In the Matter of the Complaint of A.B.K. Enterprises, Inc.

2019 WL 3068786 (2019)

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In the Matter of the Complaint of A.B.K. Enterprises, Inc.

United States District Court for the Middle District of Florida
2019 WL 3068786 (2019)

Facts

A.B.K. Enterprises, Inc. (ABK) (plaintiff) owned the Island Lady, a small passenger vessel that operated as a water taxi. The Island Lady transported passengers and employees from Port Richey, Florida, to the Tropical Breeze I, a casino boat nine miles offshore. The Island Lady and Tropical Breeze I were operated under a charter agreement by Tropical Breeze Casino Cruz, LLC (TBCC) (plaintiff). In January 2018, there was a fire aboard the Island Lady while the vessel was transporting 37 passengers to the Tropical Breeze I. Several passengers were injured, one passenger died, and the Island Lady was lost. On the day of the fire, 15 passengers had paid $5.00 each for tickets on the Island Lady, nine passengers had paid a discounted rate, and 13 passengers had traveled for free. ABK and TBCC brought an action for exoneration and limitation of liability under the federal Limitation of Liability Act, which provided that a vessel owner’s liability for any claims was limited to the value of the vessel. ABK and TBCC asserted that the Island Lady’s value was $23,700 and created a death-and-injury limitation fund in that amount. Multiple passengers responded to ABK and TBCC’s complaint and asserted claims for negligent failure to maintain the Island Lady in a reasonably safe manner. The passengers asserted no breach-of-contract claims. Several of the passengers also sought to increase the amount of the fund. The passengers asserted that the amount in the fund should include the value of the Tropical Breeze I, which was insured for $750,000. The passengers’ argument was based on the flotilla doctrine, which provided that a vessel owner’s liability could be increased to include the owner’s interest in the value of all vessels engaged in a common enterprise with the vessel aboard which the claimant suffered a loss or injury. ABK and TBCC argued that the flotilla doctrine was inapplicable under the pure-tort exception to the doctrine, under which a vessel owner whose alleged liability arose solely from tortious conduct was required to surrender only the value of the vessel that was actively responsible for the injury.

Rule of Law

Issue

Holding and Reasoning (Wilson, J.)

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