Opinion ID: 16996
Heading Depth: 2
Heading Rank: 2

Heading: The Reduction of the Limitation Fund

Text: 10 The Ramirez claimants appeal the district court's final judgment ordering Gateway to distribute $190,000 among them, as opposed to the original $685,000 stipulation amount. Gateway, Kristie Leigh Enterprises and the Valley Line Company, without division among them, initially signed an ad interim stipulation in which they posted a security of $685,000, equal to the value of the Kristie Leigh and the barges. The district court then reduced the amount of the security to $190,000, the value of the Kristie Leigh, based on the pure tort exception to the flotilla rule. 3 The Ramirez claimants argue that despite the later reduction in the stipulation amount, Gateway contractually obligated itself in the ad interim stipulation to be responsible for the original $685,000. 11 We find this argument unavailing. The ad interim stipulation explicitly allowed such decreases ... [to the posted security] as this Honorable Court may from time to time order. In addition, the Limitation of Liability Act itself permits the court from time to time [to] fix as necessary [the limitation fund] to carry out the provision of section 183. 46 U.S.C. § 185. Therefore, the court had the authority under § 185 to reduce the amount of the limitation fund, and thus, under the terms of the ad interim stipulation, the amount for which Gateway is responsible.