United States v. Nature's Way Marine, L.L.C.
Opinion
This appeal presents us with a question of statutory interpretation. Specifically, we must determine whether the district court was correct in its summary judgment determination that Nature's Way, as the owner of a tugboat, was also "operating" an oil barge that the tugboat was moving at the time of a collision, as the term is *418 used in the Oil Pollution Act of 1990 (OPA). 1 Because we agree that the ordinary and natural meaning of "operating" under the statute would apply to the exclusive navigational control that Nature's Way exercised over the barge at the time of the collision, we AFFIRM the judgment of the district court. 2
I.
The relevant facts of this appeal are not in dispute. In January 2013, a tugboat owned by Nature's Way was moving two oil-carrying barges owned by Third Coast Towing down the Mississippi River. The barges were "dumb" barges lacking the ability for self-propulsion or navigation, and as such were reliant on the propulsion and navigation provided by the tugboat. The barges collided with a bridge, resulting in one of the barges discharging over 7,000 gallons of oil into the Mississippi River. Nature's Way and its insurer (collectively "Nature's Way"), as well as Third Coast Towing and its insurer (collectively "Third Coast") were all designated by the Coast Guard as "responsible parties" under the Oil Pollution Act. Nature's Way subsequently spent over $2.99 million on the clean-up, and various governmental entities spent over an additional $792,000.
Third Coast and Nature's Way settled a lawsuit between them in late 2014. In May 2015, Nature's Way submitted a claim to the National Pollution Funds Center (NPFC) seeking reimbursement of over $2.13 million on the grounds that its liability should be limited by the tonnage of the tugboat and not the tonnage of the barges. 3 Nature's Way also requested that it be relieved of any obligation to reimburse the government for the additional $792,000-plus. Those claims were denied by the NPFC based upon its determination that Nature's Way was an "operator" of the oil-discharging barge at the time of the collision. In January 2016, the United States initiated this litigation, seeking recovery of the additional $792,000-plus from Nature's Way and Third Coast. Nature's Way answered that it was not liable for the additional $792,000-plus, and counterclaimed that the NPFC violated the Administrative Procedure Act (APA) by deeming it to be an "operator" of the barge and consequently ineligible for reimbursement of the $2.13 million-plus.
The government moved for partial summary judgment on the sole question of whether the NPFC violated the APA by declaring Nature's Way an "operator" of the barge and denying reimbursement of the $2.13 million-plus. 4 The district court granted the government's motion for partial summary judgment, concluding that a "common sense" understanding of the term "operator," as it is used in the statute, would include a tugboat that was moving *419 a barge through the water. Nature's Way timely appeals. 5
II.
A federal court will overturn an agency's ruling under the APA "only if it is arbitrary, capricious, an abuse of discretion, not in accordance with law, or unsupported by substantial evidence on the record[.]"
Buffalo Marine Servs. Inc. v. United States
,
Both parties dedicate considerable portions of their briefs disputing whether the NPFC's determination that Nature's Way was an "operator" should be entitled to Chevron deference. 6 Because we conclude that even under a de novo review Nature's Way was "operating" the barge in the ordinary and natural sense of the word as it is used in the statute, we do not make any determination as to whether Chevron deference would be proper in this case. However, in the appropriate case, a thorough examination of the procedural defects alleged against the NPFC in adjudicating claims such as the one here might be warranted. 7
*420 III.
Because this is a question of statutory interpretation, we begin with the text of the statute.
See
Matter of Glenn
,
Defining the term "operating" in the context of an oil discharge is not
terra nova
for the courts. Indeed, the Supreme Court has already grappled with the term as it is used in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA),
8
which defines the term "operator" with the exact same language as is used in the OPA.
