Opinion ID: 516020
Heading Depth: 1
Heading Rank: 6

Heading: marking expenses

Text: 51 After the CBLL-01315 sank, the Coast Guard, in an independent search, located a sunken vessel and established a temporary buoy. On January 30, 1974 the buoy was found missing, and it was then replaced with a larger buoy. This second buoy was reported lost on February 24, 1974. At this point the Coast Guard decided to discontinue marking and advised the maritime public of its decision. 52 After the DAUNTLESS's accident on July 22, 1977, COE searched for an obstruction that could have contributed to the casualty. Once the wreck was located, the Coast Guard maintained a buoy on the wreck until the vessel was removed in October 1977. Upon removal, the wreck was identified as being the missing Combi barge and the same wreck which the Coast Guard had twice marked in 1974. 53 The United States seeks to recover $11,488.42 from Combi for its expenses in marking the Combi barge and also requests that prejudgment interest be awarded. The government's marking expenses comprise $10,388.02 for the two markings in 1974, and $1,100.40 for the marking in 1977. 54 The district court's decision to deny the United States its marking expenses was a conclusion of law, and as such, is subject to de novo review. Byram v. United States, 705 F.2d 1418, 1421 (5th Cir.1983). At the time of the Combi barge sinking, the Rivers and Harbors Act, 33 U.S.C. Sec. 409 (the Wreck Act), stated that, 55 ... whenever a vessel ... is wrecked and sunk in a navigable channel, accidentally or otherwise, it shall be the duty of the owner of such sunken craft to immediately mark it with a buoy or beacon ... and to maintain such marks until the sunken craft is removed or abandoned, and the neglect or failure of the said owner so to do shall be unlawful.... 56 (emphasis added). This Court recently held in Nunley I: 57 [The Wreck Act] requires the owner of a sunken vessel, regardless of his fault or lack thereof in causing the sinking, immediately to mark the wreck.... [T]he statute places a duty on an easily determinable figure, the owner of the wreck, to ensure that the danger of the obstruction is immediately lessened by its marking or removal. 58 727 F.2d at 459. The Court went on to say, 59 ... if an owner diligently and in good faith searches for his sunken vessel but cannot find it, he has fulfilled his obligations to mark under the Wreck Act. 60 This latter acknowledgement does not, however, relieve a non-negligent owner from an obligation to reimburse the government for marking expenses incurred before abandonment if the government undertakes this task. In re Marine Leasing Services, Inc., 328 F.Supp. 589 (E.D.La.1971); aff'd 471 F.2d 255 (5th Cir.1973). The government's first set of marking expenses was incurred within three weeks after the sinking of the CBLL-01315. During this time, Combi cannot be considered to have abandoned the barge. As previously noted, Combi did not even inform its insurers of its intent to abandon until February 6, 1974. 61 The non-negligent owners' liability to the Government for its marking expenses was also established by 14 U.S.C. Sec. 86, as that statute was phrased in 1974. Section 86 authorizes the Coast Guard to mark wrecks if the owner failed to do so and states that the owner shall be liable to the United States for the cost of such marking until such time as the obstruction is removed or its abandonment legally established.... See also 33 C.F.R. Sec. 64.01-10 (1974) (When the District Commander within whose jurisdiction a sunken vessel is located determines that the wreck is not suitably marked by the owner for the protection of navigation, he may mark the wreck.... The costs of such marking by the Coast Guard will be charged to the owner of the wreck.). 62 The Government seeks reimbursement not only for its expenses incurred in the 1974 markings, but also for its marking efforts in 1977 subsequent to the DAUNTLESS wreck. The Government is not entitled to this second set of expenses. The district court found that by 1977, Combi had abandoned the sunken barge. Therefore, the Government may recover only those expenses associated with its markings in early 1974. 33 U.S.C. Sec. 409; 14 U.S.C. Sec. 86.