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Barge Hits Amesbury Bridge

The United States Coast Guard is currently investigating the cause of a barge accident in the Merrimack River.  Last week, a 250-foot barge struck the Amesbury swing bridge in the Merrimack River.

The barge, William Breckenridge, smashed into the Derek Hines Memorial Bridge, also referred to as the Amesbury swing bridge, just before noon.  The barge was traveling through the channel north of Deer Island, according to a statement released by the U.S. Coast Guard.  The Derek Hines Memorial Bridge connects Amesbury and Deer Island.  A second bridge, the Chain Bridge, connects Deer Island and Newburyport.

U.S. Coast Guard officials have reported that there were no injuries or pollution released as a result of the barge accident.  If there were injuries, barge workers are protected under the Jones Act and entitled to compensation regardless of who was at fault.  This compensation is known as maintenance and cure, which is similar to workers’ compensation benefits.  Maintenance is paid at a rate determined by the reasonable basic living expenses of the seaman, while cure is designed to cover the cost of medical treatment for the injuries. When injuries result from negligence of the owner or unseaworthiness, the injured barge worker can pursue a Jones Act lawsuit to obtain further compensation for his or her injuries.

Lieutenant Kate Higgins, duty officer in Boston, said in a statement, “We take these reports seriously and investigate them quickly.”

The Massachusetts Highway Department is inspecting the Derek Hines Memorial Bridge, which is in the open position and closed to cars and trucks. Drivers are given two alternative routes to cross the Merrimack River - the Interstate 95 bridge and the Route 1 bridge.   Marine traffic is being re-routed south to pass under the Chain Bridge.  As of November 20, 2008, the Amesbury swing bridge was still closed.

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Jones Act Carrier Horizon Lines to Reduce Workforce

Jones Act carrier Horizon Lines has stated that it has plans to reduce its workforce by at least 10 percent or approximately 70 of its 700 or more non-union employees by January 31st.

Horizon Lines said that it will offer voluntary severance to certain eligible employees and that if there are not enough volunteers, the company will be forced to resort to involuntary severance.

The Charlotte-based company said that it expects the actions to result in a pretax expense of $3.5 million to $5 million in this year’s fourth quarter.  Horizon Lines also anticipates that the layoffs will reduce labor costs by $7 million to $10 million in a year.

Chuck Raymond, chairman, president and chief executive of Horizon Lines, was quoted as saying, "We continue to face a very difficult macro-economic environment that is having a significant adverse impact on the markets we serve. We expect these challenges to continue through at least 2009 and are taking the appropriate, necessary steps to adjust our business without impacting our ability to continue providing excellent service..."

According to Raymond, Horizon Lines will look for more ways to reduce costs.  He said that his company remains well-capitalized, with strong liquidity and the focus of 2009 will be to conserve cash and remove costs wherever possible.

In October, Horizon reported net income of $12.5 million, which was up from $1. 6 million the previous year.  However, the operating income fell to $21.8 million from $35.3 million, even though there was a 9.8 percent increase in revenue.

The company blames the drop in operating income on the weakness in the Puerto Rico and Hawaii markets, higher fuel costs and legal expenses related to the Justice Department’s continuing antitrust investigation of Jones Act carriers.

Three former Horizon executives and managers have pleaded guilty to charges connected to the antitrust case and have accepted prison terms.  Almost three dozen civil antitrust lawsuits have been filed against Jones Act carriers.

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Worker Dies on Barge in New Haven Harbor

A barge worker was pronounced dead early Saturday morning, November 8, 2008, after the U.S. Coast Guard responded to an emergency call from the barge.  When the Coast Guard crew arrived, the other barge workers were trying to resuscitate the man.

The barge was traveling approximately three miles east of New Haven harbor, when the emergency call was made.  The barge worker was 52-year-old John Campagno.  His identification showed that he lived in North Carolina and Florida.  He was taken off the barge by the Coast Guard crew and transported to an ambulance on shore that headed straight to Yale-New Haven Hospital.  Campagno was pronounced dead at the hospital, according to Coast Guard Lt. Ellen Phillips.

