Source: http://chaloslaw.com/vessel-detentions.html
Timestamp: 2017-10-24 09:19:03
Document Index: 397795248

Matched Legal Cases: ['§ 1901', '§ 1251', '§ 1311', '§ 1321', '§ 1321', '§ 1319', '§ 401', '§ 411', '§ 1001']

Vessel Detentions, Investigations And Criminal Prosecutions Of Owners, Operators, Managers, Corporate Officers & Crew
By George M. Chalos, Esq.
Additionally, we have learned that the U.S. Coast Guard has recently established various task forces, including 'the Oily Water Separation Systems Task Force' (OWSSTF), to examine a wide range of issues related to oily water separation equipment and its use on vessels in U.S. waters. Coast Guard personnel and other law enforcement personnel are scrutinizing the use and functionality of oily water separation systems more carefully than ever before, and U.S. and International authorities have made it clear that they have, and will continue to, seek jail sentences for Masters and Chief Engineers of ships committing pollution offenses. Many times, even if no pollution incident has occurred, the Coast Guard and U.S. prosecutors will commence a Grand Jury investigation seeking to prosecute suspected illegal activities (i.e. possible Marpol violations, presentation of false records and/or obstruction of justice charges). It is now well know that the U.S. authorities have repeatedly successfully prosecuted various cruise operators, as well as commercial vessel operators, captains, and chief engineers of illegal by-passing of the oily water separation system and/or the presentation of an Oil Record Book containing "false entries." Prosecutors have also successfully prosecuted vessel owners and operators for 'obstructing justice.' It is the goal of this paper to introduce key individuals in the maritime industry to 'need to know' information to be prepared to address this serious and alarming situation for vessels calling U.S. ports. Additionally, as more fully detailed below, we offer the most basic, yet essential, advice a lawyer can give: shipboard and shore-side personnel should seek the advice of counsel as soon as practical, and must always be truthful and forthright in their dealings with the U.S. authorities. Of course, it is extremely advisable that if the U.S. authorities undertake any onboard investigation, which goes beyond the scope of the ordinary port state control inspection, counsel should be engaged to protect the rights of the owners, managers, officers and crew. It is without question that an ounce of prevention, goes much further than a pound of cure.
U.S. Government's Modus Operandi
Historically, the U.S. courts have recognized that in order to be guilty of a crime, a person must have a criminal intent or mens rea. Thus, in order to be guilty of a crime, one needs to have acted with wrongful purpose, knowledge of a particular wrong, or in a reckless and/or willful manner. The basic notion running through the traditional criminal law was not to criminalize conduct absent a showing of evil intent or motive or that which would be traditionally considered a civil wrong, addressed by civil remedies. Most judicial interpretations of traditional general criminal statutes incorporated the concept of mens rea, even if not specifically provided for in the statute. The prescribed mental state necessary to trigger criminal liability varies from statute to statute. Following the traditional rule, one would expect that maritime criminal liability would be predicated upon the individual's mental status for: willful or knowing conduct, criminal negligence, recklessness and willful ignorance.
Unfortunately, this basic concept of law and fairness relating to minimal intent requirements was abandoned in the application of statutes dealing with the public welfare, including environmental statutes. These "public welfare" statutes were initially concerned with the regulation and protection of the public from adulterated food and drugs. Thus, the courts reasoned that the public safety outweighed the traditional requirement of criminal intent. Such statutes originally came into being to protect the public from the dangerous hazards resulting from the industrial revolution.
Common sense dictates that these "substantial risk" and "gross deviation" requirements should apply to a maritime incident where a general criminal statute containing negligence as an element is charged. However, the courts have held that where negligence is included as an element in an environmental statute, proof of simple negligence alone is enough for conviction. As an example, the criminal negligence provisions of the Clean Water Act have been construed to require only proof of simple negligence rather than gross negligence to sustain a criminal conviction. Obviously, the proof required to establish simple negligence is much less than the proof required to sustain a charge of gross negligence, and a conviction under such statutes is almost a foregone conclusion. It is precisely because it is so easy for the prosecutors to obtain a conviction under these statutes, that the prosecutions of crewmembers and company officials has become so prevalent.
3. Knowing Conduct. While the public welfare approach to crimes permits strict liability statutes, Congress has attempted to prevent the criminalization of innocent conduct by expressly including a knowledge element as part of the mens rea requirement in the majority of criminal environmental statutes. In order for criminal liability to attach in this class of offenses, the act must be committed 'knowingly.' An act is done knowingly if it is done intentionally or voluntarily. It is not necessary that the person be aware that the act is illegal. Also, there is a line of cases which hold that willful ignorance can be considered the equivalent of knowledge. This concept comes into play when there is evidence that a defendant, usually a supervisor, deliberately chooses to ignore what would have otherwise been obvious to him, or consciously avoids learning of illegal conduct.
