 80 at 29 (citing Denali Seafoods, Inc. v. W. Pioneer, Inc., 492 F.Supp. 580, 582 (W.D.Wash. 1980)).
. Id.
. Docket 85 at 13 (C & K Reply); Docket 86-3 at 23-24, 27:24 — 28:2 (Ex. C to LaRiviere Deck: McLaughlin Dep.).
. The Court invites further briefing on this issue in the trial briefs.
. Docket 78-3 at 12 (Charter Agreement, Cl. 18).
. Id. at 20-21 (Charter Agreement, Ex. D).
. Docket 83 at 25 (Ridge Mot.).
. Id.; see also Docket 84-8 at 4-5 (C & K Responses to Ridge Contracting Interrogatories) ("The only policy which might provide coverage is PS & F 0429. Unfortunately, Underwriters refused coverage.”); Docket 84-6 at 2 (Subscription Policy PS & F 0429); Docket 84-8 at 12 (3/11/13 Letter Insurers to Scheer).
. Docket 89 at 25-26 (Salvage Claimants Opp’n to Ridge Mot.).
. Id.
. Compare Docket 84-6 (Subscription Policy PS & F 0429) with Docket 84-8 (3/11/13 Letter Insurers to Scheer).
. Docket 89 at 27-28 (Salvage Claimants Opp’n to Ridge Mot.).
. Docket 94 at 12-13 (Ridge Reply).
Reference
- Full Case Name
- TUG BLARNEY, LLC, a Washington limited liability company Douglas Hilty, an individual Ed Lyda, an individual Roger Kenoyer, an individual and Nick Humlick, an individual v. RIDGE CONTRACTING, INC., an Alaska corporation and Ridge Equipment, LLC, an Alaska limited liability company, in personam, Defendants Ridge Contracting, Inc., an Alaska corporation, Third-Party v. C & K Marine LLC, an Alaska limited liability company, Third-Party Defendant/Counter-Claimant and Cross
- Cited By
- 3 cases
- Status
- Published