In the Matter of the Complaint Ocean Angel V, LLC

Background

Ocean Angel V, LLC filed an admiralty action under the federal vessel-liability limitation statute seeking exoneration from, or limitation of, liability for injuries Robin DeLeon-Piedra sustained during a July 25, 2017 squid-fishing voyage. DeLeon-Piedra was operating the OAV Skiff, which accompanied and helped tow and control the Ocean Angel V during the fishing operation.

Ocean Angel V, LLC initially alleged that the net value of the OAV Skiff, including any freight it carried, was $50,000 and sought to limit potential liability to that amount. DeLeon-Piedra moved under Supplemental Rule F(7) to increase the limitation fund to include the value of the Ocean Angel V and its attached permits. She presented a valuation of $1,055,000 for the Ocean Angel V and its licenses and permits. Ocean Angel V, LLC agreed to that valuation if the court concluded that the fund had to include the second vessel, but argued that no further appraisal was needed.

Legal Standard

Supplemental Rule F(7) permits a claimant to ask the court to increase deposited funds or security when they are less than the vessel owner’s interest in the vessel and pending freight, or when an increase is needed to address claims involving death or bodily injury. The court focused on the flotilla doctrine, which can require a limitation fund to include the value of multiple vessels involved in the same common enterprise or venture.

The court explained that federal courts have used two tests. Under the test the court selected, the doctrine applies when the vessels are owned by the same person, engaged in a common enterprise, and under a single command. The court declined to apply the alternative test, which considers whether all vessels were necessary to perform the relevant contract.

Court’s Analysis

The parties agreed that Ocean Angel V, LLC owned both the Ocean Angel V and the OAV Skiff and that the vessels were engaged in a common enterprise. They disagreed about whether the vessels were under a single command. Ocean Angel V, LLC argued that DeLeon-Piedra was the captain of her own boat and that the vessels therefore were not under one command. DeLeon-Piedra argued that Jesse Long, the captain of the Ocean Angel V, retained ultimate authority over the skiff and directed its movements during the fishing operation.

The court found that the skiff’s functional purpose was to assist the Ocean Angel V in fishing for squid and that Long exercised control over the skiff’s lead operator by communicating directions. It held that Long served as the single command for both vessels. The court stated that it did not matter that Long was not aboard the skiff, was not operating its controls, or did not maintain uninterrupted communication with its operator.

Because all three parts of the selected flotilla-doctrine test were satisfied, the court held that the limitation fund had to include the value of both vessels. The court also found no need for another appraisal because Ocean Angel V, LLC had stipulated to the $1,055,000 valuation and DeLeon-Piedra withdrew her separate request for a court-ordered appraisal if the fund-increase motion was granted.

Disposition

The court GRANTED the motion to increase the limitation fund. It ordered Ocean Angel V, LLC, to increase the limitation fund or the deposited security by $1,055,000 to reflect the value of the Ocean Angel V in addition to the OAV Skiff. Including the skiff’s $50,000 valuation, the fund or security was to be set at $1,105,000.

Judge

The order was issued by Edward J. Davila, United States District Judge.