Opinion ID: 794672
Heading Depth: 3
Heading Rank: 1

Heading: The M/V Showboat

Text: 4 The M/V Showboat, the ship on which the plaintiffs were employed, is one of the largest casino vessels currently operating in the United States; it weighs 2,803 gross tons, is 332-feet long and can carry up to 4,250 passengers and crew at a time. During the period at issue in this litigation, the M/V Showboat operated on a daily basis gambling excursions on Lake Michigan that departed from, and returned to, East Chicago, Indiana. 5 The vessel's operation is governed by a Marine Management Services Agreement (the Agreement) between Riverboat and Showboat. See R.37, Ex.A. This Agreement gives Riverboat the exclusive right and obligation to manage and operate the marine aspects of the [ M/V Showboat ]. Id. § 3.01. Specifically, Riverboat is responsible for ensuring that the vessel's operation complies with applicable state and federal laws, including United States Coast Guard regulations, see id.; employing and training the vessel's crew in a manner consistent with generally accepted standards of the riverboat gaming industry, see id. §§ 3.01, 3.02(I); monitoring the qualifications of the vessel's staff, as well as assuring that the maritime staff is properly licensed, see id. § 3.02(iv); and the hiring, firing, promotion and supervision of all executive and service employees, see id. § 3.04.1. In turn, the Agreement obligates Showboat to obtain insurance and to name Riverboat as the insured party. Section 5.01.1 specifies that Showboat should obtain insurance covering all acts, omissions and injuries to persons or property caused by Riverboat or its agents, in the amount of not less than five million dollars. See id. § 5.01.1. Section 5.01.01.1 then lists five types of insurance coverage required: worker's compensation insurance; comprehensive general liability insurance for accidents and property damage; full form protection and liability insurance on all vessels and floating equipment; hull and machinery insurance; and collision liability insurance for damage to vessels and floating objects. In addition, the Agreement mandates that Showboat obtain coverage for liabilities arising under the Jones Act. See id. 6 The operation of the M/V Showboat also is required to abide by federal statutes and regulations. In pertinent part, applicable Coast Guard regulations provide that a limited engineer license permits a chief or assistant engineer to serve within any horsepower limitations on vessels of any gross tons on inland waters, but not on vessels of more than 1600 gross tons in. . . Great Lakes service. 46 C.F.R. § 10.501(b); see also id. § 15.915(b)-(d). At 2,803 gross tons, the M/V Showboat falls into the latter category. Fearing that the Coast Guard under these regulations would require the M/V Showboat to hire exclusively engineers with unlimited licenses, on August 27, 1996, Mr. Heitmeier wrote to Lieutenant Commander Rich Brundrett at the Regional Examination Center of the United States Coast Guard in Toledo, Ohio. See R.81, Ex.6. He requested that the Coast Guard amend M/V Showboat 's Certificate of Inspection (COI) 7 to permit the employment of engineers with limited engineer licenses. In support of his request, Mr. Heitmeier submitted that the M/V Showboat was similar in terms of installed machinery, route and length of voyage to vessels operated by Riverboat on rivers and inland waters; in short, he contended that, because of its limited use as a sailing vessel, the M/V Showboat should not be characterized as a vessel in Great Lakes service and should be permitted to employ engineers with limited licenses. Riverboat's request was granted. The Coast Guard issued the M/V Showboat 's first COI in April 1997; it provided that [a]n individual holding a license as chief engineer limited or assistant engineer limited may serve as chief engineer or assistant engineer respectively. R.34, Ex.1. Shortly thereafter, the COI was posted and the vessel was opened to the public.