In re Taira Lynn Marine Ltd. No. 5, LLC v. Jays Seafood, Inc.

The Barry, a barge that was carrying gaseous propylene/propane cargo and being pulled by the Kirby, a tugboat, ran into the Louisa Bridge in Louisiana. When the allision occurred, the gaseous cargo on the Barry discharged into the air, and Louisiana state police ordered a mandatory evacuation of all business and residences within a certain vicinity of the bridge. Taira Lynn Marine, Inc. (Taira Lynn) (plaintiff) owned and operated the Kirby. Taira Lynn initiated a federal action to resolve damage claims against Taira Lynn, the barge owner, and the state (collectively, the respondents). Hundreds of claims were filed. A group of 14 businesses (the claimants) (defendants) filed claims under general maritime negligence law, state law, and certain federal statutes. Most of the claimants did not claim any physical property damage due to the allision but asserted that they had lost work, sales, and/or revenues as a result of the evacuation. A few claimants asserted that the discharged gases that reached their property constituted physical damage. Mason Seafood (Mason) (defendant) claimed to have suffered property damage to the extent that 88 boxes of crabs spoiled in a freezer when law enforcement shut off the electricity during the evacuation. Advanced Materials (defendant) claimed property damage insofar as it lost certain chemical materials when it had to prematurely terminate its manufacturing process after the allision and could not sell its chemical products. On motions for partial summary judgment, the respondents argued that the claimants were barred from recovery because the claimants suffered economic losses unaccompanied by physical injury. The district court denied the motions. The respondents appealed.