Opinion

Board of Commissioners for the Port of New Orleans v. CMA CGM Bianca M/V

Court
District Court, E.D. Louisiana
Filed
Oct 5, 2021
Cited by
0 cases
Authority
More cited than 22.3%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

THE BOARD OF COMMISSIONERS OF CIVIL ACTION

THE PORT OF NEW ORLEANS

NO. 20-2179

VERSUS

SECTION: “G”

M/V CMA CGM BIANCA et al.

ORDER AND REASONS

This litigation arises from a vessel allision that occurred at a dock facility along the

Mississippi River in New Orleans, Louisiana, resulting in alleged damage to the dock structure

and two loading cranes owned by Plaintiff The Board and Commissioners of the Port of New

Orleans (“Plaintiff”).1 On October 22, 2020, a Scheduling Order was issued.2 Before the Court is

the “Motion to Continue Trial and Pretrial Deadlines” filed by Teucarrier (No. 3) Corp., appearing

in personam and as claimant for the in rem Defendant, the M/V CMA CGM Bianca (collectively,

“Defendants”).3 Considering the motion, the memoranda in support and in opposition, the record,

and the applicable law, the Court grants the motion.

I. Background

A. Factual Background

In the complaint, Plaintiff avers that the M/V CMA CGM Bianca, a vessel allegedly owned

by Teucarrier (No. 3) Corp., “allided with [Plaintiff]’s dock structure and two (2) loading cranes”

1 Rec. Doc. 1 at 2.

2 Rec. Doc. 26.

3 Rec. Doc. 29.

on August 2, 2020, while conducting cargo operations at the Nashville Avenue Terminal.4 Plaintiff

asserts that this allision caused significant damage and would require the Nashville Avenue

Terminal to be closed for repairs for a “substantial amount of time.”5

B. Procedural Background

On August 4, 2020, Plaintiff filed a Complaint in this Court.6 Defendants answered the

Complaint and filed a counterclaim against Plaintiff.7 Additionally, Defendants filed a Third-Party

Complaint and Rule 14(c) tender against Ports America Louisiana, LLC (“Ports America”).8

On August 16, 2021, Defendants filed the instant Motion to Continue.9 Plaintiff filed its

opposition on August 31, 2021.10 On September 9, 2021, with leave of Court, Defendants filed

their reply memorandum in further support of the Motion.11

II. Parties’ Arguments

A. Defendants’ Arguments in Support of the Motion to Continue

In the Motion, Defendants seek to “reset the trial date and pre-trial deadlines.”12 In support

of the Motion, Defendants assert that “[n]o party will suffer substantial injury if the case is

4 Rec. Doc. 1 at 2.

5 Id. at 3.

6 Rec. Doc. 1.

7 Rec. Doc. 10.

8 Rec. Doc. 12.

9 Rec. Doc. 29.

10 Rec. Doc. 35.

11 Rec. Docs. 37, 38.

12 Rec. Doc. 29.

continued.”13 Defendants aver that the underlying incident “occurred approximately one year ago”

and that this action was “commenced just two days later.”14

Additionally, Defendants submit that a related proceeding before this Court bears on the

merits of granting a continuance of the trial.15 Defendants assert that Darre Finney (“Finney”), the

alleged operator of Crane No. 6, filed a claim against the Port of New Orleans for injuries arising

out of this incident.16 Recently, in that case, Finney moved to remand the action to state court,

which Defendants oppose, and Defendants moved to consolidate that case with the instant case.17

Those motions remain pending.18 Defendants contend that, if the two actions are consolidated,

Finney would suffer no prejudice from the trial in this case being continued, “and the Court would

no doubt reset the cases for a single trial.”19

Next, Defendants assert that they would be prejudiced if the trial were not continued

because they would be forced to defend against an unknown and unquantified claim for damages.20

Defendants aver that, “despite diligent efforts to move this case forward by all parties,” Plaintiff

has not responded to Defendants’ “outstanding discovery requests seeking information and

13 Rec. Doc. 29-1 at 6.

14 Id. at 6.

15 Id. at 5, 7.

16 Id. at 5. See also Finney v. Bd. of Comm’rs of the Port of New Orleans, Case No. 21-1186, Rec. Doc. 1-1

at 3.

17 Rec. Doc. 29-1 at 5. See also Finney, Case No. 21-1186, Rec. Docs. 9, 15, 16, 25.

18 Rec. Doc. 29-1 at 5. See also Finney, Case No. 21-1186, Rec. Docs. 9, 25.

19 Rec. Doc. 29-1 at 7.

20 Id. at 7.

documentation about [Plaintiff]’s damages claim.”21 Specifically, Defendants assert that Plaintiff

has not provided any discovery responsive to the amount and dates of Plaintiff’s claimed

damages.22 Defendants aver that, “with discovery and expert report deadlines quickly approaching

