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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA IN RE GENESIS MARINE, LLC CIVIL ACTION NO. 24-2881 SECTION: âGâ(2) ORDER AND REASONS Before the Court is Claimant Brandon Darrowâs (âDarrowâ) Motion for Summary Judgment on the issue of timeliness of the limitation complaint filed by Limitation Petitioner Genesis Marine, LLC (âGenesisâ).1 In Darrowâs motion, he argues the limitation action filed by Genesis was untimely considering it was filed more than six months after Genesis admitted there existed a reasonable possibility Darrowâs damages would exceed the value of Genesisâs vessel, the M/V ANACONDA.2 Genesis counters by asserting it made no judicial admission of the potential value of Darrowâs damages, and Darrow did not provide any indication damages could exceed the vesselâs worth until mid-2024, making the limitation action filed in December 2024 timely.3 After reviewing the motion, the memoranda in support and opposition, the applicable law, and the record, this Court grants summary judgment in favor of Darrow. 1 Rec. Doc. 11. 2 See Rec. Doc. 11-1. 3 See Rec. Doc. 24. I. Background This case arises out of Genesisâs Complaint for Exoneration from or Limitation of Liability (âlimitation actionâ) filed on December 13, 2024.4 Genesis claims the limitation action was âfiled within six months from the date [Genesis] received first written notice of a limitable claim because in August 2024, Darrow made a settlement demand of $22,000,000.â5 Genesis further asserts the value of its vessel interest on the date of the accident, reflected in the M/V ANACONDA and Barges GM 1006 and GM 5040, did not exceed the sum of $12.5 million.6 Based on the limitation action and claims made within, this Court issued an Order Approving Genesisâs Security and Ad Interim Stipulation and Directing Issuance of Notice to Claimants and Restraining Prosecution of Claims.7 On February 14, 2025, Darrow filed an Answer and Claim in Limitation.8 On February 18, 2025, Darrow filed this Motion for Summary Judgment on the Timeliness of Genesisâs limitation action.9 On February 19, 2025, Genesis filed a Motion to Continue the Submission Date of the Motion for Summary Judgment,10 which was denied by this Court on February 20, 2025.11 Genesis filed its Opposition on February 25, 2025.12 Darrow filed his Reply on March 3, 4 Rec. Doc. 1. 5 Id. at 3. 6 Id. at 4. 7 Rec. Doc. 7. 8 Rec. Doc. 10. 9 Rec. Doc. 11. 10 Rec. Doc. 12. 11 Rec. Doc. 19. 12 Rec. Doc. 24. 2025.13 II. Partiesâ Arguments A. Darrowâs Arguments in Support of his Motion In his Motion, Darrow argues the evidence âestablishes Genesis received written notice of a claim subject to limitation reasonably possibly exceeding its vessel interest well over two years prior to its December 13, 2024, filingâ of this limitation action.14 Because Genesis received this written notice more than six months before filing the limitation action, Darrow asserts Genesisâs limitation action was untimely.15 Darrow asserts Genesisâs December 13, 2024, limitation action âcan only be deemed timely if it did not receive written notice sufficient to apprise it of a reasonable possibility of a claim exceeding the vesselâs value until sometime in the six months preceding its federal court filingââi.e., sometime after June 13, 2024.â16 Darrow claims Genesis cannot deny it had definitive written notice of Darrowâs personal injury claim and that the claim had a reasonable possibility to exceed Genesisâs vessel interests long before June 13, 2024.17 Darrow submits he filed his original state court Petition for damages on December 23, 2021, and it served on Genesis through its registered agent on January 19, 2022.18 Darrow represents he filed a Supplemental and Amended Petition for Damages on July 12, 2022 and it was served on July 18, 2022.19 Darrow argues, even though the Petition did not 13 Rec. Doc. 34. 14 Rec. Doc. 11-1 at 16. 15 See id. 16 Id. at 17. 