# Petition — Diamond M Drilling Corp. v. Tarlton

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1983
- **Citation:** 463 U.S. 1206

## Text

+S 2 ~ 1 2 76 sane yn us. |
NO JAN SI 1983

ei.oyvsbiOr no i STEVAS,
~~ GLERK

aon ES

Supreme Court of the United States

OCTOBER TERM, 1982

DIAMOND M DRILLING CORPORATION

Petitioner
VERSUS
DAVID R. TARLTON AND
EXXON CORPORATION
Respondents

ON WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

PETITION FOR WRIT OF CERTIORARI

PHILIP E. HENDERSON

HENDERSON, HANEMANN & MORRIS
300 Lafayette Street

Houma, Louisiana 70360

Telephone: 504/868-2081

Attorneys for Petitioner,
Diamond M Drilling Corp.

A B Letter Service, Inc., 327 Chartres St., New Orleans, La. (504) 581-5555

i
QUESTIONS PRESENTED FOR REVIEW

1. When the trial court enters an original judgment
and then a superceding judgment— whether, as held by the
court below, the ten day time limitation for post-judgment
relief at the trial court level must run from the original
judgment rather than the superceding judgment despite
the fact that the superceding judgment makes a change of
substance which revised legal obligations of the litigants?

2. Whether it is proper for an appellate court to take
judicial notice of the appropriateness or inappropriateness
of a safety practice in a similar but factually
distinguishable circumstance and apply that ‘‘fact’”’ (the
appropriateness vel non of the safety practice) to ad-
judicate the liabilities in the case before it where counsel
are not given the opportunity to cross examine or present
contrary evidence relative to the appropriateness of the
safety practice in the fact situation borrowed from by the
appellate court?

3. Whether a jury charge with respect to the issue of
damages is proper where the sole reference to inflation was
“you may also take into consideration the decreased buy-
ing power of the dollar or what is commonly called infla-
tion’’, no guidelines etc. relative to the consideration of in-
flation being given?

ii
LIST OF PARTIES

Pursuant to the Supreme Court rule 21(b) and 28.1,
the counsel for petitioner certifies that all parties to this
proceeding are:

Diamond M Drilling Corporation

Exxon Corporation

David R. Tarlton

Goldean Meadow Enterprises, Inc.

Eserman Offshore Services

Coastal Boat Operators, Inc.

Diamond M Drilling Corporation is a wholly owned
subsidiary of Kaneb Services, Inc. Corporations related to
Kaneb Services, Inc. and/or Diamond M Drilling Corpora-
tion in a subsidiary, affiliate or parent relationship are:

PLT Engineering, Inc.

Kaneb Pipe Line Company

Interstate Coal—Executive

Stansbury & Company, Inc.

The Rein Company

PLT (BV)

PLT (PTY, LTD.)

Texas Energy Services, Inc.

Mustang Coal, Inc.

Phillips & Jordan, Inc.

Four G Investment Corporation

Interstate Coal Company, Inc.

Mountain Clay, INc.

Leeco, Inc.

Kaneb Coal Division

Eagle Creek Resources, Inc.

Ikerd-Bandy Company, Inc.

PLT (NZ)

Randall Fuel Company, Inc.

Weaver Oil and Gas, Australia

Perthshire Petroleum, Ltd.

Weaver Oil and Gas Corporation

Mesozoic Resources, Ltd.

Alpine Coal, Inc.

Ken-Coal, Inc.

United States Coal Company

Intercomp Resource Development and Engineer-
ing, Inc.

DFW Business Forms & Computer Supplies

American Oilfield Products, Inc.

Highland Coal, Inc.

Diamond M Company

Mechlenburg Coal & Mining, Inc.

Grove Coal Company

Welsh Drilling & Service, Inc.

Houston Rental Equipment, Inc.

Farmer Coal Company

Diamex Company

Consolidation (PLT & Subsidiaries)

PLT (Offshore Ltd.)

Gillette Minerals

Enhanced Energy Resources, Inc.

OTEK Equipment Manufacturing, Inc.

Kem Coal Company

Typo Mining

iv

Aceco, Inc.

EER—Brookwood Project

Kaneb Investment Corporation

Kaon Surety and Indemnity Company

Security, Incorporated

Polls Creek

Bituminous-Laurel Mining, Inc.

Energy Storage Terminals, Inc.

Vermont Wood Products, Inc.

Petroleum Operating and Support Services, Inc.
(Houston)

Petroleum Operating and Support Services, Inc.
(New Orleans Operations)

Integrated Graphic Services

Coal Consolidated

Vv

TABLE OF CONTENTS

Page
Questions Presented For Review.........ssssssssssesrerseenseeenenees i
List Of Parties............::cccsscccsssssscssreeesseesssseesssrreseessessssesssenneees ii
Table of Contents. .........:cssscsccssseeseesreessesseseerssresereessssnnessnenes v
Table of Authorities............ccccsceseeseeeesersereseeeseeassneennesnnes vii
Opinions Below..........ssssssssssssesssneenensenennensansarsnsenensensnsensanensenss 1
Statement of Jurisdictional Grounds............0sseeeserereneerers 1
Federal Rules of Civil Procedure Involved............::++++s+s+s+++ 2
Statement of the Case.........ssecseeseeseeeeeeserserserreeeesensnersrsenees 3
Reasons for Granting the Writ...........sssssssesereeesensnsnreres 7

The writ should be granted because the appellate
decision (1) abolishes the right of the litigants to
post-judgment relief in the trial court in certain
situations, a right long recognized by this court
to be important to litigants; the rule should be, as
held in other decisions, that when there is a
superceding judgment the second judgment
begins the running of the ten day limitation for
seeking post-judgment relief at the trial level if it
revised the obligations of the litigants (2) misuses
judicial notice of facts at the appellate level; this
court should not only correct the error but also
set out the criteria for judicial notice at the ap-
pellate level and (3) pronounced as appropriate
the jury instruction with respect to damages in
which the jury was told simply, with no guide-
lines being given, that it could take inflation into
consideration; whether a jury in a maritime case
should be told it may consider inflation, and if so,
the guidelines for such instructions are in today’s
state of the jurisprudence issues which should be
resolved by this court. The circuits are in conflict
on this issue.

a a de serinsapeneionh 19
a os scssasesenebnntonanenad 19
Appendix A—Opinion of the Court of Appeals................ A-l

Appendix B—Order of the Court of Appeals
Denying Petition for Rehearing.....................:cc0000+ A-22

vii

TABLE OF AUTHORITIES
Page

Federal Rule of Civil Procedure 59.....c..cccsccccssssssssoosssseecccss.., 2
Cases:
Byrd v. Reederi,

GSS F.2d 260, 6 Cir. 19B2.....0.cccscecccessesccesseescesoesosesee.-es,, 17
Cornist v. Richland Parish School Board,

Fee A POs MOF seisnssicisicssessbvisinceinccissssocsssessicee, 0)
Culver v. Slater Boat Co.,

688 F.2d 280 (5 Cir. 1982).........csccssssssecsessessscssecsceeseseese, 17
Hebron v. Union Oil of Calif,

634 F.2d 245 (5 Cir. 1981).........sccscssssesssessessssssseoesssesossss,, 6
Johnson v. Penrod Drilling Co.,

510 F.2d 234 (5 Cir. 1975); cert. denied,

423 U.S. 839, 96 S.Ct. 68, 46 L.Ed. 2d 58...cccccc.0......... 16
Pfeifer v. Jones & Laughlin Steel Corp.,

678 F.2d 453 (3 Cir. 1982).........csccscsscsessessessesoseseseeeesss,, 18
U.S. v. Indrelunas,

411 U.S. 216, 217, 93 Ct. 1562, 1563,

36 L.Ed. 2d 202 (1973)........e.cssssecsesssssecsessessessesseesseseesesse, 9

1

IN THE
SUPREME COURT OF THE UNITED STATES

OCTOBER TERM, 1982

DIAMOND M DRILLING CORPORATION
Petitioner

VERSUS

DAVID R. TARLTON AND
EXXON CORPORATION
Respondents

ON WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

PETITION FOR WRIT OF CERTIORARI

OPINIONS BELOW

The opinion of the Court of Appeals is reported at __
F.2d __ (5th Cir. 1982) and is reproduced as Appendix A
and the order of the Fifth Circuit denying the petition for
rehearing is reproduced as Appendix B.