Phillips said that the Coast Guard crew had also attempted to revive Campagno, but was unsuccessful.  An autopsy will be performed to determine the exact cause of death, but according to Phillips, it appeared that he died from carbon monoxide poisoning.  It is believed that Campagno was working and sleeping in an area of the barge that lacked ventilation.  There was a generator and heating unit for the barge located in Campagno’s room.

The barge, which is named Mudcat, is owned by Burnham Associates Dredging & Marine Contractors of Salem, Massachusetts.  The Mudcat had been carrying dredge spoils from a project in Norwalk harbor to a dump site, when the tragic incident occurred.

Barge workers are protected under the Jones Act and entitled to compensation for injuries.  When negligence of the vessel owner, employer or other third party causes an injury or death, the responsible party can be held liable for damages.  A Jones Act lawsuit can be filed in the case of negligence or unseaworthiness of the vessel.

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Louisiana Seaman Files Jones Act Lawsuit

Shane Chouest, a Louisiana seaman, has filed a Jones Act lawsuit against his employers alleging that the cables he was instructed to lift were too heavy and caused him injury.

Chouest filed the Jones Act lawsuit in Orange County District Court against his employers, Inland Marine Management Corp. and Huey L. Cheramie Inc. on October 7, 2008.  According to Chouest’s claim, in August 2007 he was working as a seaman and performing his duties aboard the Claude R when his injury occurred.  The lawsuit states that he was injured “while manually handling cables as ordered by the defendants.”

The lawsuit claims that Chouest tried to continue to work, but could not because of his injuries.  Chouest claims that he was injured due to alleged negligence of his employers and an unseaworthy vessel.  The lawsuit, however, did not mention specifically how his employers were negligent or how the vessel was unseaworthy.  His injuries ultimately required surgery.

Chouest is suing for compensation for past and future mental anguish, lost earnings, impairment, disfigurement and medical expenses, in addition to exemplary damages, which is often referred to as punitive damages.  Exemplary damages  apply when the defendant's willful acts were violent, malicious, oppressive, fraudulent, wanton, or grossly reckless.

The case has been assigned to Judge Dennis Powell of the 163rd Judicial District.

Seamen are protected under the Jones Act and are automatically entitled to compensation, regardless of fault, when they are injured.  This compensation is known as maintenance and cure.  When an injury is the direct result of negligence on the part of the employer, vessel owner, crew member or other third party, the injured seaman can pursue additional compensation through a Jones Act lawsuit.  Seaman status must be proven in order to be eligible to file a Jones Act claim.

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Four Crew Members of Fishing Boat Found Alive

Four crew members of a fishing boat in Alaska were recently found alive.  According to a U.S. Coast Guard spokesman, the crew members were discovered in a life raft floating in stormy seas in a remote Alaskan island chain after their vessel was reported in distress.

Three other crew members died and four are still missing.  U.S. Coast Guard Petty Officer Levi Read said that the search has continued for the missing crew members of the Katmai, a 93-foot fish processor based off of Alaska’s Kodiak Island.

When the rescuers found the four crew members, the water was only 43 degrees.  Read was not able to estimate how long the survivors were in the raft because it was unclear when they abandoned their boat.  Several factors were involved in their survival.

"That takes a lot of fortitude and a lot of heart. Their survival suits, their physical condition, and an effort to keep one another semi-warm and awake all could have helped them endure,” said Read.

The four survivors of the Katmai were found in the raft near the Amchitka Pass, which is an area that connects the Bearing Sea to the Pacific Ocean approximately 1,400 miles southwest of Anchorage.  The crew members were airlifted by a U.S. Coast Guard helicopter to Adak Island.

It is still unknown what happened to the boat.  One of the three bodies, survival suits, debris, fishing gear, a buoy and a life ring were all found, according to Read.

