Source: MLA
Doc. No.: 754
Date: January 3, 2000
DOCUMENT NO. 754
November 3, 2000
THE MARITIME LAW ASSOCIATION
OF THE UNITED STATES
FALL MEETING-NOVEMBER 3, 2000
Present:
William R. Dorsey, III
Raymond P. Hayden
Thomas S. Rue
Lizabeth L. Burrell
Patrick J. Bonner
Winston E. Rice
Howard M. McCormack
and the following 168 members:
Julia M. Adams
Robert J. Barbier
Francis J. Barry, Jr.
James W. Bartlett, III
Michael K. Bell
Helen M. Benzie
Philip A. Berns
Frank E. Billings
Geoffrey F. Birkhead
George William Birkhead
Denise S. Blocker
Darnell Bludworth
Allan G. Bowdery
Lawrence J. Bowles
James Brockmeyer
Charles D. Brown
Phillip A. Buhler
Lucienne C. Bulow
Frederick F. Burgess, Jr.
Raymond J. Burke, Jr.
William D. Carle, III
James K. Carroll
William E. Cassidy
George F. Chandler, III
James L. Chapman, IV
Peter D. Clark
David W. Condeff
Michael Marks Cohen
William R. Connor, III
James P. Cooney
Richard Corwin
Attilo M. Costabel
Rae M. Crowe
Bruce P. Dalcher
Christopher B. Daniels
Christopher O. Davis
A. Robert Degen
Frank P. DeGiulio
Vincent M. DeOrchis
Christopher H. Dillon
Charles S. Donovan
William F. Dougherty
William A. Durham
Paul S. Edelman
John A. Edginton
Henry Engelbrecht
Warren M. Faris
David Farrell, Jr.
Joshua S. Force
Robert Force
George J. Fowler, III
Albert L. Frevola, Jr.
George D. Gabel, Jr.
Albert R. Galik
Gene B. George
Alexander M. Giles
Robert S. Glenn, Jr.
Andrew J. Goldstein
Francis J. Gonynor
John B. Gooch, Jr.
A. Gordon Grant
Donald C. Greenman
Kevin J. Hartmann
Walter C. Hartridge
George P. Hassapis
Nicholas J. Healy
Charles Herd
Ann-Michele Higgins
Neal D. Hobson
Bruce R. Hoefer, Jr.
Chester D. Hooper
Anne D. Hopkins
Robert Hopkins
Aileen Jenner
Kimbley Kearney
Marshall P. Keating
R. Brett Kelly
James B. Kemp, Jr.
Donald J. Kennedy
John D. Kimball
Bruce A. King
Sandra L. Knapp
Jean E. Knudsen
Victor Koock
Walter M. Kramer
Mark J. Kremin
Alfred J. Kuffler
Marc I. Kunkin
Jan M. Kuylenstierna
LeRoy Lambert
J. Dwight LeBlanc, III
J. Dwight LeBlanc, Jr.
Edward LeBreton
Richard M. Leslie
John T. Lillis, Jr.
Henry C. Lucas, III
C.E. Lundin
James M. Maloney
Matthew A. Marion
Janet W. Marshall
David W. Martowski
Warren J. Marwedel
Howard M. McCormack
Marion E. McDaniel, Jr.
Daniel G. McDermott
Peter A. McLauchlan
Samuel P. Menefee
Ann G. Miller
A. Carter Mills, IV
James F. Moseley
James F. Moseley, Jr.
Walter Muff
Douglas M. Muller
Howard L. Myerson
Glen T. Oxton
Richard W. Palmer
Armand M. Paré, Jr.
Patricia L. Parker
Robert B. Parrish
Edward J. Patterson, III
Gordon W. Paulsen
Edward J. Powers
Edward C. Radzik
Lennard K. Rambusch
A. Clay Rankin, III
Mary Elisa Reeves
Richard J. Reisert
Stephen Rible
J. Ramon Rivera-Morales
Jack Rockafellow
Paul Rosenlund
Thomas A. Russell
John M. Ryan
Michael J. Ryan
Robert J. Ryniker
John P. Schaffer
Thomas M. Schodowski
Gordon D. Schreck
Janis G. Schulmeisters
David J. Sharpe
James T. Shirley, Jr.
G. Byron Sims
David F. Sipple
John W. Sipple, Jr.
Joseph C. Smith
Michael A. Snyder
Jonathan S. Spencer
Graydon S. Staring
Michael E. Stern
William T. Storz
Michael F. Sturley
Norman C. Sullivan, Jr.
Joseph C. Sweeney
Alan Van Praag
John P. Vayda
David N. Ventker
Kenneth H. Volk
Thomas J. Wagner
Guilford D. Ware
Harold K. Watson
James F. Whitehead
M. H Whitman, Jr.
James C. Winton
Malcolm J. Williams, Jr.
Frank L. Wiswall, Jr.
James F. Young
Robert J. Zapf
JoAnne Zawitoski
and the following three guests:
James E. Gould
Remzi Kulen
Catherine O'Connell
TABLE OF CONTENTS
Resolutions
Approving locations and negotiations for Fall 2003
and 2005 meetings 12470
Authorizing change in accountants 12454
Authorizing expenditure for website library 12464
Authorizing expenditure for website library
search engine 12474
Authorizing letter regarding Marshal fees
security deposits 12456
Authorizing statement to Coast Guard about
environmental crimes 12469
Honoring Past President James J. Higgins 12463
Honoring USCG Captain Malcolm J. Williams, Jr. 12371, 12462
Board Minutes
Minutes of the Board of Directors Meeting Held
on August 5, 2000 12453
Minutes of the Board of Directors Meeting Held
on November 2, 2000 12465
Reports of Officers
Report of Membership Secretary 12367
Report of Secretary 12362
Report of Treasurer 12366
Reports of Standing Committees
Carriage of Goods 12373
Comité Maritime International 12378
Cruise Lines and Passenger Ships 12383
Electronic Communications and Commerce 12386
International Law of the Sea 12388
Limitation of Liability 12390
Marine Ecology 12391
Marine Financing 12393
Marine Insurance and General Average 12397
Maritime Arbitration and Mediation 12399
Maritime Criminal Law and Procedure 12400
Maritime Legislation 12401
Maritime Personnel 12402
Navigation, Coast Guard and Government
Regulation 12403
Practice and Procedure 12404
Proctor Admissions 12413
Salvage 12406
Uniformity of U.S. Maritime Law 12409
Young Lawyers' Committee 12412
Reports of Special Committees and Study Groups
Environmental Crimes 12395
Planning and Arrangements for the
2001 Fall Meeting 12381
Adjournment 12415
Reports of Related Organizations
American Maritime Cases 12413
American Maritime Law Foundation, Inc. 12387
Formal Standing Committee Reports
Carriage of Goods 12417
Carrier Security 12418
Classification Societies 12419
Comité Maritime International 12420
Electronic Communications and Commerce 12423
Maritime Arbitration and Mediation 12425
Maritime Personnel 12436
Navigation, Coast Guard and Government
Regulation 12444
Recreational Boating 12449
Salvage 12450
Stevedoring and Terminal Operations 12452
PROCEEDINGS
PRESIDENT DORSEY: Good morning, ladies and gentlemen. If the
content of the Committee meetings that I attended in the past week are any
indication, we have some very interesting things to talk about this morning, and so
I will call the meeting to order and call on Madam Secretary to make the
Secretary's report.
MS. BURRELL: Good morning, Mr. President, members and guests.
Everyone who wishes his or her attendance to be reflected in the records of the
Association should make sure that they have signed one of the cards on the table
outside. In addition, if you are going to be speaking today, please be kind enough
to drop one of your cards off with the reporter so that you can be correctly
identified.
The Board met on August 5th in Chicago and yesterday here at the City
Bar. The full minutes of those meetings will appear in the proceedings of this
General Meeting. We heard reports from the Treasurer and from the Membership
Secretary, as you will hear a little later on this morning.
President Dorsey reported on his activities on behalf of the Association,
which have been many and varied. These activities include President Dorsey's
attendance at London Maritime Week in May 2000, during which he both chaired
a panel and acted as a panelist on the subject of casualty investigations at the
Tulane program entitled "Maritime Law in an International Setting." He also
attended the British Average Adjustors meeting and dinner and represented the
Association at the meeting of the Assembly of the Comité Maritime International
during that same week. The Canadian Maritime Law Association graciously
invited President Dorsey to attend their meeting in Halifax in July of this year, at
which he also represented our Association.
In September, President Dorsey traveled to Toledo to attend a seminar at
which the items that are going to be treated at the Singapore Plenary of the CMI in
February of 2001 were addressed. You will hear more about those subjects from
the Committee chairs who are dealing with these matters later on this morning.
President Dorsey also spoke at the Houston Marine Insurance Seminar.
His subject was the UNESCO Convention on Underwater Cultural Heritage, which
is a topic this Association is much involved in at the moment.
President Dorsey also represented the Association at the U.S. Average
Adjustors meeting in New York last month and had the pleasure of seeing our
Board member and Chair of our Marine Insurance Committee, Jean Knudsen,
installed as the new Chair of the Average Adjustors Association.
President Dorsey then traveled to London to act as a private sector advisor
to the U.S. delegation at the IMO Legal Committee meeting, which occurred in
October of this year. I will say more about the subjects that were treated at that
IMO meeting later on, as will the Committee chairs who have enabled the
Association to participate meaningfully in the work of the IMO.
At both of the Board meetings since our last General Meeting, the Board
heard reports on our domestic and international endeavors from our industrious
Committees, and from the Board members who were specially involved in some
of these projects, including the new COGSA proposal, which will also be covered
in a report later today.
The Board was advised by Board member Jim Bartlett, who chairs the
Committee on Practice and Procedure, of a proposed amendment to local admiralty
rules for the U.S. District Court of the District of New Jersey that would have
increased security deposits for the arrest of vessels over 65 feet to $10,000. The
Board passed a resolution authorizing President Dorsey to write to the Clerk of that
Court explaining that security should be set in an amount that reflects the
anticipated marshal's costs, and the Court has now referred the matter to a
committee, including practitioners, for further consideration.
Fred Kuffler, who chairs the Board's Special Environmental Crime
Subcommittee, will report to you later on items of significance in that area that
were treated by the Board.
We also heard from the chairs of the Committees on Planning and
Arrangements for the Fall 2001 Meeting, and Site Selection for the Fall 2003
Meeting, but I will not steal the thunder of these chairs about the wonderful
meetings that are planned for you in those years.
The Board approved expenditures to begin to develop a library on our
website. MLA documents will continued to be added to the website and our initial
search engine will refined over time. The Board also appointed Glen Oxton, who
is chair of the Committee on Electronic Communications and Commerce, as our
web master. Items for the website calendar, however, should continue to be sent
to President Dorsey.
President Dorsey also reported on the current status of our efforts to index
MLA documents, so that those also will be more accessible as a research resource
to everyone interested in maritime law.
President Dorsey also reported on the current status of the Titanic suit
brought by RMS TITANIC, Inc. against the government seeking a declaratory
judgment. That suit has now been dismissed for lack of ripeness because there is
as yet no treaty nor any guidelines on the salvage and exploration and investigation
of the Titanic. With Board approval and with the able assistance of the chair of
the UNESCO study group, John Kimball, and Professor David Bederman,
President Dorsey submitted comments and questions about NOAA's proposed
guidelines for research, exploration and salvage of the Titanic to the government,
but we have not yet received any response.
On the international front, there is a considerable amount of activity to
prepare for the upcoming Plenary meeting of the CMI in Singapore, which will
take place in February of 2001. Because our Committees are very heavily involved
in these preparations, I will leave fuller treatment of the subject matter to be
addressed at the Plenary to the appropriate Committee chairs who will report later
this morning. I will mention, however, that in connection with the CMI's
International Subcommittee on Transport Law, there was a joint UNCITRAL-CMI
seminar in New York at the United Nations in July, which included speakers from
both government and industry stressing the importance of harmony in this area of
law.
President Dorsey reported on the IMO meeting in London last month at
which again he acted as a private sector advisor to the U.S. delegation. The work
on the Protocol to the Athens Convention on Liability Related to the Carriage of
Passengers and their Luggage by Sea will be covered later by Ann Miller, chair of
our Committee on Cruise Lines and Passenger Ships. President Dorsey also
reported on the tacit amendment of the limits for oil pollution liability under the
Civil Liability Convention and the IOPC Fund Convention, which will take effect
in 2003. A Diplomatic Conference on the proposed Bunker Pollution Convention
will take place on March 2001, the work on that Convention being substantially
complete.
Board member Alan Van Praag, who has been acting as advisor to the
U.S. delegation on the Convention on Enforcement of Judgments, reported on
meetings of British and U.S. specialists addressing issues arising from the special
jurisdictional issues that will affect the enforceability of maritime judgments under
this Convention.
Don Kennedy, chair of our Committee on Maritime Arbitration and
Mediation, will report also on the UNCITRAL Working Group on Arbitration, as
well as the proposed amendments to the Federal Arbitration Act.
President Dorsey also brought the Board up-to-date on Association
activities in connection with the UNESCO Convention. John Kimball, who chairs
our study group on that subject, provided the Board with an extremely informative
report on the third meeting of governmental experts which he attended at UNESCO
headquarters in Paris in July of this year. No consensus was reached on the draft
Convention or its annex, and, therefore, no vote was taken on either document.
Major issues remain to be resolved, but as we previously reported, the present
drafts would prevent salvors from any contact with underwater cultural heritage,
except as contractors to archæological or governmental groups, and would ban the
sale of all salvaged items. This Association has taken the position that salvors and
archæologists should be able to reach a solution that would preserve the interests
of each group. The United States delegation did an excellent job of presenting a
well-balanced statement of positions on a number of important subjects; for
example, the inclusion of a "significance" requirement in the definition of
underwater cultural heritage, and some issues relating to the current draft's
apparent presumption that leaving artifacts in situ is preferable to salvage. While
it was intended that a draft of the Convention would be completed by April 2001,
it appears unlikely that this will be accomplished. A group of experts will have a
two-week meeting in March or April of 2001 to work on a draft for presentation
to UNESCO sometime later.
The Association also had requests for amicus activity, but since these
issues concerned uniformity, I will leave that subject to Pat Cooney, the chair of
our Committee on Uniformity of U.S. Maritime Law.
Of course, the issue of uniformity was addressed most ably last night by
Professor Robert Force, who delivered this year's Nicholas J. Healy Lecture.
Professor Force's lecture truly did honor to the Healy lectureship and the man who
has so nobly borne the uniformity flag for this Association for so many years.
Professor Force's comments were both pragmatic and highly fascinating, and I'm
sure we all look forward to studying his paper.
Last, I would like to mention that among the resolutions of the Board was
a resolution honoring our Past President, Jim Higgins, who passed away earlier this
year.
Mr. President, that concludes my report.
PRESIDENT DORSEY: May I have a motion to adopt the report.
(So moved.)
PRESIDENT DORSEY: Second.
(Seconded.)
PRESIDENT DORSEY: All in favor?
(A chorus of ayes.)
PRESIDENT DORSEY: Opposed?
(No response.)
PRESIDENT DORSEY: Motion carried and the report is adopted. Liz,
thank you. I think you can tell from the length of that report and that she has to put
together that report in less than 24 hours after our Board of Directors meeting that
occurred yesterday, it is a truly an amazing feat. Having been Secretary, I know
what kind of task that involves, and it is a difficult task, which she always does
well. It always amazes me because when she reports on our conversations, they
always sound better than the real conversation.
(Laughter.)
PRESIDENT DORSEY: One other comment on my travel schedule. I'm
pleased to report to the Association that I will not have to get on an airplane for
another three months. Now our Treasurer, Pat Bonner.
MR. BONNER: Thank you, Mr. President. I don't think anybody is as
happy about that as I am.
(Laughter.)
MR. BONNER: We remain financially healthy. We have about $171,000
in the bank now. That compares to about $167,000 last year at this time.
The dues increase has enabled us to continue our participation in var-ious international projects, such as the CMI Transport Law Subcommittee
meetings in London, the UNESCO meetings in Paris, and the UNCITRAL
arbitration meetings in Vienna. All in all, we had about twenty-six trips to Europe
during the past year. I think we were able to do this because of the dues increase;
and it just shows how active we are on the international scene. I think it's a good
thing for the organization.
This summer we had our annual audit by a national accounting firm.
What this involves is an auditor, an accountant, sits in my office for about a week
and goes over all the Association's books and records. I'm happy to say that there
were no problems. They passed us and they completed a report. If anybody would
like to read it, I would be happy to give it to you.
As I said, the Association remains in good shape. This concludes my
report, Mr. President, and I move its adoption.
PRESIDENT DORSEY: Is there a second?
(Seconded.)
PRESIDENT DORSEY: All in favor?
(A chorus of ayes.)
PRESIDENT DORSEY: Any opposed?
(No response.)
PRESIDENT DORSEY: The motion is carried and the report is adopted.
Thank you, Pat. I have almost, I won't say weekly, but monthly e-mails from Pat
detailing how much money we have spent and how much we have left to spend.
He keeps us on our toes, as well as any Treasurer could. He's also spending a lot
of time chasing after those, I'm sure none of you are here, but those of the
Association who have forgotten to pay their dues in the last year or so. So thank
you very much, Pat, for continuing your good work.
Now our Membership Secretary, Winston.
MR. RICE: Thank you, Mr. President.
Members, I'm delighted to report that since our semi-annual meeting
in May, the membership of the Association has increased by a net of
twenty-two members. This is especially delightful since we have in the first ten
months of the year lost 204 members, the majority of whom were erased from our
rolls for nonpayment of dues for periods in excess of three years.
Interest in the Association continues to run high. To be more particular,
we have been joined by a new academic member, Professor Martin Davis of Tulane
Law School. In addition, the Board received and approved the recommendation
of the Non-Lawyers Committee for election to membership of Mary Cervati of
Marine Transport, Massond Messkoub of Maersk, Carroll Robertson of Boat U.S.
and Soren Wolmar from Quincannon Associates. We are also delighted to accept
the elevation to proctor status of four associate lawyer members, being Captain
Malcolm Williams of Washington, Kirk Trombley of Portsmouth, Randolph
Donatelli of New York, and James Maloney of Port Washington.
It is really delightful to report that in these few months since our last
meeting we have received, acted upon and approved the applications of thirty-seven new associate lawyer members. Interest in the Association at this entry level
of membership continues to run very high. We receive applications or requests for
applications by phone, which we immediately tell them, no, you have to write, but
we will take a one-line fax on your letterhead. About half of those we get through
the combined phone-letter media, another half we are getting from the website.
The associate and proctor's membership applications will be available in
the library section of the website, which will be available to you and to the public
within a very few weeks, we hope.
Mr. President, I also regret to report that since the May meeting, I've
become aware of the deaths of the following among our members: Donald Bruce
of Jersey City; Jack Culp of Jacksonville; Judge Edelstein of New York; Judge
Fisher of Beaumont; Frederick Gabel of New York; Past President Higgins of New
York; Decatur Holcombe of Houston; Bernard Rolnick of New York; Judge Shaw
of Lafayette; Jim Schupp of New Orleans, Judge Thomas from Mobile; and former
Vice-President Bill Symmers of New York.
I would appreciate your joining me in a moment of silence in recognition
and honor of these departing members.
(A moment of silence recognition was observed.)
MR. RICE: Thank you. Mr. President, that ends the membership aspect
of my report. I would like to add that if you have not done so already, you should
by the time you return to your office next week or shortly thereafter have received
in the mail your copy of the 2000-2001 Membership Directory (indicating). The
Board of Directors has decided to proceed with the publication of another directory
for the period 2001-2002, so that this time next year or before, if at all possible,
you will be receiving an update to this volume. It is somewhat enhanced, if you
will, from prior editions in that e-mail addresses, such as have been supplied by the
members, are included. We have taken advantage of the significant work done by
Nick Healy of a historical nature in connection with our Centennial to update the
History and Purposes section of the directory to include a more fulsome history of
the Association. He has also streamlined the description of many of the
Committees. I hope you will find the directory useful; and in the meantime, I will
resort to the website for updates in the interim before public publication of the next
paper edition of the directory.
Mr. President, that concludes my report.
PRESIDENT DORSEY: Do I hear a motion to adopt the report?
(So moved.)
PRESIDENT DORSEY: Second?
(Seconded.)
PRESIDENT DORSEY: All in favor?
(A chorus of ayes.)
PRESIDENT DORSEY: Opposed?
(No response.)
PRESIDENT DORSEY: The motion is carried and the report is adopted.
A special thanks to Winston this time because putting out a directory with a
two-year lapse was quite a project. There are a lot of changes that have to be made
as a result of the fact that we had a two-year lapse in the publication of the
directory, and a lot of proofreading and a lot of detail work had to be done. I'm
surprised Winston isn't wearing glasses after all the proofreading he has been
doing.
In addition, when he commented on the inclusion of some of the history
of the MLA and the streamlining of descriptions of the Committees, that's
Winston's work. That came from him. Thank you, Winston, once again.
At this point I would like to recognize a couple of distinguished foreign
visitors and visitors that are here today: David Marler, who is Chairman of the
Average Adjustors Association of Canada, I think is here. I ask you to welcome
him at the dinner. Jim Gould, the President of the Canadian Maritime Law
Association, is here.
(Applause.)
PRESIDENT DORSEY: I forgot to comment on the meeting of the
Canadian Maritime Law Association I attended, as did Jim Moseley and Ray
Hayden and Howard McCormack, in the summer. It was conducted on a weekend.
We were treated royally. It was delightful. It was in Halifax, which is an
absolutely beautiful place, and it was on the occasion of the Op Sail Review in
Halifax, which was truly magnificent. I commented to the members of the
Canadian Maritime Law Association that I thought they were very clever to arrange
to have their meeting on a Sunday so that we couldn't call on any of their clients
(Laughter.)
PRESIDENT DORSEY: I don't think Allan Philip, the former President
of the CMI and one of the four honorary members of the Association is here this
morning because he is doing an arbitration, but he will be at the dinner tonight, as
well.
I would also like to recognize Jean Knudsen. She is a Board member, she
has been with us for years, we all know her, but she is the Chairman of the Average
Adjustors Association of the United States, and I think that deserves a special round
of applause.
(Applause.)
PRESIDENT DORSEY: I think we have somewhere out there our old
friend Bruce Dalcher, who we remember from the days when he was with the
Office of the Maritime and International Law Division of the Coast Guard. He is
now teaching at the Coast Guard Academy as Assistant Professor of Law there.
Bruce, where are you? Right over there.
(Applause.)
PRESIDENT DORSEY: We have a newcomer, Captain Joe Ahern, who
is the new Chief of the Maritime International Law Division of the Coast Guard,
and my boss because he is the head of the U.S. delegation to the International
Maritime Organization Legal Committee. So, welcome Captain Ahern, as well.
He is over there (indicating).
(Applause.)
PRESIDENT DORSEY: I suspect that many of you have already met
Captain Ahern because he was very visible and very present at many, many
Committee meetings. I asked him if he had any scars to show for it, but he said,
no, no, he was treated nicely every place. So I appreciate that.
A special visitor-he's not really a visitor anymore-Captain Malcolm
Williams is here. He has retired as the Chief of the International Law Division of
the Coast Guard, and he has been promoted to proctor member of this Association.
At our August Board meeting of this year, the Board passed a resolution in
recognition of Captain Williams' many years of involvement with this Association.
Captain, if you could come forward at this time, I would like to present that
resolution to you. Why don't you come up now.
First, let me read the resolution. I'm not going to read it all, but we have
our scribe out on Staten Island who does these things and does them up nicely, but
I can't read all the letters, so I'll read the resolution from my typed notes. It is
entitled "Resolution of Appreciation to Malcolm J. Williams, Jr.":
The Maritime Law Association of the United States
expresses its appreciation for the services and exemplary
assistance of Malcolm J. Williams, Jr., Captain of the United
States Coast Guard, Chief of the International Division,
Washington, D.C.
Captain Williams has been a dedicated officer of the
United States Coast Guard, serving with distinction in
numerous responsibilities and capacities. In his service to the
country and Coast Guard, he has carried out his
duties as Chief of the International Law Division in an
outstanding manner. These duties included participating as the
Chief Delegate of the United States to the International Maritime
Organization IMO Legal Committee, and at diplomatic
conferences and at International Meetings.
Although heavily involved in the aforementioned
duties, Captain Williams participated in and closely coordinated
numerous significant activities of the Maritime Law Association
of the United States by making presentations to various and
numerous Committees of the Association on topics of maritime
law, marine ecology, government regulations, procedure, Coast
Guard policy and other matters. In performing these tasks
during the last four years, he has consistently educated and
informed the members of the Maritime Law Association of the
United States.
Further, he brought to the Association not only
expertise and knowledge, but a sense of camaraderie, friendship
and collegiality, and in so doing he brought the Coast Guard and
the Association into a much closer relationship.
In consideration of the foregoing, be it resolved that the
Maritime Law Association of the United States expresses its
sincere and profound appreciation for the services and assistance
of Captain Malcolm J. Williams, Jr. and we express our gratitude
to our professional colleague and friend;
And be it further resolved that a copy of this resolution
be made a part of the permanent records of the Association.
The resolution is dated the 5th day of August in Chicago, and was signed by me as
President.
Malcolm, the Maritime Law Association does not award medals, as the
Coast Guard does. If we did award medals, I think you would get a combination
of a Purple Heart and a Navy Cross for Valor for the past four years of duty, but
our method of showing our appreciation is a Resolution, and I'm happy to present
it to you at this time.
(Applause.)
CAPTAIN WILLIAMS: Thank you.