17 Id. 18 Id. 19 Id. include a specific statement of damages sought,20 Darrow outlined he could not return to work due to Genesisâs negligence and the vesselâs unseaworthiness.21 Crucially, Darrow points to a sentence in Genesisâs Answer, filed in state court on August 8, 2022, which reads: [T]he amount of damages sued for in the Petition herein greatly exceeds the amount or value of Genesisâs interests in the M/V ANACONDA, and her freight then pending, if any; Genesis accordingly invokes the benefits of the provisions of the Revised Statutes of the United States of America and the acts amendatory thereof and supplemental thereto in limitation of the liability of shipowners.22 Darrow claims this statement is a âjudicial admission,â putting the question beyond contention.23 Darrow claims the statement meets the criteria to qualify as a judicial admission, as the statement was: â(1) made in a judicial proceeding; (2) contrary to a fact essential to the theory of recovery; (3) deliberate, clear, and unequivocal; (4) such that giving it conclusive effect meets with public policy; and (5) about a fact on which judgment for the opposing party can be based.â24 Considering these factors, Darrow contends Genesisâs statement that the damages âgreatly exceedâ the value of the vessel ownerâs interest should be found to have started the six month clock for Genesis to file a limitation action.25 Darrow contends the six month clock started to run the day the Answer was filed, which was August 8, 2022, making Genesisâs December 13, 2024, limitation action untimely.26 Darrow states, even if Genesisâs statement in the Answer is not considered dispositive, 20 See id. at 18. 21 Id. at 19. 22 Id. (citing Rec. Doc. 11-27 at 4). 23 Id. at 20â21. 24 Id. at 20 (citing Jonibach Mgmt. Trust v. Wartburg Enter., Inc., 750 F.3d 486. 491 n.2 (5th Cir. 1990)). 25 Id. at 22. 26 See id. the record is âreplete with incontrovertible evidence establishing Genesisâs six-month time bar was triggered long before June 13, 2024.â27 According to Darrow, Genesis âextensively litigatedâ this case and was âindisputablyâ aware of how severe Darrowâs injuries were, including his permanent disability, multiple surgeries, young age and substantial loss of future earning capacity, future surgeries, psychological symptoms, and substantial pain and suffering, among other injuries.28 B. Genesisâs Arguments in Opposition to the Motion In Opposition, Genesis argues, at minimum, there is a genuine factual dispute regarding when Genesis was first put on notice that Darrowâs claim might reasonably exceed the value of the interest Genesis had in the M/V ANACONDA.29 Genesis argues the first time it was aware Darrow could reasonably claim more than the value of the vessel was on August 21, 2024, when Darrow demanded Genesis pay over $20 million to settle the case, which was over the value of the vessel at $12.5 million.30 Genesis asserts, because August 21, 2024, was the first time Genesis was aware of a âreasonable possibilityâ of Darrowâs claim exceeding the value of the vessel, Genesisâs December 13, 2024, limitation action was timely because it was within the six month window.31 Genesis argues its statements in the Answer that Darrow cites were âboilerplateâ affirmative defense raised in state court and simply an allegation, not a judicial admission that 27 Id. at 23. 28 Id. at 25. 29 Rec. Doc. 24 at 9. 30 Id. at 10. 31 See id. at 11. can be used as evidence to support summary judgment.32 Genesis avers a judicial admission is a âformal concession in the pleadings or a stipulation by a party or counsel that is binding on the party making it[,]â arguing the statement is not binding on Genesis.33 Genesis claims judicial admissions can only be found in the case in which they are made, and the statement at issue was raised in a separate suit in state court.34 Genesis further argues an affirmative defense cannot be a âjudicial admission because it is not a factual assertion with the effect of withdrawing a fact from contention.