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Rainbow Management Group, Ltd. v. Atlantis Submarines Hawaii, L.P.

United States District Court for the District of Hawaii
158 F.R.D. 656 (1994)


Rainbow Management Group, Ltd. (RMG) (plaintiff) had a contract with Atlantis Submarines Hawaii, L.P. (Atlantis) (defendant) to transport passengers by RMG’s boat, the Elua, to Atlantis’s offshore submarine. The Boston Whaler, a vessel carrying scuba divers, was moored close to the location where RMG and Atlantis exchanged passengers. The Elua collided with the Boston Whaler, damaging both vessels and injuring Boston Whaler passenger George Berry. Berry and his wife sued Atlantis and RMG for negligence. Atlantis cross-claimed against RMG for: (1) breach of contract and (2) contribution and indemnity. RMG then cross-claimed against Atlantis for contribution and indemnity. The following year, RMG filed a separate action against Atlantis, seeking to recover for damage to the Elua and loss of its use. RMG moved to consolidate its suit with the Berry action, which was still pending, but the court denied its motion on account of delay and prejudice. RMG and Atlantis eventually settled the Berrys’ claims. Atlantis moved for summary judgment against RMG in the second suit on the ground that RMG’s claims were compulsory counterclaims that should have been filed in the Berry action.

Rule of Law


Holding and Reasoning (Fong, J.)

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