PRESIDENT DORSEY: I'm delighted with the fact that we are not going
to see the last of Malcolm Williams. We are going to see him around at meetings
in the future as a very active proctor member and a very valuable proctor member.
I think now we turn to the Committee meetings and reports of the various
Committees, and we'll lead off with a topic of some interest, and that's from Bob
Connor and the Carriage of Goods; and next up will be Michael Sturley, who will
talk about the work of the International Subcommittee of the CMI on Transport
Law.
So first, Bob.
MR. CONNOR: Mr. President, members, good morning. I am lucky to
go first. Everybody is still awake in the back of the room.
Where are we on COGSA? Well, the good news and the bad news: The
good news is it is still alive. The bad news is it is still without a bill number and
languishing somewhat in Washington.
This is an election year and there are other things on the people's minds
in Washington with next Tuesday's election coming up. But it is not forgotten. As
you also know, we worked hard on drafting a proposal a few years ago, but we
must rely on the voices of those in the industry in order for Congress to take a
serious interest.
We had some good news this summer. Bob Motley from the American
Shipper asked Senator Hutchinson about her thoughts on the proposed legislation,
and she responded that she is still behind the bill. She believes that it is not perfect,
but that the objections being raised can be worked out in much the way the
Shipping Reform Act worked.
The question is what happens next. What Washington needs is letters and
communications from shipping interests saying we need this bill.
At our Committee meeting on Wednesday morning, we discussed
some recent events. One topic was the impact of the Sky Reefer decision,
which is being applied not only to arbitration and litigation among carri-ers and NVO's, but also stevedores, terminal operators and, yes, in the last
two months a judge in New Jersey sent Conrail to Korea to litigate an action-I
might add a large $7,000 action. I should also add on that case, we contacted a
lawyer in Korea just to say, okay, let's go ahead with this thing to teach someone
a lesson, and we were actually told the Korean court under no circumstances was
going to take jurisdiction of a dispute between Chicago and New Jersey by Conrail.
So, needless to say, that is back before a New Jersey judge at the moment. This is
an issue that is coming up, it is affecting all of our clients, and it is something we
have to deal with.
The second thing, at our meeting we also discussed the position of the
CMI, and what is starting to happen and what has happened so far. I'll yield to
Mike Sturley in a minute to tell you exactly where they are. I think the good part
is that the CMI has turned up the heat, and they are starting to move much faster
on what they are doing on an international basis. I think everybody agrees that one
of the reasons for this is our Association's position on the new COGSA and it is
giving something for the rest of the world to think about.
There is a report available on the draft of the CMI position paper at the
moment. Anybody who would like a copy of this, it is in the 21st Century in the
computer world, if you contact me at wconnor@bejh.com or George Chandler at
whatever his address is, we can e-mail it to you with an attachment. It is forty
pages. If you want to do it the snail mail way, write me a letter, give me a phone
call, and then I will copy and mail to you. It is very interesting.
At this point I'll yield to Mike Sturley and he'll tell you exactly where
they are going. Thank you, Mr. President.
PRESIDENT DORSEY: Michael Sturley, and then next will be Michael
Marks Cohen on the CMI.
MR. STURLEY: Mr. President, fellow members, I'm happy to report that
our COGSA proposal is definitely having an impact. I speak today as the
rapporteur of the CMI's International Subcommittee on Issues of Transport Law.
It is clear not only from the meetings of the International Subcommittee,
but also from the meetings of the Working Group, the smaller body that serves as
something of a steering committee for the International Subcommittee, that our
COGSA proposal is definitely one of the prime motivations for international action
in this field.
Now, I understand that there are copies of the draft outline of an
instrument that was discussed at the October meeting of the International
Subcommittee available on the table. I should caution you that these drafts are
somewhat like the sample CDs that AMC is distributing. They will expire very
shortly. Anew version of the outline instrument will be finished by the end of next
week. So if you want to ration your reading time, you may want to wait until the
new version comes out and take a look at that.
As I think most of you know, the CMI has been working on this project
for almost three years now at the invitation of UNCITRAL, the U.N. Commission
on International Trade Law. And the expectation is that the project will ultimately
see its conclusion under UNCITRAL'S sponsorship, we hope with an international
diplomatic conference to adopt a new instrument.
I'm going to focus now on what we hope to accomplish in Singapore and
what our tentative schedule is for after Singapore, just to update you on where we
think we are heading. Of course, none of this is yet carved in stone.
There will be three papers included in the CMI Yearbook that will be
distributed before Singapore. The first of those will be the draft instrument, a
current copy of which is out on the table, the new version of which will be
available in a week or so. This draft instrument will not be discussed as such. It
will be there in the background; it will be an annex to the things that are discussed.
We do not want to go through the draft instrument section by section. This gets
people bogged down in minor drafting points rather than focusing on the big issues.
And with the limited time we have in Singapore, we want to focus on those big
issues and get some guidance from the plenary conference on what the CMI thinks
about the approaches that we are taking on those big issues.
The other two papers will be an agenda paper that seeks to identify the big
issues and focus attention on them, and then a separate issues paper addressing
what we are calling the door-to-door issues-the extent to which any new instrument
will govern beyond the traditional tackle-to-tackle period in the Hague-Visby
Rules.
Everything recognizes that we're going beyond the tackle-to-tackle
period. The question is how far beyond are we going to go. That is going to be
one of the hot topics in Singapore, and we are having a separate paper focusing on
those issues.
So in Singapore we will not discuss the outline instrument as such,
but we will focus on issues such as how broad should the scope of cov-erage be, what sort of liability approach should we take, to what extent should
performing carriers be subject to the regime. These details will be discussed in the
Committee report that you will have available.
Although the discussion in Singapore is going to focus on these hot topics,
the National Maritime Law Associations will be encouraged to submit written
comments on any and all issues raised by all three of these papers. Even though
we won't have time to discuss every detail in Singapore, if this Association or any
other Association wishes to express a position or make an objection to anything
that is going on, that will be encouraged.
The Singapore conference will not be asked to vote on the draft.
Obviously, if we are not even discussing the draft as such, it won't come up for
vote. We anticipate that the only formal vote will be on a resolution that will
endorse continuing the work.
So, Singapore is not the end of the process; it is a step along the way of
a process that will be ongoing for several years to come.
Now, our post-Singapore conference is still very tentative, but let me
outline for you what the tentative schedule is at the moment. We anticipate that
probably in May 2001 the International Subcommittee will reconvene to finalize
a consultation paper. A revised draft instrument will be attached to this
consultation paper as an annex and the consultation paper will be distributed to all
of the National Maritime Law Associations in the CMI and to the various industry
groups that have been participating in this process as part of the CMI round table.
Through UNCITRAL, the consultation paper will be distributed in the six official
UN languages to the governments represented in UNCITRAL.
The purpose of the consultation paper is to seek reaction and commentary;
to consult with all of these interested organizations and get their views on what we
are doing, where we are going, and how we should be proceeding.
We want to make sure that everybody has enough time to react to the
consultation paper. One of our problems at the International Subcommittee
meetings is that the papers have not been available very far in advance before the
meetings. So we're going to give several months for this consultation paper to be
considered and discussed. We anticipate that responses will probably be due in
October 2001.
The working group will then study the responses, and based on the
responses draft a further revision of the instrument. That draft will then be
discussed by the International Subcommittee sometime in early 2002, we
anticipate. Unlike the typical International Subcommittee meeting, which normally
lasts a couple of days, we anticipate having about a week-long International
Subcommittee meeting-in other words, something that at least in substance is much
more like a CMI Plenary Session than a traditional International Subcommittee
meeting. In fact, it will give us more time than in a Plenary Session because we
won't take a break in the middle of the week to go out sightseeing. Thus, we'll
have a solid week of work going through the draft in detail and preparing
something that can then be submitted to the CMI Assembly at the 2002 Assembly
meeting.
The CMI Assembly, we hope, will then send this forward to UNCITRAL
so that UNCITRAL can formally create a Working Group and begin the
UNCITRAL process. UNCITRAL has made very clear that it does not want a
finished instrument to rubber stamp at the end of our process; what UNCITRAL
wants from the CMI is a draft that can form the basis for work in UNCITRAL.
I might add that UNCITRAL has been participating in our process right
from the beginning. For three years now, we have had UNCITRAL representatives
at our meetings. Jernej Sekolec has been participating as a member of the Working
Group. So UNCITRAL is very involved in what we are doing and they are very
eager to begin working on this process and this program as soon as possible.
Indeed, they would like to do it even faster than I've outlined. We hope that we
can stick to the schedule that we have outlined.
Once UNCITRAL begins its process, it is going to be at least a couple of
more years, and quite possibly longer than that, depending on how much consensus
there is and how quickly we're able to continue moving there. The CMI will
continue to be part of that process even when UNCITRAL takes over. Just as
UNCITRAL has worked closely with us in the CMI, the CMI will continue to work
closely with UNCITRAL in the future work here. This is very much a cooperative
effort.
I think what I've outlined is an ambitious schedule. It is going to take a
lot of work to stick to this schedule. But even with this ambitious schedule, you
can see that we are at best talking about 2004/2005 before there can be a diplomatic
conference, and obviously sometime after that before any work product coming out
of that conference could be ratified and take effect.
For those of you who wish to keep up-to-date, or get copies of the drafts,
George Chandler is the contact person for distributing these. Contact George, give
him your e-mail address, and as soon as the drafts come in he will distribute them
to anybody who wants a copy. We anticipate that there will be quite a bit to be
distributed, if not at the end of next week at least the following week.
In short, there is a lot of stuff coming out of the Transport Law project.
I encourage you who are interested in this to follow it. Contact George Chandler
to make sure that you are on the list and kept up-to-date.
Thank you very much.
PRESIDENT DORSEY: Thank you, Michael.
PRESIDENT DORSEY: Before Michael Marks starts on the CMI
Committee report, I just might comment that I intend to nominate Professor
Sturley, Larry Bowles, and Vincent DeOrchis as new titulary members of the CMI
and the vote on that will come up at the CMI Singapore Conference.
Next we will have Michael Marks Cohen, Chairman of the CMI
Committee, and coming up after him Tony Whitman on the Coronado meeting. I
want to take him out of turn to make sure that everybody here gets to hear what he
has to say.
(Applause.)
MR. COHEN: Thank you, Mr. President.
The CMI will meet in Singapore from Monday, February 12th to Friday
the 16th. There are very inexpensive hotel rooms available for people attending,
and I estimate that the airfare will be about a thousand bucks round trip if you want
to go economy class. On the other hand, if you want to fleet up, if you have an
American Express Platinum Card, you can get two business tickets round trip for
about $6,000.
The meetings will go Monday, Tuesday, maybe on Wednesday-it is not
clear what the tours will be on Wednesday-Thursday, and there will be a Plenary
on Friday and a banquet that evening, which will not be black tie.
The delegation will arrange breakfast every morning that there are
meetings to be held. These are Dutch treat affairs. You will be billed. The
idea will be that we can get together and discuss what events we expect to
encounter during the day.
You have already heard from Michael Sturley about issues of transport
law. There are three other issues that will be taken up in Singapore, one on marine
insurance. We do not have any documents as yet, but whatever documents that will
become available for discussion will be published in the Yearbook.
Graydon Staring is the head of our delegation on marine insurance. Jean
Knudsen of the Marine Insurance Committee has already had two meetings in
preparation for Singapore, and a third one is planned in January. If you want to
attend the meetings or if you want to get the materials on insurance, get in touch
with Jean and she will send them to you.
There will be several issues of marine insurance to be taken up. It is not
clear what the outcome of the discussions will be. There has been a suggestion that
the Norwegian professor who has been doing the comparative law work in
reporting the answers to the questionnaires is going to propose what are called
"solutions" to areas of marine insurance that have problems in them. But it is not
clear what our Association or what the CMI is expected to do with these proposed
solutions, that is whether or not they are supposed to be endorsed in one way or the
other.
Turning to another topic, general average, again, we don't have any
discussion document. The head of the delegation is Howard Meyerson, former
Chairman of the Average Adjustors Association. Jean's two meetings on marine
insurance also cover general average, and again there will be a third meeting on
that in January. The general average proposals originated in IUMI, the
International Union of Marine Insurance. Some IUMI members have made a
proposal to eliminate expenses for common benefit from general average. There
is no support for that whatever in our Association.
There are, however, two possible issues; one involving time bar-whether
there should be a uniform time bar for general average claims in the Antwerp rules.
Another possible issue is whether the CMI ought to look at eliminating the
reallocation of salvage in general average.
The very most that we could expect to come out of the Singapore
conference about general average would be some support for forming a working
group to look into these matters.
The fourth topic is piracy. Frank Wiswall and Sam Menefee have been
very active in that. George Gabel is the head of the delegation.
There is now a draft model law which is being considered, especially to
deal with piracy in territorial waters. It is expected that the CMI will approve the
draft or something very close to it and then attempt to market it to governments in
order to enact national legislation.
There will be two seminars, one on the Comparison of Liability to
Passengers in Air Travel and Cruise Ships, and a second on the Implementation of
the 1976 Limitation of Liability Convention.
For those of you who are trying to convince your firms that they should
let you go to Singapore and maybe even support you there, everybody who goes
is either going to be an official "delegate" appointed by the President, or, the title
of everyone else, will be "alternate." If you are planning to go to Singapore, please
let me know so that we can put you on the list and you can get all the information
and notices in advance.
Just one other quick word about a Committee project, and that is to
recycle advance sheets and obsolete maritime law treatises to the law schools of
universities abroad. This project is being greatly assisted by the Young Lawyers
Committee representative, Mark Kremin of Burke & Parsons. There are seven law
firms in our Association that are taking the advance sheets, which they would
normally throw into the dumpster once they have the bound volumes, or the earlier
editions of maritime law treatises that also would go into the dumpster once the
new editions come along, and instead sending them to the maritime law libraries
of universities abroad which have requested such materials. For example, Nourse
& Bowles is sending their stuff to Chili; Freehill, Hogan & Mahar to China; Mike
Snyder's office to Croatia; Phelps Dunbar to Croatia; Burlingham sends its excess
books to Malta; Hill, Rifkins to South Africa; and the Calvesbert firm in San Juan
is sending materials to Spain.
Please don't throw these books away. The universities abroad simply do
not have hard currency to buy American legal materials and they would very much
like to get the cast-offs from us. I already have three other law schools abroad who
have asked for donor law firms. If any of you can convince your firms to
participate in this project, it would be greatly appreciated.
Thank you, Mr. President.
(Applause.)
PRESIDENT DORSEY: Thank you, Michael. Just two comments on
Michael's report.
Michael is working very hard to make sure that the delegation that does
go to Singapore is the best prepared and best organized delegation that we have
ever sent to a CMI conference. Because I know Michael's diligence, I am
confident he will be successful in that regard. He is already well ahead of the
game. I can't tell you how much I appreciate that, because I haven't been to that
many CMI conferences, and so I'm relying on him quite heavily to assist me in that
regard, and he has done so admirably. I appreciate it, Michael, very much.
The second thing I want to emphasize is what Michael suggested about
sending your name in. If you are going to Singapore, please let him know that you
are going. Do not assume that because you have registered with the conference
that we will be able to get a list of registrants from the conference. Indeed, do not
assume that when you register, you will even get a confirmation from the
conference, because I registered in August and asked for a confirmation, got none,
sent an e-mail out asking for confirmation again and have gotten nothing back for
that. I felt very badly about it, as did Patrick Griggs, the President of the CMI in
London, as he indicated he hasn't gotten any confirmation on his reservation,
either. So I didn't feel so bad about that.
I think they're getting better, and I think some people have heard from
them. But it emphasizes the fact that we want to know who is going so that we can
give you the letter and so that we can have you participate in the work that is going
to take place and to put you in one of the groups with which you want to work.
Next, Tony Whitman, Chairman of the Arrangements Committee for
2001, and following Tony we will have Ann Miller for Cruise Ships.
MR. WHITMAN: Thank you, President Dorsey, officers of the
Association, members and guests.
It is my pleasure to be before a full house today before the end of this
meeting to offer you the opportunity to travel not all the way to Singapore, but all
the way to San Diego. A year from now the fall meeting will be held at the Hotel
Del Coronado in Coronado outside of San Diego, California.
The hotel itself, which many of you may have visited and most of you are
undoubtedly familiar with, has just been the subject of a $50 million total
restoration and refurbishment, and it is truly glorious. With Bill and Ann Dorsey,
your Committee was fortunate enough to travel out there last month for our
Arrangements meeting, and we explored every nook and cranny of the ancient
Victorian building, as well as the more modern facilities they have. It really is a
spectacular site and we are very confident that our meeting a year from now,
October 14 through 20, 2001, will be a great success.
We will have a golf tournament on Tuesday rather than Wednesday,
which has been the norm in the recent past. So for those of you who are golfers,
Tuesday will be your target date. We will not be at Torrey Pines, but for those of
you who are interested in that, we will-provided the website can accommodate
this-have up and running before the end of the year the ability to punch into the
MLA website at mlaus.org, and actually have links to the various golf courses in
the San Diego area so that you can make your own arrangements for days other
than Tuesday when the actual tournament will be.
There will be sailing and fishing and the usual recreational events.
It is a spectacular site, and it also is a wonderful place for substantive
meetings. We have a CLE program planned that will include both a CLE program
to appeal to everyone, and sort of an adjunct CLE program for young lawyers
which will focus on professionalism and business development, among other
things.
We hope that this will be a tremendous success and look forward to seeing
all of you and your significant others and families, because San Diego is a
tremendous family attraction. There is the zoo, of course; there is the Wild Animal
Park; there is Balboa Park; there is La Jolla; there is the beach; there is Mexico, for
those who are brave. I hope that we will see you all out there.
The dates are October 14 through 20, 2001. That does include Columbus
Day, so for those of you whose firms celebrate that holiday, it is a day you are not
out of the office because you wouldn't have been in the office anyway, and for
those of you whose children might have that day off, it reduces the time away. I
have to say that looking back on experience raising our own children, for those of
you who have kids in elementary school, the one thing I regret is that I didn't just
pack them up and take them places while they were still in elementary school.
Those school days are not as important as days spent with the family in interesting
places in the world. I encourage you to do that.
Thank you, Mr. President.
PRESIDENT DORSEY: Thank you, Tony.
(Applause.)
PRESIDENT DORSEY: Just a couple of comments.
The change is, as Tony indicated, a slight change in the scheduling, having
the sporting event on Tuesday and then the business meeting Wednesday, Thursday
and Friday. That is in response to the questionnaire that was sent out and some of
the comments we got back. I think you will see that format repeated in perhaps
even a different, slightly different, more truncated format in the future.
What we are trying to do is condense the business portion of the meeting.
Those that want to have the sports can come earlier; those that aren't interested in
sports can come later in the week and concentrate on the meetings.
The second thing Tony was mentioning about the conversion of the Hotel
Del Coronado. Those of you who were there twenty years ago when Reagan was
elected, I remember that very vividly, I guess most of you do, as well. The tennis
courts were between the hotel and the ocean. They have taken the courts out and
they have this beautiful lawn fronting of the hotel and an outdoor restaurant where
you can go and sit and watch the sunset and have a delightful dinner. The place is
magnificent, it really is.
So I encourage you, even though you may have been there twenty years
ago, it is a different feel, it is an even better feel, and we are going to have a great
meeting. So I want you to all go.
Next is Ann Miller, Cruise Line, and then we will have Glen Oxton for the
Electronic Communications Committee.
MS. MILLER: I am happy to be able to talk to you very briefly, I
promise, about the Athens Convention for Carriage of Passengers and their
Luggage by Sea because it will be one of the first-although the Cruise Committee
has done and does a lot of substantive things-and most visible efforts of our
Committee to help President Dorsey and the Board of Directors.
Most of the time when people ask me what Committee I am chair of, I say
the Cruise Committee, and they think that I am a party planner with a maritime
venue. So this project will allow me to talk substantively about what we are doing.
We had yesterday a meeting that was much more sparsely attended than
usual. Usually we have about fifty people there, but I think it was one of the most
substantive and one of the best discussions we have had.
We were given a presentation by Captain Ahern, who has been introduced
by President Dorsey, and we also had Commander-and that is a promotion, I'm
told-Bruce Dalcher there. The promotion to Commander was announced by
Captain Ahern yesterday. They were both there and gave a report on the IMO.
We had the participation of three of the P&I clubs: Dick Corwin, who is
a regular attendee at our meetings from the Gard, and Karen Hildebrandt, who is
now with the UK Club, and Pamela Milgrim, who is with Skuld. We are getting,
in addition to the regular Committee members who are practicing lawyers, the
involvement of the P&I clubs in our Committee, so that we can in the next year
work very substantively to gather information and to give input to our
representatives to the IMO Legal Committee.
What has happened is this: In the last few years the IMO Legal
Committee has been discussing protocols, changes, if you will, to the Athens
Convention. When we first talked about this, it was actually Malcolm Williams
who came to our Committee, and he gave a really good presentation. I asked him
at the end of his talk about the chances of a protocol coming into effect and
furthermore, what is the chance that the United States will ever sign on to one of
these Conventions?
Captain Williams was very discreet, but the message was clear: There
wasn't very much chance of this going ahead at all and the U.S. would probably
never sign on. Well, that has changed, significantly, I believe. President Dorsey,
you can correct me if I'm wrong, but I believe we saw the biggest change in this
most recent IMO Legal Committee meeting in October in London. That change
has been mostly promulgated by the Japanese. The Japanese nation has been
putting forward positions that I believe are now taking shape and becoming
accepted. It looks as if the United States is even becoming very interested, because
while there will be various issues addressed, while there will be some form of strict
liability for which damages may be capped, perhaps, and while there may be a
negligence standard for other types of incidents on cruise vessels without damage
caps, perhaps, but with a reverse burden of proof, there may also be the possibility
to have some unlimited liability, which has been a prerequisite for United States
participation.
Historically, with few exceptions, the United States has not been willing
to sign on to Conventions which limit the possibility of U.S. citizens getting
unlimited awards in appropriate cases.
It looks as if there is a very significant chance that this Protocol will be the
subject of a diplomatic convention about a year from now. It will not be addressed
at the March meeting, the next meeting of the IMO Legal Committee. There are
very critical issues which remain unresolved at this point. It is very unusual for
there to be a diplomatic convention with so many critical issues yet unresolved,
jurisdiction being one of them, limits being another, and statutes of limitations
being a third, and there will be many others.
We will be looking to you to give input. We will be looking for
comments from the P&I clubs, as well as the cruise industry. This is going to be
our first opportunity to work hopefully with the International Council of Cruise
Lines in order to come up with positions that ought to be accepted, ought to enable
a usable convention to be entered into, one which the U.S. will sign.
PRESIDENT DORSEY: Thank you.
(Applause.)
PRESIDENT DORSEY: It raises the prospect of whether or not the
United States may want to come on board on this. We're going to go check on this,
but the other aspect was that the current proposal has been sanctioned-that may be
too strong a word-but apparently at least agreed to by the P&I clubs and the
International Chamber of Shipping. Indeed, they were pressing for an international
solution, because what they are afraid of is that if there isn't an international
solution quickly to the question of cruise passengers, that various nations,
particularly in Europe, will go off on their own with their own regimes.
Interestingly enough, just to show you how this compromise plan has
developed, for years the Greek delegation has taken a consistent approach against
the Japanese proposal and voted for retention of the current liability regime in the
Athens Convention. Well, at this meeting of the IMO Legal Committee we did not
hear one single word from the Greek delegation. They didn't say a thing. Of
course, the reason they didn't say a thing is the recent Greek ferry disaster. So
there has been a change in the attitude, and we want to see what our position is
going to be, and Ann's Committee is going to take that over and advise the Board
in that respect. And I'm looking forward to that advice.
Glen Oxton, Electronic Communications, and then next Dr. Wiswall.
MR. OXTON: Thank you, Mr. President.
The Electronics Committee has essentially three items to report.
First, yesterday we had an excellent presentation from the Eastern District
of New York concerning their electronic court filing system. Those administrators
have told us that the Federal Courts in 2003 will be using 100 percent electronic
filing. So it is something we all need to know about. It looks to our Committee
like a very good system. It is running very well in the Eastern District, where they
run 25 percent of their cases now on electronic filing. The Committee will look
into having a repeat presentation at one of the future meetings, which will be
available to the general membership to see just how this works.
The second item is that the Committee is working on the MLA document
library for the website, which we hope to complete within the next two or three
weeks. Initially the library will contain the MLA Report, the full text of the MLA
Proceedings, and the President's Newsletter. It will have membership applications
that you can download. As Tony Whitman mentioned, we will put up the
information on the San Diego meeting with links to the golf courses and all the
other events. And we hope to put up amicus briefs on the site. Basically we have
the ability to put up any kind of document that is of use to the Association. I
encourage the Committee chairs, rather than spending $500 in photocopying and
mailing, to e-mail me the document and I will put it up on the web under the
Committee reports and newsletters section. We have to keep in mind that this
library is available to everyone in the world, so it must consist only of public
documents. We are looking into the feasibility of adding past reports and past
proceedings. That depends on file formatting and the cost and so on. We are still
investigating that.
When the library is completed or up and running, the Committee is very
interested in investigating the possibility of putting up on the website discussion
forums for each Committee. This would essentially be an area where each
Committee chair would start a topic and people could make comments on that topic
and those would all be listed. You could click on it and read it. There could be a
check-off box. If you wish to receive these by e-mail, you check off a box and
when someone posts a comment you will get it by e-mail. A lot of people find this
floods their e-mail box, so if you don't want that, you wouldn't check the box.
One of the issues in this type of arrangement is whether it should be open
to the public or whether it should be private. The Committee's sense at the
moment is that it is probably better if it were private, members only, to encourage
a more full and free discussion. The only way to do that is to assign password user
names, which is more involved than simply putting up a discussion forum. But we
will look into that once the library is ready.