STATEMENT OF JURISDICTIONAL GROUNDS

Judgment was rendered on September 27, 1982 by
the United States Court of Appeals for the Fifth Circuit.
Petition for rehearing was timely filed and the order deny-
ing Diamond M Drilling Company’s request for rehearing

2

was entered on November 12, 1982. This petition for writ of
certiorari was filed within 90 days of the date of the denial
of Rehearing.

The jurisdiction of this Court is invoked under 28
U.S.C. Section 1254(1).

FEDERAL RULE OF CIVIL PROCEDURE INVOLVED

In pertinent part rule 59 of the Federal Rule of Civil
Procedure provides:

(a) GROUNDS. A new trial may be granted to all
or any of the parties and on all or part of the
issues (1) in an action in which there has been a
trial by jury, for any of the reasons for which new
trials have heretofore been granted in actions at
law in the courts of the United States;....

(b) TIME FOR MOTION. A motion for a new
trial shall be served not later than 10 days after
the entry of the judgment...

(d) ON INITIATIVE OF COURT. Not later than
10 days after entry of judgment the court of its
own initiative may order a new trial for any
reason for which it might have granted a new trial
on motion of a party. After giving the parties
notice and an opportunity to be heard on the mat-
ter, the court may grant a motion for a new trial,
timely served, for a reason not stated in the mo-
tion. In either case, the court shall specify in the
order the grounds therefor...

3
STATEMENT OF THE CASE

David Tarlton was injured while serving as captain
of the M/V BECT I, a vessel under charter to Exxon which
was used to service certain Exxon fixed platforms which
were located in the outer continental shelf off of the coast
of Louisiana. At the time, the seas were running six to
eight feet. Notwithstanding the substantial seas the plat-
form crane operator, an employee of Diamond M Drilling
Company, loaded drill collars (heavy pipe approximately
thirty feet in length by six inches in diameter) onto the
deck of the BECT I. Tarlton was not aware that the drill
collars were being loaded onto his boat until after they
were aboard. While attempting to assist the deck personnel
in securing the drill collars, which were rolling about the
deck, Tarlton was injured by the rolling drill collars.

The claim asserted against Diamond M was that its
employee crane operator should not have lowered the
tubular material (the drill collars) onto the boat, consider-
ing the height of the seas. The claims against Exxon were
that it on prior occasions dispatched supply boats of the
size of the BECT I to receive drill collars in seas of the
same height and that the Exxon representatives on the
platform on prior occasions had always condoned the
loading, and these prior! practices were factors influencing

I The prior practcies were what was at issue; on the night of the ac-
cident the Exxon representative on the platform was asleep and had no
knowledge of the then occurring activities. The prior practices were ad-
mitted by the Exxon marine transportation superintendent (tr.965,966)
and by the Exxon representative on the platform (tr.1020). The Diamond
M crane operator, the Exxon marine transportation superintendent

4

the crane operator to lower the drill collars on the occasion
of the accident. Exxon was the ultimate authority on the
job; all companies involved were working under contract to
Exxon.

The case was tried to a jury, which returned a special
verdict finding Diamond M and Exxon liable to Tarlton,
with fault percentages of 95% and 5%, respectively. The
jury awarded Tarlton $450,000.00 in damages. The jury
had been charged that in assessing damages it may take in-
flation into consideration.

The plaintiff's employer and the boat operator were
additional defendants and were cross defendants. The jury
exonerated them from negligence; the trial judge, rather
than the jury, was to rule upon the contractual matters
which were the bases of the cross claims relative to them.

Exxon and Diamond M had entered a stipulation on
the record, based upon the contractual arrangement” be-
tween them that if Diamond M and Exxon were each found
at fault Exxon would pay the entirety of any portion
of the award against Diamond M.

(Footnote 1 continued)
and the Exxon representative on the platform admitted that the practice
was unsafe. (tr. 64-65, 965-966, 1004-1005).

2 The contract provided that Exxon would indemnify Diamond M
for all claims by employees of Exxon or its subcontractors unless Dia-
mond M was solely at fault; a similar indemnity ran in favor of Exxon for
claims by Diamond M employees or employees of Diamond M subcon-
tractors, Exxon had the responsibility of providing marine transporta-
tion to the platform, and thus the employees on the BECT I were
employees of Exxon subcontractors.

5

The trial judge first entered judgment relative to the
main demand only; this judgment was in accordance with
the verdict.

Within 10 days of entry of this judgment Exxon
moved for judgment notwithstanding the verdict and
sought a remittitur. Under the stipulation between it and
Diamond M, Exxon was liable for the entire verdict.

The hearing on the motion for judgment n.o.v. and
remittitur was held more than ten days after the entry of
the judgment relative to the issues on the main demand.
Following the hearing on the motions the trial judge
granted Exxon’s motion for judgment n.o.v., totally ex-
onerating Exxon, and simultaneously, sua sponte, granted
a new trial unless the plaintiff remits $75,000.00 of the
award, and entered a judgment? in which the cross claims
as well as the main demand were treated.

Diamond M appealed. The plaintiff also appealed
contending that the trial judge erred in granting the remit-
titur.4

* Clearly this judgment rather than the earlier judgment entered
on the main demand only is the “final judgment” for appeal purposes,
but as the Court of Appeals pointed out in its opinion (see appendix A,) a
judgment which will start the 10 day post trial relief time limit running
does not, under existing jurisprudence, have to be a “final judgment.”
However, as argued in this petition, the time limit should run anew if
there is a superceding judgment revising the substance of the first judg-
ment.

4 There were also appeals relative to the cross claims involving the
other defendants; these are not at issue now.

The Court of Appeals affirmed the trial judge's judg-
ment n.o.v, exonerating Exxon, To do so it took judicial
notice of a statement of fact embodied in a holding of
another case—a case which is critically different than the
instant case, In the instant case the Court of Appeals held
“a platform owner is not negligent for dispatching a supply
vessel in six to eight foot seas, seas admittedly rough but
not necessarily dangerous for loading or unloading’’, citing
Hebron v, Union Oil of Calif, 634 F2d 245 (5 Cir, 1981)—
but the material loaded in the Hebron case was a pre
fabricated '‘A-frame"’, not tubular goods which would like-
ly roll back and forth on the small boats’ deck prior to its
being secured.

The Court of Appeals approved the jury charge
relative to inflation, With no guidelines being given, the
jury was simply told that it could take inflation into con-
sideration.

With respect to the remittitur the Court of Appeals
held that the granting of the $75,000.00 remittitur was er-
ror because it was untimely. The appeal court held that a
motion for remittitur by Diamond M or the trial judge's
granting of the remittitur sua sponte had to have occurred
within ten days of the first judgment in order to have been
timely, and accordingly vacated the granting of the remit-
titur.

A petition for rehearing was timely filed by Diamond
M and was denied on November 12, | #62.

