WILLIAM H. STEELE, Chief Judge.
This matter comes before the Court on the Government's Motion to Dismiss Petitioners' Emergency Motion and Petition for Lack of Subject Matter Jurisdiction
Petitioners, Giuseppe Bottiglieri Shipping Company S.P.A. (the "Owner") and the M/V BOTTIGLIERI CHALLENGER (the "Vessel"), in rem, initiated this action to solicit judicial resolution of a stalemated negotiation between the Owner and the U.S. Coast Guard.
In summary, the relevant undisputed facts are as follows: On January 24, 2012, the Vessel (which is owned and operated by an Italian company, and is registered in Italy) arrived at the Port of Mobile, Alabama, to unload a cargo of steel plates. (Doc. 1, ¶¶ 4, 5.) The following day, U.S. Coast Guard officers boarded the Vessel for eight hours, during which time they interviewed the ship's master and crew members concerning possible violations of the Act to Prevent Pollution from Ships, 33 U.S.C. §§ 1901 et seq. ("APPS"). During those interviews, Coast Guard officials were allegedly informed that the Vessel was equipped with a "magic pipe" for the unlawful discharge of machinery space waste, and that chief engineer Vito La Forgia had directed the crew on at least six occasions since December 2011 to utilize the "magic pipe" to discharge such waste directly into the sea, without first passing it through required pollution prevention equipment. Crew members are alleged to have shown Coast Guard officials the magic pipe and flange and demonstrated its operation.
If such discharges occurred, and if they were not properly logged in the Oil Record Book ("ORB"), then criminal liability may attach under the APPS based on presentment of a false ORB in the United States. See 33 U.S.C. § 1908(a) ("A person who knowingly violates the MARPOL Protocol, Annex IV to the Antarctic Protocol, this chapter, or the regulations issued thereunder commits a Class D felony."); 33 C.F.R. § 151.25(d) ("Entries shall be made in the Oil Record Book on each occasion ... whenever any of the following machinery space operations take place on any ship to which this section applies — (1) Ballasting or cleaning of fuel oil tanks; (2) Discharge of ballast containing an oily mixture or cleaning water from fuel oil tanks; (3) Disposal of oil residue; and (4) Discharge overboard or disposal otherwise of bilge water that has accumulated in machinery spaces."); United States v. Ionia Management S.A., 555 F.3d 303, 309 (2nd Cir. 2009) (holding that "the APPS's requirement that subject ships `maintain' an ORB, 33 C.F.R. § 151.25, mandates that these ships ensure that their ORBs are accurate (or at least not knowingly inaccurate) upon entering the ports or navigable waters of the United States"); United States v. Jho, 534 F.3d 398, 403 (5th Cir.2008) ("we read the requirement that an oil record book be `maintained' as imposing a duty upon a
On January 26, 2012, the Coast Guard delivered to the Vessel a letter setting forth its determination that "there is reasonable cause to believe that the [Vessel], its owner, operator, person in charge, or crew member(s) may be subject to a fine or civil penalty." (Doc. 24, Exh. A.) The Coast Guard notified the Vessel that it had requested that the United States Customs and Border Protection ("CBP") withhold the Vessel's departure clearance to leave the Port of Mobile, which CBP did. (Id.)
APPS furnishes vessel owners with a possible means of obtaining departure clearance, through posting of a bond or other surety. See 33 U.S.C. § 1908(e) ("Clearance may be granted upon the filing of a bond or other surety satisfactory to the Secretary."). After the January 26 letter, attorneys for the Owner and the Coast Guard commenced extensive (and often acrimonious) negotiations for a surety agreement that would enable the Vessel to obtain the necessary clearance to leave the Port of Mobile and resume operations, thereby staunching losses of $15,000 per day in hire, plus accrual of substantial port costs. (See doc. 10, ¶ 5 (enumerating Owner's alleged financial losses).) A blow-by-blow account of these discussions would be both unnecessary and unhelpful; however, two principal sticking points emerged. First, the parties disagreed as to the amount of the bond itself, with the Owner offering $500,000 and the Coast Guard demanding $750,000 as of January 30, 2012. (See Nichols Decl., at ¶ ¶ 16-17 & Exh. 2.) On February 3, 2012, the Coast Guard reduced its bond demand to $700,000, which the Owner promptly rejected as a "non-starter." (See Chalos Supp. Decl. (doc. 27, Exh. 1), ¶ 4 & Exh. B.)