That concludes my report, Mr. President.
PRESIDENT DORSEY: Thank you, Glen.
(Applause.)
PRESIDENT DORSEY: We are feeling our way in this, but we have got
the right man on the job to help us in the project. So, Dr. Wiswall. Next up will
be Sam Menefee.
DR. WISWALL: Thank you, Mr. President.
I would take the opportunity to make the membership aware of a couple
of decisions that have been taken by the Board of Directors of the CMI American
Foundation, Inc.
The first of these is with regard to the Elliot Nixon Prize. The objective
of the Foundation in offering the prize has been, all along, to make it a really
prestigious legal prize.
The most recent cycle, which was even extended by a few months, has
failed to produce both a sufficient number of submissions or any submissions of
adequate quality to enable the judges and the Board of Directors to feel that the
Prize should be awarded for that cycle. Accordingly, that cycle will close, another
will open immediately, and it will close as of the 30th of June 2001. Those who
have submitted papers for the Prize in the cycle just closing may rework them,
resubmit them, and hopefully stand a better chance of success. The winner will be
announced in San Diego and the Prize will either be awarded in San Diego or else
in New York at the succeeding spring meeting of the Association.
I urge all of you, please, to "talk up" the Elliot Nixon Prize to young
lawyers, and to law students by those of you who are teachers, and try to
get more submissions. As to the rules for the Prize, they are available in
printed form. I'm going to give them to Glen Oxton so that they will be
available on the website; and hopefully, as in the past, they will appear on the back
cover of the pending issue of AMC.
The second matter I referred to was a profound decision for the
Foundation, and it is that the Directors have decided to change the name.
Originally the Foundation was established to support the CMI in its endeavors, and
particularly with regard to those of the CMI Charitable Trust.
The CMI Charitable Trust has now attained a capital of something
approaching 400,000 pounds, which even with the present rate of exchange is a
quite sufficient capitalization for the present aims of the trust. We feel that our
attention ought now to be turned to the needs of our own Maritime Law
Association and also to the promotion of greater interest in the objectives of this
Association; that is the uniformity of maritime law not only internationally, but
nationally, as well.
Consequently, I don't want to discourage you from sending contributions
to the CMI American Foundation, but you should be aware that they will be
applied henceforth to the goals and objectives of the American Maritime Law
Foundation, Inc.
Thank you very much, Mr. President.
PRESIDENT DORSEY: Thank you, Frank.
(Applause.)
PRESIDENT DORSEY: Next is International Law of the Sea, Sam
Menefee, and after that Lisa Reeves on Limitation of Liability.
PROF. MENEFEE: Thank you, Mr. President.
The Committee on the International Law of the Sea met at the Whitman
Gallery OF the South Street Seaport Museum. First up for discussion was the
status of the 1982 Convention, and actions taken at the Meeting of States Parties.
At that meeting, suggestions were made for the formation of three voluntary trust
funds. The first would deal with submission of cases to the International Tribunal
for the Law of the Sea; the second two relate to the Commission on the Limits of
the Continental Shelf. One of these would aid developing country participation at
meetings, while the second would provide assistance and training for lesser
developed states to prepare submissions to that Commission.
The International Tribunal discussed regulations, with there being some
objection to the concept of weighted voting. The Tribunal, which moved to new
quarters near Hamburg in July, has considered five cases thus far arising out of the
1982 Convention.
The International Sea Bed Authority signed an agreement with Jamaica
concerning its headquarters and has finalized a draft mining code which was
adopted by consensus in July.
There have been two interesting recent controversies dealing with
international law of the sea. The first involves the Caspian Sea, with Russia and
Iran claiming that it is not covered under the 1982 Convention and Kazakhstan and
Azerbaijan claiming that it is governed by the Convention. The other problem has
not resulted in official government action yet, but there has been pressure in Tonga
to claim hundreds of new marine organisms that have been discovered by a joint
French and Australian expedition to the Tonga Trench as national property.
We had a report from Bob Blumberg of the State Department concerning
the current status of the Draft UNESCO Underwater Cultural Heritage Convention,
and we also considered the problem of piracy. According to statistics provided by
the I.C.C. International Maritime Bureau, there have been 161 attacks in the first
six months of this year. That is a rise of almost fifty from a similar period last year.
Almost two-thirds of these attacks occur in four areas of the world: Bangladesh,
India, Indonesia, and the Sinapore Strait area.
We have also handed out copies of a Draft Model of International Law
prepared by the Joint International Working Group for Uniformity of the Law of
Piracy and Maritime Violence, and there was some discussion on this. The Draft
has also recently been provided to the CMI Committee. There are a few copies left
over and anybody who wants a copy can get one from me on a first come, first
served basis.
That concludes my report, Mr. President.
PRESIDENT DORSEY: Thank you, Sam.
(Applause.)
PRESIDENT DORSEY: Lisa Reeves next, and after Lisa we will have
Matt Marion on Marine Ecology.
MS. REEVES: Good morning, everyone. I wanted to report to you today
that later this month the Supreme Court will hear oral argument in a case called
Lewis versus Lewis and Clark Marine. That case involves both the Limitation of
Liability Act and Rule F, and it's the Rule F section that our Committee is most
concerned about.
The issue is whether a District Court should retain jurisdiction in a single
claimant adequate fund case where the claimant in the State Court action did not
ask for a jury trial, which is a rather unusual circumstance. The District Court
lifted the stay so that the claimant could proceed in State Court once the claimant
had filed the appropriate stipulations.
The Eighth Circuit reversed, finding that the "saving to suitors" clause
grants claimants a choice of remedies and not a choice of forum. In addition, the
Eighth Circuit discussed the ship owner's right to seek exoneration, a right which
appears in Rule F, but is not mentioned at all in the Limitation of Liability Act.
In its petition for certiorari, the claimant has argued that by creating a
cause of action for exoneration, Rule F improperly exceeds the scope of rule
making authority conferred by the Rules Enabling Act. I promise I won't read you
too much of this, but I think it's important: The Eighth Circuit had said that the
idea of exoneration is more than just a procedural adjunct to limitation, and that
such a characterization is reinforced by the dictates of Supplemental Admiralty and
Maritime Claim Rule F. Beyond that, it went on to say that in the Lewis and Clark
case, the complaint specifically sought exoneration from or, in the alternative,
limitation of liability, and that Lewis and Clark's right to seek exoneration is
properly within the exclusive admiralty jurisdiction of the Federal Admiralty Court.
The court went on in just a footnote to say that although the Supplemental
Rules can obviously not enlarge rights conferred on ship owners by the Limitation
Act, that they enhance the understanding of the substantive rights involved in
limitation proceedings, including the right to exoneration and limitation. So,
obviously the claimant had raised this issue before the Eighth Circuit.
The concern is why the Supreme Court took this case. It could decide the
case simply on "saving to suitors" clause, but we don't think it's a very sexy issue.
We don't think that it's likely this situation will happen often because most single
claimant situations are often personal injury claims, and the claimants almost
always ask for a jury trial. I guess things are a little different in St. Louis, which
is where this took place.
We think they may be looking at Rule F, and given Justice Scalia's strict
constructionism, there is some concern there.
For those interested, the District Court's opinion can be found at 31 F.
Supp. 2d 1164, and that's the Eastern District of Missouri 1998. The Eighth
Circuit's opinion is at 196 F.3rd 900, and that came down in 1999.
Oral argument will be held before the Supreme Court on November 29th
at 10:00 a.m., and I or someone from the Limitation Committee will be present and
will report on what our impressions were at the May meeting, assuming, which I
think is safe, that the decision hasn't come down by then.
Thank you very much.
(Applause.)
PRESIDENT DORSEY: Thank you, Lisa. Matt Marion, Marine Ecology.
MR. MARION: Good morning. The Marine Ecology Committee met
Wednesday afternoon. We received reports from Committee members concerning
pending civil and criminal proceedings arising out of oil spills, as well as
regulatory developments at both the State and Federal level. I'll touch on a couple
of those reports this morning.
In the aftermath of INTERTANKO, I think we've seen a more cooperative
approach from the States, at least with respect to those areas clearly covered by the
INTERTANKO decision. The State of Washington has withdrawn its BAP
regulations. Several other states have eliminated or delayed implementation of
regulations which appear to conflict with INTERTANKO. We take those decisions
as a favorable sign in the short term that States are reading INTERTANKO and
taking its prohibitions seriously.
The corollary of that restraint, however, is that States are taking the
INTERTANKO decision's prescriptions seriously as well. That is, States are
becoming more active in those areas where INTERTANKO has not foreclosed state
regulation. Those areas include nontank vessel response plan requirements, ballast
water regulations, and restrictions on the operational discharges from cruise ships.
Thus, the work of the Committee in monitoring the State laws and regulations is
not done.
In the North Cape oil spill in Rhode Island, the responsible party
recently entered into a consent decree settling the natural resource dam-age claims brought by Federal and State trustees. Under the decree the responsible
party will pay $16 million, of which about $8 million is earmarked for lobster and
wildlife restoration.
In one noteworthy Circuit Court decision, a Ninth Circuit panel in
UNOCAL v. United States upheld a jury's $4.6 million award in favor of a pipeline
owner after the pipeline ruptured during a ground excavation. The spill totaled
about 45,000 gallons of crude oil, of which a small amount entered state waters.
In what may be good news for responsible parties, UNOCAL had prevailed at the
trial level under its sole cause third-party defense. The Ninth Circuit upheld this
aspect of the decision; however, it rejected UNOCAL's demand for attorneys' fees
and for declaratory judgment from the trial court that it was no longer a responsible
party and should not be listed as a waste generator on the hazardous waste
manifests.
One likely consequence of the Ninth Circuit's decision is that even
innocent responsible parties must clean up spills and independently seek cost
recovery from third parties in court or from the oil spill liability trust fund.
On the subject of criminal proceedings, the Committee received a report
from Fred Kuffler, chair of the Environmental Crimes Subcommittee. I understand
that Fred will be giving a report this morning, so I'll defer to him on that subject.
We also received a report concerning an indictment this past week of the
master of the Neptune Dorado. The vessel did not actually spill oil, but the
master was charged with knowingly concealing from the Coast Guard a seepage
of oil into the vessel's ballast tanks, and with falsely reporting that certain noted
deficiencies had been corrected. Each charge carries a potential five-year jail term,
and there have been suggestions that the indictments will not stop there.
In a development since our Committee meeting two days ago, indictments
were unsealed against the master and chief engineer of a vessel called the Freja
Jutlandic and against two shoreside supervisors, including the vessel's designated
person under its ISM certificate, for criminal discharge, false reporting, and so on.
Needless to say, the criminalization of marine incidents remains as a
matter of enormous concern to the Committee, and we'll continue to monitor that
trend.
That concludes my report. Thank you.
PRESIDENT DORSEY: Thank you, Matt.
(Applause.)
PRESIDENT DORSEY: The subject of criminalization of pollution
matters is going to be on the agenda for the Tulane conference in March.
MS. KNAPP: Good morning, everybody. I would like to take just a few
moments to inform you of many the different kinds of activities the Marine Finance
Committee has engaged in. Since May, the following has occurred:
Our Tax Subcommittee has commented on and is keeping an eye on
proposed regulations under Section 883, the Internal Revenue Code, regarding
exemptions from taxation of international shipping companies.
Our U.S. Citizenship and U.S. Coast Guard Subcommittee sent a comment
letter to the Coast Guard regarding an affidavit they are requiring under the Foreign
Leasing Section of 46 U.S.C. at 12106(e), which relates to foreign leasing
companies owning vessels engaged in the coastwise trade, provided they meet
certain requirements.
We also followed a legislative proposal to amend the same Section
12106(e), and we also followed another legislative proposal to permit a notice of
claim of lien be filed against any vessel. As you know, right now a notice of claim
of lien cannot be filed unless there is a ship mortgage of record with the Coast
Guard.
Although we couldn't take any official positions on any of these
proposals, we followed them closely with a great deal of effort by some of our
members; and we want to continue to monitor them and perhaps work with other
MLA Committees, especially on the notice of claim of lien provision. There are
many emotions with respect to that, and we want to keep following it.
At our meeting we authorized a study group to be formed to keep track of
some Coast Guard regulations that are coming out this winter, and they will be
published before our May meeting, so we need to address them pronto.
We closely monitored some fishery regulations having to do with
ownership structures and U.S. citizenship requirements; these, as you know, arising
out of the American Fisheries Act.
Charley Donovan of San Francisco and his small team will continue to
monitor UNIDROIT and how it affects liens worldwide.
We're following an Ohio Federal case which may affect self-help
procedures for vessels, which is on appeal at the moment.
We heard at our meeting, interestingly, about vessel title insurance. This
is akin to your title insurance on your residence and is now available for vessels
and aircraft and other equipment.
We had two attorneys from the Maritime Administration attend our
meetings and also an attorney from the U.S. Coast Guard.
We are looking to establish an informal group of bankruptcy attorneys
with maritime bankruptcy experience.
We encourage you, if you know of anyone that is not active in the Marine
Finance Committee now, please contact Jon Arnason here in New York City if you
know someone who is interested or if you personally are.
We are also going to follow some changes that are afoot in the Liberian
Maritime Laws and Corporate Laws. There is a new Jamaican Registry which we
are following. So you can see there are many varied substantive issues with which
we're involved.
This is my rookie year as Chair. I'm very interested in the flow of
information among Committee members. I definitely want to work with Glen on
setting up a discussion forum or a chat room for our members so that information
can be spread easily.
Thank you, Mr. President.
PRESIDENT DORSEY: Thank you, Sandy.
(Applause.)
PRESIDENT DORSEY: Sandy, just one point of clarification: I
understand that the notice of lien claim section you are talking about was not
submitted as an MLA proposal, but was a proposal by some members of the MLA
who have a position on this matter.
MS. KNAPP: That's right. The proposal was submitted towards the end
of the session and it did not pass, but there were some members of the
MLA seeking to have it passed. And we are told that it is inevitable that it is going
to happen, and we need to just monitor it.
PRESIDENT DORSEY: Thank you very much. Fred Kuffler, and next
Jean Knudsen.
MR. KUFFLER: Mr. President, thank you; members.
I can't resist saying that between the President's advance preview of my
report and Matt Marion's comments, I hope my report actually lives up to the
advance billing I have received today.
I stood before the membership two years ago in an inaugural report of this
Subcommittee and said that this is a long-term project and you will be hearing
through the years quite a lot from this Subcommittee. It is now two years later.
I'm here again. Life is only becoming more complicated.
This Subcommittee does serve at the pleasure of the President. I am afraid
that as long as it pleases the President to have this Subcommittee, you will be
hearing from us.
In support of that proposition, I would mention that during the meeting of
the Environmental Crimes Subcommittee, as well as Marine Ecology and the Coast
Guard and Navigation Committees, there was a lot of talk about yet another Federal
agency beginning to flex its muscle in this area; that is the Environmental
Protection Agency. It has taken a look at the Ocean Dumping Act and thinks it is
another means of getting after the shipping industry. There are criminal aspects to
the Ocean Dumping Act. So, we have another big player in this area.
Turning to the agenda, the highlights of what has been going on:
First of all, members will recall that about 18 months ago President
McCormack submitted a statement to the House Subcommittee on the Coast Guard
and Marine Transportation in support of efforts to eliminate from criminal
prosecutions in this area use of the so-called strict liability statutes; that is, the
Migratory Bird Act and the Refuse Act.
I'm very pleased to report that during the summer Senator Breaux in
the Senate and a member of the House Subcommittee on Coast Guard
and Marine Transportation introduced companion bills which would have
the effect of eliminating the use of these two statutes. We are told that
there will be no action in the present Congress; but that the bills will be
reintroduced in the new Congress. The Subcommittee will be following the
progress of these bills and, if appropriate, will suggest to the President steps that
can be taken in furtherance of enactment.
One of the ongoing agenda items of the Subcommittee has been
consideration of the appropriateness of approaching the Department of Justice, a
strategy for that approach, and the timing. At the moment this is a project that is
on hold. Once the election is passed and the new Administration is in place, we
will take up this issue again.
A third project has been consideration of some sort of a member's guide
through this area of the law. Most us are civil practitioners and criminal law is a
subject that many of us have not had anything to do with since we had to answer
a few questions on the Bar exam. I can tell you for some of us it is a lot longer ago
than I care to remember. However, events seem to be overtaking us, and I am
going to take this subject up with President Dorsey. But over the last 18 months
there have been a number of articles in this area that I would like to bring to the
members' attention.
The first, in the Tulane Maritime Law Journal, Larry Kiern published an
update on OPA 90 which touches on some of these issues. Dennis Bryant,
published an article dealing with ISO and ISM compliance and the effect it may
have in this area. Dave Dickman published an article dealing with some of the
concerns, particularly the Fourth and Fifth Amendment issues and an exploration
of the Coast Guard's broad authority to investigate not only in the criminal area,
but regulatory and compliance issues, as well. I understand there will be two
articles from the recent Pacific Admiralty Seminar, which will be published in the
University of San Francisco Law Journal; one having to do with things that
practitioners need to be alert to at the early stages of shipboard investigations,
another article dealing with the effect of various compliance programs on criminal
proceedings and sentences.
Finally, the U.S. Chamber of Shipping has recently published a quite
comprehensive guide in this area. It is not, per se, for lawyers, although it is
written in large part by lawyers. It is called "The Handbook on Environmental
Crimes." It is available from the U.S. Chamber of Shipping. I am in the process
of reading it. I commend it to members. It is worth having available.
PRESIDENT DORSEY: Is that finally?
MR. KUFFLER: Pardon?
PRESIDENT DORSEY: Finally?
MR. KUFFLER: Yes, finally.
Finally --
(Laughter.)
MR. KUFFLER: -on October 18th, the Coast Guard published a notice
of a public hearing dealing with its environmental agenda for the twenty-first
century and called for comments, oral and written. There is a hearing on December
12th. Written comments need to be submitted by December 30th.
In conjunction with the Committees on Marine Ecology and the Coast
Guard and Navigation, the Environmental Crimes Subcommittee will put together
a statement dealing with environmental crimes and submit it to President Dorsey
and the Board with a recommendation that the statement be transmitted to the Coast
Guard in response to its call for comments on its environmental agenda. It is
certainly a recommendation of the Environmental Crime Subcommittee that this
is a great opportunity to put our views before the Coast Guard, and indeed probably
a broader audience, in quite a comprehensive way.
That concludes my report. Thank you very much, Mr. President. I
apologize for obviously wandering on.
(Applause.)
PRESIDENT DORSEY: Thank you. Fred is an expert in this area of
criminalization of pollution issues, and he is going to be one of the speakers on the
panel in Tulane in March on this subject.
Jean Knudsen, and following Jean Knudsen, Don Kennedy on Maritime
Arbitration and Mediation.
MS. KNUDSEN: Thank you, Mr. President. Good morning, ladies and
gentlemen.
To supplement Michael Marks Cohen's comment about the CMI, I
would just like to remark that Gray Staring has been appointed to repre-sent our marine insurance issues. Trine-Lise Wilhemsen, the Norwegian
law professor who has written an excellent presentation is in the process
of updating it and we expect to get it before the end of this month. If anyone is
interested in receiving a copy of the report, please let me know and let me have
your business card and I'll mail you one as soon as I get the latest one in.
Our Committee met and we distributed our semiannual newsletter. I want
to thank Gene George, Josh Force and George Freehill for preparing this letter.
Our Committee has reviewed the various projects which we are currently
working on, and I'm delighted to announce that the P&I Annotations have been
completed. They are currently being sent to the editors for review, and we hope
for publication in the spring. It is an excellent work product, and I know it will be
of great use to our members, and we look forward to having it published.
I want to thank all those individuals who contributed to the P&I
Annotations, and in particular to Simon Harder for gathering the information and
bringing it to a conclusion.
Also, we have two relatively new projects.
Rick Stone of our GA Committee had started a working group to issue a
letter of guarantee form for standardization in the industry. And if anyone is
interested in working in that group with Rick, please give him a call or let me know
and I'll put you in contact with him.
Also, John Woods, vice chair of our Hull Subcommittee, is starting his
working group on reviewing the hull clauses, and several people are interested in
participating, but if anyone else would like to join, please let John and I know.
Marion McDaniels mentioned at our meeting that the Houston Marine
Insurance Seminar group finally have their website up, and all the speeches from
the various seminars are now available. The address is
www.houstonmarineseminar.com, and it's all one word. So, at least now we can
access the excellent speeches that are on the website.
I would like to mention before concluding that with the CMI issues of
general average and marine insurance, we really don't know exactly what
is going to happen in Singapore. And we have been meeting, as Michael
mentioned, and we will have another meeting in January, as information
is given to us as to the subjects. We hope that there won't be any surpris-
es and we'll do our best to prepare so our delegates I know will do an excellent job.
Thank you very much. Thank you, Mr. President.
(Applause.)
PRESIDENT DORSEY: Thank you. Donald Kennedy for Maritime
Arbitration and Mediation, and after that Charlie Donovan for Maritime Criminal
Law and Procedure.
MR. KENNEDY: Thank you, Mr. President.
As you may have noticed, the name of the Committee has changed to
include mediation. This week at our meeting Bobby Glenn and Jay Paré organized
a mediation program, and we had with us as speakers Paul O'Brien from
Stolt-Nielsen, and Andy Tsukamoto from Maersk Sea-Land. They shared with us
their experiences with arbitration, mediation and resolving maritime disputes. And
I want to thank them all for their excellent program.
The major work of the Committee this past six months has been preparing
amendments to the Federal Arbitration Act. The amendments and the rationale for
the amendments are included in the MLA Report. They will also be included in the
record of this proceeding today.
Basically there are four amendments that we're proposing. They relate to
consolidated arbitration, appointment of a second arbitrator, subpoena powers of
arbitrators, and correction of mistakes or errors in arbitration awards.
We have submitted the proposed amendments to the AAA, the American
Arbitration Association. They have certain issues about the Federal Arbitration
Act. They are different from our issues. And we'll, quote, get a reaction from
them. When we get their reaction, which I think will take a month or two, we will
kind of go back and huddle and see what we want to do about it. And if we decide
to go forward with it, presumably in May we would come to the Association for
resolution.
Thank you.
PRESIDENT DORSEY: Thank you.
(Applause.)
PRESIDENT DORSEY: Don is also on the U.S. Delegation of the
UNCITRAL working group on arbitration and is a very valuable member of that
group. According to the State Department, he's doing a terrific job. Thank you,
Don, for your activity in that respect, as well.
Charley Donovan for Maritime Criminal Law and Procedure, and next
Harold Watson for Maritime Legislation.
MR. DONOVAN: Thank you, Mr. President.
We had a very varied meeting, and I would like to thank Joe Ahern, Bruce
Dalcher and Chris Argenti from the Coast Guard for having made the meeting
considerably more lively and educational. I won't go through everything that our
Committee covered in its meeting; however, there are two items that I would like
to call to the attention of the general membership.
In May of 1999 our Committee drafted a criminal law checklist for
maritime lawyers responding to maritime accidents. From Fred Kuffler's
Subcommittee on Environmental Crimes we have gotten some suggestions for
revisions to that checklist, all of which we think are improvements; and so we will
put out a Version 2 of the checklist and it will be available on the website. The first
version has been considerably used by P&I Club's lawyers and others responding
to these sorts of incidents. If you are not familiar with it, check the MLA website
and you will be able to find it there.
The second item that I wanted to call to the attention of the general
membership is a document that has become known as The Holder Memorandum.
The Holder Memorandum was issued by Deputy Attorney General Eric Holder of
the Justice Department, and it provides in seven or eight pages guidelines that the
Justice Department should consider in deciding whether to charge a corporation
with a crime; that is not an individual, but charging a business, a corporate entity
with a crime. And one of the considerations that Deputy Attorney General Holder
expressed was the cooperation of the corporation in the investigatory process of the
Justice Department itself, including possible waiver of the attorney-client privilege
by the corporation and waiver of the attorney work product privilege.
The American Corporate Counsel Association has reacted with con-sternation to the suggestion. And at the President's request, our
Committee has considered it, as well. We believe this is a very dangerous element
to include in the decision on whether to prosecute or not, and that this Association
should go on record as opposing this as being one of the factors that the
government might consider. But, of course, no one in our Committee wanted to
write the letter to the Justice Department.
(Laughter.)
MR. DONOVAN: But happily-
PRESIDENT DORSEY: Leave that to me, I suppose.
MR. DONOVAN: But happily Helen Benzie has volunteered to write it
so that President Dorsey can send it to the Justice Department. We'll be preparing
that and getting it up to him shortly.
That concludes my report.
Thank you.
PRESIDENT DORSEY: Thank you.
(Applause.)
PRESIDENT DORSEY: Harold Watson, and next John Schaffer on
Maritime Personnel.
MR. WATSON: Thank you, Mr. President and fellow members.
The Maritime Legislation Committee met yesterday and we the discussed
the various pieces of legislation and various legislative proposals that we have been
monitoring on behalf of the Association. Since most of these have been discussed
or will be discussed by other Committee chairs, I won't go into detail on all those.
Among the things we discussed were the notice of claim of lien
legislation, the OPA 90 amendments, and potential amendments to the Death on the
High Seas Act that would allow passengers on nonrecreational vessels to make a
claim for nonpunitive damages.
I would like to say that one of the primary functions of our
Committee is to monitor and serve as a clearinghouse for information on
legislative proposals dealing with maritime affairs. We do subscribe to a
publication and disseminate that information to the substantive Committees. I
would ask that if any of you know of legislative matters that you would contact us
and make this more of a two-way street so that we can be of more service to the
Association.
Thank you very much.
PRESIDENT DORSEY: Thank you, Hal.