â35 In fact, Genesis argues, because limitation of liability is a legal theory, it is not a fact that can be admitted or waived at all.36 Lastly, Genesis contends, until August 2024, nothing in Darrowâs state court pleadings or discovery or medical documentation gave rise to a reasonable possibility that his claims might exceed $12.5 million, the value of the vessel.37 At minimum, Genesis maintains, there is a genuine dispute of material fact on the issue of when Genesis first received written notice giving rise to the reasonable possibility that Darrowâs claim could exceed $12.5 million, and, considering it is a fact-intensive inquiry, the question should not be handled at the summary judgment stage.38 C. Darrowâs Arguments in Reply to Genesisâs Opposition In Reply,39 Darrow points out Genesis admits it specifically stated in its answer on August 32 Id. at 12. 33 Id. at 13 (citing Mays v. Dir., Off. Of Workersâ Comp. Programs, 938 F.3d 637, 647 (5th Cir. 2019)). 34 Id. 35 Id. at 15 (citing Blankenship v. Buenger, 653 F.Appâx 330, 335 (5th Cir. 2016)). 36 Id. at 16. 37 Id. at 17. 38 Id. at 19â20. 39 Rec. Doc. 34. 8, 2022, that the amount of damages greatly exceeded the value of Genesisâs interest in the M/V ANACONDA.40 Darrow asserts Genesis was required to state material facts upon which its defenses to Darrowâs claims were based, and thus, Genesis was making an admission of material fact when it stated the amount of damages greatly exceeds the value of the vessel.41 Darrow claims Genesis âmade this factual statement deliberately and benefitted from this defense because Louisiana state courts exercise jurisdiction to determine limitation of liability.â42 Darrow claims Genesis fully intended for the state court to decide the limitation of liability question if the case went to trial there.43 Darrow avers Genesis cannot have it both ways.44 That is, Darrow argues Genesis cannot expressly state Darrowâs damages greatly exceeded the value of the vessel in state court but claim later, here in federal court, it did not have notice the claim had a reasonable possibility to exceed the value of the vessel.45 Darrow then discusses Vatican Shrimp Co., Inc. v. Solis, in which Darrow argues the Fifth Circuit recognized Congressâs six-month time bar as a policy aimed at avoiding âabusive litigation tactics and circuitous action by shipowners[.]â46 Darrow further argues Vatican Shrimp stands for the proposition that when a vessel ownerâs state court answer raises limitation of liability, there is âno question that the vessel owner failed to comply with the six-month time 40 Id. at 1. 41 Id. 42 Id. at 2. 43 Id. 44 Id. 45 Id. 46 Id. at 3 (citing Vatican Shrimp Co., Inc. v. Solis, 820 F.2d 674, 682 (5th Cir. 1987)). bar.â47 Darrow asserts these holdings have never been overruled as Genesis claims.48 Darrow further argues there is no genuine dispute of material fact on the issue of whether Genesis had written notice of a reasonable possibility that Darrowâs claim might exceed the value of the vessel.49 Darrow claims Genesisâs subjective beliefs and self-serving statements are not enough to demonstrate Genesis did not have notice of a claim with a reasonable possibility of exceeding the vesselâs value.50 Darrow points out, on June 24, 2021, Genesis was aware of Darrowâs two prior failed back surgeries and the need for a third, that it was aware of âfoot drop and incontinence,â and it was aware Darrow urgently needed a lumbar fusion because he was at risk of bilateral leg paralysis, bowel, bladder, and sexual dysfunction.51 Darrow points to other opinions and surgeries Genesis was aware of between 2021 and 2023.52 Darrow points to the expert report produced on January 29, 2024, which made Genesis aware of the need for spinal cord stimulation surgeries every 5â7 years for the rest of Darrowâs life, as well as other surgeries and rehab and Darrowâs likely complete loss of his maritime career and substantial loss of future earning capacity.53 Darrow argues Genesis knew Darrow was permanently disabled in April 2024 when Darrowâs treating physician, Dr. Jagar, was deposed.54 Darrow claims Genesisâs assertion that the August 47 Id. (citing Vatican Shrimp, 820 F.2d at 679). 48 Id. 49 Id. at 4. 50 Id. 51 Id. at 5. 52 Id. at 5â6. 53 Id. at 6â7. 54 Id. at 7. 21, 2024, demand was the first time Genesis had written notice of a reasonable probability of the damages exceeding the value of the vessel is âsleight of hand to distract from the fact that Genesis knew all along that the value of the claims exceeded vessel interests as admitted in its answer years earlier[.]