7
REASONS FOR GRANTING THE WRIT

It is respectfully submitted that the writ should be
granted because the appellate decision (1) abolishes the
right of the litigants to post-judgment relief in the trial
court in certain situations, a right long recognized by this
court to be important to litigants; the rule should be, as
held in other decisions, that when there is a superceding
judgment the second judgment begins the running of the
ten day limitation for seeking post-judgment relief at the
trial level if it revised the legal rights and obligations of the
litigants (2) misuses judicial notice of facts at the appellate
level; this court should not only correct the error but also
set out the criteria for judicial notice at the appellate level
and (3) pronounced as appropriate the jury instruction with
respect to inflation in which the jury was told simply, ‘You
may also take into consideration the decreased purchasing
power of the dollar, or what is commonly called inflation.”’;
whether a jury in a maritime case should be told it may
consider inflation, and if so, the guidelines for such instruc-
tions are in today's state of the jurisprudence issues which
should be resolved by this court. The circuits are in conflict
on this issue.

The matters above will be treated in this petition in
the order set forth above.

POST-JUDGMENT RELIEF AT THE TRIAL LEVEL

If a superceding judgment is entered adverse to the

originally successful litigant that litigant should have an
opportunity for relief by the trial judge.

Rule 59 of the Federal Rules of Civil Procedure pro-
vides that ‘not later than ten days after entry of the judg-
ment’ a party may move for post-judgment relief or the
trial judge may grant it on his own initiative, sua sponte.

In the instant case the appellate court abolished the
originally successful litigant's right to relief from the
superceding judgment; the court below held that the ten
day period for post-judgment relief from the district court
begins to run at the entry of the first judgment regardless
of whether the second judgment, entered more than ten
days after the original judgment, reversed the liability.
That is precisely what happened in the instant case,

The record stipulation between defendants Diamond
M and Exxon is that if Exxon is decreed to be at fault to
any degree, Exxon is to pay the entirety of the judgment.
The first judgment was entered upon the jury verdict that
Exxon was negligent and liable in the amount of 5%; the
judgment accordingly was entirely favorable to Diamond
M. Under the judgment Diamond M was required to pay
nothing and the entire liability was to be borne by Exxon.
Exxon within ten days of that original judgment filed mo-
tions for post-trial relief including remittitur. More than
ten days after the original judgment the judge entered a

superceding judgment and concurrently, sua sponte,
entered an order granting a new trial unless the plaintiff

9

remits $75,000.00 of the jury award. In the superceding
judgment Exxon’s liability was removed and the entirety
of the liability placed on Diamond M such that instead of
being totally exonerated, Diamond M was, under the terms
of the superceding judgment, totally liable. Yet the ap-
pellate court held that Diamond M's opportunity for post
trial relief (the $75,000.00 remittitur) had expired before
the judgment adverse to it was rendered! Accordingly the
court below held that the sua sponte remittitur which was
entered concurrently with the superceding judgment was
untimely because it was not within ten days of the original
judgment.

Rule 59 of the Federal Rules, the rule setting forth
the rights of litigants for post-judgment relief in the trial
court, contains important rights, rights which must not be
abolished.

The right to post-judgment relief at the trial court
level is of importance and concern to every litigant in
Federal Court. (See U.S. v. Indrelunas, 411 U.S. 216, 217,
93 Ct. 1562, 1563, 36 L.Ed. 2d 202 (1973)).

In a case treating the issues as to whether the ten
day period should begin to run at the entry of the
superceding judgment the court in Cornist v. Richland
Parish School Board 479 Fd.2 37 (5 Cir. 1973) ruled:

“The District Judge on May 1, 1972 signed the
new judgment and wrote in “amended” as re-
quested. The new judgment ordered reinstate-

10

ment of plaintiffs as before, but omitted, among
other things, the provision quoted above relating
to Sidney Perkins and instead simply provided in
place of the above quoted excerpt from the judg-
ment the following:

‘{A]jll other issues were taken under advisement.’

Richland filed its Motion for New Trial on May
10, 1972. Whether it was timely and within the
ten day time limit specified by Rule 59(b), Federal
Rules of Civil Procedure depends upon the ques-
tion whether the May 1 Amended Judgment was
the judgment contemplated by that subsection.
On July 20, 1972 the District Judge denied the
Motion for New Trial ‘having been filed too late’
and determined that the April 20 judgment was
the final judgment of the Court.

[1] The Supreme Court said in United States v.
Indrelunas, 411 U.S. 216, 217, 93 S.Ct. 1562,
1563, 36 L.Ed. 2d 202 (1973), a related case, that a
‘conflict on an issue such as this is of importance
and concern to every litigant in a federal court,
since, as this case makes clear, the timeliness of
appeals, as well as the timeliness of post-trial mo-
tions, may turn on the question of when judg-
ment is entered’. To decide when judgment was
entered in this case insofar as Rule 59(b) purposes
are concerned, we must refer to a general rule
enunciated by a long line of judicial authority,
that the second judgment prevails and begins the
running of the 10-day limitation, if it is a
superceding judgment making a change of
substance which ‘disturbed or revised legal rights
and obligations’. Federal Trade Comm'n v.
Minneapolis-Honeywell Regulator Co., 344 U.S.
206, 211-212, 73 S.Ct. 245, 248-249, 97 L.Ed. 245
(1952). See Federal Power Comm’n v. Idaho
Power Co., 344 U.S. 17, 19-22, 73 S.Ct. 85,86-87,

11

97 L.Ed. 15 (1952); Zimmern v. United States,
298 U.S. 167, 56 S.Ct. 706, 80 L.Ed. 1118 (1936).
However, if the Court does no more in the second
judgment than make a clerical change, such as
correct the names of parties or dates, the time for
filing motions does not start to run from entry of
the second judgment, but rather runs from date
of the first judgment. See Department of Bank-
ing v. Pink, 317 U.S. 264, 63 S.Ct. 233, 87 L.Ed.
254 (1942); United States v. 1,431.80 Acres of
Land, 8 Cir., 1972, 466 F.2d 820; Albers v. Gant, 5
Cir. 1970, 435 F.2d 146; Lieberman v. Gulf Oil
Corp., 2Cir., 1963, 315 F.2d 403.

It is respectfully submitted that this court should
overturn the precedent for erosion of litigants’ rights to
post-judgment relief at the trial court level, and should
grant the writ.

JUDICIAL NOTICE AT THE APPELLATE LEVEL

In the instant case there was misuse of judicial
notice of facts at the appellate level. The court hinged its
decision on its judicial notice of ‘fact’ the contrary of
which was established in the trial and admitted by the in-
terested litigants. That the Appellate court was going to
judicially notice the ‘‘fact’’ was a surprise to counsel. The
Appellate Court’s conclusion that the ‘‘fact’’ is in-
disputable was based on a misapprehension as will be seen
below. It is respectfully submitted that this court should
reverse the decision and set out the proper criteria for
judicial notice of facts at the appellate level.

12

The court below, with respect to the key issue of
whether or not the jury could have found Exxon 5%
negligent, stated:

“Diamond M maintains that Exxon represen-
tatives previously had condoned loading vessels
in six to eight foot seas, a practice cited as
negligent. Although this proposition bears some
surface appeal, it fades upon closer examination.
As we held in Hebron v. Union Oil Co. of Calif,
634 F.2d 245 (5th Cir. 1981), a platform owner is
not negligent for dispatching a supply vessel in
six to eight foot seas, seas admittedly rough but
not necessarily dangerous for loading or
unloading. Such activity is not at all unusual at
the myriad offshore platforms in the gulf.”’