Fishing in Alaskan waters has long been known to carry significant risks.  The weather and waters contribute to the dangerous conditions that fishermen have to endure.  Research has shown that accidents on deck, which frequently involve machinery, and the loss of the fishing vessel account for a majority of the serious injuries and fatalities of Alaskan fishermen.

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Barge Collides into Train Trestle in Alabama

A dredge and service boat hit a support on the north side of the Black Warrior River, which ultimately damaged the railroad trestle.

The vessel was traveling northbound, toward Seldon Lock and Dam on the border of Greene and Hale counties in Alabama.  The accident took place on the north side of the river, which is the Greene County side.

The impact of the collision caused a guide wire to come loose and consequently, the counterweight on the south side of the trestle made it go down.  It came to rest on the railroad tracks, instead of remaining several inches above the tracks like it did on the north side.

The train trestle is used by the Alabama & Gulf Coast Railway on its run from Pensacola, Florida to Columbus, Missouri.  The trestle is considered an essential part of the line that runs from Demopolis through Linden past Magnolia in Marengo County.

Lonnie Watson, a resident near the river in Greene County was quoted as saying “I don’t know if they hit it this morning or late last night.  The concrete counterweight is sitting on the railroad track itself, and the cables are broken.  It was a huge boat, the big dredge boat.”

Watson went on to say that it was apparent where the cables had gone slack after the accident and where the cables broke.  He said that a railroad official informed him that the trestle would be closed for a considerable amount of time.  Trains had been crossing the trestle two to three times a day on average.

The trestle was built in 1927.  Watson, who has lived in the area for 22 years, said that he has never witnessed an accident like that before.  He believes that the trestle closure will also shut down river traffic.

There was no comment from the U.S. Army Corps of Engineers and officials with Alabama & Gulf Coast Railway.

 

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U.S. Coast Guard Continues to Investigate July’s Oil Spill on the Mississippi River

The U.S. Coast Guard continued its investigation of a July oil spill on the Mississippi River by quizzing an executive with a barge industry association about safety standards for members, including two companies that were involved in the oil spill.

Robert Clinton, Vice President of Safety with American Waterways Operators, explained the details of the association’s responsible carrier program that mandates members to draft a plan to comply with federal maritime laws and other internal regulations.  Members of American Waterways Operators are audited periodically to ensure program compliance.

Clinton testified that DRD Towing, the Harvey company that staffed the towboat pushing the barge that spilled 280,000 gallons of fuel in the Mississippi River in New Orleans, was expelled from American Waterways Operators in August after the company failed safety audits earlier in the year.

DRD Towing’s attorney, Randy Waits, stated in an interview following Clinton’s testimony that American Waterways Operators may have come down hard on DRD Towing in response to the public outrage over the oil spill.  DRD Towing applied for probationary status with American Waterways Operators after it failed its safety audit.  The designation has a stricter regulation, which includes annual safety audits instead of typical triennial checks.

According to Clinton, DRD Towing’s expulsion from American Waterways Operators had nothing to do with the oil spill that summer.  The decision to revoke DRD Towing’s membership had to do with the company’s failure to provide a statement agreeing to comply with the tighter probationary guidelines.  However, the widely publicized oil spill in July did prompt American Waterways Operators to create tighter requirements for members, which have not yet been approved.

Clinton’s statements came as another hit against DRD Towing, which has been highly criticized during the Coast Guard’s investigation.  DRD Towing has been involved in at least two other accidents on the Mississippi River with improperly licensed crew. 

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Former U.S. Shipping Execs Plead Guilty in Jones Act Antitrust Case

Four former U.S. shipping company executives are pleading guilty and will serve jail sentences for their roles in “a wide-ranging conspiracy to rig bids, fix prices and allocate market shares for customers transporting goods between the continental United States and Puerto Rico by ocean vessel,”  according to the U.S. Department of Justice.