(Applause.)
PRESIDENT DORSEY: John Schaffer, and next after John will be Dennis
Bryant.
MR. SCHAFFER: Good morning, everyone.
The Maritime Personnel Committee met yesterday afternoon, and I'm
pleased to report that we had twenty-five members and guests participate in a lively
conference.
We discussed the Coast Guard Authorization Act of 2000. Rumor has it
that the bill, if enacted this year, may contain a provision amending the Death on
the High Seas Act to change the portion regarding marine deaths to resemble that
for aviation deaths occurring more than one marine league from shore. In other
words, recovery for loss of care, comfort and companionship would be allowed for
deaths of passengers on vessels other than a recreational vessel.
We understand that the Senate has passed such a bill. We also understand
that it is unlikely that amendments along this line will be enacted this year.
In addition to monitoring the potential changes to the Death on the High
Seas Act, we continue to keep our eye on developments in the area of the law of
punitive damages. We also discussed tort reform.
The Personnel Committee also talked over and reviewed several recent
decisions from all around the USA involving issues facing vessel owners,
employers and clients.
We welcome suggestions from the Association for new and interesting
projects. We are always looking for additional members and significant decisions.
Thank you very much. That concludes my report.
PRESIDENT DORSEY: Thank you.
(Applause.)
PRESIDENT DORSEY: Captain Bryant for the Navigation Coast Guard
and Government Regulations Committee and Jim Bartlett for Practice and
Procedure Committee will be next.
MR. BRYANT: Thank you, Mr. President.
We had a well-attended meeting on Wednesday afternoon. And I want to
thank Captain Ahern and Commander Dalcher for participating in our discussions.
We look forward to continuing to work closely with Captain Ahern in the future,
as we did with Captain Williams previously.
I also have spoken to Tom Panebianco, the General Counsel for the
Federal Maritime Commission, and he indicates a willingness to participate in the
work of our Committee and the MLA in the future.
I'm trying not to repeat a lot of the things that have been said before,
particularly by the Marine Ecology Committee and the Maritime Criminal Law and
Procedure Committee. Suffice it to say that criminal law is increasingly important
in the maritime industry and the EPA is a growing force.
I would commend to your reading the recent Cruise Ship White Paper
issued by the EPA. It lays out a series of Federal laws that the EPA enforces and
how they perceive the cruise industry in particular. The industry may not be fully
in compliance with that. It ends with kind of a note that other vessels in the marine
industry may also not be in compliance with the same provisions, but doesn't
explore it any further than that. I would note also that Carnival Cruise Lines was
recently served with a subpoena that smacks of follow-on to the RCCO case or
cases, as it may be.
The filing of reports with the government by the marine industry is
receiving increasing scrutiny by the Federal agencies. In the two cases that were
discussed previously, the ship in Baltimore and the ship in San Francisco, charges
against both of those vessels revolve around filing inaccurate reports with the Coast
Guard. It is a criminal offense to knowingly file a false report with the Coast
Guard or any other Federal agency, and the Coast Guard is taking it very seriously.
Pay attention. Tell your clients to pay attention.
Ballast water. The government just issued its first annual report on the
Ballast Water Management Program, and it states that in the first year that the
statute was in effect, participation by the marine industry was 20.8 percent. The
significance of that is that the statute says that it is a voluntary program for the first
three years. If there is not substantial participation in the voluntary program by
industry, the program becomes mandatory with all of those wonderful features such
as vigorous Coast Guard endorsement. So, encourage your clients to participate
in the voluntary program, otherwise they will be participating in the mandatory
program.
We will continue to try to expand our involvement with other Federal
agencies.
One final item to pay attention to: The FMC is looking into a recent
development on the lower Mississippi River involving the use of exclusive tug
contracts. A number of the granaries in particular along the lower Mississippi
River have said when you bring one of your ships into our dock, you must use the
tug company that we have made prior arrangements with. Surprisingly, the rates
for using those tugs have gone up over what they used to be when you could
negotiate on your own.
It is unclear whether the FMC has jurisdiction over this matter. They
realize that and will look into it. But it is a problem area and has expanded
apparently to the Columbia River in Washington and Oregon.
And also recently we have heard that at least one granary on the lower
Mississippi River is saying you must use our shipping agent, you cannot use your
own shipping agent for your loading of cargo at our facility. It is a growing
problem. The FMC is looking into it. We need to pay attention to it.
That concludes my report. Thank you.
PRESIDENT DORSEY: Thank you, Dennis.
(Applause.)
PRESIDENT DORSEY: Thank you also for your daily e-mails that keep
me posted on what is going on in Washington. Jim Bartlett next for Practice and
Procedure, and then Jim Shirley for Salvage.
MR. BARTLETT: Thank you, Mr. President.
The Committee on Practice and Procedure met yesterday in a lively
meeting at Cadwalader. Indeed, I don't know how a meeting in which Phil Berns
participates can be anything but lively.
Various topics were discussed, including the Amendments to Rules B, C
and E, that will go into effect on December 1st. I ask you all to look at the rules
before you cite them again because the language has been changed, the content has
not, but the format has.
We also discussed further changes that appear to be necessary to Rule C.
The Committee is working on that project.
We did discuss what Sandy Knapp and Harold Watson had mentioned, the
changes to, or proposed changes to the Ship Mortgage Act relating to the notice of
claim of lien provisions. We also discussed developments in the Local Admiralty
Rules, and we discussed a case out of the Eighth Circuit.
It seems, having heard Lisa Reeves talk about the Eighth Circuit case, that
they are very active. This is called Anastasoff, and in this decision the Eighth
Circuit held that its own rule against citing unpublished opinions was
unconstitutional. This is now under review or a review has been requested, and our
Committee is monitoring that.
One matter I need to bring before the MLA membership for approval: At
a prior meeting of the MLA, a resolution relating to Rule B to amend the rule to
define when a defendant is, quote, not found in the district, the MLA approved a
resolution by which the phrase "at the time of filing of the complaint" would be
added to the new text. The Advisory Committee, Professor Cooper, the reporter
to the Advisory Committee, has asked us for a position raising the question of
should it also include when the affidavit, the required affidavit is filed.
The Committee has studied this, and I am now in a position to say that the
Committee recommends the adoption of the following resolution:
RESOLVED that the Maritime Law Association of the United
States supports an Amendment to Rule B to define the time for
determination of whether the defendant is "not found within the
district" to be at the time of the filing of the complaint and the
affidavit.
And I so move that resolution.
PRESIDENT DORSEY: Is this the unanimous position of your
Committee?
MR. BARTLETT: It is not unanimous. There was one vote against.
PRESIDENT DORSEY: Well, I think that under the Bylaws, we cannot
bring this up at this time unless it is a unanimous position of your Committee. You
have to wait until May. There is a procedure that you have to go through for
resolution by this Association, if I'm not correct. We don't have our
parliamentarian anymore. But I believe I'm correct, that unless it is a unanimous
vote of your Committee, we cannot take the resolution up at this time.
MR. BARTLETT: All right. I understood it otherwise, but fine. That
concludes my report.
PRESIDENT DORSEY: Well, we'll put that on hold, but perhaps there
is a way to look at it. But I don't think we can do it by the Association as a whole
until next May, Jim.
MR. BARTLETT: Fine.
PRESIDENT DORSEY: Sorry.
MR. BARTLETT: Thank you.
(Applause.)
PRESIDENT DORSEY: And following Jim Shirley we have one, two,
three, four more reports, just to let you know where we are.
MR. SHIRLEY: Despite Phil Berns being unable to attend, we had a very
lively session of the Salvage Committee on Wednesday morning. We discussed
a number of topics, including the new Lloyd's Form 2000, and the Special
Compensation P&I Clause that may be a part of that.
We also discussed the salvor's concerns for liability in environmental
matters and immunity for salvors. Also treasure salvage and archeological salvage,
which lead into UNESCO. What I had thought would be one of the more mundane
topics when we kicked it off turned out to be one of the more interesting.
Last May we selected a working group under the leadership of
Professor David Sharpe to look into the issue of renunciation or denun-ciation of the 1910 Salvage Convention, repeal or amendment of the 1912 Salvage
Act, and the question of whether the 1989 Salvage Convention should be
implemented legislatively, although it is already part of U.S. law through the treaty
ratification process.
Professor Sharpe did a terrific job and a very thorough job of probing and
came with issues that I would never have thought impacted on this decision in his
preliminary report. So we held a special session after the Salvage Committee
meeting and went another two hours, two hours-and-a-half, just discussing that
particular topic. It is deeper and broader than I thought, and I'm sure that Professor
Sharpe can address that more succinctly and certainly more eloquently than I can,
and I would like to ask him to do that, if it's okay, Mr. President.
PRESIDENT DORSEY: It is certainly okay.
MR. SHIRLEY: With Professor Sharpe's remarks, the report of the
Salvage Committee will be concluded. I thank you.
PRESIDENT DORSEY: Thank you.
PROF. SHARPE: Mr. President, members and guests, I stand here this
morning with the modest and humble title of Leader of the Working Group on the
Salvage Conventions, and it is modest and humble because I made it all up myself.
By means of appointment, volunteering and shanghaiing, the working
group has been composed. I had hoped that we could complete our report for the
Salvage Committee at this meeting. We did not. The report is now in its third
draft. I will be opening up the fourth draft as soon as I get home to Baltimore to
my computer. As an interim report I can simply say this:
The issue that triggered the creation of the working group was a proposal
that came from our good-housekeeping member, Michael Marks Cohen: to clear
the decks of the 1910 Salvage Convention, which regulates us all. You might not
have thought about that when you got up this morning, but it does.
We are also regulated by the 1989 Salvage Convention. The United
States is a state party to both Conventions. The message from the Coast
Guard and the State Department that went to the Senate, asking for its
advice and consent to the 1989 Convention, reassured it that there were
no conflicting provisions between the 1910 and the 1989 Conventions. They are
honorable men, and I take this to be true.
The 1989 Convention does, of course, contain Articles 13 and 14 on
pollution problems, which now seem to have been largely superseded by a return
to private contract under the Scopic clause. But never mind all that.
There is no really good reason I can think of not to denounce the 1910
Convention except the word "denounce," and that is troublesome. We don't have
the right word for repealing a self-executing treaty. And so the only word we have
is "denounce." For instance, IF Brazil still has the 1910 but not the 1989 Salvage
Convention, if we denounce the 1910 Convention, we will not start shooting bullets
at the Brazilians. "Denounce" simply means we will clear off an obsolete treaty
that we don't really need any more. The sentiment of the working group is still
skeptical but I think lukewarm in favor of denunciation.
Two other issues have attached themselves to the working group: one
issue is to make the Salvage Conventions more accessible to research. You may
be surprised to know that if you turn to your copy of the United States Code,
whatever version it may be, it does not contain either of the Salvage Conventions,
because they are not enacted by the Congress of the United States. They went the
Senate advise-and-consent route; therefore, under the policy of the codifiers, they
are not printed in the statutes.
One way to solve this is for Congress to enact the 1989 Salvage
Convention.
I think that the members of the working group are a little nervous about
sending this instrument to the Congress, considering what it did to the Hague Rules
(for a prominent example) and so I think this issue is dead.
The last issue is to let the Navy have amendments to some of its statutes
that govern the Navy's responsibility and liability either for salvage or being
salved. There seems to be no criticism or dissension to letting the Navy take
advantage of the provisions of Article 13 and 14 of the 1989 Salvage Convention.
We expect to report to the Salvage Committee at the spring meeting next
year, and I hope that my name and address are in the new directory.
PRESIDENT DORSEY: They are.
MR. SHARPE: Thank you very much because I have moved from
Bethesda to Baltimore. I'm very happy to be there. So if you want to get in touch
with me about this, if you would like a copy of the draft report, I would be
delighted to furnish it to you. I would suggest, though, that I will circulate to
interested parties the fourth forthcoming version of the draft for the working group.
And if any of you have any ideas about this, I would be glad to hear from you. For
instance, on a cab ride last night I learned a couple of things I needed very badly
to know.
Thank you very much, Mr. President.
PRESIDENT DORSEY: Thank you, David.
(Applause.)
PRESIDENT DORSEY: We put David's name in the directory. He
doesn't know how close it was -- we found out at the last minute that he wasn't
included, but we caught it in time. When I went to bed that night, I lay down and
went over things that happened in the day. I said, my God, do you think we left out
Nick Healy's name, too?
(Laughter.)
PRESIDENT DORSEY: Professor Healy, you are in there, believe me.
The first thing I did the next morning was double check.
Pat Cooney for the Uniformity Committee and then Doug Muller for
Young Lawyers.
MR. COONEY: Mr. President, members, we met on Wednesday and
discussed interesting topics related to uniformity.
I would like to limit my remarks to the two cases that we received requests
for amicus appearances on behalf of the Association and tell you a little bit about
those cases and the action that was taken.
The first case is Stepansky v. Florida. It involves a crime on a cruise
ship, an attempted sexual assault, one passenger upon another in inter-national waters. What makes it interesting is that Florida has passed a
statute giving itself criminal jurisdiction on the high seas so long as the
ship's voyage begins or ends essentially in Florida. There is a more tech-nical formula than that, but they have given to themselves criminal jurisdic-tion.
Given the publicity that we have seen on cruise ship criminal matters, it
is understandable that Florida is concerned about this. Of course, it runs afoul of
the Constitution and the provision granting to Congress the right to establish what
is a felony on the high seas, the implication being that is a Federal matter and
exclusively a Federal matter.
We were requested to support a petition for certiorari from a decision of
the Florida Supreme Court upholding the statute. There were a number of
considerations, and the Board of Directors declined to support the petition for
certiorari. In fact, the petition has been denied I think as of last week.
Several considerations went into the decision of the Association not to
appear as an amicus in support of issuance of the writ. One was the nature of the
crime itself. You try to pick good cases and this was a particularly difficult case
to go up on. And, secondly, the Federal prosecutors, the District Attorney's Office
in, I gather, the Southern District of Florida, had declined to prosecute, and then
further had declined to participate in the State proceedings upon invitation. A third
factor was that many board members questioned the effectiveness of such an effort
in view of the lack of participation in the case by government agencies with an
interest in the issues raised by this case. It is my understanding that those
considerations and perhaps others, that the Board of Directors declined to support
an amicus brief in support of the certiorari petition.
A second case involving a fairly narrow issue under the Longshore and
Harbor Workers' Act did merit and gain support of the Association. The case is
Mobil Mining and Minerals v. Dixon. It is a case out of the Fifth Circuit,
unpublished, interestingly enough, upholding an ALJ decision that Section 3(a), a
covered site includes the entire facility where the dock or maritime site is located.
This decision is in direct conflict with a Fourth Circuit decision, which looks at the
language of the statute and limits the area covered to the customary area devoted
to maritime undertakings.
I had the opportunity to collaborate with President Dorsey in putting
together a very small amicus brief stating the position of the Association,
which was simply that the Act needs to be uniformly applied across the
country. That having been said, the Association has no position on the
merits, but we urge the Court to take it. Interestingly enough, the Court
in conference today is considering that petition; and so we should be hearing in the
next week or so as to whether the petition will be granted. And obviously with the
position we've taken on the merits, that will be our last appearance in this case.
(Subsequently, it was learned that the Court declined to grant certiorari.)
Rumor has it that Calhoun has surfaced again. We are anxiously looking
forward to receiving the draft petition for certiorari if one is to be filed. We will
be looking at that case again. Otherwise, the radar screen seems to be fairly calm.
We are looking at the Lewis and Clark case that does present a
disharmony-between-Circuits situation, but in that case there was no request for an
amicus brief to support certiorari or on the merits.
Mr. President, that concludes my remarks.
PRESIDENT DORSEY: Thank you, Pat.
(Applause.)
PRESIDENT DORSEY: I do want to add some remarks in light of his
comment about the Calhoun case.
I heard Professor Force's speech last night, which was quite brilliant.
Professor Force-I think I have this right-he suggested essentially a different
approach to the defense of uniformity and the right of Federal judges to make and
apply Admiralty Law as opposed to reliance on Jensen. He warned of the potential
dangers of reliance on Jensen in light of attacks by certain academics on the nature
and scope of the power of the Federal Courts to make and apply Maritime Law.
Given the fact that State Law versus Federal Law questions continue to
arise and applications continue to come to us to file amicus briefs on these subjects,
I think it is essential that everyone who is concerned in making decisions with
respect to these amicus briefs-and these are the various Committees, particularly
the Uniformity Committee, certainly the Board of Directors-it is incumbent upon
them to as soon as Professor Force's article is available and published, and maybe
even earlier-I intend to get a copy earlier and send it around-to read and study that
report and for us to consider the propositions that he makes as factors in
determining what positions we are going to take in the future in amicus briefs on
these difficult questions.
Next we have Young Lawyers, and then following that I think Warren
Marwedel wants to make a report on Proctor Admissions.
MR. MULLER: Mr. President and members of the Association.
On Monday of this week our Committee sent out its semi-annual
newsletter aptly named "Theoretically Quarterly." The e-mail list for this
newsletter was about 169 people. When you extract the officers of the Association
and the Committee chairs, we have about 135 to 140 members of our Committee.
Unfortunately, of this relatively large group, we only have twenty or so active
members; that is, members who are assisting in projects of the standing
Committees. It was the same twenty members who attended our Committee
meeting yesterday at Freehill Hogan & Mahar. It was those same twenty or so
members who attended our social event following the Healy lecture yesterday.
My request to you is to assist us in getting more young lawyers actively
involved in our Committee. The good news is that our numbers are steadily
growing, but we could use your help in encouraging young lawyers who are either
not involved in the Young Lawyers Committee, or who are members, but not
actively involved, to get involved.
We have several projects ongoing right now that are very interesting. Pat
Cooney of the Uniformity Committee has a bibliography project, as well as
possibly getting assistance on amicus briefs submitted by the Association. There
is a project under the sponsorship of President Dorsey that may involve the
assistance of as many as eight to ten young lawyers. Lisa Reeves of the Limitation
of Liability Committee mentioned to me that they need help with their newsletter.
These are all projects in which young lawyers can become involved.
As Tony Whitman mentioned, the CLE presentation out in San Diego next
fall may involve young lawyers. All of these things have publishing opportunities
with them, some of them have speaking opportunities. All of them have
recognition of some form, and the time commitment is minimal.
I urge you to get your young lawyers involved in some way. We can
use the help. We definitely need the staffing. It is very easy to get them
involved. I'm accessible by phone or by e-mail. They can contact our
Committee secretary, Josh Force of New Orleans, or they can contact sev-eral other people. We have at least two active members here in New York,
Katherine Newman of Nourse & Bowles, and Larry Kahn of Freehill,
Hogan & Mahar, who are more than happy to help out in terms of assisting young
lawyers in getting involved in projects.
I encourage you to get them involved. We are always available to assist
them in making the transition.
Mr. President, that concludes my report.
PRESIDENT DORSEY: Thank you, Doug.
(Applause.)
PRESIDENT DORSEY: Next is Warren Marwedel for the Proctor
Admissions Committee, and then we will follow that with what I believe will be the
last report, Graydon Staring for AMC.
MR. MARWEDEL: Thank you, Mr. President, ladies and gentlemen.
The Proctor Committee is the one that reviews the proctor applications.
This week we had a meeting and it has been decided that we will review the
requirements for proctorship. We may have recommendations, we may not. But
we hope to have a report to the President and the Board before the May meeting.
We would like to encourage you, though, to get the younger members in
your firms to become active, to get the requirements to become proctors. That is
the way you move up in the organization. If you want to be a chair of a Committee
or a vice chair, you have to be a proctor member.
So, we really encourage you to get the younger members, the associate
members to fill out these applications and get them in. The future of the
organization is in those younger people and it needs your urging to do that.
Thank you.
PRESIDENT DORSEY: Thank you, Warren.
(Applause.)
PRESIDENT DORSEY: And Past President Graydon Staring.
MR. STARING: Thank you, Mr. President and fellow members. The
yellow book I hold in my hand here signals the subject of this exhortation.
"American Maritime Cases" was founded under the ægis of this
Association more than seventy-five years ago and continues under that ægis today
formally. Its constituents are mainly the members of this Association. I think most
of the members of this Association need and use it. Most of AMC users are
members of this Association.
The publication is no longer limited, of course, to the paper I have in my
hand, but is available on-line and CD rom. So, there is a complex of modes, if you
will, in which to get it.
The real value of AMC is in the editorial service. It is an editorial service
that is manifest in the collection of cases, in the selection, and in the analysis of
them. It includes, therefore, more cases, more law than is available in any other
source in the field of maritime law. And some judge, whose name escapes me, but
it might have been Holmes, said that the law is what the courts do, in fact-
Was it? Yes, Michael Marks Cohen confirms it, it was Justice Holmes-
The law is what the courts do, in fact; and AMC tells you what they do,
in fact.
Now, it has never been the purpose of AMC just to put paper on your
shelves. And the cost of rendering that service in the three ways I have described
is a very high cost and it doesn't get any less. AMC has, therefore, distributed with
the President's report that came out recently a questionnaire that was directed to
finding out how people use it, and where they use it and in what mode. And we
have gotten a good many of those questionnaires back, but not as many as should
have been received. And they are needed in order to find out what the spread is
between, on the one hand, those who use a personal set of books or a personal CD
rom, all the way up, or rather down, to those who go to the public library.
I realize that I'm preaching to the saved here because, of course, most of
the people who would come to this meeting, and especially those who are still here
at this hour, must be presumed to be saved.
(Laughter.)
MR. STARING: However, I exhort you, when you go home, to exhort
the unsaved among your colleagues and friends who may not have returned those
questionnaires to get them in to us, or, if they have lost them or want to make
comments in any other way on what AMC should be doing, to send them in by
e-mail, fax or mail, as you wish.
Thank you very much.
PRESIDENT DORSEY: Thank you very much.
(Applause.)
PRESIDENT DORSEY: I think, ladies and gentlemen, that concludes the
reports. I don't think there are any more.
I want to thank all of those who did give oral reports for really doing a
good job of staying within the time frames. You all did a terrific job in that
respect.
And before I call on Past President Nicholas Healy for the usual motion
at this time, I just want to make a couple of quick announcements.
One is about the dinner. 6:45; cocktails, West Side Ballroom, fifth floor;
dinner at 8:00, Main Ballroom, sixth floor, black tie, don't forget your tickets.
Secondly, the MLA Report is on the table out there, and as usual it is a
first class product, and I want to thank Gordon Paulsen and LeRoy Lambert and
Matt Marion for their continuing efforts in that regard.
And finally I want to call your attention to the seminar that is going to take
place this afternoon at 2:30 in this room. The subject of the seminar is "Maritime
Suits Against Sovereigns." It is going to be presented by Professor George K.
Walker of Wake Forest University School of Law, and Philip A. Berns of San
Francisco, who some of you may have heard about from time to time.
So with those announcements and my thanks to you all for participating
here today, I'll call on Past President Healy to make the usual motion.
MR. HEALY: Mr. President, honored guests, fellow members of the
Maritime Law Association.
When I was called upon to make this motion two or three years ago, I took
the opportunity to report that I had acquired another MLA relative of a sort from
below the Mason-Dixon Line, in addition to my honorary nephew, Bunky Healy.
That was the result of the marriage of my first cousin once removed,
Lawrence Phillips, Jr., to one of the fair daughters of our fellow member, Walter
Hartridge of Savannah, who is here this morning.
I now have a further report to make: that there is now another generation;
the happy couple who married several years ago have produced a fine boy and
they have named him Lawrence Hartridge Phillips.
Now, that doesn't quite make Walter and me blood relatives, but at least
we now have a common blood relative, because the young man is of course
Walter's grandson, but he is also my first cousin twice removed.
(Laughter.)
MR. HEALY: On that happy note, I move we adjourn.
PRESIDENT DORSEY: Is there a second?
(Seconded.)
PRESIDENT DORSEY: All in favor?
(A chorus of ayes.)
PRESIDENT DORSEY: Thank you very much.
(Time noted: 12 o'clock p.m.)
FORMAL REPORT OF THE COMMITTEE ON
CARRIAGE OF GOODS
The Committee met on November 1 beginning at 9:00 a.m. at the offices
of Haight, Gardner, Holland & Knight. Forty-eight members of the committee
were present.
The first area of business was the introduction of the chair, vice chair and
Subcommittee chair. A questionnaire was distributed to all members present
requesting an update on their address, telephone and e-mail. The form also
requested information concerning past subcommittee assignments, and requested
future subcommittee assignments. In addition, suggestions for areas of future
concerns were also requested.
The main topic of discussion concerned the upcoming session of the CMI
to be held in Singapore during February of 2001. In particular, the members of the
International Subcommittee on Transport Law, many of whom were present at the
meeting, discussed the various areas of concern. George Chandler, Chet Hooper,
Vince DeOrchis, Michael Sturley and Michael Marks Cohen explained to our
Committee members the current draft. They also explained the lengthy process
which the CMI would need to go through before a finished document would be
available. At the earliest, and even that is doubtful, a completed draft might be
ready as early as 2004.
The chair reported that Bob Motley from The American Shipper was able
to get Senator Hutchinson to respond to several questions regarding the status of
the proposed COGSA. In brief, the senator responded that she believed in the bill,
it needed work, but she was optimistic that her committee would reach agreement
and that the legislation would ultimately reach the floor for a vote. No dates were
given.
It was agreed that an attempt would be made to schedule future
Subcommittee meetings immediately following the main Committee meeting on
Wednesday morning at the same location. Attendance at Subcommittee meetings
will increase if this schedule change can be achieved.
There being no further business, the meeting was adjourned at 10:30 a.m.