. . . there is not sufficient time to take the needed discovery” to adequately defend Plaintiff’s

damages claims.23 Thus, Defendants argue that they will suffer “substantial prejudice” without a

continuance.24

Finally, Defendants assert that, in granting a continuance, the inconvenience to the Court

would be “slight.”25 In support, Defendants note that this case is “relatively new” because “the

underlying events . . . occurr[ed] about one year ago.”26 Moreover, Defendants assert that “the

chances that this matter could be amicably settled” would be greatly increased once Plaintiff’s

damages claims are quantified.27 Accordingly, Defendants assert that they have shown good cause

for the Court to continue the trial date and associated pre-trial deadlines.28 Third-Party Defendant

Ports America “agrees that a continuance is in order.”29

21 Id. at 7–8.

22 Id. at 2–4, 7–8.

23 Id. at 8.

24 Id. Defendants also argue that, if this Court grants the pending Motion to Consolidate in Case No. 21-1186,

the current deadlines would be unworkable for those newly added parties. Id. at 8–9.

25 Id. at 9.

26 Id. at 9.

27 Id.

28 Id.

29 Rec. Doc. 29-1 at 1.

B. Plaintiff’s Arguments in Opposition to the Motion to Continue

Plaintiff opposes the Motion.30 In opposition, Plaintiff argues that it has identified

numerous witnesses with discoverable information to support Plaintiff’s claim for damages.31

Plaintiff contends that “knowing the exact dollar amount” of Plaintiff’s damages is not necessary

for Defendants to proceed with discovery and depositions.32 Plaintiff asserts that Defendants’

claimed “need for further written discovery ignores the extensive written discovery that has already

taken place.”33 Moreover, Plaintiff represents that it has “provided a chart summarizing its specific

damages figure” to Defendants, and, thus, Defendants “have the information that they allege

warrants a continuance.”34

Next, Plaintiff asserts that Defendants do not need a continuance of the trial to adequately

defend Plaintiff’s damages claim, because Plaintiff agreed to a six week continuance of the expert

deadline.35 Plaintiff argues that this continuance alone would be “more than enough time” for the

parties to prepare for trial.36

As to the good cause standard under Federal Rule of Civil Procedure 16, Plaintiff submits

that Defendants have not shown good cause.37 First, Plaintiff asserts that Defendants now have the

30 Rec. Doc. 35.

31 Id. at 2.

32 Id. at 3.

33 Id. at 4.

34 Id.

35 Id.

36 Id.

37 Id. at 5.

supporting documentation of Plaintiff’s damages claim.38 Second, Plaintiff avers that it will be

prejudiced if the trial is continued because it will delay Plaintiff’s ability to collect damages from

Defendants.39

Additionally, Plaintiff argues that it is improper for Defendants to cite to and rely on the

pending Motion to Remand and Motion to Consolidate in Finney, because it “presupposes the

Court’s eventual ruling on those pending motions.”40 Plaintiff contests that its opposition to the

Motion to Remand is implicit support for the Motion to Consolidate or a continuance in this

matter.41

Finally, “if the Court is inclined to consider a continuance,” then Plaintiff requests that the

Court instead bifurcate the trial into separate liability and damages trials and preserve the

November 15, 2021 trial date.42 In support, Plaintiff asserts that Defendants “do not allege in their

Motion that additional discovery regarding liability issues is needed.”43 Plaintiff argues that

bifurcation would both provide Defendants more time to address Plaintiff’s damages claims and

promote an amicable settlement once the issue of liability is determined.44 As to Defendants’

argument that the issues of liability and damages overlap, Plaintiff asserts that Defendants can only

provide a “single example” of that overlap.45 Thus, Plaintiff requests that the Court deny

38 Id.

39 Id. at 5–6.

40 Id. at 6.

41 Id.

42 Id. at 7.

43 Id.

44 Id.

45 Id. at 7–8. See also Rec. Doc. 29-1 at 4 n.2 (opposing bifurcation on the basis that “issues of liability and

Defendants’ Motion, or, alternatively, bifurcate the trial and maintain the November 15, 2021 trial

date.46

C. Defendants’ Further Arguments in Support of the Motion to Continue

In response, Defendants assert that Plaintiff’s “tactic” of “waiting until August 16 and 20[,

2021]” to provide documentation of its damages has left Defendants with “virtually no time” to

review and address Plaintiff’s claims for damages.47

As to Plaintiff’s arguments that Defendants have not shown good cause for a continuance,

Defendants assert that Plaintiff cannot claim prejudice if the trial is continued because Plaintiff

caused the delays in turning over information about its claimed damages.48 Defendants argue this

delay is contrary to Plaintiff’s obligation under Rule 26 to provided Defendants with information

about damages “at the outset of litigation.”49 Instead, Defendants assert that Plaintiff waited until

discovery was coming to a close to provide the information.50 Defendants assert that the invoices

provided by Plaintiff “are dated a year or months prior to the date they were produced.”51

Additionally, Defendants assert that the information Plaintiff provided is “incomplete” because it

“does not include any proofs of payment.”52 Finally, Defendants argue that Plaintiff cannot claim

damages overlap”).

