Mapco Petroleum, Inc. v. Memphis Barge Line, Inc.

849 S.W.2d 312 (1993)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

D, is the owner and operator of the M/V Sebring. P is the owner and operator of petroleum refinery and dock facilities located on the Mississippi River. The M/V Sebring was pushing a 3-barge tow toward one of P's dock facilities for the purpose of mooring at the dock for the night. A barge being towed struck and damaged P's dock. P sued D in Shelby County claiming that the damage to its dock was attributable to the negligence of D. D asserted an affirmative defense under 46 U.S.C. § 183, seeking to limit its liability to $353,515.58, the value of the M/V Sebring and its freight. P moved to strike the affirmative defense, claiming that the court lacked subject matter jurisdiction to consider it. The trial court agreed. The parties stipulated that P was entitled to recover damages in the amount of $690,000.00 exclusive of pre-judgment interest. The trial court entered judgment in accordance with this stipulation, plus interest, for a total judgment of $ 905,915.02. D appealed. The Court of Appeals held that 'state courts lack jurisdiction to determine if a vessel owner is entitled to limited liability if the shipowner's right to limit liability is challenged.' The Court remanded the case for a determination of whether P had a non-frivolous basis for challenging the defense on the merits. Both parties appealed.