The fact situation in the instant case was critically
different from the situation in the case of Hebron v. Union,
the case in which the court held, as indicated above, that
the dispatching of a supply vessel in six to eight foot seas
is not necessarily dangerous. The critical difference is that
the cargo at issue in the instant case was tubular such that
it would likely roll from side to side on the pitching vessel
and thereby be far more dangerous than something that
was not tubular and would not constantly roll the width of
the vessel. The cargo in the Hebron case was a
prefabricated A-frame whereas the cargo in the instant
case was tubular i.e., drill collars (which are heavy pipes).

The experts consulted and questioned in the instant
case stated that six to eight foot seas while rough, are not
too dangerous to handle non tubular goods (their state-

13

ments being perfectly consistent with the court's
“holding” in Hebron), but they drew a definite distinction
when the cargo was to be tubular such as drill pipe or drill
collars. This distinction is precisely the reason why the
undersigned in questioning the Exxon experts always was
careful to use the words ‘tubular goods” or ‘drill collars”
in his questions relative to whether the practice was un-
necessarily dangerous! With reference being made to
tubular goods or “drill collars’ the Exxon personnel
themselves admitted that the practice was unsafe!

The jury listened to the evidence. The jury caught
the distinction between tubular goods and non-tubular
goods.

If some expert or other “‘pronouncer’” would have
said to the jury that Exxon could not be negligent for in-
stigating on a regular basis procedures requiring the handl-
ing of tubular goods in six to eight foot seas because it is
not necessarily negligent to send prefabricated A-frames in
six to eight foot seas for handling the undersigned in cross
examination and in closing arguments would have made
short work of such experts or ‘“‘other pronouncer” as would
the alert jurors in their deliberations.

In fact, if, as the lower court concluded from the A-

° Stevedoring operations in ports, such as the ports of New York,
Philadelphia, New Orleans, etc., ae always conducted in the calmest of
waters. Imagine the hazards in conducting stevedoring operations on
small boats in waters which cause them to roll from side to side and go
up and down—particularly when the cargo is heavy and will roll.

14

Frame case (the Hebron case), it is not negligent to load
tubular goods in six to eight foot seas—then Diamond M
did nothing wrong (the only negligence attributable to Dia-
mond M is its crane operator's lowering of tubular goods
on the vessel in six to eight foot seas) and the trial judge
should have directed a verdict in Diamond M’s favor. It is
only because tubular goods are different from other type of
goods that liability was visited!

The simple fact is that seas which are too rough for a
deck crew to be handling tubular goods may not necessari-
ly be too rough for a deck crew to handle non tubular
goods, such as a prefabricated A-frame which will not con-
stantly roll from side to side. The accident at issue occur-
red when the tubular goods were rolling from one side of
the pitching boat to the other side—back and forth. The
other cargo which had been loaded onto the boat in the ins-
tant case did not cause a problem and was readily accepted
by the captain—-the tubular goods were a different story,
by everybody’s testimony.

The issue before the jury was simply whether
Exxon’s prior consistent practice of regularly sending
vesseis the size of the BECT I to receive tubular goods in
six to eight foot seas constituted negligence causally
related to plaintiff's injury. Both the Exxon transportation
supervisor, the man who is in charge of dispatching the
vessels with cargo and who makes decisions with respect
to the appropriateness of the cargo and the seas and the
Exxon man at the platform admitted that the sending of

15

vessels to receive tubular goods in six to eight foot seas is
unsafe but that Exxon does it anyway! The jury believed,
as rightly they could, and should, that the crane operator's
decision to lower the tubular goods in the six to eight foot
seas was related to, at least partially caused by, his prior
experience on that Exxon platform. The crane operator did
not lower the drill collars in a vendetta against anyone on
the vessel. He simply did what he thought was expected of
him.

The fact that the Exxon representative on the plat-
form was asleep at the moment of this particular loading is
a ‘‘red herring’’ and has absolutely nothing to do with the
issue of Exxon's negligence in having on prior occasions
regularly actively fostered as well as condoned the admit-
ted unsafe practice on its platform.

The jury saw that the real issues were the plaintiff
versus Exxon and the plaintiff versus Diamond M. The
jury saw vis-a-vis the plaintiff and Exxon, Exxon was in-
deed partially at fault.

The fact which the appellate court overlooked or
misapprehended in its judicial notice of fact was that a
definite distinction is to be drawn between the handling of
tubular goods in six to eight foot seas and the handling of
non tubular goods under those same conditions.

It is respectfully submitted that it is improper for
the court to have used testimony relative to what was safe

16

under the circumstances existent under some other case—
particularly a borderline safety case—as the criteria for
safety in this (or any other) case which involved dif-
ferences, some subtle, some not so subtle.

The undersigned had no opportunity to cross-
examine the parties in the ‘other case" nor any opportuni-
ty to present his own experts to contradict whatever ex-
pert, if any, that testified in the other case.

It is respectfully submitted that this court should
correct the error and set out the appropriate criteria for
judicial notice of facts at the appellate level.

INFLATION

The trial judge with respect tc the issue of damages
gave the following instruction:

“You may also take into consideration the
decreased purchasing power of the dollar, or what
is commonly called inflation’’.

The above was the only mention made as to inflation.

The United States Court of Appeals for the Fifth Cir-
cuit in Johnson v. Penrod Drilling Co., 510 F.2d 234 (5 Cir.
1975); cert. denied, 423 U.S. 839, 96 S.Ct. 68, 46 L.Ed 2d
5£, neld that it was error for the jury to have been charged
that it may take inflation into account in fixing the damage
award,

17

In Johnson v. Penrod Drilling Co., the court, sitting
en banc, ruled:

“We judicially notice that inflationary condi-
tions in this nation’s economy have worsened in
the interim between the November 21, 1972 panel
opinion and today and we recognize that this ac-
celerating rate of inflation increases the likeli-
hood that inflation could become a predictable
condition for the future. Nevertheless, with this
added light, we still cannot so surely discern the
shadow of inflation as a coming event as to war-
rant requiring its inclusion in a present rule for
calculating future damages. The worsening of in-
flation might as readily foretell a recession or a
depression as its continuity. Strong governmen-
tal countermeasures have been proposed and
their efficacy is still unknown. Then too, if future
inflation does cause higher wages, experience
predictably demonstrates that higher interest
rates on investments which have always accom-
panied inflation will also occur and this factor wil!
mtiigate the failure to include an inflationary sur-
charge in wage rate calculations. In addition to
the Second and Sixth Circuit decisions cited in
Judge Simpson's opinion, we note that three
other circuits appear to agree with this pro-
cedure. Cunningham v. Bay Drilling Company,
421 F.2d 1398 (5th Cir. 1970) is overruled. To the
intent that Canal Barge Company, Inc. v. Grif-
fith, 480 F.2d 11 (5th Cir. 1973) announced a con-
trary view, that opinion cannot stand.

(Quoted from 510 F.2d at 235, 236).

Recently the Fifth Circuit, en banc, in Byrd v.
Reederi, 688 F2d 324, 5 Cir, 1982 and Culver v. Slater Boat
Co., 688 F2d 280, 5 Cir. 1982 reversed Johnson v. Penrod

18

Drilling Co., but in so doing held that certain guidelines
with respect to the inflation issue must be followed.

In the instant case there was, as indicated above,
merely a blanket ‘‘carte blanche” invitation and instruc-
tion, with no guidelines or restrictions, for the application
of an increase to the award because of ‘inflation’.