A fifth shipping executive has agreed to plead guilty to charges of destroying evidence of the shipping conspiracy.  The five executives that have been charged previously worked for large U.S. companies that provide freight shipping services to customers transporting goods between the continental U.S. and Puerto Rico, which is a shipping lane governed by the Jones Act.

The U.S. Department of Justice said that these are the first charges in the Antitrust Division’s ongoing investigation into collusion in the coastal shipping industry.

Last April, federal agents raided offices of Horizon, Sea Star and Crowley in as part of the antitrust investigation of the Jones Act domestic carriers.  Information was subpoenaed from Trailer Bridge and Matson.

A one-count felony antitrust charge was filed in the U.S. District Court in Jacksonville, Florida against each of the executives, Peter Baci of Jacksonville; Kevin Gill and Gregory Glova of Charlotte, N.C.; and Gabriel Serra of San Juan, Puerto Rico. 

According to the plea agreements, the executives have agreed to serve a jail term that will be determined by the court and pay a criminal fine of $20,000.  The executives have also agreed to cooperate with the U. S. Department of Justice’s ongoing antitrust investigation.  However, the plea agreements are subject to court approval.

A one-count felony obstruction of justice charge was filled against the fifth shipping executive, Alexander Chisholm, a former employee of Sea Star.  He has agreed to plead guilty and serve jail time, as long as the court approves.

The executives are charged with violating the Sherman Act, which carries a maximum jail sentence of 10 years and a $1 million fine per individual.

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The Ohio Department of Transportation Wins $5 Million in 2005 Barge-Wreck Case

American Electric Power and affiliated companies are required to pay the Ohio Department of Transportation and its attorneys $5 million to settle a lawsuit that the agency filed over a 2005 Ohio River barge accident that damaged nearby roads.  Originally, the Ohio Department of Transportation had sought nearly $48 million.  The agency settled for $5 million because that was the amount that was left in an insurance policy held by the tugboat company.

The settlement was filed September 3rd in U.S. Circuit Court of Appeals in Chillicothe and calls for approximately $2.8 million of the $3.4 million paid to the Ohio Department of Transportation to act as a reimbursement to the Federal Highway Administration.  The Federal Highway Administration paid for the majority of the repairs to fix the damaged roads in the Hocking port area.  The remaining settlement will go towards attorneys’ fees.

American Electric Power has already reached a settlement for a federal lawsuit in late 2006 with 113 property owners who were affected by the wreck, which resulted in the river dropping and its banks eroding.  The Ohio Department of Transportation had missed the deadline to join the lawsuit, but in August 2007, the agency sued the tugboat captain in Athens County Common Pleas Court.  The case against the captain was dropped after the federal settlement was made.

The 2005 barge accident occurred when the tugboat, Jon J. Strong, which is owned by B&H Towing, was pushing barges of coal and iron ore up the Ohio River in a heavy rain.  When the captain attempted to get through the Belleville Lock and Dam, nine barges broke loose and three capsized in the lock, which jammed it open.  The captain’s attorney said that his client did nothing wrong as he was only following the instructions of the Corps of Engineers in the lock.

The settlement resolves all litigation involving the Ohio Department of Transportation. 

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Kirby Corporation Announced No Injuries from Hurricane Ike

Kirby Corporation reported that there were no injuries or significant barge damage caused by Hurricane Ike when it hit the Texas coast on September 13.

According to a statement from Kirby Corporation’s president, Houston is the company’s main operating area with 303 barges and 83 tow boats in this location.  Kirby personnel were not harmed and the entire barge and boat fleet was intact with no material damage following the hurricane.  Some damage was incurred to the company’s headquarters building in Houston, but operations have continued.

Kirby Corporation operates inland tank barges and towing vessels, transporting petrochemicals, black oil products, refined petroleum products and agricultural chemicals throughout the United States inland waterway system.

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Barge Smashes Into Bridge on the Intracoastal Waterway

Hurricane Ike caused more than just flooding in Louisiana as its high waters played a factor in some major structural damage.