See
In a mechanical sense, to "operate" ordinarily means "[t]o control the functioning of; run: operate a sewing machine." American Heritage Dictionary 1268 (3d ed. 1992); see also Webster's New International Dictionary 1707 (2d ed. 1958) ("to work; as, to operate a machine"). And in the organizational sense more obviously intended by CERCLA, the word ordinarily means "[t]o conduct the affairs of; manage: operate a business." American Heritage Dictionary, supra , at 1268; see also Webster's New International Dictionary, supra , at 1707 ("to manage"). So, under CERCLA, an operator is simply someone who directs the workings of, manages, or conducts the affairs of a facility. 9
Bestfoods
,
It follows from that analysis that the ordinary and natural meaning of an "operator" of a vessel under the OPA would *421 include someone who directs, manages, or conducts the affairs of the vessel. Furthermore, it follows that the ordinary and natural meaning of "operating" a vessel under the OPA would thereby include the act of piloting or moving the vessel. It is undisputed that Nature's Way had exclusive navigational control over the barge at the time of the collision, and, as such, that it was a party whose direction (or lack thereof) caused the barge to collide with the bridge. Consequently, we-like the NPFC and district court-hold that Nature's Way was "operating" the barge at the time of the collision based on the ordinary and natural meaning of the term.
Nonetheless, Nature's Way argues that the
Bestfoods
definition of "operator" should be understood differently. Nature's Way emphasizes language in another section of the
Bestfoods
opinion which states: "when [Congress] used the verb 'to operate,' we recognize that the statute obviously meant something more than mere mechanical activation of pumps and valves, and must be read to contemplate 'operation' as including the exercise of direction over the facility's activities."
However, navigating a barge through a river entails a degree of discretion and judgment significantly different than that required for the "mere mechanical activation of pumps." Moreover, even if the District of Kansas case were applicable to the case at hand, it would appear to cut the other way. In that case, the vice-president was held not to be an "operator" of a facility because there was no showing that he personally engaged in the activities which caused the pollution; in this case, Nature's Way directed precisely the activity that caused the pollution-it literally was the party that crashed the barge into the bridge. To hold that Nature's Way was not "operating" the barge at the time of the collision would be to strain beyond the ordinary and natural meaning of the word.
* * * *
We therefore AFFIRM the district court's grant of partial summary judgment for the government.
Pub. L. No. 101-380,
The parties also dispute on appeal whether Nature's Way waived any right to reimbursement from the oil spill trust fund by entering into a settlement deal with Third Coast Towing (the owner of the oil barge). However, because we affirm the judgment in the government's favor on the "operating" issue, we-like the district court-do not address that contention.
The OPA limits the potential liability of a "responsible party" based on the tonnage of the vessels it was operating.
See
In this appeal we do not address any other claims raised by any parties in the district court litigation.
This court has interlocutory jurisdiction over the district court's grant of partial summary judgment pursuant to
See generally
Chevron U.S.A., Inc. v. Nat. Res. Def. Council
,
"
Chevron
deference is not warranted where the regulation is 'procedurally defective'-that is, where the agency errs by failing to follow the correct procedures in issuing the regulation."
Encino Motorcars LLC v. Navarro
, --- U.S. ----,
As alleged in this case, the NPFC considered the findings of a Marine Casualty Investigation Report in adjudicating the claim made by Nature's Way and determining Nature's Way to be an "operator" of the barges. However,
The U.S. Coast Guard, which is both the parent agency of the NPFC and the entity that conducts Marine Casualty Investigations, has interpreted
The Coast Guard's interpretation of
In an appropriate case, further examination is warranted on the question of whether the plain language of
Pub. L. No. 96-510,
Technically, the Court in
Bestfoods
was referring specifically to the definition of an operator of a "facility" under
Reference
- Full Case Name
- UNITED STATES of America, Plaintiff-Counter Defendant-Appellee, v. NATURE'S WAY MARINE, L.L.C., Defendant-Appellant, Environmental Pollution Group, L.L.C., Counter Claimant-Appellant.
- Cited By
- 17 cases
- Status
- Published