Respectfully submitted,
William R. Connor III, Chair
FORMAL REPORT OF THE COMMITTEE ON
CARRIER SECURITY
The Committee on Carrier Security met at 4:00 p.m. on Wednesday,
November 1, 2000 at the offices of Seward and Kissel, One Battery Park Plaza,
New York City. The meeting was attended by five members and one guest.
Agenda topics included the following:
1. A report on recent changes in INS rules and procedures for the
handling of civil penalties imposed under Section 280 of the Immigration and
Nationality Act of 1952 for failure to detain alien crew members, stowaways, etc.
Recent changes in the amounts of these fines, and procedures for asserting defenses
were discussed.
2. A discussion of recently promulgated regulations by the U.S. Customs
Service dealing with the filing of petitions in penalty, liquidated damages, and
seizure cases. The new regulations are intended to allow more flexibility and
contact with Customs officials on the local level in an effort to make the
administration of such cases more efficient and customer-friendly. At the same
time, Customs has delegated increased authority to field personnel to decide
petitions for relief with regard to fines, penalties and forfeitures. The new
regulations, which came into effect on October 5, 2000, may be found at 65 Fed.
Reg. 53565 and 53804 (September 5, 2000).
3. A roundtable discussion concerning current INS policies in various
ports on the handling, removal and deportation of stowaways.
4. A discussion of the problem of container theft and container cargo
pilferage, and strategies for preventing same. The Committee continues to explore
ways of quantifying and addressing this growing problem, there being agreement
that industry involvement and participation in developing strategies is critical.
In addition to the Committee's Spring and Fall meetings this year, two
Committee Newsletters were also published in an effort to keep members informed
of current developments and to generate interest in Committee activities. The
Committee continues to seek new members, both from the legal and industry
sectors, and to solicit ideas for new carrier security-related projects.
Respectfully submitted,
Gordon D. Schreck, Chair
FORMAL REPORT OF THE COMMITTEE ON
CLASSIFICATION SOCIETIES
The Committee met on October 30, 2000, with twelve members or guests
attending.
Referring to the report of our last meeting (on May 1, 2000), the London
meeting scheduled for May 5, 2000 among IACS (International Association of
Classification Societies) and various industry groups to discuss class developments
following the ERIKA casualty produced no agreement or other reported significant
result.
Subsequent to our October 30 meeting, we have learned that European
Union (EU) Directive 94/57, addressing actions to be taken by the EU after the
ERIKA casualty, is under revision, which may affect issues of class society
liability; however, no concrete developments on that revision have been reported.
The CMI stands ready to assist if it can, but neither IACS nor other industry groups
have approached it for assistance, and it seems likely that the parties are waiting to
learn the EU's position; there has been no further movement concerning the CMI
Model Clauses.
It can also be reported that, on June 21, 2000, in a Summary Order
(Docket No. 99-9265) the Second Circuit Court of Appeals affirmed the judgment
of the District Court absolving Bureau Veritas in Carbotrade v. Bureau Veritas,
referred to in the formal report of our October 12, 1999, meeting (MLA Doct. 747,
page 12085).
Finally, also subsequent to our October 30 meeting, in November-December, 2000, several actions in behalf of cargo interests were filed in the
United States District Court for the Southern District of New York against the
classification society Lloyds Register of Shipping in respect of the November 1997
casualty to the MSC CARLA which broke in two during an Atlantic crossing. The
committee will monitor any significant developments in that litigation.
Respectfully submitted,
Richard H. Brown, Jr., Chair
FORMAL REPORT OF THE COMMITTEE ON
COMITÉ MARITIME INTERNATIONAL
- Maritime Projects of Other Organizations.
- IMO.
- A draft convention on pollution from bunkers will go before a
diplomatic convention in March 2001.
- A draft convention on anti-fouling paints is tentatively scheduled
for consideration by a diplomatic conference in October 2001.
- A draft convention on ballast water may go to a diplomatic
conference in 2002.
- A new draft protocol to the Athens passenger convention was
produced at the last meeting of the IMO Legal Committee in October
2000. President Dorsey advises that the latest compromise follows the
approach of the recent Montreal Convention pertaining to the carriage of
air passengers with two tiers of liability for accidents caused by shipping
incidents. Liability for the first tier up to a certain limit per capita per
carriage is based on strict liability, with certain exceptions. Liability for
the second tier is based on fault with a reverse burden of proof, i.e., the
burden of proof being on the carrier to show that it was not negligent. A
shipping incident is defined as one where the injury arises in connection
with a shipwreck, collision, stranding of the ship, explosion or fire in the
ship, or defect in the ship. For non-shipping incidents, such as a
passenger falling down the stairs or being tripped on the dance floor,
liability is based on negligence with a reverse burden of proof for all
levels of the claim. The protocol could go to a diplomatic conference in
2002.
For those shipping incidents for which strict liability is
applicable, the carrier can escape liability by proving that (1) the incident
resulted from an act of war, hostilities, civil war, insurrection or a national
phenomenon of an exceptional, inevitable and irresistible character or (2)
the incident was wholly caused by an act or omission done with an intent
to cause the incident by a third party. In addition, in all cases contributory
negligence of the passenger will in all cases reduce the amount that the
passenger can recover proportionally.
Interestingly, the exceptions from the strict liability track those
in the Montreal Air Convention with one exception. The Montreal Air
Convention also provides the carrier with an escape from liability if it can
show that the incident was caused solely by the negligent act or omission
of a third party. This has not been proposed as one of the exceptions to
the Protocol to the Athens Convention.
It is proposed that States may provide for unlimited liability.
As in past drafts, the Protocol contains a provision for
compulsory insurance, with the right of a direct action against the insurer.
This subject will be discussed in a seminar at Singapore.
- UNIDROIT.
A Marine Finance Subcommittee chaired by Charles Donovan will
organize an effort to draft a protocol to cover containers and other items of marine
equipment for the proposed draft Convention on Security Interests in Mobile
Equipment. Suggestions were made to take soundings for support among such
organizations as the International Council of Container Lessors, National Marine
Electronics Association, National Association of Marine Products and Services,
American Gaming Association, British Marine Equipment Council, International
Banker Industry Association, International Ship Suppliers Association, Japanese
Marine Equipment Association, and All Japan Suppliers Association. Nothing has
been reported about such inquiries as yet.
- Hague Conference on Private International Law.
The work is going forward on a draft Convention for Enforcement of
Foreign Judgments which, at the urging of our Association, will not cover
admiralty and maritime judgments. Another session of the Conference to consider
the subject is scheduled for June 2001. Alan van Praag is a member of the United
States delegation.
- Other Committee Activities.
- Recycling Obsolete and Excess Law Books.
This is a project, assisted by Mark J. Kremin of Vancouver from the
Young Lawyers Committee, to recycle from the libraries of the law firms
of MLA members all obsolete editions of maritime treatises, ship registers,
law directories, and excess copies of law reviews, as well as the paperback advance
sheets of F. Supp. 2d, F. 3d, U.S., and AMC (when superseded by bound volumes),
to the libraries of law schools abroad. Six maritime law firms have already signed
up and are sending their books to the libraries of law schools in Chile, China,
Croatia, Malta, and South Africa. Other law schools in Italy, Korea, South Africa
and Spain have asked to become part of the program. But we need more law firms
to join up.
- Foreign Internships.
A Committee project has been undertaken, assisted by Barbara L. Rawest
of Chicago from the Young Lawyers Committee, to coordinate placement of young
American maritime lawyers for several months of internship in admiralty firms
abroad, and vice versa.
- Denunciation of 1910 Salvage Convention.
The Salvage Committee has put together a task force under David Sharpe
to look into all aspects of the relationship between the 1910 and 1989 salvage
conventions including denunciation of the 1910 Convention.
- Internal CMI Matters.
The Nominating Committee has now recommended:
President: Patrick Griggs (UK) for a second term
Vice-President: Frank Wiswall (USA) for a second term
Vice-President: Karl-Johan Gombrii (Norway) for a first term
Executive Councillor: Thomas Reme (Germany) for a second term
Executive Councillor: Johanne Gauthier (Canada) for a first term
Executive Councillor: Professor Feng Li Qi (China) for a first term
Our Association is considering whether to offer to host the next CMI
Meeting in 2004.
The CMI website is operational at "www.comitemaritime.org."
Respectfully submitted,
Michael Marks Cohen, Chair
FORMAL REPORT OF THE COMMITTEE ON
ELECTRONIC COMMUNICATIONS AND COMMERCE
- Presentation on the Electronic Court Filing System.
- Terry Vaughn and Douglas Palmer of the Eastern District of New
York provided a demonstration and presentation of the court's electronic filing
system. Palmer said that by 2003 all federal courts in the United States will be
using the Electronic Court Filing System ("ECF") for all cases. In the ECF, a
username and password arrangement for registered users is a substitute for a
holographic signature on papers filed. Registration is also required in order to elect
to receive email notifications of filings in cases in which the registrant is not a
party. The court administrators want eventually to make the user password valid
nationwide so that registered users can file and access documents in any court. The
ECF rules permit a user to disclose his or her password to an assistant for the
purpose of filing documents under the user's name. However, the system is
designed for hands-on use by judges and attorneys, and direct use will make the
most of the ECF's speed and convenience.
- When a document is filed in the ECF, an email is automatically
sent to the judge, the magistrate and all parties. The email will contain the URL of
the document filed, so users may view the document simply by clicking on the
URL. The email options for registered users are very flexible, e.g., a user may enter
several email addresses to which notices of filings should be sent, including the
user's weekend email address and addresses of persons who are not registered
users, such as clients, associates, paralegals, etc.
- Unfortunately, the US Marshal's Office is not yet on the system.
- At the present time, use of the system is free of charge. It is likely
that a charge of 7 cents per page will be assessed to non-parties for downloading
documents and that parties to the case will be permitted to download each
document once without charge.
- Documents filed in ECF must be in Adobe PDF (or portable
document format). Generally, exhibits will be scanned into PDF and filed.
Attorneys are permitted to use excerpts from bulky affidavits that are in their
possession in an attorney's affidavit, in order to avoid filing the entire attachment,
provided that the attorney offers to make the entire attachment available for
inspection to all parties.
- It is expected that the Civil Cover Sheet will be converted to an
automated form.
DRAFT WEB SITE POLICY
This document is for the purpose of assisting the officers of the MLA and
its membership in forming agreement as to the purpose, contents and management
of the MLA web site, and recording that agreement.
1. Purpose. The purpose of the MLA web site is to facilitate communications
between the MLA and its members and among members, and to increase the
accessibility of MLA written materials to m embers and the public. In addition, if
the membership finds the web version of the directory and other materials useable,
it may be possible to reduce or eliminate the substantial printing and postage
charges paid by the MLA to produce and distribute paper copies of these materials.
2. Structure. The MLA web site will be hosted by a web site development
company, Intercounsel, LLC ("Intercounsel"). Everything viewable on the MLA
web site will be accessed on Intercounsel's server (the "Web Server"). A second
company, PC Solutions, is serving as the MLA's database developer (the
"Developer"). The Developer will maintain the primary records for part of the
materials available on the Web Server, namely, Membership, Committees and the
billing and payment of dues, on their server (the "Data Server"). W hen there are
changes in the data maintained on the Data Server, the Developer will promptly
copy those changes to the Web Server.
Data which is not maintained on the Data Server will be maintained directly on the
Web Server. Initially, this will consist of the Events Calendar, Resource Links, and
information about the MLA.
[Committee Note: this structure is awkward and prone to errors and delays in
updating. It would be preferable to permit members to update their entries by using
an online update form. This would require assigning passwords to members to
prevent unauthorized changes. Passwords could also be used to restrict access to
the Library and the discussion forums (if we implement them in the future).
Consideration would have to be given to control of changes in a firm's address
because the same address is displayed for all members in that firm. Under this
arrangement, the printed directory would be prepared from the data on the website.
The data would be flowing from the website to the Developer.]
Respectfully submitted,
Glen T. Oxton, Chair
FORMAL REPORT OF THE COMMITTEE ON
MARITIME ARBITRATION
Since May, 2000 the Committee has met three times to discuss issues
relating to Maritime Arbitration and Mediation and has been working on a variety
of projects.
- Proposed Amendments to the Federal Arbitration Act.
The Arbitration and Mediation Committee unanimously approved four
proposed amendments to the Federal Arbitration Act (FAA) at the meeting on
October 4, 2000.
In considering what amendments to propose, we considered the following
criteria:
1. Does the proposed amendment preserve party autonomy?
2. Does the proposed amendment limit the involvement of the
courts?
3. Does the proposed amendment promote uniformity of law
whether national or transnational?
4. Can the proposed amendment be limited to "maritime
transactions"?
For each proposed amendment, specific statutory language has been
proposed followed by explanatory "Notes" discussing an analysis of existing case
law and the need for change. The amendments, in short, provide as follows:
Consolidated Arbitration. Under current law, the parties are presumed in many
cases to object to consolidation unless all agree otherwise. The proposed
amendment to 9 U.S.C. §4 reverses the presumption only in maritime transactions
and closely tracks the corresponding provision of the Revised Uniform Arbitration
Act.
Appointment of Second Arbitrator. Under current law, if one party to an
arbitration agreement fails to appoint an arbitrator, the party demanding
arbitration has to seek the assistance of the District Court to compel the
appointment of the second arbitrator. The proposed amendment to 9
U.S.C. § 4 permits the party demanding arbitration, without the interven-tion of the court, to appoint the second arbitrator if one has not been appointed
within thirty (30) days.
Preserving Evidence in Maritime Transactions. Under current law, arbitrators are
authorized to subpoena witnesses to give testimony at a hearing with the subpoenas
subject to enforcement by the Federal Court for the district in which the hearing is
held. The proposed amendments to 9 U.S.C. §7 would authorize arbitrators to
issue a subpoena to any person to give deposition testimony, produce documents
or provide access to material evidence, throughout the United States. A district
court may enforce the subpoena or otherwise order a person to give a deposition.
Modification of Awards in Maritime Transactions. Under current law, arbitrators
are not authorized to modify final awards on their own initiative or upon the
application of either party. The proposed amendment to 9 U.S.C. §11 permits
arbitrators to correct an award to eliminate a typographical, arithmetic or similar
clerical error or omission in the award.
MLA Arbitration and Mediation Committee
Proposed Amendments to the FAA dated October 4, 2000
- CONSOLIDATED ARBITRATION
The following amendment is proposed to The Federal Arbitration Act, 9
U.S.C. § 4. Renumber existing § 4 as § 4(a) and adding new subsection (b).
(b) Consolidation of Separate Arbitration
Proceedings in Maritime Transactions
(i) In one or more maritime transactions and except as provided in
subsection (iii), upon motion of a party to an agreement to
arbitrate, or to a maritime arbitration proceeding, the district
court in the exercise of its admiralty jurisdiction may order
consolidation of separate arbitration proceedings as to all or
some of the claims if:
(A) there are separate agreements to arbitrate or separate
maritime arbitration proceedings between the same persons or
one of them is also a party to a separate agreement to arbitrate or
a separate maritime arbitration proceeding with a third person;
(B) the controversies subject to such agreements to arbitrate or
arbitration proceedings arise in substantial part from the same
maritime transaction or series of related maritime transactions;
(C) there is a common issue of law or fact creating the
possibility of conflicting decisions in the separate maritime
arbitration proceedings;
(D) in the event there is more than one agreement to arbitrate,
they are similar and provide for the arbitration proceedings to be
held in the same city; and
(E) the prejudice resulting from a failure to consolidate is not
outweighed by the risk of undue delay or prejudice to the rights
of or hardship to parties opposing consolidation.
(ii) The court may order consolidation of separate maritime
arbitration proceedings as to certain claims and allow other
claims to be resolved in separate arbitration proceedings.
(iii) The court may not order consolidation of the claims of a party to
a maritime arbitration agreement which prohibits consolidation.
Notes to proposed subsection 4(b):
- This proposal is recommended because:
- it avoids the possibility of inconsistent results from
separate maritime arbitration proceedings;
- it simplifies the arbitration process, thereby saving time
and expense;
- it is a development and refinement of the law consistent
with the Revised Uniform Arbitration Act and the Rules of the
Society of Maritime Arbitrators [SMA].
- As noted in the National Conference of Commissioners on
Uniform State Laws, Reporters Notes to Section 10, Consolidation of
Separate Arbitration Proceedings, in the recently Revised Uniform
Arbitration Act, multiparty disputes have long been a source of con-troversy in the enforcement of agreements to arbitrate. When conflict
erupts in complex transactions involving multiple contracts, it is rare
for all parties to be signatories to a single arbitration agreement. In such
cases, some parties may be bound to arbitrate while others are not; in
other situations, there may be multiple arbitration agreements. Such
realities raise the possibility that common issues of law or fact will be
resolved in multiple fora or multiple proceedings, enhancing the overall
expense of conflict resolution and leading to potentially inconsistent
results. See III MACNEIL TREATISE § 33.3.2. Such scenarios are
particularly common in construction, insurance, maritime and sales
transactions, but are not limited to those settings. See Thomas J.
Stipanowich, "Arbitration and the Multiparty Dispute: The Search for
Workable Solutions," 72 Iowa L. Rev. 473, 481-82 (1987).
- Charter party transactions are not exclusively between a
registered owner of a vessel and a charterer. There are many types of
charter parties including bareboat, time and voyage. It would not be
unusual for an owner to charter its vessel to a charterer for a fixed period
of time and for the charterer in turn to subcharter the vessel to a third
party for a specific voyage. In the situation described above disputes may
arise between the owner/charterer and/or between the
charterer/subcharterer which involve common questions of law or fact.
- The practice of consolidating two or more arbitration
proceedings developed rapidly in the maritime area after the decision in
Compania Espanola de Petroleos v. Nereus Shipping, 527 F.2d 966 (2d
Cir. 1975), cert. denied, 426 U.S. 936 (1976), which involved a single
arbitration agreement covering more than two parties. But the Circuit
Courts thereafter refused to consolidate maritime arbitrations which arose
under more than one agreement to arbitrate unless a State statute
authorized consolidation. See Weyerhaeuser v. Western Seas Shipping,
743 F.2d 635 (9th Cir. 1984); New England Energy v. Keystone, 855 F.2d
1 (1st Cir. 1988); Glencore v. Schnitzer, 189 F.3d 264 (2d Cir. 1999).
- There may be situations when the same person is a party to two
or more arbitration agreements with identical contractual terms . . . as
when an ocean common carrier issues bills of ladings to different parties
on similar voyages at different times. These would not be regarded as
related transactions. It is not intended that the language of subsection
(b)(i) would apply to arbitrations arising out of similar events which do
not otherwise constitute related maritime transactions.
- The Society of Maritime Arbitrators revised its rules in 1994 to
provide for consolidated arbitration, Section 2 of the revised SMA
Rules provides for the consolidation of arbitration proceedings involving
related contract disputes with others "arising from common questions of
fact and law." The SMA made its change to preserve consolidation,
which simplifies the arbitration process, saves time and expense and
avoids the possibility of inconsistent results from separate arbitration
proceedings.
- The Federal Arbitration Act (FAA) already recognizes the
important role arbitration plays in "maritime transactions." Indeed, that
term is the first one mentioned and defined in the FAA, 9 U.S.C. § 1. The
FAA also includes unique provisions for enforcement of admiralty
provisional remedies in the context of an arbitration. 9 U.S.C. § 8. Under
current law the parties are presumed in many cases to object to
consolidation unless all agree otherwise. The MLA proposal amends 9
U.S.C. § 4 and reverses the presumption only in maritime transactions
which are defined in §1, to mean "charter parties, bills of lading of water
carriers, agreements relating to wharfage, supplies furnished vessels or
repairs to vessels, collisions, or any other matters in foreign commerce if
the subject of controversy, would be embraced within admiralty
jurisdiction."
- APPOINTMENT OF SECOND ARBITRATOR
The following amendment is proposed to The Federal Arbitration Act, 9
U.S.C. §4 by adding new subsection (c).
(c) Appointment of Arbitrator in Maritime Transactions
(i) In a maritime transaction where an agreement to arbitrate
provides for each party to appoint an arbitrator but imposes no
time limit for appointment of the second arbitrator, if the party
demanding arbitration refers to this section in his notice to the
other party of the appointment of the first arbitrator, and the
other party within thirty (30) days after his receipt of the notice
fails to give notice to the party demanding arbitration of the
appointment of the second arbitrator, then thereafter at any time
before the party demanding arbitration receives such notice of
the appointment of the second arbitrator, the party demanding
arbitration may appoint the second arbitrator and give notice to
the other party of this appointment. The second arbitrator shall
be a disinterested person with the same qualifications, if any,
required by the arbitration agreement.
(ii) Notwithstanding anything contained in this subsection, in
exigent circumstances a party demanding arbitration arising out
of a maritime transaction may petition a United States district
court to exercise its admiralty jurisdiction by enforcing the
arbitration agreement with an order directing the other party to
appoint the second arbitrator on less than thirty (30) days notice.
Notes to proposed subsection 4(c):
- This proposal is recommended because:
- It would eliminate or substantially reduce the district
courts' involvement in the appointment of arbitrators in
"maritime transactions."
- It would clarify and settle the law with respect to so
called "default arbitration clause" in maritime transactions and
make time of the essence in an arbitration clause calling for the
appointment of an arbitrator within a specified number of days.
- It would bring uniformity to the procedures for the
appointment of arbitrators in "maritime transactions" in the
United States.
- Typically, charter party arbitration clauses provide for a panel of
three arbitrators. Many of the commonly - used tanker form charter
parties, including the Association of Ship Brokers and Agents (U.S.A.),
Inc. ASBATANKVOY form and the New York Produce Exchange Form
(NYPE) provide that each party, appoint an arbitrator and the two party -
appointed arbitrators are to appoint the third arbitrator.
- When the first party appoints an arbitrator and calls for
arbitration under the ASBATANKVOY form, the arbitration clauses
provides that the second party has twenty (20) days to appoint its
arbitrator, failing which the first party shall have the right, without further
notice, to appoint a second arbitrator, "who shall be a disinterested person
with precisely the same force and effect as if said second arbitrator has
been appointed by the other party."
- Some printed form charter parties frequently used in the dry
cargo trade, including the NYPE form charter party, provide for a
panel of three arbitrators. However, the arbitration clause does not
provide for the appointment of the second arbitrator by the first party
when the second party fails to appoint its arbitrator. Therefore, after the
first party calls for arbitration and the second party fails or refuses to
appoint an arbitrator, the first party must file a petition in the United
States district court to compel the second party to appoint an arbitrator.
In many instances, the district court will itself appoint the second
arbitrator.
- In situations where the first party has the right to appoint the
second arbitrator after a specified number of days, one district court has
found that the arbitration clause calling for the appointment within 20
days did not make time of the essence. Compania Portorafti v. Kaiser,
616 F. Supp. 236 (S.D.N.Y. 1985). But also see Universal Reinsurance
Corp. v. Allstate Ins. Co., 16 F.3d 125 (7th Cir. 1994), where the court
held that a similar clause should be strictly enforced.
- PRESERVING EVIDENCE IN MARITIME TRANSACTIONS
The following amendment is proposed to The Federal Arbitration Act, 9
U.S.C. § 7:
Designate the existing text as subsection (a) and add new
subsections (b) and (c):
(a) The arbitrators selected either as prescribed in this title or otherwise,
or a majority of them, may summon in writing any person to attend before
them or any of them as a witness, and in a proper case to bring with him
or them any book, record, document, or paper which may be deemed
material as evidence in the case. The fees for such attendance shall be the
same as the fees of witnesses before masters of the United States courts.
Said summons shall issue in the name of the arbitrator or arbitrators, or a
majority of them, and shall be signed by the arbitrators, or a majority of
them, and shall be directed to the said person and shall be served in the
same manner as subpoenas to appear and testify before the court; if any
person or persons so summoned to testify shall refuse or neglect to obey
said summons, upon petition the United States district court for the district
in which such arbitrators, or a majority of them, are sitting may compel
the attendance of such person or persons before said arbitrator or
arbitrators, or punish said person or persons for contempt in the same
manner provided by law for securing the attendance of witnesses or their
punishment for neglect or refusal to attend in the courts of the United
States.
(b) In a maritime transaction, the arbitrators, or a majority of
them, may issue a subpoena to any person to give deposition
testimony deemed material to the transaction and/or to produce
documents or provide access to evidence which may be deemed
material to the transaction; and may authorize a party to seek
court assistance in obtaining testimony and such other evidence
for use in the arbitration proceedings. A district court, acting
within its admiralty jurisdiction may, enforce the subpoena or
otherwise, order that a person give a deposition, produce
documents, or provide access to evidence on terms that the court
deems just and reasonable.
(c) In a maritime transaction, where the formation of an
arbitration tribunal is incomplete, or in other exigent
circumstances impairing a party's ability to obtain authorization
from the arbitrators to seek court assistance, a district court
acting within its admiralty jurisdiction and upon application by
any interested party, may order that the testimony of a person or
other evidence be preserved for use in future maritime
arbitration proceedings, on terms that the court deems just and
equitable.
Notes to proposed subsection 7(a)(b) and (c):
- Section 7 of the Federal Arbitration Act (9 U.S.C. §7) authorizes
arbitrators to subpoena witnesses to give testimony at a hearing, with the
subpoenas subject to enforcement by the Federal Court for the district in
which the hearing is held. As a practical matter, this limits their reach to
the geographical limits of the State or 100 miles from the hearing situs,
whichever is greater. FRCP Rule 45(b)(2).
