IN RE TAIRA LYNN MARINE LTD. NO 5 LLC V. JAYS SEAFOOD, INC. 444 F.3d 371 (5th Cir. 2006) CASE BRIEF

IN RE TAIRA LYNN MARINE LTD. NO 5 LLC V. JAYS SEAFOOD, INC.

444 F.3d 371 (5th Cir. 2006)

NATURE OF THE CASE: Fourteen businesses and business owners brought claims under the general maritime law, and the appellants filed motions for partial summary judgment to dismiss these claims, which the district court denied.

FACTS: The M/V MR. BARRY with its tow, the T/B KIRBY 31801, allided with the Louisa Bridge. Taira Lynn Marine, Inc. owned and operated the tug; and the Louisiana Department of Transportation and Development owns the bridge. A gaseous mixture of propylene/propane, discharged into the air as a result of the allision. Consequently, the Louisiana State Police ordered a mandatory evacuation of all businesses and residences within a certain radius of the Louisa Bridge. Taira Lynn (P) initiated the underlying litigation under the Limitation of Liability Act, 46 U.S.C. app. 183 (2000), in which several hundred claims were filed. The district court referred discovery to the magistrate judge who limited the initial phase of discovery to the claims alleging solely economic loss. P and the State then filed motions for partial summary judgment on the grounds that Claimants' recovery for economic losses unaccompanied by damage to a proprietary interest is barred. Those claims alleging direct property damage and/or personal injury as well as economic loss were not included in the motions. The court endorsed a 'geographic exception' to the rule barring recovery for economic losses absent physical damage and concluded that the claimants alleging solely economic losses should have an opportunity to present their claims in court.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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