Last Saturday, a barge broke its anchor and crashed into a bridge on the Intracoastal Waterway in Iberia Parish.  The barge knocked out the entire middle section of the bridge, which consequently closed that section of LA 83.

LA 83 is the only way drivers can get to Weeks Island and anyone who needs to get in or out will have to find a detour route.  There is no information regarding when the bridge will be repaired.

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Operating Company Offers to Plead No Contest to Criminal Charges

The operating firm for the container ship that hit the Bay Bridge in November has offered to plead no contest to criminal charges of falsifying documents and negligence that resulted in the spill of more than 50,000 gallons of fuel oil in San Francisco Bay.

Fleet Management Ltd. claimed that the accident was the fault of others, including the ship’s pilot and the federal and state agencies that approved his license and failed to correct his course.  The company said that the government’s pending civil suit will allow a jury to determine the roles of the participants in the spill and apportion damages.  If the U.S. District Judge Susan Illston accepts the no contest plea, Fleet Management could be fined up to $1.5 million, but the criminal charges could not be used to establish the company’s responsibility for civil damages.

The no contest plea could leave the ship’s pilot, Capt. John Cota, as the sole defendant in the criminal case.  Cota has been a ship’s pilot for 27 years and was navigating the 901-foot Cosco Busan when it struck the second tower of the bridge west of Yerba Buena Island on November 7.  Oil spilled from the gash on the ship’s port side and reached the bay shoreline and beaches in Marin and San Mateo counties.  More than 2,000 birds were killed.

Cota is being charged with negligently causing the oil spill and consequently killing migratory birds, which are both misdemeanors.  He is also charged with two felonies for allegedly lying in annual physical exams about the medications he was taking.  Cota has requested that the trial be moved to Fresno because of the hostile San Francisco news coverage that could affect potential jurors.

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Family Files Asbestos, Jones Act Lawsuit Against 13 Companies

The family of George Greer, Sr. has filed a Jones Act lawsuit against 13 companies.  Greer died from mesothelioma and his family is holding these companies accountable for his exposure to asbestos and ultimately his death.  The Jones Act lawsuit was filed against Chevron USA and 12 other companies.

According to court documents, Greer was employed by these companies from 1960 to 1980’s.  He also worked as a seaman during this span, which is why his family chose to file the lawsuit under the Jones Act.  The lawsuit states that during Greer’s employment, he was exposed to asbestos and/or asbestos-containing products, which caused severe and permanent personal injuries and damages in the form of mesothelioma.  

The plaintiff is accusing these companies of failing to prevent these exposures and of having subjective awareness of the severe health risks associated with asbestos exposure.  Exemplary damages, as well as compensation for Greer’s past and future mental anguish, medical expenses, impairment and disfigurement are being pursued.

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Decision Upheld Jones Act Eligibility of Tankers

A decision was filed on August 25, 2008, upholding the United States Coast Guard interpretation of the Jones Act as the law relates to the shipbuilding techniques used by Aker Philadelphia Shipyard and General Dynamics.  The decision was filed in the U.S. District Court of the Eastern District of Pennsylvania.  This case was brought by the Metal Trades Department of the AFL-CIO.  Defendants of the case included Admiral Thad W. Allen, United States Coast Guard, the National Vessel Documentation Center and Thomas L. Willis.

The issue was the use of foreign-manufactured components and assemblies in the series of Jones Act products tankers under protection at the two shipyards. 

Judge Gene E.K. Pratter stated her opinion, which was as follows:

"Only vessels built in the United States are eligible to operate in United States coastwise trade. The present action involves the interpretation of federal law aimed at protecting the American shipbuilding trade. The ultimate issue presented here is whether the Coast Guard erred in ruling that using equipment modules manufactured abroad, but attached to vessels in shipyards in the United States, does not disqualify those vessels from being considered American-built under the Jones Act. Although at first blush this dispute may appear to demand diving into the specialized world of naval architecture, ultimately the rigorous grammar lessons of an English teacher provide the ballast for the Court's decision."