â55 Darrow maintains his belief that allowing Genesis to successfully file their limitation action at this juncture would âdirectly contravene[] Congressâs intent of the six-month time bar.â56 III. Legal Standard A. Summary Judgment Summary judgment is appropriate when the pleadings, discovery, and affidavits demonstrate âno genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.â57 To decide whether a genuine dispute as to any material fact exists, the court considers âall of the evidence in the record but refrain[s] from making credibility determinations or weighing the evidence.â58 All reasonable inferences are drawn in favor of the nonmoving party.59 Yet âunsupported allegations or affidavits setting forth âultimate or conclusory facts and conclusions of lawâ are insufficient to either support or defeat a motion for summary judgment.â60 If the entire record âcould not lead a rational trier of fact to find for the non-moving party,â then no genuine issue of fact exists and, consequently, the moving party is entitled to judgment as a 55 Id. 56 Id. at 10. 57 Fed. R. Civ. P. 56(a); see also Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994). 58 Delta & Pine Land Co. v. Nationwide Agribusiness Ins. Co., 530 F.3d 395, 398â99 (5th Cir. 2008) (citing Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150 (2000)). 59 Turner v. Baylor Richardson Med. Ctr., 476 F.3d 337, 343 (5th Cir. 2007) (quoting Reeves, 530 U.S. at 150). 60 Galindo v. Precision Am. Corp., 754 F.2d 1212, 1216 (5th Cir. 1985); Little, 37 F.3d at 1075. matter of law.61 The nonmoving party may not rest upon the pleadings.62 Instead, the nonmoving party must identify specific facts in the record and articulate the precise manner in which that evidence establishes a genuine issue for trial.63 The party seeking summary judgment always bears the initial responsibility of showing the basis for its motion and identifying record evidence that demonstrates the absence of a genuine issue of material fact.64 âTo satisfy this burden, the movant may either (1) submit evidentiary documents that negate the existence of some material element of the opponentâs claim or defense, or (2) if the crucial issue is one on which the opponent will bear the ultimate burden of proof at trial, demonstrate that the evidence in the record insufficiently supports an essential element of the opponentâs claim or defense.â65 If the moving party satisfies its initial burden, the burden shifts to the nonmoving party to âidentify specific evidence in the record, and to articulateâ precisely how that evidence supports the nonmoving partyâs claims.66 The nonmoving party must set forth âspecific facts showing the existence of a âgenuineâ issue concerning every essential component of its case.â67 The nonmovantâs burden of demonstrating a genuine issue of material fact is not satisfied merely by creating âsome metaphysical doubt as to the material facts,â âby conclusory 61 Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986) (quoting First Natâl Bank of Ariz. v. Cites Serv. Co., 391 U.S. 253, 289 (1968)). 62 Celotex Corp. v. Catrett, 477 U.S. 317, 325 (1986). 63 See id.; Ragas v. Tennessee Gas Pipeline Co., 136 F.3d 455, 458 (5th Cir. 1998). 64 Celotex Corp., 477 U.S. at 323. 65 Duplantis v. Shell Offshore, Inc., 948 F.2d 187, 190 (5th Cir. 1991) (internal citation omitted). 66 Forsyth v. Barr, 19 F.3d 1527, 1537 (5th Cir. 1994), cert. denied, 513 U.S. 871 (1994); see also Morris v. Covan World Wide Moving, Inc., 144 F.3d 377, 380 (5th Cir. 1998). 67 Morris, 144 F.3d at 380; see also Bellard v. Gautreaux, 675 F.3d 454, 460 (5th Cir. 2012). allegations, by unsubstantiated assertions, or by only a scintilla of evidence.â68 Moreover, the nonmoving party may not rest upon mere allegations or denials in its pleadings.69 B. Limitation Action The Limitation Act of 1851, now cited as 46 U.S.C. § 30529, limits a vessel ownerâs liability to the value of their interest in the vessel. However, Section 30529(a) requires that â[t]he owner of a vessel . . . bring a civil action in a district court of the United States for limitation of liability . . . within 6 months after a claimant gives the owner written notice of a claim.