In addition, a corporate officer may be held criminally liable for violation of an environmental statute, even if the officer did not participate in the illegal activity. Under the "Responsible Corporate Officer Doctrine", criminal liability can be imposed on corporate officers if they were in a position to know about or prevent the criminal act, even if they did not actually commit the alleged crime. This doctrine is very harsh in that it can result in criminal liability being imposed on a corporate officer merely because of that officer's position of responsibility, as opposed to any particular conduct on the officer's part.
The Responsible Corporate Officer Doctrine should be of particular significance and concern to vessel operating and/or management personnel. Under this doctrine, if an officer or responsible individual at such companies actively engages in acts or omissions, which result in a spill incident or a criminal violation, that person and company can be charged with crimes under the various statutes. For instance, if an individual at the management company knowingly hires an incompetent master or crewmember who is responsible for an oil spill incident, that individual and his company are at risk for criminal prosecution. If an individual at the management company fails to comply with the ISM Code, or fails to implement systems to monitor the vessel personnel's compliance with the ISM requirements, that individual and/or his company is at risk. If an individual at the vessel's operating company knows, or should have known, of a defect in the vessel's equipment which causes or exacerbates a pollution incident, that individual and/or his company is at risk of criminal prosecution.1
The Act to Prevent Pollution from Ships, 33 U.S.C. §§ 1901-1911, adopts as U.S. law the provisions of the International Convention for the Prevention of Pollution from Ships ("MARPOL"). Various administration regulations have been promulgated by the Coast Guard to enforce the provisions of MARPOL and the APPS. See 33 C.F.R. pts. 151 and 155.
The Clean Water Act (CWA) 33 U.S.C. § 1251, et seq. prohibits the discharge of any pollutant by any person into navigable waters of the United States, 33 U.S.C. § 1311(a). A "knowing" violation of the Act is a felony. A "negligent" violation is a misdemeanor. The Act also prohibits the discharge of oil or hazardous substances into the navigable waters of the United States, or into the waters of the contiguous zone . . . in such quantities as may be harmful. 33 U.S.C. § 1321(b)(3). Failure to report a discharge is punishable by imprisonment of up to five years. 33 U.S.C. § 1321 (b)(5). The Clean Water Act also provides that the term "person" includes a "responsible corporate officer." 33 U.S.C. § 1319 (c)(6), (see, discussion of Responsible Corporate Officer, below at paragraph 6).
Under section 407 of the Rivers and Harbors Act of 1899, 33 U.S.C. § 401, et seq., any discharge of refuse of any kind from a vessel into navigable waters of the United States is prohibited. A violation of the Act is a misdemeanor. 33 U.S.C. § 411. The courts have taken a broad view of what constitutes "refuse" under the Act, and the Act has been extended to a discharge of oil or petroleum. Violation of the Act is a strict liability offense which does not require proof of either intent of negligence. Accordingly, a person can be convicted of a misdemeanor violation under the Act based solely upon proof that the person placed a banned substance into navigable waters of the United States.
Under 18 U.S.C. § 1001, providing a false statement to the U.S. Government is illegal. To sustain a conviction for a violation of the Act, the Government must show: (1) that a statement or concealment was made; (2) the information was false; (3) the information was material; (4) the statement of concealment was made "knowingly and willfully;" and (5) the statement or concealment falls within the executive, legislative or judicial branch jurisdiction.
Falsity through concealment is found to exist where disclosure of the concealed information is required by a statute, government regulation, or form. Also, a false statement about, or concealment of any prohibited discharge satisfies both the Act to Prevent Pollution from Ships or the Clean Water Act, since both impose the duty to report. Likewise, a false entry in a vessel's oil record book has been the grounds for numerous felony indictments.
Under the "Responsible Corporate Officer Doctrine," criminal liability for violations of environmental laws can be imposed on corporate managers or officers who were in a position to know about and prevent a violation, even if they did not actually commit the alleged crime. A person can be held liable as a responsible corporate officer based upon the persons' ability or authority to influence the corporate conduct which constituted the violation. In the past, the United States has used this doctrine to convict high level officers of corporations, including presidents of corporations, for violations of environmental laws committed by lower-level employees.
Generally, there are three (3) requirements, which must be satisfied to impose liability under the doctrine. First, the individual must be in a position of responsibility, which allows the person to influence corporate policies or activities. Second, the person, by reason of his corporation position, could have prevented or corrected actions, which constituted the violation. Third, the individual's actions or omissions facilitated the violation.
Owners/Operators/Managers and Shipboard personnel must avoid shortcuts and, most importantly, avoid 'burying your head in the sand' if you know, or should know, something that requires attention is not being attended to;
Owners/Operators/Managers and Shipboard personnel must keep accurate records, but avoid the proverbial "CYA" memos;
As a matter of policy, Owners/Operators/Managers and Shipboard personnel should implement a "no alcohol" policy while the vessel is in the United States waters. Nothing creates a bigger stir or potential for criminal prosecution, fines, penalties and loss of limitation of liability, than a spill incident resulting from the use of alcohol by a crew member.