Her opinion went on to state that "the Coast Guard's interpretation of the regulation at issue is reasonable in terms of the text, history and purpose of the Jones Act. Accordingly, the Court finds that the interpretation at issue is not plainly erroneous or inconsistent and, thus, must be upheld."

Jim Miller, the president and CEO of Aker Philadelphia  Shipyard said that the company builds ships in full compliance with the legal requirements for vessels to be operated in the Jones Act trade.  Miller stated that his company is satisfied with the court’s decision.

 

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River Pilot Accused of Causing Baton Rouge Ship Accident

Two different investigations by the Coast Guard and National Transportation Safety Board accuse a Louisiana river pilot for an accident which resulted in millions of dollars in damage.  The accident occurred last year when a tank ship hit the Interstate 10 bridge in Baton Rouge. 

Pilot J. Strahan Jr. was trying to leave the Apex Oil Co. dock in Baton Rouge by turning the 800-foot vessel, which was carrying 466,000 barrels of oil at the time.  The vessel spun out of control and hit the bridge pier, causing a section of concrete to be knocked out.  The state Department of Transportation sued Strahan and the owners of the tank ship and tugboats that were assisting the vessel. 

An investigation by the National Transportation Safety Board found that Strahan’s poor judgment caused the accident.  According to a letter written by the National Transportation Safety Board, turning a vessel so close to the bridge was “an unusual, unsafe course of action.”

A report by the Coast Guard called the pilot’s actions, “imprudent,” saying that the turn showed a lack of “situational awareness” and inexperience at that particular dock.  Strahan had been a pilot for over four years, but had never been to the Apex dock before the accident.

The National Transportation Safety Board did not order any additional punishment for Strahan, but did express concern that other pilots may lack knowledge about navigating around the Apex dock.

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Co-Worker Hits Seaman with Hammer

A Mississippi seaman is filing a lawsuit against his employer after he was hit on the head with a sledge hammer by a fellow shipmate.  The injured seaman is alleging that his employer negligently failed to supervise its employees and did not provide adequate safety equipment. 

The lawsuit was filed against Rowan Companies Inc. in Jefferson County District Court.  The lawsuit states that the plaintiff was employed by Rowan as a Jones Act seaman at the time of the incident.

The plaintiff’s lawyer stated that his client experienced serious painful injuries to his head and other parts of his body while employed and supervised by Rowan.  The plaintiff received a closed head injury after being hit by the sledge hammer.

The injured seaman is suing for past and future mental anguish, lost wages and medical expenses.  The lawsuit states that the plaintiff is also entitled to punitive damages because of the defendant’s actions.

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Tanker Captain Testifies at Coast Guard Hearing

The captain of the tanker that hit a barge on the Mississippi River on July 23, 2008 testified last week.  He was the first witness at a Coast Guard inquiry to help determine the cause of the barge accident.  The barge accident caused a massive oil spill along the river.

The captain spent the entire day on the witness stand and was questioned by the Coast Guard investigator, attorneys and investigators for the National Transportation Safety Board.

According to the captain, the tanker needs 6 minutes to stop and reverse direction at full speed in open water.  Approximately 2 ½ minutes before the collision, the tanker’s instruments showed that it would pass safely by the barge being pushed by a tug.

The Coast Guard was forced to close a 100-mile stretch of the Mississippi River, the nation’s busiest inland shipping corridor, for six days to oil tankers and ships carrying grain and other goods.  The barge had been transporting 419,000 gallons of heavy fuel at the time of the collision.  The leaking oil caused a large cleanup effort along the river.

After the hearing, the Coast Guard investigator will release her findings.  These findings will include whether the investigator believes prosecutors should bring federal charges and if misconduct or incompetence was a factor in the accident.  The U.S. attorney will be the one to decide whether to prosecute and civil litigation is expected.  One lawsuit has already been filed claiming people were hurt by inhaling the fumes.