â70 âA written notice of claim sufficient to trigger the filing-period must reveal a âreasonable possibilityâ that the claim is subject to such limitation.â71 Whether a written notice reveals a âreasonable possibilityâ a claim will exceed the value of the interest the limitation petitioner has in a vessel requires courts to engage in a âfact-intensive inquiry into the circumstances of the case.â72 Two inquires must be conducted: â(1) whether the writing communicates the reasonable possibility of a claim, and (2) whether it communicates the reasonable possibility of damages in excess of the vesselâs value.â73 68 Little, 37 F.3d at 1075 (internal citations and quotation marks omitted). 69 Morris, 144 F.3d at 380. 70 46 U.S.C. § 30529(a). 71 Billiot v. Dolphin Services, Inc., 225 F.3d 515, 517 (5th Cir. 2000) (internal quotations and citation omitted). 72 In re Eckstein Marine Service L.L.C., 672 F.3d 310, 317 (5th Cir. 2012) (impliedly overruled on other grounds by In re Bonvillian Marine Serv., Inc., 19 F.4th (5th Cir. 2021)). In re Bonvillian only overruled In re Eckstein as far as the In re Eckstein Court held Congressâs six-month time bar was a jurisdictional rule, which, if violated, stripped a court of its subject matter jurisdiction. In re Eckstein, 672 F.3d at 315. The In re Bonvillian Court reversed In re Eckstein on that narrow question, holding the six-month time bar is non-jurisdictional and has no bearing on subject matter jurisdiction. In re Bonvillian, 19 F.4th at 793â94. 73 In re The Complaint of RLB Contracting, Inc., as Owner of the Dredge Jonathan King Boyd its Engine, Tackle, Gear for Exoneration or Limitation of Liability, 733 F.3d 596, 602 (5th Cir. 2014) (impliedly overruled on other grounds by In re Bonvillian, 19 F.4th 787) (emphasis in original). Once a reasonable possibility is raised, âit becomes the vessel ownerâs responsibility to initiate a prompt investigation and determine whether to file a limitation action.â74 When there is uncertainty as to whether a claim will exceed the value of the vessel, the reasonable possibility standard places the ârisk and burdens associated with that risk on the owner.â75 If âdoubt exists as to the total amount of the claims or as to whether they will exceed the value of the ship the owner will not be excused from satisfying the statutory time bar since he may institute a limitation proceeding even when the total amount claimed is uncertain.â76 IV. Analysis Neither party disputes that there was a reasonable possibility of a claim or, at some point, there existed a reasonable possibility of damages in this case exceeding Genesisâs interest in the M/V ANACONDA. What the parties dispute is when that reasonable possibility existed. If, as Darrow argues,77 a reasonable possibility existed before June 13, 2024, Genesisâs limitation action filed on December 13, 2024, was untimely. If, as Genesis argues,78 this reasonable possibility did not become apparent through written notice until August 2024, Genesisâs limitation action was timely. The reasonable possibility standard âis not toothless,â but is ânot particularly stringent.â79 Darrow is required only to have raised a reasonable possibility the damages sought would exceed 74 In re Eckstein, 672 F.3d at 317. 75 Id. at 318. 76 Id. (internal quotations and citations omitted). 77 Rec. Doc. 11-1 at 22â23. 78 See Rec. Doc. 24 at 2. 79 In re Eckstein, 672 F.3d at 317. the value of the vessel.80 Darrow was never required to state a particular value of damages sought.81 Once Darrow raised this reasonable possibility, the burden then fell on Genesis to conduct an investigation and file a limitation action if necessary within six months, with the burden and risks associated with any uncertainty as to whether a claim would exceed the value of vessel squarely on the shoulders of the vessel owner, Genesis.82 âIn other words, if doubt exists as to the total amount of the claims or as to whether they will exceed the value of the ship the owner will not be excused from satisfying the statutory time bar since he may institute a limitation proceeding even when the total amount claimed is uncertain.