Second, the parties could not reach an accord on provisions for the eight crew members whose presence in Mobile the Coast Guard requires as its APPS investigation proceeds. Specifically, the parties clashed as to the extent of the Owner's financial responsibilities to those crew members for wages, housing and per diem expenses. Slicing through the rhetoric, distortions and self-serving characterizations, the state of the negotiations appears
Petitioners' position is that, following this failed exchange of proposals on February 3, 2012, there have been no further substantive negotiations concerning the proposed security agreement. (Chalos Supp. Decl., ¶¶ 5-12.) The Government contends that this is false, and that as recently as February 13, 2012, the Owner attempted to rekindle settlement negotiations. (Doc. 30, at 3.) Tellingly, however, the Government does not suggest that the Coast Guard has re-engaged the Owner in surety agreement negotiations or altered its bargaining position one whit in response to those overtures. Thus, it is clear that the Coast Guard has not wavered in the least from the demand it communicated to the Owner on February 3, 2012 (i.e., the $700,000, and the 180-day arrangement for crew members' expenses), nor is there any indication that it is contemplating doing so. By all appearances, the February 3 demand was (and still remains) the Coast Guard's last and final offer for a surety agreement under § 1908(e).
Even while the Owner and Coast Guard were attempting to negotiate terms to allow the Vessel to receive clearance to leave the Port of Mobile and continue with its charter hire responsibilities, events moved swiftly as to the eight subject crew members.
The Court understands that all eight of these individuals are no longer residing aboard the Vessel and that none of them are presently incarcerated, but are being housed in a local hotel. Earlier this week, the Owner reached an agreement with independent counsel for each of the crew members, pursuant to which the Owner agreed to continue paying those crew members' total wages and benefits through the earlier of March 30, 2012 or the conclusion of those individuals' depositions pursuant to Rule 15, Fed.R.Crim.P. (See doc. 31.)
The Government has moved for dismissal of this action in its entirety for lack of subject matter jurisdiction. To a great extent, the Motion to Dismiss focuses on the judicial review provisions of APPS, as set forth in 33 U.S.C. § 1910.
The Emergency Motion and Petition identifies as a jurisdictional foothold the Administrative Procedure Act ("APA"), and particularly its provision that "[a]gency action made reviewable by statute and
Next, the Government maintains that APA review is unavailable here because "federal courts lack jurisdiction over administrative action where ... agency action is committed to agency discretion by law." Norton, 324 F.3d at 1236; see also 5 U.S.C. § 701(a)(2) ("This chapter applies... except to the extent that ... agency action is committed to agency discretion by law."). "[T]he primary focus of section 701(a)(2) is whether the governing statute provides the courts with `law to apply'." Forsyth County v. U.S. Army Corps of Engineers, 633 F.3d 1032, 1040 (11th Cir. 2011). What this means is that, if Congress "has indicated an intent to circumscribe agency enforcement discretion, and has provided meaningful standards for defining the limits of that discretion, there is `law to apply' under § 701(a)(2), and courts may require that the agency follow that law; if it has not, then an agency ... decision [is] `committed to agency discretion by law' within the meaning of that section." Forsyth County, 633 F.3d at 1040 (citing Heckler v. Chaney, 470 U.S. 821, 834-35, 105 S.Ct. 1649, 84 L.Ed.2d 714 (1985)). As a practical matter, then, § 701(a)(2) means that "review is not to be
The gravamen of the Emergency Motion and Petition is petitioners' position that the Coast Guard has "arbitrarily, capriciously, and purposefully refused to negotiate in good faith and [has] failed to accept a reasonable bond or other form of surety in accordance with the clear statutory requirements of 33 U.S.C. § 1908(e)." (Doc. 1, at 17.)
For these reasons, the Court concludes that petitioners' request for judicial review of the take-it-or-leave-it surety agreement terms proposed by the Coast Guard lies outside the scope of the Administrative Procedure Act, inasmuch as the Coast Guard's actions are "committed to agency discretion by law." 5 U.S.C. § 701(a)(2). There is no law to apply and no meaningful standard against which to judge the Coast Guard's exercise of its discretion under 33 U.S.C. § 1908(e) in setting terms for a surety agreement under which customs clearance would be granted to the Vessel; therefore, that decision is not subject to judicial review under the APA, and the APA cannot provide a jurisdictional basis for the Emergency Motion and Petition.
Having confirmed that petitioners have not invoked the judicial review provisions of APPS (or satisfied the notice prerequisite to such review) and having determined that APA review is not available here, the Court now turns to petitioners' other asserted grounds for requesting judicial intervention in their stalled negotiations with the Coast Guard.
For starters, petitioners contend that "[t]his Court absolutely has the authority to review any statute whose meaning and interpretation is at issue." (Doc. 27, at 5.) However, the mere fact that a federal agency and a private entity disagree over the meaning of a statute does not necessarily confer jurisdiction on federal courts to adjudicate the dispute; rather, there
Next, petitioners argue that "[t]he District Court is empowered to act to prevent a manifest injustice or the abridgement of Petitioner's due process rights." (Doc. 27, at 7.) There is no indication of "manifest injustice" here. The Coast Guard and the Owner have attempted to negotiate a surety agreement. The Owner has declined the Coast Guard's final offer, although it could decide otherwise if it chooses. Despite petitioners' rhetoric about statutory and constitutional rights, the heart of the dispute is the Coast Guard's demand that bond be set at $700,000, and the Owner's belief that $500,000 is sufficient. This is not manifest injustice.
