United States v. Dixie Carriers, Inc.

Section 1321(f)(1) of the Federal Water Pollution Control Act (FWPCA) stated that dischargers of oil or hazardous substances would be liable to the government for cleanup costs, notwithstanding any other provision of law. The section also provided that the government could recover above the FWPCA’s liability limits if the spill involved the discharger’s willful negligence or misconduct. In 1974, a tugboat operated by Dixie Carriers, Inc. (Dixie) (defendant) lost control of some tanker barges. One barge struck a bridge near New Orleans, spilling more than a million gallons of oil into the Mississippi River. Under the FWPCA, Dixie’s maximum liability for cleanup costs was $100 per ton of the barge’s weight, amounting to $121,000. Dixie discontinued its cleanup efforts after it had expended $121,000. The United States government (plaintiff) paid over $950,000 to clean up the remaining oil. The government sued Dixie to recover its cleanup costs, bringing claims based on public nuisance, negligence, and the Refuse Act. Dixie argued that the FWPCA provided an exclusive and comprehensive remedy for oil spills, barring the government from recovering additional amounts under the Refuse Act or common law. Dixie moved for partial summary judgment. The government argued that the FWPCA neither expressly superseded common-law claims nor repealed the Refuse Act. The trial judge granted partial summary judgment for Dixie but allowed an interlocutory appeal.