â83 The Fifth Circuit has additionally noted this standard is not one of probability, but of possibility that a claim will result in damages above a vesselâs worth.84 On December 23, 2021, Genesis was put on notice, through a Petition filed in state court, that Darrow was seeking recovery of the following categories of damages based on Genesisâs alleged negligence and the unseaworthiness of the M/V ANACONDA: a. past, present, and future physical, mental, and emotional pain and suffering; b. past, present, and future loss of wages, fringe benefits, and wage earning capacity; c. past, present, and future disability; d. past, present, and future mental disability; e. past, present, and future medical expenses; f. past and future loss of found; g. past, present, and future loss of enjoyment of life; and h. all other special and general damages as will be shown at the trial of this 80 Id. 81 Id. 82 See id. 83 Id. at 318 (internal citations and quotations omitted). 84 In re RLB Contracting, 773 F.3d at 603. matter.85 The state court Petition was filed over two years before Genesis filed the limitation action in this Court. Genesis answered the Petition on August 8, 2022. Before the Answer was even filed, Genesis admits it knew that Darrow, in Dr. Pattersonâs opinion, suffered a âmassive disc herniation which extended caudad from disc space causing severe central canal stenosis,â and that Dr. Patterson recommended immediate surgery.86 Genesis was additionally aware Darrow was evaluated by neurosurgeon Dr. Donald Dietze for âongoing pain bilaterally to the lateral hip, groin, knee, right thigh, lower leg, ankle, and foot and due to foot drop causing him to fall and numbness causing him to urinate on himself.â87 Genesis acknowledges Dr. Dietze recommended lumbar fusion88 and that it occur immediately owing to the âsignificant risk of falling, developing cauda aquinia syndrome or bilateral leg paralysis with loss of bowel, bladder, and sexual function.â 89 Darrow received this surgery on October 19, 2021.90 Genesis furthermore admits it knew Dr. Andrew Toddâs opinion that Darrowâs injuries were âcausally related to the workplace incident and that all prior surgeries were medically necessary given Darrowâs âsignificant pathology.ââ91 Genesis possessed all of this knowledge after Darrow filed his state court Petition and before Genesis filed its Answer. 85 Rec. Doc. 11-23 at 3. 86 Rec. Doc. 11-2 at 2. Genesis admits this fact in Rec. Doc. 24-15 at 1. 87 Rec. Doc. 11-2 at 2. Genesis admits this fact in Rec. Doc 24-15 at 2. 88 Rec. Doc. 11-2 at 2. Genesis admits this fact in Rec. Doc. 24-15 at 2. 89 Rec. Doc. 11-2 at 3. Genesis admits this fact in Rec. Doc. 24-15 at 3. 90 Rec. Doc. 11-2 at 3. Genesis admits this fact in Rec. Doc. 24-15 at 3. 91 Rec. Doc. 11-2 at 3. Genesis admits this fact in Rec. Doc. 24-15 at 3. With knowledge of the above facts, Genesis concedes it filed an Answer asserting the following on August 8, 2022: [T]he amount of damages sued for in the Petition herein greatly exceeds the amount for value of Genesisâs interests in the M/V ANACONDA and her freight then pending, if any; Genesis accordingly invokes the benefits of the provisions of the Revised Status of the United States of America and the acts amendatory thereof and supplemental thereto in limitation of the liability of shipowners.92 The parties debate whether the above is a âjudicial admission,â which would have the effect of binding Genesis to this fact and withdrawing it from contention.93 But whether the above statement from Genesis is a judicial admission is of no consequence for the purposes of resolving this motion. Whether Darrowâs claims amount to over $12.5 million need not be objectively true and withdrawn from contention for the six-month time bar to have begun. There must simply have existed a âreasonable possibility,â through written notice, that a claim or group of claims could exceed the vesselâs value for the time-period to start.94 A finding of a reasonable possibility does not require a judicial admission that would put the issue out of contention. Genesisâs statement in the Answer, that the amount of damages claimed by Darrow âgreatly exceeds the amount for value of Genesisâs interests in the M/V ANACONDA and her freight pending[,]â95 coupled with Genesisâs undisputed knowledge of the serious and developing extent of Darrowâs injuries and 92 Rec. Doc. 11-2 at 3â4. Genesis admits this fact in Rec. Doc. 24-15 at 3. 