As another basis for jurisdiction, petitioners argue that subject-matter jurisdiction is proper when "the legal question is `fit' for resolution and delay means hardship, or when exhaustion would prove `futile.'" (Doc. 27, at 10.) This argument is misplaced. As a statement of black-letter law, it is correct that the Supreme Court has recognized the cited exceptions to the general requirement of exhaustion of administrative remedies. See Shalala v. Illinois Council on Long Term Care, Inc., 529 U.S. 1, 13, 120 S.Ct. 1084, 146 L.Ed.2d 1 (2000) ("Doctrines of `ripeness' and `exhaustion' contain exceptions, however, which exceptions permit early review when, for example, the legal question is `fit' for resolution and delay means hardship,... or when exhaustion would prove
Petitioners also urge the Court to find that jurisdiction is proper based on federal courts' "exclusive, original jurisdiction to consider alleged violations of federal criminal statutes." (Doc. 27, at 12.) It is true that "[t]he district courts of the United States shall have original jurisdiction, exclusive of the courts of the States, of all offenses against the laws of the United States." 18 U.S.C. § 3231. But the terms and conditions under which the Vessel may receive customs clearance to leave the Port of Mobile are not a criminal matter. The alleged wrongs by the Coast Guard in those negotiations are not "offenses against the laws of the United States." And § 3231 does not create a private right of action (separate and apart from the APA) for any person who desires judicial interpretation of any federal statute with a criminal component. This asserted basis for the Emergency Motion and Petition is baseless.
Finally, petitioners contend that jurisdiction over their Emergency Motion and Petition is proper pursuant to Rule E of the Supplemental Rules for Admiralty or Maritime Claims. This argument fails for at least three reasons. First, on its face, Supplemental Rule E "applies to actions in personam with process of maritime attachment and garnishment, actions in rem, and petitory, possessory, and partition actions." Supplemental Rule E(1). This case is none of those things. The Coast Guard has not attached or arrested the Vessel, is not seeking forfeiture of the Vessel, or the like; rather, it has simply arranged for the Vessel's customs clearance to be suspended unless and until bond or other surety satisfactory to the Coast Guard is made. The Supplemental Rules say nothing about customs clearances or the terms under which the Coast Guard and CBP must or may grant them; therefore, those Rules have no application here. See Wilmina Shipping AS v. United States, 824 F.Supp.2d 749, 753 (S.D.Tex. 2010) (finding no jurisdiction under Supplemental
Second, the general terms of Supplemental Rule E cannot trump the specific provisions of 33 U.S.C. § 1908(e) which are at issue in the parties' negotiations. See generally Hinck v. United States, 550 U.S. 501, 127 S.Ct. 2011, 167 L.Ed.2d 888 (2007) (citing "well-established principle" that "a precisely drawn, detailed statute pre-empts more general remedies") (citations omitted); Nguyen v. United States, 556 F.3d 1244, 1253 (11th Cir.2009) ("The canon is that a specific statutory provision trumps a general one.").
Third, petitioners do not identify a single case authority, statutory provision, rule or regulation that has ever recognized applicability of the Supplemental Rules to afford a vessel owner an "absolute right to obtain the release of the vessel upon the posting of adequate security" (doc. 27, at 16) where the Coast Guard and CBP are withholding customs departure clearance under the APPS.
Petitioners find themselves in an unenviable position. The Owner and crew members are under criminal investigation for violation of the record-keeping requirements of the APPS. The Coast Guard has arranged for the withholding of the Vessel's clearance to leave the Port of Mobile, pending bond or other surety satisfactory to the Coast Guard, as provided by 33 U.S.C. § 1908(e). As a result, the Vessel is trapped in a foreign port far from home. Every day, the Owner is losing money on charter hire, port fees, and other expenses. And the Coast Guard is insisting on terms of a surety agreement that the Owner finds distasteful, particularly the imposition of a $700,000 bond and coverage of eight crew members' living expenses and wages for up to 180 days. The Owner thinks these terms are excessive.
The Owner selected none of these avenues, but instead would create a brand-new remedy with no basis in the APPS or the case law, by asking this Court to enter the fray to force the Coast Guard to accept surety agreement terms that the Owner thinks are reasonable. The trouble is that the Owner is attempting to jam a square peg into a round hole — it just does not fit. Nothing in the APPS furnishes vessel owners with the option of seeking a "second opinion" from the federal courts if they are dissatisfied with the Coast Guard's offer in a § 1908(e) surety agreement negotiation. Nor does the APA provide a vehicle for challenging the Coast Guard's exercise of its virtually unbounded, standardless discretion in deciding what surety agreement terms are "satisfactory" to it. The Supplemental Admiralty Rules have no application to the withholding of a customs clearance in an APPS case. The other jurisdictional pathways identified by petitioners are not available in this case and/or do not give rise to a private right of action to have this Court interpret the meaning of § 1908(e) or review a Coast Guard application of that statute with which petitioners disagree. And the argument that this Court should throw out all of these legal considerations and step in to protect the basic human rights and liberties of the affected crewmen is a red herring, as this matter stands today.
For all of these reasons, it is