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Corpus Christi Seaman Files Jones Act Lawsuit

A Corpus Christi seaman is suing a Newport News, Virginia based maritime company for multiple injures he claims he received while working on a commercial fishing expedition in New York.

The injured seaman is filing a lawsuit against the M/V Suzee Q, Chesapeake Bay Packing LLC and Sue Martin, the vessel owner.  The lawsuit was filed in Galveston County District Court on July 25, 2008.

The lawsuit states that the man was injured while performing his duties as a Jones Act seaman aboard a vessel.  The defendants are accused of negligence, unseaworthiness and failure to pay maintenance and cure.

The plaintiff worked as a deckhand aboard the vessel at the time of the accident.  The crew was fishing for scallops and the plaintiff was responsible for cleaning the catch.  The injured seaman alleges that the vessel was poorly maintained and had unsafe working conditions.  He claims that the deck was wet, slippery and unclean.  According to the injured seaman, his superiors rushed him to finish his duties and he slipped in the process.

His knee, back and other parts of his body were injured.  The accident was reported to his superiors.  The defendants terminated the plaintiff’s employment while it was known that he was injured.

As a result of the accident, the plaintiff sustained severe injuries as well as physical pain, impairment, mental anguish, loss of earnings and medical expenses.

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Pacific Energy Gets Federal Exemption of Jones Act Requirement

State oil and gas officials have given an operator a 60 day extension to hire a vessel that has the ability to bring a specialty rig to Alaskan waters.  Pacific Energy Resources Ltd., a California-based independent company, will have until September 29, 2008 to secure a contract with a heavy lift vessel operator to bring a jack-up rig to Alaska.

Pacific Energy signed a 3-year contract to use Blake Offshore jack-up rig to drill exploration wells.  The Blake 151 jack-up rig is stationed in the Gulf of Mexico and must be towed several thousands of miles in order to reach the Alaskan waters.  Pacific Energy has been talking with six different carriers capable of bringing the rig to Alaska, but was unable to get a contract by the July 31 deadline.  Since the carrier will probably not be an American company, Pacific Energy must get a federal exemption of the Jones Act requirement.  Under the Jones Act, tankers used in U.S. waters must be built, owned and manned by Americans.

Federal officials will not start the process of approving the exemption until the carrier has been identified and there is a contract.  However, Pacific Energy feels confident that the exemption will be approved.

The jack-up rig will be used to drill at Corsair in 2009, where Pacific Energy believes there are 500 billion cubic feet of gas and 100 million barrels of oil.

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Diver Working on Construction Barge Dies

A diver who was working on the construction of a natural pipeline, died last week after an underwater accident.  The accident took place near Gloucester, Massachusetts, 12 miles offshore.  The man was working 62 feet under the surface when he reported over his radio that he was having trouble breathing.  Barge workers lost communication with the diver not long after they received the report that he was in distress.  Two emergency divers were sent to find him and they pulled the man to the surface.

Paramedics on the construction barge performed CPR on the diver, who was unconscious when he was pulled out of the water.  It took the Coast Guard 25 minutes to reach the barge and bring the diver back to shore.  The paramedics continued performing CPR during the trip to Station Gloucester at the Harbor Loop, where Gloucester firefighters were waiting to take over.  The diver was taken to the Addison Gilbert Hospital, but was pronounced dead a couple of hours later.

The diver was an employee of Buffalo Industrial Diving Co., a subcontractor on the LNG project.  State police are in charge of the investigation into the man’s death, which occurred in state waters.  The victim’s diving equipment is being examined and tested for possible mechanical failures.  The Coast Guard is also conducting an investigation since the accident involved a commercial vessel.  Foul play is not suspected.