93 See Martinez v. Ballyâs La., Inc., 244 F.3d 474, 476 (5th Cir. 2001) (explaining that a âjudicial admission is a formal concession in the pleadings or stipulations by a party or counsel that is binding on the party making them . . . . [i]t has the effect of withdrawing a fact from contention.â). 94 Billiot v. Dolphin Services, Inc., 225 F.3d 515, 517 (5th Cir. 2000) (internal quotations and citation omitted). 95 Rec. Doc. 11-27 at 4 required care, satisfies the ânot particularly stringentâ96 standard of demonstrating a âreasonable possibilityâ Darrowâs damages exceeded the value of Genesisâs interest in the M/V ANACONDA. This was true in August of 2022 when Genesis filed its Answer. Even if this Court were to assume the evidence provided by Darrow and the statement from Genesis still left room for doubt on the question of the value of damages in August of 2022, it was still Genesisâs duty to file a timely limitation action. As the Fifth Circuit held, if âdoubt exists as to the total amount of the claims or as to whether they will exceed the value of the ship the owner will not be excused from satisfying the statutory time bar since he may institute a limitation proceeding even when the total amount claimed is uncertain.â97 Considering this burden on Genesis, it cannot have it both waysââstating in August 2022, in light of the evidence, there was a definite possibility Darrowâs damages greatly exceeded the interest Genesis had in the M/V ANACONDA, but now stating there was no reasonable possibility until June 2024. Moreover, additional facts occurred after the Answer was filed in August 2022, and before June of 2024, supporting a finding of a reasonable possibility Darrowâs damages would exceed $12.5 million and thus triggering the six-month window for Genesis to file a limitation action. Darrowâs condition, and consequently, what Darrow could reasonably be awarded through damages, only worsened between August 2022 and the beginning of 2024. On April 3, 2023, Genesis admits it was aware of Dr. Andrew Toddâs supplemental report outlining Darrowâs ongoing back and leg symptoms resulting from severe nerve damage and the effects of Darrowâs ongoing treatments.98 Genesis further confirms it received Dr. Dietzeâs report on August 1, 2023, 96 In re Eckstein, 672 F.3d at 317. 97 Id. (internal quotations and citations omitted). 98 Rec. Doc. 11-2 at 4. Genesis admitted receiving this report in Rec. Doc. 24-15 at 4. stating Dr. Dietzeâs opinion that Darrow was permanently disabled due to âfailed back surgery syndrome,â rendering Darrow unable to return to work.99 Genesis was also aware Darrow underwent another surgery in September 2023, where Dr. Jolly surgically implanted two lead trial spinal cord simulators, with surgical implantation of permanent spinal cord simulators in February 2024.100 In January 2024, Genesis admits it was made aware that Darrowâs experts estimated Darrowâs loss of wages at approximately $3.5 million and his future medical expenses were in the range of $1.7 million.101 These damages, totaling over $5 million, only reflect damages from loss of wages and medical expenses. In the state court Petition, Darrow additionally alleged entitlement to damages for past, present, and future physical, mental, and emotional pain and suffering and disability, as well as loss of enjoyment of life.102 Considering Genesis admitted it knew in August 2023 Darrow was potentially permanently disabled,103 Genesis possessed information almost a full year prior to June 2024 that calculation of these ânoneconomicâ damages could contemplate the rest of Darrowâs life. While that information does not put the issue beyond doubt Darrowâs damages could exceed $12.5 million, it must be weighed with Genesisâs own assertion that the value of damages was above $12.5 million in August 2022 as well as the growing evidence of Darrowâs injuries. This Court is convinced these additional facts put to rest the question of whether there existed written notice of a reasonable possibility Darrowâs damages could exceed $12.5 million 99 Rec. Doc. 11-2 at 5. Genesis admits this fact in Rec. Doc. 24-15 at 5. 