The United States Court of Appeals for the Third
Circuit in Pfeifer v. Jones & Laughlin Steel Corp., 678 F2d
453 (3 Cir. 1982), cert granted 82-131, 51 LW 3253 not only
held that inflation should be taken into account, it also
specifically approved the “total offset’’ method of
calculating the future effect of inflation. The court held:

‘We therefore hold that the district court did not
err in computing damages for the loss of future
earnings, because it is not necessary to go
through the process of discounting lump sum
awards to theoretical present value; the discount
factor is presumed equal to and offset by the im-
pact of inflation on the future economic value of
the award.”

This court has granted certiorari in the Pfeifer case
under docket number 82-131.

The Fifth Circuit in Culver v. Slater Boat Co.
specifically rejected the ‘‘total offset’’ method. Thus, even
the circuits which approve the giving of an “inflation
charge”’ are in conflict.

“19
It is respectfully submitted that certiorari be
granted in the instant case so that the propriety of the

“carte blanche charge” given in the instant case can be
briefed and considered.

CONCLUSION
For the reasons set forth above, it is respectfully

submitted that this petition for certiorari should be
granted.

PHILIP E. HENDERSON
Attorney for Petitioner

CERTIFICATE

I HEREBY CERTIFY, that a copy of the foregoing
pleading has been served upon counsel for all parties by
placing same in the United States mail, postage prepaid
and properly addressed.

HOUMA, LOUISIANA this
1983.

day of January,

PHILIP E. HENDERSON

Al
APPENDIX “A”

David R, TARLTON, Plaintiff-Appellant,
v.

EXXON, Defendant and Third-Party
Plaintiff-Appellee,

DIAMOND M DRILLING, Defendant and
Third-Party Plaintiff-Appellant-Appellee,

Vv.

GOLDEN MEADOWS ENTERPRISES, INC.,
and Eserman Offshore Services,
Third-Party Defendants-Appellants,

Vv.

COASTAL BOAT OPERATORS,
Third-Party Defendants-Appellees,

No, 80-3478.

United States Court of Appeals,
Fifth Circuit,

Sept. 27, 1982.

Captain of vessel used to service offshore platforms
sued platform owner and drilling operator to recover for in-
juries sustained while attempting to secure drill collars
which a crane operator for drilling contractor had placed on
board the vessel, Third-party claims were filed. The United
States District Court for the Eastern District of Louisiana,
Adrian G, Duplantier, J., granted platform owner's motion

A-2

for judgment n.o.v. and ordered new trial conditioned of
remittitur, and appeal was taken, The Court of Appeals,
Politz, Circuit Judge, held that; (1) evidence established
that cause of accident was decision by crane operator to
sneak" the drill collars on board the vessel; (2) although
platform owner's motion extended time for filing notice of
appeal it did not extend time for the court to sua sponte
order a new trial; and (3) injuries did not arise out of
“operations of the vessel’’ within meaning of indemnity
agreement.

Affirmed in part, vacated in part and reversed in
part.

1, Federal Civil Procedure 2608

A mere scintilla of evidence is not sufficient to sus-
tain a jury determination and thereby avoid judgment
n.o.V,

2. Federal Civil Procedure 2609

In evaluating a motion for judgment notwithstand-
ing the verdict, the district court must review the evidence
in the light most favorable to the verdict.
3. Principal and Agent (2)

A principal cannot be held answerable for failure to
supervise an independent contractor.

A-3
4,Seamen 21)

An offshore platform owner is not negligent for
dispatching a supply vessel in six vo eight-foot seas, seas
admittedly rough but not necessarily dangerous for
loading or unloading.

5. Seamen 295,14)

Evidence in servic boat captain's action to recover
for injuries sustained while securing drill collars which had
been loaded by independent contractor's crane operator for
a return trip to shore established that cause of accident
was not action of offshore platform owner's representative
in condoning loading of vessels in six to eight-foot seas in
the Gulf of Mexico but the decision by the crane operator
to sneak" the collars on board the vessel, in that captain
had agreed to transport empty food box, a few passengers
and “some other small things’’ to shore,

6. Jury 31(7%)

Granting of a new civil trial, to be avoided only be ac-
ceptance of remittitur, did not violate Seventh Amend-
ment, U.S.C.A, Const, Amend, 7,

7. Federal Civil Procedure 2366

Time limit for filing a new trial motion is mandatory
and jurisdictional and cannot be extended by the trial

A-4
court. Fed. Rules Civ. Proc. Rule 59(b), 28 U.S.C.A.

8. Federal Civil Procedure 2366

A party may not belatedly join another litigant’s
new trial motion and thereby circumvent the jurisdictional
limits for filing a new trial motion. Fed. Rules Civ. Proc.
Rule 59(b), 28 U.S.C.A.

9. Federal Civil Procedure 2364

Expansion of trial court’s power to order a new trial
for reasons not raised by the movant does not operate to
extend the period in which the court can grant a new trial
on its own initiative. Fed. Rules Civ. Proc. Rule 59(d), 28
U.S.C.A.

10. Federal Civil Procedure 2364

Absent timely motion for a new trial or an order by
the trial judge within ten days of entry of judgment, the
trial court was without jurisdiction to sua sponte order a
new trial. Fed. Rules Civ. Proc. Rule 59(d), 28 U.S.C.A.

11. Federal Civil Procedure 2364

Word “‘judgment”’ in rule authorizing a trial court to
sua sponte grant a new trial not later than ten days after
entry of judgment does mean ‘final judgment”’ or “‘ap-
pealable judgment”’ and, hence, fact that motion for judg-

A-5
ment n.o.v., new trial or remittitur extended time for filing
notice of appeal did not mean that it likewise extended the

time for sua sponte order of new trial. Fed. Rules Civ. Proc.
Rule 59(d), 28 U.S.C.A.

12. Federal Civil Procedure 2364

Rule authorizing trial court to sua sponte order a
new trial not later than ten days after entry of judgment is
designed to empower the trial judge to correct an injustice
occasioned, primarily, by a jury verdict. Fed. Rules Civ.
Proc. Rule 59(d), 28 U.S.C.A.

13. Indemnity 8(4)

Where at time of injury captain of vessel used to ser-
vice offshore platforms was attempting to secure tubular
drilling collars that had been loaded onto the vessel surrep-
titiously and negligently by an independent contractor
which conducted drilling operations the accident did not
arise either from the ‘‘operation of the vessel’”’ within mean-
ing of charter agreement and was not encompassed by in-
demnity clause of service agreement for vessel operation,
which clause applied to omissions while performing or at-
tempting to perform the services contemplated.

See publication Words and Phrases for other
judicial constructions and definitions.

A-6
14. Damages 212

In action by captain of offshore platform service
vessel to recover for injuries sustained in attempting to
secure drill collars it was not error to charge that present
rate of inflation could be considered in assessing damages
award.

Appeals from the United States District Court for
the Eastern District of Louisiana.

Before POLITZ and RANDALL, Circuit Judges*.
POLITZ, Circuit Judge:

David tarlton was injured while serving as the cap-
tain of the M/V BECT I, a vessel owned by Eserman Off-
shore Services, chartered to Exxon and operated by
Golden Meaddows Enterprises, Iac. The BECT I was used
to service offshore platforms. On the day of Tarlton’s acci-
dent, it delivered food supplies to an Exxon platform, on
which Diamond M Drilling Company conducted drilling
operations.

After the food box was off-loaded, a Diamond M
employee asked Tarlton to transport the empty food box, a
few passengers, and ‘“‘some other small things” to shore.

* Jack M. Gordon, District Judge of the Eastern District of Loui-
siana, sitting by designation, was a member of the panel which heard
oral argument. Because of his death, this case is being decided by a
quorum, 28 U.S.C. § 46(d).