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Tanker & Barge Collide on Mississippi River

Last week, a 600-foot tanker and barge loaded with fuel collided, causing an oil spill on the Mississippi River.  The spill occurred near the Crescent City Connection, a pair of New Orleans bridges.  The barge split in half and spilled more than 419,000 gallons of tar-like oil into the Mississippi River.  The owner of the barge, American Commercial Lines, took responsibility for the oil spill.

The barge was being pushed by the tugboat, the Mel Oliver.  According to the US Coast Guard, the crew on the Mel Oliver did not have the proper licensing for piloting a tugboat.  The tugboat operator had only an apprentice mate’s license and no one on the barge had a license.  A tugboat operator must have a master’s license to pilot a vessel.

A tugboat accident had occurred just days before this accident on the Mississippi River.  It is not clear whether the same crewmembers had been working on both vessels at the time of the accidents.

Almost 150 ships and barges were stranded as a result of the spill.  Nearly 800 cleanup workers used vacuum skimmers, containment booms and other equipment over the weekend to clean the riverbanks.  The total cost for the cleanup has not been determined, but similar tanker spills have cost an average of $23 million.

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New Orleans Barge Accident

A tugboat struck a barge on the Mississippi River in New Orleans.  The tugboat ended up sinking, according to the Coast Guard.  The barge accident occurred on Tuesday, July 15, 2008 at 12:30 PM.  The three crew members were rescued by another tug.

It was not reported that the crew members sustained any injuries during the barge accident.  Petty Officer Stephen Lehmann stated that investigators are still trying to determine exactly what caused the tug to capsize.  Even though the tug sank, it is not considered to be a navigational hazard in the Mississippi River.  The river was therefore not closed to traffic.

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Las Vegas Seaman Files Jones Act Lawsuit

A Jones Act suit was filed on July 8, 2008 in the Jefferson County District Court against Overseas Shipping Group after an employee hurt his back while serving aboard the vessel.  The Las Vegas seaman claims that he was injured on the OSG Intrepid because the vessel was unseaworthy.

The Jones Act lawsuit states that the injured seaman was working as a tankerman for the OSG Intrepid on January 21, 2008 when he hurt his back because of the employer’s negligence.  He is suing for pain, mental anguish, medical expenses, lost wages and compensatory damages, in addition to all court fees.  His lawsuit does not mention where the vessel was during the time of the injury nor does it discuss the details of how the injury occurred.

Under the Jones Act, an injured seaman can recover damages from his employers due to negligence caused by the ship owner, captain or fellow crewmembers.  This maritime law is different than Worker’s Compensation in that it does not require payment regardless of fault.  For an injured maritime worker to recover, it must be proven that there was some negligence or fault on the part of the vessel’s owner, operators, officer or fellow employees or by a defect in the vessel, gear, tackle or equipment.

The seaman is requesting a trial by jury.  Judge Donald Floyd of the 172nd Judcial District has been assigned to the Jones Act case.

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Barge Worker Files Jones Act Lawsuit

A seaman has recently filed a Jones Act lawsuit against his employer, Bo-Mac Contractors, for injuries he received while working on a barge.  The lawsuit was filed June 18, 2008 in the Jefferson County District Court.

The barge worker was a diver aboard a Bo-Mac barge that was on the Mississippi River when he was injured.  His suit does not specifically mention what caused his injuries.  According to his claim, he received serious injuries to his heart, lungs and other parts of his body in general.  The injuries happened within the course and scope of his employment with Bo-Mac.

The injured worker also stated that the barge he was working on was unseaworthy, which is a requirement to file a lawsuit under the Jones Act.

The basis of this lawsuit is that the injuries were caused by the negligent acts and/or omissions of the employer, its agents, servants and/or employees.  The seaman believes that he has suffered physical impairment and a loss of life’s pleasures due to the accident.  He has also suffered physical and mental pain, anguish and there is a strong probability that his injuries will cause him to continue to suffer in the future.

The Jones Act case has been assigned to Judge Milton Shuffield at the 136th District Court.

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