- In court litigation, "discovery" subpoenas are enforceable under
the Federal Rules throughout the United States by the Federal Court at the
situs where the evidence is sought, regardless of where the suit has been
filed. FRCP Rule 37(a)(1). But the Federal discovery rules do not apply
to arbitrations. FRCP Rule 81(a)(3). A few states, like New York, have
statutes providing for some discovery in aid of arbitration. CPLR
3102(c). But Federal statutes, authorizing courts to compel discovery in
aid of foreign "tribunals," do not apply to arbitration. National
Broadcasting Co. v. Bear Stearns & Co., 165 F.3d 184 (2d Cir. 1999).
- Arbitrators, of course, have great power to compel disclosure
from parties, simply by threatening to draw adverse inferences if dis-closure is not made. But, there are limits even to this power. For
example, unless otherwise provided in the agreement to arbitrate (see
SMA Rule 23) arbitrators are not authorized to order that depositions be
taken. Comsat Corp. v. National Science Foundation, 190 F.3d 269 (4th
Cir. 1999).
- These limitations on the power of arbitrators to obtain relevant
evidence, and on the power of Federal courts to assist arbitral tribunals in
this regard, create especially severe difficulties for maritime arbitrations
both here and abroad. Those held in the U.S. tend to go forward in only
a few port cities like New York, San Francisco, New Orleans, Houston
and Miami. Frequently, the relevant evidence exists elsewhere in the
country, far away from the place of the hearings.
- Another problem arises with perpetuation of evidence. Ships
generally do not remain in port for long periods of time. Material
documents, like logbooks and charts, as well as crucial witnesses, can sail
away putting the evidence at risk. Under the old de bene esse statute,
special provision was made for a Federal court to order that testimony be
taken from a witness "bound on a voyage at sea." Rev. Stat, § 863,
republished in 7A Moore's Federal Practice 247 (2d ed. 1996). FRCP
Rule 27 superseded the de bene esse statute. No special provision is made
in Rule 27 for maritime claims nor, indeed, for arbitration. Moreover, the
notice requirements of the Rule do not accommodate the realities of
shipping matters. The Federal courts have managed to deal awkwardly
on an ad hoc basis with applications under Rule 27 to perpetuate evidence
for use in future maritime arbitrations. See In re Deilulemar, 198 F.3d
473 (4th Cir. 1999). But the recent decisions construing Federal statutes
which authorize discovery in aid of proceedings in foreign tribunals as not
applying to arbitrations, cast some doubt on the case law applying Rule
27 to arbitrations as opposed to admiralty lawsuits.
- Discovery is now permitted in maritime arbitration only as
authorized by the arbitrators in each case. Obviously, this close con-trol of discovery should continue to be maintained. But arbitrators
should be permitted to order depositions in lieu of hearings to obtain
the testimony of party employees, especially seafarers, who may be
subject to travel on short notice. Moreover, when maritime arbitrators
decide that testimony or evidence from third parties is important to
their deliberations, they should be able to authorize parties to seek
court assistance to compel production of the testimony or evidence,
and the courts ought to be empowered to provide such assistance.
Finally, when events occur before a maritime arbitration tribunal is
even in place, or at a time when the tribunal cannot take timely action,
the Federal courts should be empowered to perpetuate the evidence, lest
it disappear.
- MODIFICATION OF AWARDS IN MARITIME
TRANSACTIONS
The following amendment is proposed to The Federal Arbitration Act, 9
U.S.C. §11. Add a new subsection (d) as follows:
(d) Without limitation of the foregoing, if an arbitration award
is rendered in a dispute arising out of a maritime transaction,
(i) The arbitrators may correct an award to eliminate a typographical,
arithmetic, or similar clerical error or omission in the award, provided that
an application by a party so to modify the award is received by them
within 30 days after the date the award was filed or delivered.
(ii) If any party to an award applies to the arbitrators to modify the
award under Section 10(d)(i) above, the time for confirming, vacating,
modifying or correcting the award under the other provisions of this Act
shall not begin to run until the award on the application is filed or
delivered. Their decision on the application shall be deemed part of and
included in their final award.
Notes to proposed subsection 10(d):
- Under 9 U.S.C. § 10 a federal district court may vacate an
arbitration award. Under 9 U.S.C. § 11 a federal district court may
modify or correct an award. The Act does not authorize the arbitrators to
modify final awards on their own initiative or upon the application of
either party.
- Courts have tended to interpret these provisions narrowly so as
to confirm awards. Courts have been reluctant to exercise their power to
vacate or correct awards. To do either might be perceived as not
promoting arbitration or as encouraging others to challenge awards
without grounds, clogging congested court calendars.
- Arbitrators have tended not to reconsider or reopen final
awards, usually believing themselves functus officio, absent the agree-ment of the parties or specific authority in the arbitration agreement
or rules incorporated by it. For example, Section 30 of the Rules of
the Society Maritime Arbitrators, Inc. provides: "The Panel shall retain
jurisdiction to modify the Award for the sole purpose of correcting
obvious clerical and/or arithmetical mistakes." The SMA Rules, however,
are not incorporated into all forms of charter parties.
- At the same time, awards do sometimes contain more or less
obvious mistakes. If the party benefitting from the mistake does not
voluntarily agree to accept performance without the benefit of the
mistake, the party that believes itself aggrieved has no alternative but to
ask the court to vacate or correct the award. This costs money and
occupies the court's time, perhaps needlessly. See Judge Haight's
decision in Laurin Tankers v. Stolt Tankers, 1999 AMC 1290 (S.D.N.Y.
1999), for a discussion of the cases and description of how arbitrators and
courts struggle with these issues under the existing law.
- The proposed amendment attempts to allow mistakes to be
corrected relatively easily by the arbitrators without weakening the
functus officio doctrine and minimizes the need to go to court for relief
when mistakes are made.
- The concept of allowing such a remedy is not novel. For
example, similar provisions are contained in: 1) Article 30 of International
Arbitration Rules of American Arbitration Association; 2) Section 20 of
the recently adopted revised Uniform Arbitration Act; 3) Section 57 of the
English Arbitration Act; 4) Articles 35-37 of the UNCITRAL Arbitration
Rules; and 5) Section 33 of the UNCITRAL Model Law.
- Pending Projects.
- Preparing a policy paper on Manifest Disregard of the law for
discussion at our May, 2001 meeting.
- Proposing ways to provide for a mediation in disputes subject to
Maritime Arbitration.
- Working with the Society of Maritime Arbitrators and
participating on the planning committee for the International Convention of
Maritime Arbitrators (ICMA) to be held in New York on October 22-26, 2001.
Respectfully submitted,
Donald J. Kennedy, Chair
FORMAL REPORT OF THE COMMITTEE ON
MARITIME PERSONNEL
The Committee met on Thursday, November 2, 2000 in New York, New
York at the fall meeting of the Association. John Schaffer chaired the conference.
Twenty-five members and guests participated in a lively meeting on changes in
status, current cases and other developments affecting the MLA, practice of
Committee Members and other personal injury practitioners.
- Recent Developments in the Death On the High Seas Act (DOHSA)
- We discussed the Coast Guard Authorization Act of 2000.
Rumor has it that the bill, if enacted this year, may contain a provision amending
the Death on the High Seas Act (DOHSA) to change the portion regarding marine
deaths to resemble that for aviation deaths occurring more than one marine league
from shore. Recovery for loss of care, comfort and companionship would be
allowed for deaths of passengers on a vessel other than a recreational vessel. We
understand that the Senate has passed such a bill. We also understand that it is
unlikely that the amendments will be enacted this year.
- In Brown v. Eurocopter, S.A., a helicopter crashed into a fixed
platform in the gulf. The pilot and passengers were killed. In this case, where the
helicopter crashed and then fell into the sea, Judge Kent held that DOHSA, rather
than Texas law, through the Outer Continental Shelf Land Act (OCSLA) applied.
In a later decision in this case, Judge Kent of Galveston had to decide
whether the helicopter, as a commercial helicopter air taxi, would be considered in
a "commercial aviation accident," as would an international passenger plane. He
did so hold, so that the family could recover the non-pecuniary damages now
allowed. He had no problem with the retroactivity issue. The case is Civil No.
G98-529 (Galveston Div.), decided August 22, 2000.
- Tort Reform
Congress has accomplished little in the way of substantive product
liability reform.
Efforts to limit punitive damages did gain some momentum in
February, when the House finally passed the Small Business Liability Reform Act
of 2000 (H. R. 2366). However, the bill is unlikely to become law during this year,
as President Clinton has indicated he will veto the bill when and if it reaches his
desk.
Under H. R. 2366, a plaintiff would need to establish by clear and
convincing evidence that the defendant's conduct was willful or flagrantly
indifferent to the rights or safety of others. The Bill, in its current form, would
limit small businesses' joint liability for non-economic damages, and limit punitive
damages against small businesses to the lesser of $250,000.00 or three times the
amount awarded for economic and non-economic losses. The Bill defines small
businesses as those with (25) or fewer full time employees.
In passing the Bill, the House adopted several key amendments, including
permitting a court to exceed the $250,000.00 cap on punitive damages, if it finds
by "clear and convincing evidence that the defendant acted with a specific intent
to cause the type of harm for which the action was brought." Furthermore, an
amendment clarified the definition of "Punitive Damages" so as to not include
civil penalties, civil fines or treble damages assessed or enforced by a government
agency under federal or state statute.
The Bill has now been sent to the Senate, where its prospects are
uncertain. Since it is likely to be vetoed by the President, it probably doesn't make
a big difference what the Senate does. The Bill's fate in the next Congress will
depend upon who wins the White House.
- Punitive Damages
- A Miami-Dade County circuit judge upheld a jury's landmark
award of $145 billion in punitive damages in a class action lawsuit brought by sick
Florida smokers against the nation's largest cigarette makers.
Circuit Judge Robert Kaye, himself a former smoker, rejected the tobacco
companies' request that he reduce the record-setting award that a six-member jury
had handed down in July to some 500,000 sick smokers and the relatives of people
who died of cancer and other smoking-related diseases.
Judge Kaye, disregarded the tobacco companies' contention that such a
large punitive damage award would bankrupt them.
Lawyers for the tobacco companies have repeatedly said the jury's award
was illegal because it should have required each of the 500,000 smokers to prove
they had been harmed by tobacco.
And the companies' lawyers have stressed that both Florida and federal
law say a jury's award cannot be so large that it bankrupts the defendant. The
tobacco companies' lawyers have said the $145 billion award would do that.
The jury's punitive damage award was seen by many as a crushing defeat
of cigarette makers, coming at the close of a two-year trial in Miami and after the
same jury had awarded more that $12 million in compensatory damages in the class
action suit.
Jurors said they chose such a large punitive damage award because they
wanted to send a strong message to tobacco companies, which, the jurors said, had
deceived the public.
- CSX Transp. Inc. v. Palank, 1999 WL 641885 (Fl. App. 4th Dist.):
The U. S. Supreme Court has denied certiorari to CSX Transportation Inc.
in an appeal of a $50M punitive damages judgment, letting stand one of the largest
punitive awards ever to a single family. On July 31, 1991, an Amtrak train on a
CSX track in South Carolina killed (8) and injured (50) others when the last five
cars of the train derailed and smashed into a freight train parked on an adjacent
track. Paul Palank was one of the passengers killed. His family sued CSX (CSX
Transportation Inc. v. Palank), charging that the accident had been caused by the
railroad's negligence in maintaining the track. In July 1995, a Florida jury awarded
the Palanks $6.1M in compensatories. The compensatory award was appealed, but
affirmed and subsequently paid, with interest, in 1997. A second Florida jury
found CSX liable for punitive damages, then ordered the railroad to pay an
additional $50M.
- In re Horizon Cruises Litigation, 101 F. Supp.2d 204 (S.D.N.Y.,
May 25, 2000), the U. S. District Court for the Southern District of New
York has ruled that passengers on a cruise ship may, in appropriate cir-cumstances, recover punitive damages in an admiralty action. In the
instant action, plaintiff passengers on a cruise ship contracted
Legionnaires' disease after utilizing a whirlpool spa on the vessel. They
brought an action, including a claim for punitive damages, against the
cruise ship owner and operator and against the manufacturer and dis-tributor of the filter used on the spa. The cruise ship owner and operator
filed cross-claims against the filter manufacturer and distributor, who moved to
strike the claims for punitive damages. Noting that courts have issued conflicting
opinions on the issue, the court held that the equities favored allowing punitive
damage claims to be brought by passengers on a cruise ship. The court ruled that
provisions in the Jones Act and the Death On The High Seas Act barring punitive
damage claims were to be limited to claims filed under those statutes.
- St. Romain v. Industrial Fabrication and Repair Service, Inc., 203 F.3d
376 (5th Cir. 2000)
Seaman status was denied to a plaintiff whose duties included
decommissioning oil wells under offshore platforms. Part of his work was
performed from a lifeboat also used as a transport vessel. But the plaintiff's
employer didn't own the lifeboat and the plaintiff worked on other boats owned by
nine different companies chartered by different entities. He was not connected with
an identifiable fleet of vessels, having worked on vessels not under common
ownership or control. The court did acknowledge that Papai's "Perils of the sea
language" was not determinative of status. Rather, a seaman's status must be
determined by examining the overall employment-related connection to a vessel,
not focusing only on the facts at the time of injury. Status is a mixed question of
law and fact and it is generally inappropriate to decide the issue on motion.
- Lewis v. Lewis & Clark Marine Inc., 120 S. Ct. 2193 (2000)
The U.S. Supreme Court has granted certiorari in case of interest
to the maritime personal injury community. The Supreme Court said it
would use a dispute from Illinois to resolve what the justices were told are
conflicting legal rules for maritime businesses on different stretches of the
Mississippi River. The court said it will decide whether a man who says
he hurt his back while working on a ship can sue the ship's owner in state
court, even though the owner previously filed a federal lawsuit seeking to
limit its liability for the accident. A week after the accident, Lewis & Clark
Marine filed a federal lawsuit invoking the federal Limitation of Liability
Act. About a week later, Lewis sued the shipping company in an Illinois
State court. After being informed of Lewis' state court lawsuit, the federal
judge dismissed the limitation lawsuit that had been filed by the shipping
company. In November, 1999, the Eighth Circuit reversed and remanded
the order of the district court holding that there was no conflict between
the Act and the "saving to suitors" clause and thus no grounds for disso-lution of the injunction imposed upon the state court action. Accordingly,
the court found that the district court abused its discretion when it
ignored this lack of statutory conflict and prematurely applied the "adequate fund"
exception instead. Lewis' lawyer said the appeals court's ruling conflicts with
those of other federal appeals courts. Lawyers for Lewis & Clark Maritime had
urged the justices to reject Lewis' appeal.
- Calhoun v. Yamaha Motor Corp., 216 F.3d 338 (3d Cir. 2000):
The U. S. Court of Appeals for the Third Circuit has determined that both
federal and state law are to be applied to a near-shore wrongful death action
involving a non-seaman. In 1996, the U. S. Supreme Court held that plaintiffs
could assert a cause of action based upon a state wrongful death or survival statute
in such case where the death occurred in U. S. territorial waters. In this case, the
death, which happened while the person was riding a Jet Ski, occurred in Puerto
Rico. The deceased (a minor) and her parents were residents of Pennsylvania. As
a result of the death, the parents sued the manufacturer of the Jet Ski. In answering
the two major legal issues left undecided by the Supreme Court, the intermediate
court has ruled that federal maritime law must be used to determine liability.
Compensatory damages are to be determined under the law of the state of the
residency of the deceased. Punitive damages are to be determined under the law
of the state of the situs of the death.
We understand that a petition for certiorari to the U. S. Supreme Court
has been filed.
- Gravatt v. City of New York, 226 F.3d 108 (2d Cir. 9/18/2000):
The U. S. Court of Appeals for the Second Circuit has ruled that, in a suit
brought under the Longshore and Harbor Workers' Compensation Act (LHWCA),
an employer who owns the vessel on which an employee is injured is not liable in
tort to the employee if the employer was only negligent in its capacity as employer
and not in its capacity as vessel. In the instant case, plaintiff dock builder was
employed by defendant construction contractor. The job of repairing a bridge was
performed from a barge chartered by defendant. Thus, defendant acted in two
capacities-employer and vessel owner. Plaintiff was injured on the barge due to
negligence of defendant's employees occurring on an adjacent barge while
handling materials in making repairs to the bridge. Rather than seeking recovery
from defendant as a LHWCA employer, plaintiff brought suit in tort against the
vessel and the defendant as vessel owner. The court held that, under the LHWCA,
where the negligence relates to the employer's work, not to the performance of
vessel-related duties, the employee's sole recovery is against the employer, as such.
We believe this case is on appeal again.
- Jackson v. North Bank Towing Corp., 2000 WL 27857 (5th Cir. 2000)
The Fifth Circuit declared that, while the Jones Act bars certain foreign
seamen from bringing an action under American maritime law, it does not bar
actions in U. S. federal court under foreign law by foreign seamen who are injured
while employed offshore in waters of nations other than the United States. This
federal case involved the same plaintiff whose federal claims were already
dismissed in Louisiana State court. See Jackson v. North Bank Towing Corp., 742
So. 2d 1 (La. App. 3d Cir. 1999).
The Fifth Circuit withdrew its earlier opinion in Jackson v. North Bank
Towing Corp., 2000 WL 27857 (5th Cir. 2000) allowing a foreign seaman to
prosecute foreign law claims in U. S. federal court, and subsequently held that the
foreign seaman's lawsuit was barred by res judicata. See Jackson v. North Bank
Towing Corp., Civil Action No. 99-30030, 2000 WL 719588 (5th Cir. June 2,
2000).
- Solano v. Gulf King 55, Inc., 212 F.3d 902 (5th Cir. 2000):
The U. S. Court of Appeals for the Fifth Circuit has ruled that coastal state
law may be applied in cases involving foreign nationals injured on board U. S.
vessels while serving as crew members where the vessels are semi-stationary. In
the instant case, ten Nicaraguan seamen brought suit in federal court against the
owner of a fleet of U. S. fishing vessels. The vessels were engaged in long-term
fishing operations off the coast of Nicaragua. The seamen were hired in Nicaragua
and paid in Nicaraguan currency. The trial court ruled that U. S. law applied,
primarily based on the flag of the vessels. The appellate court ruled that the
significance of the flag of the vessel in making choice of law determinations was
greatly lessened where, as here, the vessels were not engaged in traditional blue
water operations, but rather were operating in the waters of one foreign nation for
an extended period of time. This holding would appear to be applicable to offshore
supply vessels and other craft when they spend extended periods operating off the
coast of one nation.
- Motts v. M/V Green Wave, 2000 U. S. App. LEXIS 9140 (5th Cir. May
9, 2000):
The Appellate Court took back from the survivors of Neville Motts
$625,000, which the trial court (Galveston-based U. S. District Judge
Samuel B. Kent) had awarded Motts' widow on account of his death in a
Houston hospital after initially suffering crushing injuries aboard the M/V
Green Wave. Specifically, the appellate court reversed damages for mental
anguish, loss of society, and punitive damages, based upon state law, but affirmed
(pecuniary) damages totaling about $675,000 for physical pain and mental anguish,
loss of care, maintenance and support, and prejudgment interest.
In reversing the nonpecuniary damages awarded by the trial court under
state law, the 5th Circuit held that the Death On The High Seas Act (DOHSA)
"applies where the decedent is injured on the high seas, even if a party's negligence
is entirely land-based and begins subsequent to that injury."
- Young v. Players Lake Charles (District Court of Texas 2000)
The plaintiffs' decedents sustained fatal injuries when their vehicle was
struck by another vehicle driven by a motorist on a highway. The motorist had
been drinking on a casino boat owned by defendants in Lake Charles, Louisiana.
The defendants argued that Louisiana law governed the action, and sought
dismissal on the grounds that Louisiana's Dram Shop Law insulated providers of
alcohol from liability for the actions of those to whom they sell or serve alcohol.
The court acknowledge that in the absence of a maritime law on this
particular subject, they needed to determine whether it should fashion such a rule
or instead apply existing State Law. The court viewed the issue as follows:
Did defendants have a duty toward plaintiffs, did defendants
breach that duty, and was there a causal connection between
defendants' breach and plaintiffs' injury? According to . . . the
general maritime law . . . plaintiffs are owed a duty of ordinary
care. If a defendant fails to exercise ordinary care and the
resulting harm was reasonably foreseeable, liability arises.
There is nothing inherently complicated about this rule as it
relates to dram shop liability.
In essence, the court concluded that there was an existing maritime rule
governing the issue of dram shop liability and that it was contained within the
defendants' duty to exercise reasonable care.
The court has cast doubt on the viability of the rule enunciated in a
body of cases (and especially in the leading case of Meyer v. Carnival
Cruise Lines) that courts exercising admiralty jurisdiction should apply State Dram
Shop Laws as the rule of decision. More significantly, the court's ruling is a
rejection of any concept of immunity, qualified or otherwise, for sellers of alcohol
on vessels when sued by someone injured as a result of the intoxication of a person
to whom the alcohol was provided. It would appear that vessel owners and
operators can no longer feel safe simply by avoiding serving alcohol to "minors,"
"obviously intoxicated persons," or any others to whom State Dram Shop Laws
provide an exception to immunity.
- Verdin v. R&B Falcon Drilling
A class action has been instituted in Judge Kent's court, Galveston, Texas
against essentially all U. S. offshore drilling contractors alleging a conspiracy to
suppress the wages of offshore workers.
The named Plaintiff and alleged class representative, Raymond Verdin,
was employed by Defendant R&B Falcon Drilling USA, Inc. ("R&B") for a couple
of years. He operated an R&B crew boat, which serviced R&B's inland barge drill
fleet. On one or two occasions he may have operated an offshore service boat but
never served on a mobile offshore drilling unit (MODU) such as a jackup, semi-submersible or drill ship. The first amended complaint adds additional defendants.
The second amended complaint also adds additional defendants and substitutes
Thomas Bryant in the stead of Verdin as the proposed class representative. For a
brief period of time, Bryant did work on offshore drilling rigs as an electrician.
- Gulf Marine and Industrial Supplies, Inc. v. M/V Golden Prince,
November 24, 2000-No. 99-30909 - New Orleans, Louisiana:
Under the Federal Maritime Law Act, 46 U.S.C. § 31342, legal services
furnished to the vessel are not "necessaries," and the law firm which provided the
services is not entitled to a maritime lien for its attorney fees, senior to a mortgage
on the vessel.
- Stepansky v. Florida, ___ U. S. ___ (October 30, 2000):
The U. S. Supreme Court has denied the petition for a writ of certiorari
filed by attorneys for a man prosecuted and convicted in a Florida State court for
a crime committed on a foreign flag cruise ship while the ship was underway
approximately 100 miles off the Florida coast.
The State Supreme Court had upheld the use of a state law allowing such
prosecutions where at least 50% of the passengers were embarked and debarked in
Florida.
We are always looking for additional and interesting projects, relevant
decisions, and are also continuously seeking potential new members.
Respectfully submitted,
John P. Schaffer, Chair
FORMAL REPORT OF THE COMMITTEE ON
NAVIGATION, COAST GUARD AND GOVERNMENT REGULATION
The Committee met at 4:00 p.m. on November 1, 2000 at the offices of
Haight, Gardner, Holland & Knight in New York. A substantial agenda had been
circulated by the Chair some two months in advance. The regular membership of
the Committee was joined by Captain Joseph Ahern, U.S.C.G., the new Chief of
the Coast Guard's Office of Maritime and International Law. The discussion of the
agenda items is summarized below.
1. Ballast Water Management Programs
There was extensive discussion of new Ballast Water Management
Programs at the IMO, federal, state and local levels. The IMO Program is
voluntary and open-ended, providing for exchange of ballast in mid-ocean. There
is expected to be a diplomatic conference on the IMO effort in about 2004. The
Coast Guard is also attempting to rationalize federal and IMO requirements. The
federal program set up by the Coast Guard calls for mandatory reporting, but
voluntary exchange, with certain exceptions. The voluntary federal program will
become mandatory after three years if there is not sufficient participation, and the
first annual report indicates that only 20.8% of vessels participated in this voluntary
program, so it may be likely that this program will become mandatory.
The INTERTANKO decision did not specifically address ballast water
management programs, and federal law allows state and local programs to exist.
Certain states, including California, Washington, Alaska, Maryland and Hawaii
have established ballast water exchange requirements.
Hawaii's programs applies to alien aquatic species as well as ballast water
transfer and provide that the state can adopt regulations to ban vessels that have
significant quantities of hull fouling organisms. Contact with a senior marine
biologist in Hawaii indicates that the state has not yet decided how to proceed with
regard to the alien aquatic species, particularly because the phasing out of TBT as
an anti-fouling element for hull coatings was environmentally driven, to avoid toxic
leeching into surrounding waters. The environmental lobby faces a Hobson's
choice, as phasing out TBT may mean increased hull fouling organisms on vessels
coming from overseas.
California has opted for mandatory exchange, turning all
recommendations in the federal regulations into requirements under California
regulations. In addition, certain ports, such as Oakland, have adopted their own
ballast water management programs.
2. Application of ADA and Other Federal Civil Rights Laws to Foreign
Flag Vessels
In a decision of June 22, 2000, the Eleventh Circuit has ruled that ADA
applies to public places on foreign flag passenger vessels calling in U.S. ports. The
analysis of the court was somewhat cursory and would be subject to challenge on
appeal, but the defendant, Premier Cruise Line, has gone bankrupt and ceased
operation. Thus, an appeal is unlikely.
3. State Regulation of Ships after United States v. Locke
After the INTERTANKO decision, although routine operations of the
vessel appear to be off-limits to state regulations, the states are continuing to
regulate financial responsibility, response plans, ballast water management, air
pollution and water pollution. Captain Ahern stated that the Coast Guard is
coordinating with the states in an amicable way and is not acting in a heavy-handed
fashion.
