CLAIM SUMMARY I DETERMINATION ON RECONSIDERATION 

Claim Number: 

Claimant: 

Type of Claim.ant: 

Type of Claim: 

Claim Manager: 

Amount Requested: 

Incident: 

Nl 4026-0002 

Princess Cruise Lines, Ltd. 

BUSINESS 

Loss of Profits and Impairment of Earnings Capacity 

$3,886,000.00 

On March 22, 2014, at about 1235 central daylight time, the Tug MISS SUSAN was pushing two 

barges from Texas City to Port Bolivar on the eastern side of the Houston Ship Channel. The 

bulk carrier MN SUMMER WIND with a Houston pilot on board was headed north, inbound 

from the Gulf of Mexico toward Houston. The SUMMER WIND and the forward barge, KIRBY 

27706, collided in the Houston Ship Channel causing a discharge from the barge. The barge 

discharged heavy marine fuel oil into Lower Galveston Bay at the Texas City Y, the intersection 

of the Texas City Ship Channel and the Houston Ship Channel. Coast Guard Marine Safety Unit 

Texas City initially responded. On the same day, the CG closed the Houston Ship Channel, the 

Texas City Ship Channel, and the Intracoastal Waterway in the area. The waterways were 

reopened to commercial traffic in the early afternoon on March 25, 2014. 

The identified responsible party (RP) is KIRBY INLAND MARINE LP (Kirby or RP), as owner 

and operator of the KIRBY 27706. 

Claimant: 

The Claimant, Princess Cruise Lines, Ltd. (Claimant or Princess), is a passenger cruise line that 

operates the CARIBBEAN PRINCESS out of the port of Houston, sailing on Caribbean cruise 

itineraries. 

RP Presentment: 

The Claimant initially presented its claim to the responsible party via letter dated April 21, 2014, 

seeking $3,228,000 in damages and expenses. The demand letter was two pages plus a summary 

of the claimed damages with no details or supporting documentation. In response, the RP 

requested information and documentation from the Claimant via four separate letters in 2014 and 

2015. The Claimant provided no responsive information or documentation. Then, via letter 

dated February 19, 2016, Princess submitted its lost profits claim for $3,886,000 to the Oil Spill 

Liability Trust Fund (OSLTF or Fund). The claim was received by the NPFC on February 24. 

Because the Claimant had not properly presented its sum certain or supporting documentation to 

the RP, the NPFC required Princess to submit its increased claimed sum certain and 

documentation to the RP. According to the RP's attorney, Kirby received the increased claim 

along with some documentation on March 11, 2016. The parties have been communicating 

regarding the claim ever since. 

1 
Procedural History 

On September 22, 2016, the NPFC issued its decision to Princess, offering $360,668.48 as full 

compensation for the claim. The remaining balance of $3,525,331.52 was denied for reasons 

explained in that determination. 1 The Claimant's attorney, at Fowler 

Rodriguez, emailed his letter to the NPFC on October 21, 2016, in which the Claimant requested 

reconsideration of the NPFC' s initial decision. 

On April 5, 2017, the NPFC received notice from Princess' attorney that Kirby settled Princess' 

claim for damages relating to the incident.2 Both Kirby and Princess stated that the terms of the 

settlement are confidential. 

DETERMINATION: 

The Claimant notified the NPFC that it reached settlement of its claim with Kirby on April 5, 

2017, and no longer seeks reimbursement of losses from the OSLTF. The Claimant requested 

that its claim be dismissed with prejudice. Having been compensated for its losses, Princess no 

longer has a compensable claim before the Fund. Therefore, the NPFC denies the claim. 

Claim Supervisor:

Date of Supervisor's review: 

Supervisor Action: Denial Approved 

Supervisor's Comments: 

1 See initial Claim Determination. 

2 See email from dated April 5, 2017. 

2