A-7
Tarlton agreed. At the time, seas were running six to eight
feet. Notwithstanding the substantial seas, the platform
crane operator, an employee of Diamond M, loaded tubular
drill coilars onto the deck of the BECT I. Tarlton was not
aware the “small things’’ were drill collars until after they
were placed aboard. It was imperative that the drill collars,
which were rolling about the deck, be secured. While at-
tempting to do so, Tarlton was injured. During this unfor-
tunate scenario, late in the evening, Exxon’s platform
representative was not on the platform deck; he was asleep.

Tarlton initially filed a seaman’s complaint against
Diamond M and Exxon, later amending to add Eserman,
Golden Meadows and Coastal Boat Operators (the com-
pany which brokered the BECT I to Exxon) as additional
defendants. Tarlton also alleged the unseaworthiness of
the BECT I and sought maintenance and cure in his claim.

Eserman and Golden Meadows cross-claimed
against Exxon and Diamond M for reimbursement of sums
paid Tarlton for maintenance and cure, sums in fact paid
by American Home Assurance Company. Exxon cross-
claimed against Golden Meadows, Coastal, and Eserman
for indemnification and attorney’s fees pursuant to con-
tracts extant between them. Coastal cross-claimed against
Golden Meadows and Eserman for attorney’s fees and
costs. As the parties went to trial, Exxon and Diamond M
agreed that Exxon would indemnify Diamond M if “‘a final
judgment, after completion of all post-trial motions, ap-
peals, etc. is entered, finding that the plaintiff's alleged

A-8
injuries were proximately caused by the joint negligence of
Diamond and Exxon.”!

The case was tried to a jury, which returned a special
verdict finding Diamond M and Exxon liable to Tarlton,
with fault percentages of 95% and 5%, respectively.
Coastal, Eserman, and Golden Meadows were found free of
fault and the BECT I was found seaworthy. The jury
awarded Tarlton $450,000 in damages and fixed ‘‘10-11-
79” as the date when maximum cure was reached, thus set-
ting the basis for the maintenance and cure award.

Ruling on the various cross-claims, the district court
rejected Eserman’s and Golden Meadows’ demand for
reimbursement of maintenance and cure payments from
Exxon and Diamond M, finding that American Home
Assurance Company had paid these sums and had
specifically waived its subrogation rights.” The court
granted Exxon’s claim against Golden Meadows and Eser-
man for attorneys’ fees and costs and granted Coastal’s
claim against Golden Meadows and Eserman for at-
torneys’ fees and costs.

When Tarlton sued Diamond M, it brought a cross-claim against
Exxon, calling for Exxon to defend, indemnify, and hold it harmless pur-
suant to their contract. Initially, Exxon accepted the demand and
assumed Diamond M's defense. Subsequently, Exxon informed Dia-
mond M that it would no longer defend it. Thereafter, the quoted stipula-

tion was agreed to.

2 By an order ddated May 14, 1980, the district cour’ «mended its
earlier ruling and awarded Golden Meadows $500.00 on its cross-claim
against Diamond M for reimbursement of maintenance and cure.

A-9

Exxon moved for judgment notwithstanding the
verdict and sought a remittitur. The trial judge granted
Exxon’s motion for judgment n.o.v. Additionally, on its
own mction, the trial iudge modified the judgment against
Diamond M by ordering “‘that a new trial on the issue of
damages be held unless plaintiff remits $75,000.00 of the
jury award.”

Four issues are posited for appellate review: (1)
whether the trial court erred in granting Exxon’s motion
for judgment n.o.v.; (2) whether the trial court erred in
granting a motion for a new trial on the amount of damages
conditional on the plaintiff's acceptance of a $75,000 remit-
titur in light of Rule 59(d) of the Federal Rules of Civil Pro-
cedure; (3) whether error was committed in awarding Exx-
on and Coastal costs and attorneys’ fees against Golden
Meadows and Eserman; and (4) whether the trial judge er-
red in instructing the jury to consider inflation as a factor
in assessing Tarlton’s award. Our review of the record com-
pels the conclusion that the district court erred in entering
the remittitur order and in granting Exxon’s and Coastal’s
claims for costs and attorneys’ fees against Golden
Meadows and Eserman. Accordingly, we affirm in part,
vacate in part, and reverse in part.

Judgment Notwithstanding the Verdict
[1,2] The oft-cited decision in Boeing Co. v. Shipman,

411 F.2d 365 (5th Cir. 1969) (en banc) articulates the rubric
in this circuit for the grant or denial of a judgment n.o.v. In

A-10

essence, a mere scintilla of evidence is not sufficient to sus-
tain a jury determination; ‘‘[t}here must be a conflict in
substantial evidence to create a jury question.” Id. at 375.
See, e.g., Hagans v. Oliver Machinery Co., 576 F.2d 97 (5th
Cir. 1978). In the process of evaluating the motion, the
district court is obliged to review the evidence in the light
most favorable to the jury’s verdict. This was done in the
case at bar. Having walked the same path as the trial
judge, we reach the same conclusion.

The record reflects that while the Exxon represen-
tative was on the platform at the time of the accident he
was asleep. He was not aware of the unloading of the
grocery box, that Tarlton had been requested to return
with the emptied box, or that Tarlton had been asked to
transport passengers and other small items. Nor was he
alerted to the fact that the Diamond M crane operator
might surreptitiously place the drill collars on the deck of
the vessel without first consulting Captain Tarlton. The
Exxon representative did not order the loading of the drill
collars; he did not authorize the loading; and he was in no
way forewarned. The only basis suggested for saddling Ex-
xon with negligence is that it sanctioned the type of con-
duct that occurred the night of the accident, i.e., loading in
rough seas.

[3-5] Diamond M maintains that Exxon represen-
tatives previously had condoned loading vessels in six to
eight foot seas, a practice cited as negligent.? Although

9° Diamond M would visit negligence upon Exxon for not prevent-

A-ll

this proposition bears some surface appeal, it fades upon
closer examination. As we held in Hebron v. Union Oil Co.
of Calif., 634 F.2d 245 (5th Cir. 1981), a platform owner is
not negligent for dispatching a supply vessel in six to eight
foot seas, seas admittedly rough but not necessarily
dangerous for loading or unloading. Such activity is not at
all unusual at the myriad offshore platforms in the gulf.

Our review of the testimony convinces us beyond
peradventure that the cause of the accident was the deci-
sion by the Diamond M crane operator to ‘‘sneak’’ the drill
collars on board the BECT I. The crane operator admitted
he had to act stealthily because he believed Captain
Tarlton would not have allowed him to load the tubular
drill collars on the vessel. In view of this testimony and the
other evidence, we are in total agreement with the district
judge that [i]t was the decision to load the drill collars on-
to plaintiff's vessel which was the negligence which caused
plaintiff's injury." The judgment n.o.v. was properly
granted.

Remittitur

[6] Tarlton challenges the remittitur on two grounds.

(Footnote 3 continued)

ing the loading. But it must be remembered that Diamond M was an in-
dependent contractor on Exxon's platform. The crane, the drill collars,
and the employees involved in the accident were under Diamond M's
control. Consequently, aside from the fact that the Exxon representative
did not order or authorize the loading of the tubular drill collars in seas
running six to eight feet, Diamond M must cross the legal hurdle that «
principal cannot be held answerable for failing to supervise an indepen-
dent contractor. See McCormick v. Noble Drilling Corp., 608 F.2d 169
(5th Cir. 1979). This has not been done.

