Margate Shipping Co. v. M/V JA Orgeron

143 F.3d 976, 1998 AMC 2383 (1998)

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Margate Shipping Co. v. M/V JA Orgeron

United States Court of Appeals for the Fifth Circuit
143 F.3d 976, 1998 AMC 2383 (1998)

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Facts

The tug JA Orgeron (defendant) was towing the barge Poseidon, which was carrying an external fuel tank for a National Aeronautics and Space Administration (NASA) space shuttle, when the vessels became endangered in a severe storm off the coast of Florida. The Orgeron lost engine power, and the tug and barge were adrift and being carried toward dangerous shoals. The weather was so severe that the United States Coast Guard was unable to deploy any assistance. The M/V Cherry Valley, a fully loaded oil tanker, heard the Orgeron’s distress call and proceeded, at great risk to itself and its crew, to the Orgeron’s aid. Through truly courageous and extraordinary efforts, the Cherry Valley managed to save the Orgeron, the Poseidon, the valuable fuel-tank cargo, and itself intact and unharmed through the duration of the storm. The fuel tank was later used by NASA in a successful space-shuttle launch. The owner of the Cherry Valley, Margate Shipping Co. (Margate) (plaintiff) brought a claim for salvage against the Orgeron, with the United States (defendant) later added on a crossclaim. After Margate’s claims against the Orgeron were settled, the claim against the United States went to trial. The trial judge awarded Margate $6.4 million, and the United States appealed.

Rule of Law

Issue

Holding and Reasoning (Jolly, J.)

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