100 Rec. Doc. 11-2 at 5, 6. Genesis admits this fact in Rec. Doc 24-15 at 5, 6. 101 Genesis admits these facts in Rec. Doc. 24-15 at 6. 102 Rec. Doc. 11-23 at 3. 103 Genesis admits this fact in Rec. Doc. 24-15 at 5. enough to put the burden on Genesis to file a limitation action before December 13, 2024. Even with these facts, Genesis claims it only knew of a reasonable possibility of the damages exceeding $12.5 million when Darrow expressly demanded a $22 million settlement.104 This argument fails. As discussed, Fifth Circuit caselaw makes clear it was Genesisâs burden from the time the state court Petition was filed to resolve any doubt as to the reasonable possibility of damages exceeding $12.5 million by filing a limitation action.105 Genesis seems to want to place a burden on Darrow to have explicitly claimed a value of damages above the value of the vessel for the limitation action time limit to begin. This burden does not exist. Lastly, a finding there existed a reasonable possibility of Darrowâs claims exceeding $12.5 million before June 13, 2024, is supported by the purpose of the Limitation Liability Act. In Vatican Shrimp, the Fifth Circuit explained, prior to the six-month time-bar amendment, âa vessel owner could delay filing . . . [action] in federal court until the eve of the state court trial.â106 Vatican Shrimp made clear the six-month time-bar was enacted â[i]n response to the problems this practice caused,â and that the time-bar was intended to force âvessel owner[s] to act more promptly.â107 Ultimately, the six-month time-barâs purpose was to eliminate the situation currently before this Courtââa vessel owner filing a limitation action on the eve of state court trial. Genesis filed its limitation action on December 13, 2024,108 just three months before state court trial set for March 25, 2025. Again, Genesis claims it was only put on notice Darrowâs 104 Rec. Doc. 24 at 9. 105 In re Eckstein, 672 F.3d at 317. 106 Vatican Shrimp, 820 F.2d at 682. 107 Id. (internal citations omitted). 108 Rec. Doc. 1. claims could exceed $12.5 million when Darrow demanded Genesis pay $20 million to settle the case.109 But this ignores Genesisâs clear statement in its Answer, as well as the mounting evidence of Darrowâs injuries by early 2024, of the reasonable possibility that Darrowâs claim could exceed $12.5 million. In the end, the Limitation Act makes it Genesisâs duty to act promptly in filing a limitation action even in the face of doubt of total damages, and Genesis failed to fulfill this duty. The undisputed evidence in the record demonstrates that this limitation action was not timely filed. 109 Rec. Doc. 24 at 2. Y. Conclusion When reviewing the facts in this case, it is clear there existed written notice of the reasonable possibility Darrowâs claim could exceed $12.5 million before June 13, 2024, something Genesis even admitted in the Answers filed in state court in August 2022.1! Once the reasonable possibility was raised, it was then Genesisâs duty to timely file a limitation action.!" Considering Genesis did not file a limitation action until December 13, 2024, and written notice of the claim exceeding $12.5 million existed before June 13, 2024, the undisputed evidence in the record demonstrates Genesisâs limitation action was not timely filed. Accordingly, IT IS HEREBY ORDERED that Darrowâs Motion for Summary Judgment on the issue of timeliness of the limitation complaint!!? is GRANTED. NEW ORLEANS, LOUISIANA, this /"? day of March, 2025. NANNETTE JOLIVETTE BROWN CHIEF JUDGE UNITED STATES DISTRICT COURT 10 Rec. Doc. 11-27 at 4. 11 Ty re Eckstein, 672 F.3d at 317. 2 Rec. Doe. 11. 20
Case Information
- Court
- E.D. La.
- Decision Date
- March 27, 2025
- Status
- Precedential