A-12

We discern no merit in the first contention that the grant-
ing of a new trial, to be avoided only by acceptance of the
remittitur, was an unconstitutional act, violative of the
seventh amendment. To the contrary, it is now firmly
established that the remittitur practice is not in conflict
with the seventh amendment. See, e.g., Lowe v. General
Motors Corp., 624 F.2d 1373 (5th Cir. 1980); Shore v.
Parklane Hosiery Co., Inc., 565 F.2d 815 (2d Cir. 1977),
aff'd, 439 U.S. 322, 99 S.Ct. 645, 58 L.Ed.2d 552 (1979);
Bonura v. Sea Land Serv., Inc., 505 F.2d 665 (5th Cir.
1974); Gorsalitz v. Olin Mathieson Chem. Corp., 429 F.2d
1033 (5th Cir. 1970). See also Dimick v. Scheidt, 293 U.S.
474, 55 S.Ct. 296, 79 L.Ed. 603 (1935).

Tarlton’s second attack on the remittitur presents a
serious issue, having at its core the question of the proper
application of Rule 59(d) of the Federal Rules of Civil Pro-
cedure which prescribes:

Not later than 10 days after entry of judgment
the court of its own initiative may order a new
trial for any reason for which it might have
granted a new trial on motion of a party. After
giving the parties notice and an opportunity to be
herd on the matter, the court may grant a mo-
tion for a new trial, timely served, for a reason not
stated in the motion. In either case, the court
shall specify in the order the grounds therefor.

On March 21, 1980, the jury returned a verdict in
favor of Tarlton against Diamond M and Exxon in the
amount of $450,000. The jury found Diamond M 95% at

A-13
fault and Exxon 5% at fault. Demands against all other
defendants were rejected.

Based on this verdict, the district judge entered
judgment on the main demand on March 27, 1980, casting
Diamond M for $427,500 and Exxon for $22,500. Within 10
days, on April 7, 1980, Exxon moved for a judgment n.o.v.,
a new trial, or in the alternative, a remittitur. A hearing on
Exxon's motions was held on May 14, 1980, and the mo-
tions were taken under advisement. Although initially op-
posed, Diamond M sought at this hearing to orally join in
Exxon's motions. On June 3, 1980, the trial court granted
Exxon's request for judgment non obstate veredicto and
dismissed Tarlton’s claim against it. Acting sua sponte,
the court simultaneously ordered a new trial on the issue of
damages ‘unless plaintiff remits $75,000.00 of the jury
award,

We must determine whether this order was timely.
Concluding that it was not, we vacate the order for a new
trial on the issue of damages and reinstate the judgment
based on the jury verdict, modified to delete the adjust-
ment attributable to the jury's finding of Exxon’s 5%
negligence, thus casting Diamond M for the full amount of
damages awarded by the jury.

[7,8] The time limit for filing a new trial motion im-
posed in Rule 59(b) is mandatory and jurisdictional; it can-
not be extended by the trial court. Gribble v. Harris, 625
F.2d 1173 (5th Cir. 1980); Albers v. Gant, 435 F.2d 146 (5th

A-14
Cir. 1970). Diamond M's oral motion on May 14, 1980 was
not timely and is, accordingly, without effect.4 The trial
court’s grant of a new trial can thus be upheld only if it
satisfies the provision of Rule 59(d) for sua sponte judicial
action within 10 days of the entry of judgment.

[9] Prior to its 1966 amendment, Rule 59(d) was inter-
preted to preclude a trial court from granting a new trial on
a ground not stated in a motion filed seasonably, i.e.,
within 10 days of the entry of judgment. See, e.g., Russell
v. Monongahela R.R. Co., 262 F.2d 349 (2d Cir. 1958); Freid
v. McGrath, 76 U.S.App.D.C. 388, 133 F.2d 350 (1942);
Marshall's U.S. Auto Supply, Inc. v. Cashman, 111 F.2d
140 (10th Cir.), cert. denied, 311 U.S. 667, 61 S.Ct. 26, 85
L.Ed. 428 (1940). According to the Notes of the Advisory
Committee on Rules, this situation was ‘‘undesirable."’ The
Committee noted that ‘‘[jJust as the court has power under
Rule 59(d) to grant a new trial of its own initiative within
the 10 days, so it should have the power, when an effective
new trial motion has been made and pending, to decide it
on the grounds thought meritorious by the court although
not advanced in the motion."’ The second sentence of Rule
59(d) was added in 1966 to afford the trial court this au-
thority. But the expansion of the trial court’s power to

* In addition to citing rule 59(d), although recognizing that Dia-
mond M did not join Exxon's motion—indeed, initially opposed it—the
trial judge stated that ‘at oral argument, Diamond M joined in the mo-
tion for remittitur."’ Accordingly, the trial court considered ‘the motion
for new trial or, alternatively, remittitur as having been filed on behalf of
Diamond M as well as Exxon."’ We cannot accept this reasoning. Dia-
mond M's attempt to join Exxon's motion came after the 10 days allow-
ed by Rule 59(b). A party may not belatedly join another litigant's mo-
tion and thereby circumvent the jurisdictional requirements of the rule.

A-15
order a new trial for reasons not raised by the mover does
not operate to extend the period in which the court can
grant a new trial on its own initiative.

[10] The language of rule 59(d) is explicit: the trial
court may order a new trial for any reason it might have
found sufficient on motion of a party, ‘‘not later than 10
days after entry of judgment.”’ In the case at bar, the
district court’s order of June 3 was obviously filed more
than 10 days after the March 27 judgment. And it granted
relief to Diamond M on the basis of a reason urged by Exx-
on in its timely filed motion, originally opposed by Dia-
mond M. We conclude that absent a timely motion by Dia-
mond M for a new trial, or an order by the trial judge
within the 10 days permitted by the rule, the trial court
was without jurisdiction to enter a sua sponte order for a
new trial.5

[11] Apparently in recognition of this jurisdictional
limit, Diamond M contends that ‘‘judgment”’ as used in
Rule 59(d) should be read ‘‘final judgment”’ or ‘‘appealable
judgment."’ Diamond M suggests that because the Exxon
motion extended the time for the filing of a notice of ap-

° This view is shared by our colleagues in other circuits. See peter
man v. Chicago, Rock Island & Pacific R.R. Co., 493 F.2d 88 (8th Cir.
1974), cert. denied, 417 U.S. 947, 94 S.Ct. 3072, 41 L.Ed.2d 667 (1975);
Tsai v. Rosenthal, 297 F.2d 614, 617 (8th Cir. 1961) (‘Rule 59(d) has been
interpreted by the courts as conferring jurisdiction upon the trial court
to act upon its own initiative only during the ten days immediately
following the entry of the judgment."’); Jackson v. Wilson Trucking
Corp., 243 F.2d 212 (D.C. Cir. 1957); Kanatser v. Chrysler Corp., 199 F.2d
610 (10th Cir. 1952), cert. denied, 344 U.S. 921, 73 S.Ct. 388, 97 L.Ed.
710 (1953). A leading commentator shares the same view. C. Wright,
Law of Federal Courts § 95 at 469 (1976).

A-16
peal, Fed. R. App. P. 4(a)(4), it should likewise extend the
time for entry of a sua sponte order of new trial under Rule

59(d). We disagree. The purpose served by the two rules
differ.

Appellate Rule 4(a)(4) looks to the next level of court
and is designed in part to keep the trial court action intact,
in one appealable unit, until the entire litigation is com-
pleted in the trial court by disposition of all post-trial mo-
tions. At that point, all parties have the same time in which
to notice an appeal.

[12] Rule 59(d) is designed to empower the trial judge
to correct an injustice occasioned, primarily, by a jury ver-
dict. The error in the verdict should be, except in the rarest
of cases, apparent immediately upon return of the verdict.
In those instances, the court may act, but it must exercise
its authority with dispatch, within the limited period
established by the rule. Just as the court may not extend
the period for a party to file a motion for a new trial, it may
not extend the period for a court-initiated action.