46 Rec. Doc. 35 at 8.

47 Rec. Doc. 38 at 1–2.

48 Id. at 2–3.

49 Id. at 3.

50 Id.

51 Id. at 5.

52 Id. Defendants note that Plaintiff contests it is required to show proof of payment. Id.

substantial injury from a continuance because Plaintiff is claiming prejudgment interest.53

Next, Defendants re-iterate that they would suffer prejudice if a continuance were denied.54

Defendants assert that Plaintiff’s damages information remains incomplete.55 Defendants contend

that the witnesses identified by Plaintiff as having discoverable information about damages could

not provide a claim calculation.56 Moreover, Defendants assert that, in the same document

identifying those witnesses, Plaintiff alleged that a claim calculation would be “premature.”57

Defendants also assert that their purported delay in taking depositions was “directly attributable to

[Plaintiff]’s failure to produce documents and answer questions about the claim.”58

Finally, Defendants re-assert that a continuance would cause only “slight” inconvenience

to the Court.59 Defendants aver that “continuing the trial will give the parties the opportunity to

determine whether settlement is possible.”60 Moreover, Defendants argue that Plaintiff’s

bifurcation request “tacitly acknowledges” that this case is not ready to proceed to trial.61

Defendants assert that a bifurcated trial would “greatly increase[] the chances that the parties will

be unable to settle their differences until a full trial on liability occurs.”62 Thus, Defendants submit

53 Id.

54 Id.

55 Id.

56 Id. at 5–6.

57 Id. at 6.

58 Id.

59 Id. at 8.

60 Id.

61 Id.

62 Id.

that good cause exists for a continuance of the trial date and pretrial deadlines.63

III. Law and Analysis

Federal Rule of Civil Procedure 16(b) provides that once a scheduling order has been

entered, it “may be modified only for good cause and with the judge’s consent.”64 The party

seeking a modification “carries the burden of demonstrating good cause.”65 “The good cause

standard requires the ‘party seeking relief to show that the deadlines cannot reasonably be met

despite the diligence of the party needing the extension.’”66As the Fifth Circuit has explained, the

four factors bearing on good cause under Rule 16(b) are: “(1) the explanation for the failure to

timely [comply with the scheduling order]; (2) the importance of the [modification]; (3) potential

prejudice in allowing the [modification]; and (4) the availability of a continuance to cure such

prejudice.”67

Looking to the factors, the Court finds that Defendants have shown good cause to continue

the trial. Plaintiff offers no explanation for why it waited until near the close of discovery to

disclose to Defendants the quantum of damages it had incurred from the incident and from

Plaintiff’s repair efforts. Although the damage assessment may have been “ongoing,” Plaintiff is

under a continuing obligation to update its initial disclosures “in a timely manner” when it “learns

63 Id. at 9.

64 Fed. R. Civ. P. 16(b)(4).

65 Yuspeh v. State Farm Fire & Cas. Co., No. 07-9491, 2008 WL 4758627, at *2 (E.D. La. Oct. 29, 2008)

(Africk, J.).

66 Sw. Bell Tel. Co. v. City of El Paso, 346 F.3d 541, 546 (5th Cir. 2003) (quoting S&W Enters., L.L.C. v.

SouthTrust Bank of Ala., NA, 315 F.3d 533, 535 (5th Cir. 2003); 6A Charles Alan Wright et al., Federal Practice and

Procedure § 1522.1 (2d ed. 1990)).

67 Squyres v. Heico Cos., 782 F.3d 224, 237 (5th Cir. 2015) (citing Meaux Surface Prot., Inc. v. Fogleman,

607 F.3d 161, 167 (5th Cir. 2010)).

that in some material respect the disclosure or response is incomplete.”®

Moreover, Defendants have shown the importance of the continuance. Continuing the trial

will allow Defendants to adequately prepare for a single and complete trial, rather than two

separate trials on liability and damages. Additionally, now that Defendants have more complete

information about the quantum of damages, the parties may be better able to reach a compromise,

especially considering the difference in the security provided (approximately $18 million) and

Plaintiffs summary of damage claim amounts (approximately $4 million). Likewise, the Court

finds that Defendants would suffer substantial prejudice if they were required to complete

discovery in the limited time remaining because of Plaintiffs late disclosure. Finally, Plaintiff has

not shown that it would be unduly prejudiced by a continuance.

IV. Conclusion

For the foregoing reasons,

IT IS HEREBY ORDERED that Defendants’ “Motion to Continue Trial and Pretrial

Deadlines””° is GRANTED.

IT IS FURTHER ORDERED that the parties contact the Court’s case manager within

fourteen days of the date of this Order to schedule a new trial date and related deadlines.

NEW ORLEANS, LOUISIANA, this _ Sth day of October, 2021.

drereste: eluate B.

CHIEF JUDGE

UNITED STATES DISTRICT COURT

68 See Rec. Doc. 29-2 at 4 (Plaintiff's Initial Disclosures); Rec. Doc. 35 at 5 (Plaintiff's Opposition); Fed. R.

Civ. P. 26(e)(1)(a).

69 See Rec. Does. 35 at 2; 35-3 at 1.

7 Rec. Doc. 29.

10

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.