Various states have withdrawn or rolled back state regulatory schemes in
the wake of the INTERTANKO decision. Air and water pollution remain areas
where the EPA can choose to enforce standards even if the state chooses not to, and
there are particular concerns for air pollution in areas such as Houston/Galveston
and Alaska, since the state of the art for engines and fuels may not permit vessel
owners to comply with new or existing regulations for air pollution.
4. EPA
EPA is becoming a more active player in the maritime industry,
particularly in connection with the Ocean Dumping Act and in connection with air
pollution issues. The EPA's Cruise Ship White Paper of August 27, 2000 may be
read as a plan for how the EPA views environmental problems on cruise ships, and
as an indication that pollution and dumping issues will be aggressively pursued by
the EPA and will continue to be the subject of criminal enforcement.
Substantial fines have been imposed on RCCL in two cases ($9,000,000
for a bypass pipe around the oily water separator, and $18,000,000 for discharging
toxic chemicals from dry cleaning, photo lab, etc.), and there appears to be
follow-up in the subpoenaing of Carnival Cruise Lines. Captain Ahern emphasized
that the Coast Guard has heard concerns of industry with regard to criminalization
and heavy-handed enforcement, and that the Coast Guard is being careful in this
regard. Larry Kiern stressed the concern for a disparate affect on the U.S. flag fleet
and the concern for serious unintended consequences if acts not previously criminal
become criminal on account of a change in regulatory policy.
The London Dumping Convention prohibits dumping of waste at sea, with
an exception for dumping permitted by MARPOL. The U.S. Ocean Dumping Act
does not exactly track the London Dumping Convention and does not specifically
incorporate the MARPOL exception, and the EPA has not accepted the position
that the MARPOL exception is recognized in U.S. law. The EPA's policy, if
carried to the extreme, would prohibit dumping of dunnage and cargo sweepings
generated in the U.S., not only in U.S. waters but also in the EEZ and on the high
seas. There were indications that the EPA has been telling agents that such activity
will lead to prosecution, and there was also anecdotal discussion of at least one case
in which Coast Guard had advised an agent that discharge of dunnage would be
permissible but the Master decided to play safe after asking others whether this
would be a problem. Larry Kiern stressed that the issue of the reach of the Ocean
Dumping Act has been around the Coast Guard for quite awhile, and that
historically the Coast Guard did not press enforcement, but it appears that the EPA
is beginning to proceed more actively in this area.
5. Submarine Cables
On August 23, 2000 there was published at 65 Fed. Reg. 51264 an
advance notice of proposed rulemaking with regard to regulating subma-
rine cables in national marine sanctuaries. Concerns were expressed at the meeting
regarding the expansion of national marine sanctuaries and critical habitats. The
Endangered Species Act requires NOAA and the FWS to identify critical habitats,
and in January 2000, NOAA published regulations saying that harming the critical
habitat is prohibited, even if the threatened or endangered species are not present
and therefore are not themselves harmed. It appears from the Federal Register of
23 August that violators of the critical habitat and marine sanctuaries regulations
could be facing criminal exposure. This is an area in which there is a division of
responsibility within the federal government, as the Federal Communications
Commission regulates landing rights for submarine cables, but issues of marine
sanctuaries and critical habitats are vested in NOAA and FWS.
6. Exclusive Tug Franchises
The FMC has recently opened an investigation arising out of imposition
by various marine terminals on the Mississippi River of requirements that vessels
deal exclusively with one tugboat company. Fred Kuffler indicated that in the
River Parrishes case about two years ago, the FMC asserted jurisdiction but
decided there was no violation of the Shipping Act. On August 21, 2000, the FMC
issued a Section 15 order requiring ocean common carriers to provide additional
information. The FMC may decline ultimately to accept jurisdiction, and the issue
of defining "common carrier" for purposes of these cases appears to be a matter of
dispute within the FMC.
In a further development, at least one grain company was reported to now
also require use of its exclusive designated shipping agent.
7. Recent Legislation
Larry Kiern mentioned that the Coast Guard Authorization Act did not
pass on account of issues involving amendments to the Death on the High Seas Act
and certain issues involving Alaska. Larry indicated that the authorization bill will
be re-introduced in the next Congress. Uncontested provisions include extension
of the Bridge- to-Bridge Radiotelephone Act to twelve miles, providing emergency
borrowing authority to the Oil Spill Liability Trust Fund, increased penalty for
negligent operations, limiting the liability of pilots acting at a Coast Guard VTS site
to provide immunity from liability except for gross negligence or willful
misconduct, amendment of the Ports and Waterways Safety Act with regard to haz-ardous condition reporting and directing vessels in hazardous circum-stances, prohibition of the enactment of additional maritime user fees
through the year 2006, and a provision with regard to the Jones Act requiring escort
and towing tugs to be U.S. vessels.
Items in the act that might be subject to some degree of controversy
included the provision permitting recording of a notice of lien on a vessel that is
documented but on which there is no mortgage, and a provision prohibiting cargo
vessels from loading or discharging in the United States if they are registered with
a "substandard" flag state.
8. Ocean Dumping Act & MARPOL
See paragraph No. 4 above.
9. Report of the Interagency Commission on Crime and Security in U.S.
Seaports
There is interest on Capitol Hill, led by Senator Gramm, in tightening
security in U.S. seaports. The issue is complicated politically, not only because
increased security efforts are likely to be expensive and may require a user fee but
also because organized labor generally does not favor increased security efforts to
the extent that they would involve background checks and other possible
limitations on their members. The consensus of those who spoke at the meeting
appeared to be that the government is likely to push for increased security on
anti-terrorism grounds.
10. Setting the Environmental Agenda of the Coast Guard for Oil
Pollution Prevention, Preparedness and Response in the 21st Century
The Coast Guard published a notice in August at 65 Fed. Reg. 62408
providing for public meeting on December 12 and closing of comments on
December 30th. No one outside the Coast Guard has yet been able to divine the
specific agenda of the Coast Guard , and agency spokesmen have disclaimed any
purpose other than gathering information from the public. Non-partisan comments
on behalf of the MLA are to be drafted by Dennis Bryant, Fred Kuffler, and
perhaps others.
11. Public Access to the U.S. Coast Guard
This was felt to be an issue, particularly with the recent cancellation of a
public meeting of the Shipping Coordinating Committee. Captain Ahern assured
all concerned that the Coast Guard is reaching out and seeking input from the
public.
After completion of discussion of items on the agenda, certain additional
items were discussed.
A. Richard Corwin raised a concern that each Coast Guard district
may be setting its own guidelines for times within which drug and alcohol
tests must be administered. Captain Ahern indicated that he did not know
how this was currently being handled.
B. Fred Kuffler recommended reading the State of Oregon's report
on the New Carissa casualty with regard to that state's views on what
the industry should be doing.
C. Dennis Bryant mentioned that there is a proposal to increase
limits of liability for non-tank vessels, and that rulemaking on hazardous
spill response plans should be expected soon.
D. Paul Kitchner of the subcommittee on pilotage was at the pilot's
convention taking place at the same time as our meeting. Bucky
McAllister reported on developments, including the new Maryland law
requiring state licensing of docking pilots, and impending New Jersey
regulations that would apply to federally-licensed docking masters in New
York Harbor. There was a discussion generally of the docking master
issue with regard to safety, numbers and training.
Respectfully submitted,
Dennis L. Bryant, Chair
FORMAL REPORT OF THE COMMITTEE ON
RECREATIONAL BOATING
The Committee met on 2 November 2000. Robert D. McIntosh presented
an informational report on a proposal to amend the law to allow recording a notice
of claim of lien against any federally documented vessel, whether subject to a
preferred ship mortgage or not. Although this has been in Congress as part of the
Coast Guard Authorization Act, we understood that final action had not yet been
taken. We also noted that the VIS and VDS programs remain in limbo since
authorized by Congress, without visible progress on the horizon. We also noted
potential changes to the Death on the High Seas Act, and examined recently-published NTSB Recommendations and Statistics regarding recreational boats.
Frank P. DeGiulio handed out the Fall/Winter 2000 issue of Boating Briefs
which he had, as usual, ably prepared for distribution at the Association's General
Meeting. Frank brought particular attention to the Third Circuit's use of depeçage
to apply the laws of three jurisdictions to different issues in the latest round of
Calhoun v. Yamaha Motor Corp., 2000 AMC 1865 (3d Cir. 2000), and a recent
decision making federal law exclusive of state statutory or common law with
regard to propeller guards on boats, Lady v. Neal Glaser Marine, Inc., 2000 AMC
2958 (5th Cir. 2000) (answering question left open when the Supreme Court
dismissed Lewis v. Brunswick Corp., 1998 AMC 2998 (1998) based on a settlement
after oral argument in the Court).
Finally, the subject of amending the Inland Rules of the Road to
accommodate the Sail Racing Rules when they conflict remains tabled. The
Committee has no present plan to revive the issue unless substantial support for
doing so and/or new developments appear.
Respectfully submitted,
Donald C. Greenman, Chair
FORMAL REPORT OF THE COMMITTEE ON
SALVAGE
The Fall Meeting of the Salvage Committee was held on November 1
from 9:00 a.m. to 10:30 a.m. at the offices of Haight Gardner Holland & Knight.
The regular meeting was followed by a special session chaired by Professor David
Sharpe, discussing the work of the Study Group which had been established to
review denunciation of the 1910 Salvage Convention and legislatively
incorporating into U.S. law the 1989 Salvage Convention.
Twenty five persons attended the regular Salvage Committee meeting.
The topics discussed included the most recent edition of the Lloyd's Standard Form
of Salvage Agreement (LOF 2000), and the modifications to the SCOPIC Clause
which may be incorporated into that Agreement. Copies of the new agreement and
SCOPIC provisions were passed out, along with "ISU Bulletin 19," which included
an article on LOF 2000 and the new SCOPIC clause. Additional articles on these
same topics, published by London law firms and P&I Clubs, were handed out to
attendees.
We spoke very briefly about the work that Professor Sharpe and the Study
Group he chairs have done with respect to the 1910 and 1989 Treaties. This topic
has become much more involved than we had originally envisioned, with many
pros and cons to be considered in each decision. Professor Sharpe had prepared a
comprehensive report on the subject and the points the Study Group has studied in
reaching its preliminary recommendations. A special meeting was held after the
Salvage Committee meeting amongst those interested in this topic. This enabled
keeping to the schedule for the regular meeting for the benefit of those attending
who wanted to hear the other topics being discussed.
We next spoke about treasure salvage and marine archeology. Peter Hess
updated the attendees on various recent cases. This included injunctions against
salvors working to recover U.S. naval property that had not been "expressly
abandoned," and the Fourth Circuit decision on the two Spanish ships sunk off the
coast of Virginia, which was resolved in favor of Spanish government ownership.
Peter also provided an update on the SS Central America case. Bob Blumberg
addressed Peter's remarks on salvage of U.S. Naval assets by eloquently setting
forth the U.S. government position with respect to its property, requiring "express
abandonment" for title to divest from the sovereign. This is, in fact, consistent with
the position of the Fourth Circuit on the Spanish vessels.
In this same context, Marc Davis gave a brief update on the litigation
arising from the Titanic, as well as some information on changes in ownership of
RMS Titanic, Inc. Bob Blumberg followed up by discussing prospective
agreements amongst France, the U.S., the U.K. and Canada with regard to handling
the Titanic situation. Marc Davis expressed concern that these sorts of agreements
inherently contain the threat of salvage law being usurped.
The Ferry Vessel Estonia situation was also discussed. Peter Hess
remarked that divers on the wreck of that vessel had discovered information as to
the cause of her sinking contradicting that officially offered. He advised, however,
that arrest warrants have been issued for the leader of the divers. John Cartner
advised that a SNAME committee is addressing this issue.
A UNESCO Treaty update was given by Bob Blumberg, noting that many
of the earlier concerns of commercial and legal interests have been addressed,
including the addition of some criteria to the definition of "underwater cultural
heritage." It was asked noted there would be a meeting in the afternoon of the
Study Group appointed by past-President McCormick to study this matter.
Other discussions related to the recovery of the confederate submarine
Hunley, whether U.S. Government cargo on board a vessel would convey
sovereign immunity status to the vessel itself, the Presidential proclamation
extending the contiguous zone from twelve miles to twenty four miles, and
"salvor's negligence" and "responder immunity."
The follow up meeting of the Study Group chaired by Professor David
Sharpe covered in detail the work done by that group. It is their intention to have
a firm proposal ready for vote at the Spring Meeting of the Salvage Committee, to
be taken before the Board by resolution to the general meeting of the MLA.
Respectfully submitted,
James T. Shirley, Jr., Chair
FORMAL REPORT OF THE COMMITTEE ON
STEVEDORING AND TERMINAL OPERATIONS
The committee list update continues at a snail's pace. It should be
completed by May and will be sent to each of the members on the list. We doubt
that we will be successful in having it made part of the MLA webpage, but will
continue that effort as well. Apparently, the thinking is that a committee
membership list might be considered representation by MLA of expertise in the
field. We are of the opinion that a disclaimer should be effective to dispel that
thinking.
In our continuing effort to encourage attendance at the Fall meeting which
is not usually as well attended as our Spring meetings, we had a speech by Harry
Higham which was well received. It will be appreciated if members have
suggestions of speakers and subjects which might increase our Fall attendance, that
they let F.E. Billings know.
Once again, the Longshore Subcommittee discussion was lively and
informative. In the absence of both the subcommittee chairman and vice chairman,
the discussion was led by John Chamberlain.
We received a request from a committee member for an amicus brief
in the United States Supreme Court. In a deft sleight of hand, it was
determined that the real interest of the MLA in the matter was uniformity
and so the matter was referred to the Uniformity Committee where an
amicus brief was filed in support of the application for writ. It is going to be the
chairman's suggestion that a list of committee members anxious or at least willing
to take part in amicus activities in Stevedoring and Terminal Operations areas be
comprised so that we can have a ready tool for future activity. This will be taken
up in our Spring meeting.
Respectfully submitted,
Frank E. Billings, Chair
MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF
THE MARITIME LAW ASSOCIATION OF THE UNITED STATES
Held at the
The Omni Hotel, Chicago, Illinois,
on
August 5, 2000
The meeting was called to order by President William R. Dorsey, III, at
9:00 a.m. In addition to President Dorsey, the following officers were present:
Raymond P. Hayden, First Vice President
Thomas S. Rue, Second Vice President
Lizabeth L. Burrell, Secretary
Patrick J. Bonner, Treasurer
Winston Edward Rice, Membership Secretary
Howard M. McCormack, Immediate Past President
The following Board members were present:
James W. Bartlett, III
Vincent M. DeOrchis
John B. Gooch, Jr.
Bruce A. King
Jean E. Knudsen
George J. Koelzer
Robert B. Parrish
Mary Elisa Reeves
Alan van Praag
James F. Whitehead, III
At the invitation of President Dorsey, Warren J. Marwedel, who together with
Kimbley A. Kearney graciously headed the group hosting the Board in Chicago,
was also present at the meeting. President Dorsey thanked all the members of the
Chicago maritime bar for making such wonderful arrangements for this meeting.
SECRETARY'S REPORT
Secretary Lizabeth L. Burrell of New York reported on the publication
and distribution of the Proceedings for the Spring 2000 General Meeting.
Upon motion duly made and seconded, the minutes of the May 4, 2000
meeting of the Board of Directors and the Secretary's report were unanimously
approved and accepted. The minutes of the March and May 2000 Board meetings
were published in the Proceedings of the Spring 2000 General Meeting.
TREASURER'S REPORT
Treasurer Patrick J. Bonner of New York presented the Treasurer's Report
for the three months ending on April 30, 2000, and reported on the cash on hand
and investments as of that date, both of which reflected the cost of our participation
as advisors on international conventions and in connection with the new COGSA
proposal.
Treasurer Bonner also noted that there is a lag in dues payments, and that
members who remain in arrears have been dropped from the membership. We
must continue to exercise a policy of fiscal caution in view of other Association
projects and activities that will require expenditures over the next two years,
including the upcoming CMI meeting in Singapore.
Upon motion duly made and seconded, the Board unanimously approved
a change in the Association's accountant and auditor to Goldstein Golub.
Upon motion duly made and seconded, the Treasurer's report was
unanimously approved and accepted.
MEMBERSHIP SECRETARY'S REPORT
Membership Secretary Winston E. Rice presented twenty applicants for
Associate Lawyer membership. Upon motion duly made and seconded, the
candidates for Associate Lawyer membership were unanimously elected.
The Proctor Admissions Committee recommended that two members be
advanced to Proctor status. They are Captain Malcolm J. Williams and John Kirk
Trombley. Upon motion duly made and seconded, the recommendations of the
Proctor Admissions Committee were approved.
Membership Secretary Rice also reported, with regret, the death of the
following members:
Donald W. Bruce of Jersey City
The Honorable Joe J. Fisher,
U.S.D.J., of Beaumont
Frederick D. Gabel of New
York
James J. Higgins of New York
Decatur J. Holcombe of
Houston
Bernard Rolnick of New York
The Honorable John M. Shaw,
U.S.D.J., of Lafayette
James L. Shupp, Jr. of New
Orleans
The Honorable Daniel H.
Thomas, U.S.D.J. of Mobile
Membership Secretary Rice reported that a new edition of the Directory
will be published in the Fall.
After May 4, 2000 Board meeting, the Association had 3,424 members.
As of May 4, 2000, after the changes approved by the Board at its meeting, the
total membership was 3,454.
Upon motion duly made and seconded, the Membership Secretary's
Report was unanimously approved and accepted.
The list of all the successful candidates for membership and Mr. Rice's
written report are appended to the original of these minutes.
PRESIDENT'S REPORT
On behalf of the Association, President Dorsey attended London Maritime
Week, May 8 through 12, during which he acted as both chair as well as a panelist
treating maritime casualty investigations at the Tulane program entitled "Maritime
Law in an International Setting." President Dorsey also attended the British
Average Adjusters meeting and dinner, and represented the Association at the CMI
Assembly meeting.
President Dorsey also reported on his attendance at the meeting of the
Canadian Maritime Law Association, which took place in Halifax on July 23 at the
same time as Op Sail 2000.
COMMITTEE AND STUDY GROUP REPORTS
Carriage of Goods
Board member Vincent M. DeOrchis, former Chair of the Association's
Committee on Carriage of Goods, reported that Senator Hutchinson contin-ued to support the Association's COGSA proposal, as she confirmed in a June
newspaper article. Past President Chester D. Hooper recently spoke with Senator
Hutchinson's chief of staff, who was in the process of considering some editing of
the proposal. It appears that any introduction of COGSA will have to await the
outcome of the November presidential election.
NIT League has been focusing mainly on the Ocean Shipping Reform
Act, which will probably cover about 80% of the trade to the United States by the
end of the year, and its provisions for service contracts between carriers and large
shippers.
The State Department issued a statement that they would not voice any
opposition to the COGSA in view of U.S. industry support for the proposal.
Practice and Procedure
The Board was advised by Board member James W. Bartlett, III, Chair
of the Committee, that an amendment has been proposed to the Local Admiralty
Rules for the United States District Court for the District of New Jersey that would
increase the security deposit for seizure of vessels more than 65 feet in length to
$10,000. Upon motion duly made and seconded, the Board resolved to authorize
President Dorsey to send a letter to the Clerk of the Court noting that the security
deposit in every district should reflect the reasonably anticipated costs to be
incurred by the Marshal and recommending that the proposed amendment not be
adopted because it might discourage legitimate claimants from exercising their
admiralty rights.
Environmental Crimes Subcommittee
Senator Breaux of Louisiana and Congressmen Vitter, Coble and Clement
have introduced bills which would preclude the use of the strict liability provisions
of the Refuse Act and Migratory Bird Act for criminal prosecutions arising from
oil spills, and would restrict criminal liability from oil spills exclusively to that
provided by OPA ' 90 through its amendments to the Clean Water Act. These bills
reflect the Association's position stated last year to the House Committee on the
Coast Guard and Marine Transportation.
Study Group on the Marine Insurance Project
Immediate Past President Howard M. McCormack reported that the Study
Group is going forward with its work and expects to have a draft of the scope of
the project by the Fall 2000 meeting of the Association.
Special Committee on Site Selection for the Fall 2003 General
Meeting
Board member Robert B. Parrish reported on the efforts of the Special
Committee, chaired by Ben L. Reynolds of Houston, to find an appropriate site for
the Fall 2003 meeting of the Association.
Merger of the Committee on Alternative Dispute Resolution with the
Committee on Maritime Arbitration and Mediation
These Committees and their membership have been merged.
INTERNATIONAL ACTIVITIES
Comité Maritime International
President Dorsey reported on the CMI Assembly meeting in London in
May, and provided a copy of Frank L. Wiswall, Jr.'s comprehensive report on the
meeting of the CMI Executive Council. The CMI's finances are on a better
footing, and certain national associations which were substantially in arrears on
their dues have been expelled. The dues of national associations and titulary
members will be raised next year.
At the Assembly meeting, Secretary Lizabeth L. Burrell, CMI Committee
Vice Chair Christopher O. Davis and Life Member Warren M. Faris were elected
to titulary membership.
The Association will nominate Frank Wiswall to serve another 4-year
term as Vice President of the CMI.
One of the most significant CMI endeavors to be treated during the
plenary meeting in Singapore in February 2001 is the work of its CMI's
International Study Group on Transport Law, which is considering methods of
bringing about greater uniformity in international transport by harmonizing and
filling gaps in existing international regimes for transport. Mr. DeOrchis, who,
together with Past President Hooper, George F. Chandler, III, and Professor
Michael Sturley (the Study Group's Rapporteur), attended the CMI/UNCITRAL
Colloquium on Transport Law at the United Nations in July, reported on the Study
Group's progress. One subject on which controversy continues is whether
multimodal transport should be covered. A working paper should be ready for
discussion in Singapore. There will be a further meeting of the Study Group in
London in October.
Other subjects to be discussed at the Singapore plenary meeting include
the CMI's efforts to prepare a model law on piracy to be submitted to the national
associations for their comments. The International Union of Marine Insurers
(IUMI) has proposed changes to the York-Antwerp Rules, primarily to do away
with general average contributions for port of refuge charges (a position opposed
by the Association), which will be discussed at the Singapore meeting. The CMI's
International Marine Insurance Subcommittee will also meet, with the topics to be
narrowed at the upcoming CMI colloquium in Toledo in September.
The Executive Council of the CMI also decided to monitor and oppose the
UNESCO draft Convention on Underwater Cultural Heritage in its present form.
The CMI has taken no position on the Association's COGSA bill.
UNCITRAL
President Dorsey reported on the recent the Colloquium on International
Transport Law held by the CMI and UNCITRAL (the United Nations Commission
on International Trade Law), which took place at the United Nations in July.
Speakers who included government officials and members of industry appeared to
agree that the time was ripe for a new international transport convention. Themes
included uniformity, harmonization, globalization, e-commerce and multimodal
transportation.
International Maritime Organization
President Dorsey will attend the meeting of the IMO Legal Committee in
London from October 15 through 20, 2000 as a private sector advisor to the U.S.
delegation. The two main topics will be the Committee's continuing work on a
draft Protocol to the Athens Convention on Liability Relating to Carriage of
Passengers and their Luggage by Sea and a new item, proposed amendments to the
limits of oil pollution liability under the Civil Liability Convention and the IOPC
Fund Convention.
In an attempt to resolve the difficulties in reaching acceptable terms
on the Athens Convention Protocol, a compromise has been proposed
which would create a two-tiered system of liability, the first imposing strict
liability with a per capita damages cap for death or personal injury
incurred in connection with an "operational incident," such as shipwreck,
collision, stranding, explosion, fire or a defect in the ship, and the second
tier imposing liability based on negligence for damages resulting from
operational incidents that exceed the strict liability per capita limit and for
damages resulting from all other causes. Compulsory insurance is part of the
compromise proposal, with a direct right of action against the insurer. In the
second tier liability scheme, negligence on the part of the carrier would presumed,
so the carrier would have the burden of proving that it was not careless. The per
capita limits of the first tier strict liability would be left to a diplomatic conference.
The new item-proposed amendments to the limits of oil pollution liability
under the Civil Liability Convention and the IOPC Fund Convention-arose from
the Erika incident off France, in which the total cost of incident response efforts
and compensation claims is estimated to exceed the compensation available under
the CLC and Fund Conventions. CLC Article 15 and Fund Convention Article 33
both provide for amendment of the liability limits by contracting states at an IMO
Legal Committee meeting without the need to convene a diplomatic convention,
so this procedure may be invoked at the upcoming Legal Committee meeting in
October 2000.
Thanks to the efforts of members Michael Marks Cohen, Paul S. Edelman,
John P. Schaffer (Chair of the Committee on Maritime Personnel) and Douglas B.
Stevenson, the Association was able to provide a comprehensive response to the
Coast Guard so that they could formulate answers to the IMO/ILO Ad Hoc
Working Group on Repatriation of Seamen.
UNESCO Convention on Underwater Cultural Heritage
John D. Kimball, Chair of the Association's Study Group on Underwater
Cultural Heritage, provided the Board with an extremely informative report on the
Third Meeting of Governmental Experts, which he attended at UNESCO
headquarters in Paris from July 3 through 7. No consensus was reached on either
the draft Convention or its Annex, and therefore no vote was taken on either
document. Major issues remain to be resolved, but the present drafts would
prevent salvors from any contact with underwater cultural heritage, except as
contractors to an archæological or government groups, and would ban the sale of
all salved items. This Association has taken the position that salvors and
archæologists should be able to reach a solution that would preserve the interests
of each.
The United States delegation did an excellent job of presenting well-balanced positions on a number of important issues-for example, the
inclusion of a "significance" requirement in the definition of underwater
cultural heritage, recognizing that in situ preservation is a management tool and not
a legal presumption, opposing an outright ban on the application of the laws of
salvage and finds, and requiring consistency with UNCLOS-but there is still great
opposition from other delegations on these issues.