To accept Diamond M’s argument and extend the
time for the trial court to act under 59(d) until the judg-
ment becomes appealable would require a rewriting of the
rule. This we decline to do. Nothing in the language or
history of Rule 59(d) suggests that the 10-day period is in-
tended to signify anything other than 10 days from entry
of judgment. There is no suggestion that the period may be
extended, directly or indirectly. No parallel may be drawn

A-17

to Fed. R. App. P. 4 which expressly provides that the time
for appeal is suspended by the filing of a timely post-trial
motion, running only after the court’s ruling thereon. Ac-
ceptance of Diamond M’s argument would allow the time
prescribed by Rule 59(d) to be extended indefinitely for all
defendants simply because one defendant timely sought
post-trial relief. That could result in the anomolous situa-
tion of the court, months after the verdict, denying a time-
ly filed motion of one defendant, and sua sponte, granting
relief to a defendant who sought no relief.

We conclude that the trial court was without
jurisdiction to grant Diamond M a new trial, a conclusion
which requires that we vacate the new trial ordered on the
issue of damages.

Costs and Attorneys’ Fees

Eserman and Golden Meadows contend that the trial
court erred in imposing upon them Exxon’s and Coastal’s
costs of defense and attorneys’ fees. Resolution of this
issue turns upon interpretation of contractual indemnity
agreements between these parties. Our reading of the con-
tractual language in light of LaNasse v. Travelers Ins. Co.,
450 F.2d 580 (5th Cir. 1971), convinces us that the district
court’s award of costs and attorneys’ fees was improper.

Eserman’s bareboat charter agreement with Candies
Offshore Transportation Corp., for the service of the BECT
I, contemplated Candies brokering the vessel to Exxon.

A-18
Infusing the names of the parties into the text of the con-
tract, paragraph X of the charter agreement reads:

[Eserman] agrees to indemnify and hold [Coastal]
and [Exxon] harmless...from any claims or suits
resulting from injury or damage to...third per-
sons...arising out of the operation of the vessel
under this charter, unless caused by the sole
negligence of [Candies]...

(Emphasis added.) And restructuring paragraph XIV of
the service agreement for operation of the vessel, between
Coastal and Golden Meadows, results in the following:

[Golden Meadows] binds and obligates itself to in-
demnify and save [Exxon], [Coastal] and [Can-
dies] harmless from and against any and all claim
or claims or causes of action asserted by
employees of [Golden Meadows]...resulting from
the operation of [the BECT I] and/or the acts or
omissions of the captain or crew of [the BECT I]
while performing or attempting to perform the
services herein contemplated and whether or not
arising out of the joint and concurrent acts or
omissions of [Exxon], Coastal ... and Candies...

(Emphasis added)

As we have underscored, the operative language in
both agreements focuses upon services or operations of the
vessel. In LaNasse we considered the effect of a similar
provision, which stated:

Owner [Cheramie BoTruc No. 5] hereby agrees to

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indemnify and hold harmless The California Com-
pany against all claims***as well as against any
and all claims for damages, whether to person or
property, and however arising in any way directly
or indirectly connected with the possession,
navigation, management, and operation of the
vessel.

450 F.2d at 582 n. 4 (emphasis in original). Porphire
LaNasse had been injured in the course of his duties as a
crew member aboard the utility tender BO-TRUC NO. 5,
while assisting in the transfer of a welding unit from a
vessel to a platform. The crane operator, employed by
Chevron Oil Company, caused the load to swing against
the tender’s railing and into LaNasse. Accepting the
district court’s conclusion that the proximate cause of
LaNasse’s injury was the negligence of Chevron’s crane
operator, we proceeded to declare the indemnity agreement
inapplicable:

The indemnity provision in the time charter in-
sulated Chevron only against liability for claims
“directly or indirectly connected with the posses-
sion, management, navigation, and operation”’ of
the vessel. Cheramie does not have a legal respon-
sibility for the consequences of the negligent
operation of the crane—the proximate cause of
the injury—because, on the facts found, the
operation of the crane was not even remotely
related to the operation, navigation or manage-
ment of the vessel. As broad as those terms are to
comprehend injuries caused by the operation of
the vessel in a practical sense, they do not com-
prehend an occurrence in which the vessel's sole
contribution is to be there as the carrier from
which the cargo is being removed.

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Id. at 583.

[13] The circumstances involved in the instant case
are similar to the situation addressed in LaNasse. At the
time of Tarlton’s injury, he was attempting to secure
tubular drill collars that had been loaded onto the BECT I
surreptitiously and negligently. It was the negligence of
Diamond M's crane operator that caused Tarlton’s injury.
The accident simply was not caused by the operation of the
vessel; nor did it arise from the expected performance of its
services.® Although the indemnification agreements in
dispute in this case are not identical to the contractual pro-
vision construed in LaNasse, we are not persuaded that the
variances aree significant enough to command a different
result. We conclude that the LaNasse rationale applies.
Since the cause of Tarlton’s injury did not arise from the
operation of the vessel, the district court should not have
awarded Exxon and Coastal costs and attorneys’ fees
against Eserman and Golden Meadows. That portion of the
trial court’s judgment is reversed.

© In addition, with regard to the service agreement struck by
Coastal and Golden Meadows, we note that paragraph VII states:

Notwithstanding anything to the contrary herein, it is
understood that the duties of the crew of the vessel will be
limited to navigation, maintenance and the loading and
discharge, or board of liquid cargoes. The crew shall not be
required, under any circumstances, to load or unload supplies
or cargo other than aforesaid.

(Emphasis added.) Given our construction of the indemnity contracts ac-
cording to LaNasse, however, we do not decide the issue on the basis of
this clause.

A-2i
The Inflation Factor

[14] A final issue raised for our consideration is
whether the trial court erred by instructing the jury that
the present rate of inflation may be considered in assessing
the plaintiff's award. For the reasons extensively set forth
in our recent en banc decisions in Byrd v. Reederei, __ F.2d
_, slip op. __ (5th Cir. 1982), and Culver v. Slater Boat Co.,
—. F.2d _., slip op. __ (5th Cir. 1982), this portion of the
court’s charge was not erroneously given. Accordingly,
there is no validity in this allegation of error.

For the reasons assigned, the judgments of the
district court are AFFIRMED in part, VACATED in part,
and REVERSED in part.

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APPENDIX “B”

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

No. 80-3478

DAVID R. TARLTON,
Plaintiff-Appellant,

versus

EXXON,
Defendant and Third Party
Plaintiff-Appellee,

DIAMOND M DRILLING,
Defendant and Third Party
Plair.tiff-Appellant-Appellee,

versus

GOLDEN MEADOWS ENTERPRISES, INC.
and ESERMAN OFFSHORE SERVICES
Third-Party-Defendants-Appellants,

versus

COASTAL BOAT OPERATORS,
Third-Party-Defendants-Appellees.

Appeal from the United States District Court for the
Eastern District of Louisiana

ON PETITION FOR REHEARING
(NOVEMBER 12, 1982)

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Before POLITZ and RANDALL, Circuit Judges*

PER CURIAM:
IT IS ORDERED that the petition for rehearing fil-
ed in the above entitled and numbered cause be and the

same is hereby denied.

ENTERED FOR THE COURT:

United States Circuit Judge

* Jack M. Gordon, District Judge of the Eastern District of Loui-
siana, sitting by designation, was a member of the panel which heard
oral argument. Because of his death, this case is being decided by a
quorum, 28 U.S.C. § 46(d).

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385010_0378%3A1. Public record. Not legal advice.