While it was intended for a draft of the Convention to be ready by April
2001, it appears unlikely that this will be accomplished.
President Dorsey expressed his gratitude for the tremendous investment
of time and effort graciously given by Mr. Kimball and other members who have
devoted so much to the Association's projects.
Convention on Enforcement of Judgments
Board member Alan van Praag reported on the status of the Convention.
Congress appears to be eager to act, but at the last meeting at the Hague, there was
some opposition to key U.S. positions, as a result of which there will be a meeting
of a group of experts to try to resolve some of the difficulties.
DEATH ON THE HIGH SEAS ACT
The Coast Guard authorization bill currently pending before Congress
includes provisions that would modify DOHSA to allow survivors to recover
noncompensatory damages. The President will consult with the Chairs of the
Committees on Maritime Legislation and Maritime Personnel to determine what,
if any, action the Association should take in connection with the bill.
TITANIC GUIDELINES
Pursuant to a 1986 congressional act, the State Department has been
negotiating an international Agreement with Canada, France and the United
Kingdom establishing the Titanic as a memorial. The proposed Agreement
provides rules in many respects similar to those in the Annex Rules to UNESCO
Draft Convention on Underwater Cultural Heritage, including in situ preservation
as the preferred management of the site and provisions for stringent State oversight
and management of the wreck.
In June, NOAA published "Proposed Guidelines for Research,
Exploration and Salvage of R.M.S. Titanic," which are identical to the pro-
posed Agreement rules, including provisions prohibiting any recovery of any
artifacts unless "justified by educational, scientific, or cultural interests," requiring
that any recovered items be kept together as a project collection and prohibiting the
sale of any artifacts, except in a sale or transfer of the entire collection to a
museum.
With Board approval, and with the able assistance of John D. Kimball and
Professor David Bederman, President Dorsey submitted comments on the
Guidelines and posed questions to NOAA about the effect of several of the
guidelines. No response has yet been received. A suit has been brought by RMS
Titanic Inc., the party granted exclusive salvage rights, to enjoin the United States
from proceeding with the Agreement.
AMICUS BRIEFS
President Dorsey reported that since the May meeting, he had received
three requests for the Association's participation as amicus. The first request
involved issues of the definition of abandonment in salvage law in Columbus
America Discovery Group v. Atlantic Mutual Insurance Co., and Yukon Recovery,
LLC v. Certain Abandoned Property. Because the request was deemed not to fall
within the very exacting requirements set forth in By Law 702.3, it was declined.
The second request came in connection with Mobil Mining and Minerals
v. David R. Nixson and Director, Officers of Workers Compensation Programs,
which involved the issue of whether the nonmaritime sections of a manufacturing
facility at which vessels are loaded and discharged are "customarily used" for
vessel cargo operations and thus are "covered sites" for the purposes of the
Longshore and Harborworkers Compensation Act. Because of the conflict among
the Circuits on this issue, the Board voted to support the petition for certiorari in
order to have the question decided, but to refrain from taking a position on the
merits if the Court accepts the case.
The third request was made in Stepansky v. Florida, which involves the
assertion of criminal jurisdiction by the State of Florida over an alleged crime
committed on the high seas. The Board voted not to enter the case at this time.
RESOLUTIONS HONORING MEMBERS
President Dorsey presented a resolution honoring USCG Captain
Malcolm J. Williams, Jr., Chief of the Office of Maritime and International
Law, on his retirement from the Coast Guard. Upon motion duly made and
seconded, the Board unanimously passed the following resolution:
The Maritime Law Association of the United
States expresses its appreciation for the services and
exemplary assistance of Malcolm J. Williams, Jr.,
Captain, United States Coast Guard, Chief, International
Law Division, Washington, D.C.
Captain Williams has been a dedicated office of
the United States Coast Guard, serving with distinction
in numerous responsibilities and capacities. In his
service to his County and the Coast Guard, he has carried
out his duties as Chief of the International Law Division
in an outstanding manner. These duties included
participating as the Chief Delegate of the United States
to the International Maritime Organization, IMO Legal
Committee and at diplomatic conferences and
international meetings.
Although heavily involved in the aforementioned
duties, Captain Williams participated in, and closely
coordinated numerous significant activities of, The
Maritime Law Association of the United States by
making presentations to various and numerous
Committees of the Association on topics of maritime
law, marine ecology, government regulations, procedure,
Coast Guard policy and other matters. In performing
these tasks during the last four years, he has consistently
educated and informed the members of The Maritime
Law Association of the United States. Further, he
brought to the Association, not only expertise and
knowledge, but a sense of comradery, friendship and
collegiality. In so doing he brought the Coast Guard and
the Association into a much closer relationship.
In consideration of the foregoing:
BE IT RESOLVED, that The Maritime Law Association
of the United States expresses its sincere and profound
appreciation for the services and assistance of Captain
Malcolm J. Williams, Jr., and we express our gratitude to
our professional colleague and friend.
BE IT FURTHER RESOLVED, that a copy of this
Resolution be made a part of the permanent records of
the Association.
President Dorsey and the Board also congratulated Board Member Jean
E. Knudsen on her nomination as Chair of the Average Adjusters Association of
the United States.
President Dorsey reported that the Association had made a donation to
Lenox Hill Hospital in memory of Past President James J. Higgins, and the Board,
upon motion duly made and seconded, unanimously passed the following
resolution:
The death of James J. Higgins on June 20, 2000
marked the passing of a valued and distinguished
member of the Maritime Law Association of the United
States.
Jim Higgins was a graduate of Manhattan College
and took his law degree at Fordham University. He was
admitted to the bar in 1947. A few years after obtaining
his law degree he joined the firm of Kirlin, Campbell &
Keating, eventually becoming a partner. He remained
with that firm for the rest of his professional life.
He distinguished himself in the maritime field by
dedicating his career to the specialty of admiralty law.
He first joined the MLA in 1948 and was an active
participant in the affairs of the Association until his
retirement. After chairing various committees he quickly
rose to positions of leadership within the Association.
He served as Membership Secretary from 1959 to 1961,
Secretary from 1961 to 1966, and First Second Vice
President from 1966 to 1968. In 1968 he was elected
President of the Association and served in that capacity
until 1970. For many years until his death he also served
as Parliamentary Aide to the MLA. He was also a
Titulary Member of the Comité Maritime International.
In addition to his reputation for competence and ex-pertise in the field of maritime law, Jim Higgins was well
known for his wit and great personal charm. Despite his
eminence and stature, he was never too busy to assist
young lawyers and to help promote their careers in the
field of maritime law and within the Association. With
his high professional skills, unfailing courtesy, and great
sense of humor he epitomized the best of his profession
and the Association.
James J. Higgins was respected by the Bench and
Bar. His death is a great loss to his numerous friends,
family, community and this Association. He will be
greatly missed, but never forgotten.
In consideration of the foregoing:
BE IT RESOLVED, that the Maritime Law
Association of the United States expresses its sincere and
profound appreciation for the life and services of James
J. Higgins and that it does hereby express to his wife,
Patricia, and his family our deepest sympathy and great
sense of loss.
BE IT FURTHER RESOLVED, that a copy of
this Resolution be made a part of the permanent records
of the Association and the original duly inscribed by the
President of this Association be forwarded to his wife,
Patricia Higgins.
ASSOCIATION RECORDS: WEBSITE STATUS and ARCHIVES
President Dorsey reported that the Chair of the Committee on Electronic
Communications and Commerce, Glen T. Oxton, will be the new webmaster. The
Events Calendar will be channeled through the President, so information about
upcoming events of interest to the maritime community should be sent to President
Dorsey. The Committee has proposed a draft website policy, which is being
considered by the officers and Board. The Association will move cautiously in
adding features to the website in order to maintain the security of its databases, but
we will move forward with a document library on the site.
Accordingly, upon motion duly made and seconded, the Board approved
a resolution authorizing the expenditures necessary to add the library to the
Association's website, and to start making the Proceedings available on the site.
We would then work backwards, adding older and older Association documents.
President Dorsey also noted that with the assistance of the Young
Lawyers Committee, the Association's archives are being indexed, build-ing upon the major work already accomplished on that endeavor by Past President
Kenneth H. Volk.
OTHER ASSOCIATION ACTIVITIES
Second Vice President Thomas S. Rue reported on his tabulation of the
results of the questionnaires sent out to the membership about our resort meetings.
It appears that of those responding, many would like an increase in CLE credit and
business-associated activities and a shorter meeting duration. The Committees on
Site Selection and Planning and Arrangements for the Fall meetings will try to
incorporate these preferences into their planning.
* * *
There being no further business to come before the Board, the meeting
was adjourned at 12:15 p.m.
Respectfully submitted,
/s/ Lizabeth L. Burrell
Secretary
MINUTES OF THE BOARD OF DIRECTORS MEETING OF
THE MARITIME LAW ASSOCIATION OF THE UNITED STATES
Held at the
Association of the Bar of the City of New York, New York, New York
on
November 2, 2000
The meeting was called to order by President William R. Dorsey, III, at
9:00 a.m. In addition to President Dorsey, the following officers were present:
Raymond P. Hayden, First Vice President
Thomas S. Rue, Second Vice President
Lizabeth L. Burrell, Secretary
Patrick J. Bonner, Treasurer
Winston E. Rice, Membership Secretary
Howard M. McCormack, Immediate Past President
The following Board members were present:
James W. Bartlett, III
Geoffrey F. Birkhead
James K. Carroll
Vincent M. DeOrchis
John B. Gooch, Jr.
Bruce A. King
Jean E. Knudsen
Robert B. Parrish
Mary Elisa Reeves
Alan van Praag
James F. Whitehead, III
At the invitation of President Dorsey, Michael Marks Cohen of New York, Chair
of the Committee on the Comité Maritime International, Alfred J. Kuffler of
Philadelphia, Chair of the Environmental Crimes Subcommittee, Ben L. Reynolds
of Houston, Chair of the Special Committee on Site Selection for the Fall 2003
General Meeting, and M. Hamilton Whitman of Baltimore, Chair of the Special
Committee on Planning and Arrangements for the 2001 Fall Meeting, were also
present at the meeting.
SECRETARY'S REPORT
Secretary Lizabeth L. Burrell of New York reported on the distribution
of the Proceedings for the Spring 2000 General Meeting.
Upon motion duly made and seconded, the minutes of the August 5, 2000
meeting of the Board of Directors were unanimously approved and accepted, and
the Secretary was authorized to amend the minutes of the August 2000 meeting to
reflect more accurate dates in the resolution honoring Past President James J.
Higgins. The minutes of the August and November 2000 Board meetings will be
published in the Proceedings of the Fall 2000 General Meeting.
Upon motion duly made and seconded, the Secretary's report was
unanimously approved and accepted.
TREASURER'S REPORT
Treasurer Patrick J. Bonner of New York presented the Treasurer's Report
for the three months ending on July 31, 2000 and distributed copies of the auditors'
report for the fiscal year ending April 30, 2000, which found the Association's
accounting to be proper. Treasurer Bonner reported on the cash on hand and
investments as of the date of the meeting, both of which reflected the cost of our
participation as advisors on international conventions, and on the substantial
expenditures anticipated in the coming year.
Treasurer Bonner also noted that there is a continuing lag in dues
payments, and that members who remain in arrears have been dropped from the
membership. We must continue to exercise a policy of fiscal caution in view of
other Association projects and activities that will require expenditures over the next
two years, including the upcoming CMI meeting in Singapore.
Upon motion duly made and seconded, the Treasurer's report was
unanimously approved and accepted.
MEMBERSHIP SECRETARY'S REPORT
Membership Secretary Winston E. Rice of New Orleans presented
seventeen applicants for Associate Lawyer membership. Upon motion duly made
and seconded, the candidates for Associate Lawyer membership were unanimously
elected.
The Board approved Professor Martin Davies of Tulane University Law
School as a new Academic member.
The following four applicants were recommended for Non-Lawyer
membership:
Mary Cervati of Weehawken
Massoud Messkoub of Madison
Carroll C. Robertson of Alexandria
Soren Wolmar of New York
Upon motion duly made and seconded, the four Non-Lawyer applicants were
unanimously elected to Non-Lawyer membership.
The Proctor Admissions Committee recommended that two Associate
Lawyer members be advanced to Proctor status. They are:
Randolph H. Donatelli of New York
James M. Maloney of Port Washington
Upon motion duly made and seconded, the recommendations of the Proctor
Admissions Committee were approved and the two Associate Lawyer members
were granted Proctor status.
Membership Secretary Rice also reported, with regret, the death of the
following members:
George H. Chamlee of Savannah
John B. Culp, Jr. of Jacksonville
The Honorable David N. Edelstein, U.S.D.J., of New York
G. Sage Lyons of Mobile
William G. Symmers of New York
After August 5, 2000 Board meeting, the Association had 3,441 members.
As of November 2, 2000, after the changes approved by the Board at its meeting,
the total membership was 3,461.
Membership Secretary Rice reported that the new Directory has been
published and should be in the hands of the membership in November 2000. That
Directory includes an amplified history of the Association and streamlined
Committee descriptions. A new Directory will be published in the Fall of 2001.
Upon motion duly made and seconded, the Membership Secretary's
Report was unanimously approved and accepted.
The list of all the successful candidates for membership and Mr. Rice's
written report are appended to the original of these minutes.
COMMITTEE AND STUDY GROUP REPORTS
Carriage of Goods
Board member Vincent M. DeOrchis, former Chair of the Association's
Committee on Carriage of Goods, reported that Senator Hutchinson was awaiting
confirmation of industry support for the Association's proposal. Because of the
current posture in Washington, there will be no action on the proposal until the next
session of Congress in January 2001, at which time a bill number will be assigned.
Several Board members commented on the need for a revised COGSA in
view of the increasing fragmentation of the law in this area.
Practice and Procedure
At the August 5, 2000 Board meeting, the Board was advised by Board
member James W. Bartlett, III, Chair of the Committee, that an amend-ment had been proposed to the Local Admiralty Rules for the United
States District Court for the District of New Jersey that would increase the
security deposit for seizure of vessels more than 65 feet in length to
$10,000. Upon motion duly made and seconded, the Board resolved on August 5,
2000 to authorize President Dorsey to send a letter to the Clerk of the Court noting
that the security deposit in every district should reflect the reasonably anticipated
costs to be incurred by the Marshal and recommending that the proposed
amendment not be adopted because it might discourage legitimate claimants from
exercising their admiralty rights. On August 10, 2000 President Dorsey sent such
a letter to the Clerk of the Court, as well as Chief Judge Thompson and Judge
Bissell of that Court. President Dorsey reported on November 2, 2000 that he had
received a reply indicating that the Court had withdrawn the proposal and would
seek further commentary from the bar on the proposed amendment.
The Committee on Practice and Procedure will also review the decision
of the United States Court of Appeals for the Eighth Circuit in Anastasoff v. United
States, 223 F.3d 898 (8th Cir. 2000), and make a recommendation about whether
or not the Association should participate as amicus in that court's en banc
reconsideration of that opinion, which holds that the court's current practice and
policy concerning unpublished decisions are unconstitutional.
Environmental Crimes Subcommittee
Alfred J. Kuffler of Philadelphia, Chair of the Environmental Crimes
Subcommittee, reported that in the October 18, 2000 Federal Register, there was
a Notice of a Public Meeting requesting comments on setting the Coast Guard
agenda for oil pollution. The meeting will take place on December 12.
Mr. Kuffler conferred with Dennis L. Bryant, Chair of the Committee on
Navigation, Coast Guard and Government Regulation, and Matthew A. Marion,
Chair of the Committee on Marine Ecology, to seek the views of these Committees
on the subjects to be addressed at the Public Meeting. The Committees
recommended that the Association submit a statement to be presented at the Public
Meeting to state the Association's views on government policy in connection with
pollution incidents.
Upon motion duly made and seconded, the Board authorized Mr.
Kuffler, Mr. Bryant and Mr. Marion to draft a statement to be sent by
President Dorsey to the Coast Guard stating that the current government
policy of criminalizing acts in connection with pollution incidents actual-ly works against the public interest in protecting the environment, pro-posing that only acts taken with criminal intent be subject to criminal
sanctions, and urging the government to adopt as its most important priority
policies which encourage effective responses to spills. After the Board meeting,
such a statement was drafted and approved by the relevant Committees. In a vote
by poll, the Board approved the proposed statement and President Dorsey sent it
to the Coast Guard.
Special Committee on Site Selection for Fall 2003 and 2005 General
Meetings
Chairs Ben L. Reynolds of Houston and Robert B. Parrish of Jacksonville
reported on Princess properties in Scottsdale and Bermuda as appropriate sites for
the Fall 2003 and 2005 meetings of the Association. Upon motions duly made and
seconded, the Board approved Bermuda as the location for the Fall 2003 meeting
and Scottsdale as the location for the Fall 2005 meeting, delegated authority to the
Chairs of the Site Selection Committees to negotiate with the Princess properties
for appropriate dates, and delegated authority to approve the final contracts for
these sites to the President and First and Second Vice Presidents.
INTERNATIONAL ACTIVITIES
Comité Maritime International
First Vice President Raymond P. Hayden of New York reported on the
CMI colloquium which took place in Toledo in September 2000 in order to discuss
items to be treated at the upcoming CMI plenary meeting in Singapore from
February 12 through 16, 2001. Topics included international transport law, piracy,
marine insurance and the proposals by the International Union of Marine Insurers
(IUMI) in connection with general average, primarily to do away with general
average contributions for port of refuge charges (a position opposed by the
Association).
President Dorsey reported that in the CMI elections, the Association
nominated Frank L. Wiswall, Jr. for a second four-year term as Vice President of
the CMI, and supported Patrick Griggs for a second term as President and Joanne
Gauthier of Canada for membership on the Executive Council. The Association
will propose Lawrence J. Bowles of New York, Vincent M. DeOrchis of New York
and Michael Sturley of Austin as new Titulary members.
Michael Marks Cohen of New York, Chair of the Committee on the
CMI, reported on the issues to be treated at the upcoming plenary and the
preparations by the U.S. delegation. At Singapore, Past President Graydon
S. Staring will head the Association delegation's working group on marine
insurance, Howard Myerson will head the Association delegation's working group
on general average, Past President Hooper will head the Association delegation's
working group on transport law and George Gabel will head the Association
delegation's working group on piracy.
One of the most significant CMI endeavors to be treated during the
plenary meeting in Singapore in February 2001 is the work of its CMI's
International Subcommittee on Transport Law, which is considering methods of
bringing about greater uniformity in international transport by harmonizing and
filling gaps in existing international regimes for transport. Board member Vince
DeOrchis reported on the fourth meeting of the International Subcommittee on
Transport Law, which he attended together with Past President Chester D. Hooper,
George F. Chandler, III, and Professor Michael Sturley (the Subcommittee's
Rapporteur) in London in October 2000. The question of whether a new
convention will cover multimodal transport has not yet been decided. A draft
outline of an instrument has been prepared and will be discussed at the Singapore
meeting. While it is not anticipated that there will be a complete draft convention
ready in time for consideration at the CMI plenary in February, there will be
discussion of existing liability regimes, multimodal carriage and transport
documents. The U.S. delegation at Singapore will try to support positions
consistent with the COGSA proposal and the Pomerene Act, but there are issues,
for example, shipper's liability, on which the Association has not yet taken a
position. After the Singapore meeting, there will be a further meeting of the
International Subcommittee in May 2001 to prepare a consultation paper to be sent
to all constituent members of the CMI as well as industry representatives through
the assistance of UNCITRAL. Comments from these groups should be received
by November 2001, and it is anticipated that a draft will be prepared for the
UNCITRAL meeting in May 2002. The CMI will participate in further refinement,
together with UNCITRAL, over the following two or three years. UNCITRAL
would probably not act on the draft until 2005.
In connection with the developments on the UNCITRAL project on
sea transport law, the Association may have to take a position on whether
or not the CMI should vary its usual procedure of producing a major
instrument only after having it first considered at a plenary. In the case of
the sea transport project, the proposal is for representatives of CMI mem-bers on the International Subcommittee to approve a draft, and to take
the resulting instrument directly from the Assembly to UNCITRAL. At the
upcoming plenary, the discussions of transport law will focus on four
documents that will be published in the CMI's 2000 Yearbook: The first is
the current draft outline (a rough draft of the instrument), the second an agenda
paper on multimodal transport, the third an agenda paper on transport document
issues and the liability regime and the fourth is a paper on the e-commerce
implications of the draft instrument.
Apart from issues of transport law, other subjects to be discussed at the
Singapore plenary meeting include the CMI's efforts to prepare a model law on
piracy to be submitted to the national associations for their comments, several
marine insurance issues (on which discussion documents are not yet available) and
the IUMI proposals concerning general average. Because discussion documents
have not yet been circulated and there may be proposals on which the Association
has not taken any position, the Board will stand ready to advise the delegation on
issues as they arise.
In addition, John D. Kimball, Chair of the Association's Study Group on
Underwater Cultural Heritage, has been appointed Rapporteur of the CMI's
working group on Underwater Cultural Heritage. The CMI study group may be
redesignated as an international subcommittee at the Singapore conference, with
the purpose of preparing a report for the CMI 2001 Assembly on the UNESCO
draft Convention on Underwater Cultural Heritage that may include as a
recommendation the preparation of a protocol to the Salvage Convention along the
lines of the protocol prepared by the late Geoffrey Brice.
International Maritime Organization
President Dorsey attended the meeting of the IMO Legal Committee in
London from October 15 through 20, 2000 as a private sector advisor to the U.S.
delegation. The two main topics were the Committee's continuing work on a draft
Protocol to the Athens Convention on Liability Relating to Carriage of Passengers
and their Luggage by Sea and a new item, proposed amendments to the limits of
oil pollution liability under the Civil Liability Convention (CLC) and the IOPC
Fund Convention.
CLC Article 15 and Fund Convention Article 33 both provide for
amendment of the liability limits by contracting states at an IMO Legal Committee
meeting without the need to convene a diplomatic convention. This procedure was
invoked at the upcoming Legal Committee meeting in October 2000 to make a tacit
amendment to the CLC and IOPC Fund increasing liability limits by 50.37%,
which will take effect in November 2003.
As for developments in the Athens Convention draft protocol, pro-posals have been drafted: (1) that would make it clear that a carrier's, as
opposed to an insurer's, liability was not subject to a "cap"; (2) impose strict
liability with a per capita damages cap for death or personal injury incurred in
connection with an "operational incident," such as shipwreck, collision, stranding,
explosion, fire or a defect in the ship; (3) reverse the burden of proof and impose
liability based on negligence for damages resulting from operational incidents that
exceed the strict liability per capita limit and for damages resulting from all other
causes. Recent ferry accidents may encourage progress on the protocol because
without an international regime, there is a possibility that conflicting national
legislation may be enacted in response to these incidents.
The next Legal Committee meeting will take place from October 8
through 12, 2001.
A diplomatic conference on the Bunker Pollution Convention will be held
from March 19 through 23, 2001, the only open question being the gross tonnage
of the vessels subject to the Convention. The chair of the IMO has indicated that
the Athens Convention Protocol will be ready for a diplomatic conference in 2002
or 2003.
Convention on Enforcement of Judgments
Board member Alan van Praag reported on the status of the Convention.
Congress appears to be eager to act, but at the last meeting at the Hague, there was
some opposition to key U.S. positions, as a result of which there will be a meeting
of a group of experts to try to resolve some of the difficulties. There will be a
meeting of all delegations in June 2001.
DEATH ON THE HIGH SEAS ACT
The Coast Guard authorization bill currently pending before Congress
includes provisions that would modify DOHSA to allow survivors to recover
noncompensatory damages. The President consulted with the Chairs of the
Committees on Maritime Legislation and Maritime Personnel to determine what,
if any, action the Association should take in connection with the bill, but because
the legislation has stalled because of opposition from the cruise ship industry, there
was no need for action at the time of the Board meeting.
TITANIC GUIDELINES
Pursuant to a 1986 congressional act, the State Department has been
negotiating an international Agreement with Canada, France and the
United Kingdom establishing the Titanic as a memorial. The proposed Agreement
provides rules in many respects similar to those in the Annex Rules to UNESCO
Draft Convention on Underwater Cultural Heritage, including in situ preservation
as the preferred management of the site and provisions for stringent State oversight
and management of the wreck.
In June, NOAA published "Proposed Guidelines for Research,
Exploration and Salvage of R.M.S. Titanic," which are identical to the proposed
Agreement rules, including provisions prohibiting any recovery of any artifacts
unless "justified by educational, scientific, or cultural interests," requiring that any
recovered items be kept together as a project collection and prohibiting the sale of
any artifacts, except in a sale or transfer of the entire collection to a museum.
Previously, with Board approval, and with the able assistance of John D.
Kimball and Professor David Bederman, President Dorsey submitted comments on
the Guidelines and posed questions to NOAA about the effect of several of the
guidelines. No response has yet been received.
The suit brought by RMS Titanic Inc., the party granted exclusive salvage
rights, to enjoin the United States from proceeding with the Agreement, has been
dismissed on the ground that the issue is not ripe because there is not yet a treaty
nor guidelines.
ASSOCIATION RECORDS: WEBSITE STATUS and ARCHIVES
In addition to authorizing modifications necessary to add Association
documents to the website, the Board, upon motion duly made and seconded,
approved adding a search engine to the website in a vote taken by poll between
regular meetings.
* * *
There being no further business to come before the Board, the meeting
was adjourned at 12:10 p.m.
Respectfully submitted,
/s/ Lizabeth L. Burrell
Secretary
|