PER CURIAM:
Petitioner-Appellant RLB Contracting, Inc. ("RLB") filed this action under the Limitation of Liability Act ("Limitation Act" or "Act"), 46 U.S.C. § 30501 et seq., seeking to limit its liability to $750,000, the value of the dredge vessel, "Jonathan King Boyd" (the "Vessel"), after a fatal allision between a fishing boat and the Vessel's dredge pipe. Claimants-Appellees Mark Butler, Joseph Sigle, and Linda Butler (collectively, "the Butlers"), occupants or representatives of occupants of the fishing boat, had previously sued RLB in Texas state court for personal injuries and property damage, and for the wrongful death of one occupant, Butler's twelve-year-old daughter Sammi ("S.B."). In response to RLB's limitation action, the Butlers contended that RLB had missed the Limitation Act's six-month jurisdictional deadline for invoking the protections of the Act.
On July 1, 2011, the Vessel was engaged in dredging operations near Anahuac in Chambers County, Texas. A fishing boat carrying Mark Butler, his son Joseph Sigle, Sigle's son B.S., and Butler's daughter S.B., collided with a floating dredge pipe associated with the Vessel. All occupants of the fishing boat were thrown overboard, suffering various physical injuries, and S.B. was killed. The Butlers contend that the dredge pipe was inadequately marked and that RLB had negligently failed to post warnings of ongoing dredging operations. The Coast Guard initiated an investigation shortly after the accident.
Mark Butler filed suit against RLB in Texas state court on June 14, 2012, and RLB was served with the state court petition on July 2.
The Butlers filed a motion to dismiss the limitation action as untimely, contending that RLB had received written notice of the claim more than six months prior to the time it filed the limitation action. According to the Butlers, their counsel had sent RLB's counsel numerous emails between July 26, 2011, and June 14, 2012,
The case was referred to a magistrate judge who issued a Report and Recommendation ("R&R") which concluded that, on the basis of those emails, RLB had received the required notice and thus missed the six-month window for filing a limitation action. The district court, after converting the Butlers' motion to dismiss to a motion for summary judgment, adopted the R&R, granted summary judgment to the Butlers, and dismissed the limitation action as time-barred.
At the heart of this dispute is a series of letters, mostly exchanged via email, between RLB's two lawyers, Andrew Schulz and Wayne Pickering, and Butler's counsel, Frank Daniel. On July 26, 2011, a few weeks after the accident, Daniel sent Schulz a letter via fax, informing him that Daniel had been retained by the Butlers.
Schulz responded to Daniel the same day via email. In it, he stated that because "the investigation [was] ongoing, ... any substantive information w[ould] remain part of [his firm's] work product until the investigation [was] complete." These references to "the investigation" meant the Coast Guard investigation of the accident.
On August 19, 2011, Daniel sent Schulz an email stating that "it might behoove [them] to seriously consider mediation before any lawsuit." Daniel expressly based this recommendation on information that he had gathered about "the nature of the injuries, bystander claims, graphic photos, [and] the PTSD claims" of his clients and other witnesses, as well as from a meeting with Linda Butler's attorney. Daniel referenced the additional pain that his clients would have to endure "if [they] are forced to litigate and go through depositions."
On August 24, 2011, Schulz wrote to Daniel, rejecting his proposal to mediate and noting that "any attempt to evaluate the case would be futile" until the Coast Guard investigation was complete. Daniel wrote back the next day, reiterating that mediation was their "best option" as "investigations will only tell us so much." Schulz responded: "Okay. But I cannot imagine a carrier just throwing out your number of $3M, without more, just to your clients." He added that they could "keep the dialogue going." There was another exchange of emails on October 28, primarily dealing with preservation of the fishing boat for any future litigation.
On June 8, 2012, Schulz received an email from Daniel that he had been instructed to file suit.
A party who contends that a limitation action was not timely filed challenges the district court's subject matter jurisdiction.
Both parties relied on evidence outside the pleadings, so the district court converted Butler's motion to dismiss into a motion for summary judgment under Federal Rule of Civil Procedure 12(d). We review summary judgment rulings de novo, viewing evidence in the light most favorable to
We have made the general observation that Rule 12(b)(1) and Rule 56 diverge in their treatment of factual disputes. In this case, however, neither the magistrate judge in the R&R, nor the district court in adopting it, made any relevant factual findings. Furthermore, a review of the record reveals no material factual disputes. Thus, the Rule 12(b)(1) and Rule 56 standards converge, and a straightforward de novo review applies.
The Limitation Act "allows a vessel owner to limit liability for damage or injury ... to the value of the vessel or the owner's interest in the vessel."
We have said that a communication qualifies as "written notice" if it "reveals a `reasonable possibility' that the claim will exceed the value of the vessel."
The purpose of the "reasonable possibility" standard is to place the burden of investigating potential claims on the vessel owner:
Assigning the risk of uncertainty to the vessel owner fits the purpose of the six-month limitation, which is "to require
We have said less about what a communication must contain to qualify as such a written notice under the Act. A state court complaint clearly gives notice of the claim itself. A demand need not express a specific quantum of damages so long as there is a reasonable possibility that a claim's value will exceed the value of the vessel.
As a threshold matter, to the extent that we have never explicitly held that a written communication may serve as notice under the Act in lieu of a filed complaint, we do so today.
The Butlers urge us to consider counsel Daniel's letters "bundled together" and to evaluate the entire body of correspondence under the Act's "written notice" requirement. The statutory text does not foreclose the possibility of aggregate notice; it only requires the claimant to give "the owner written notice," not a written notice.
Moreover, from a practical standpoint, it makes sense to do so. In situations like
Furthermore, it would be an artificial exercise to require a claimant who did engage in a lengthy correspondence to designate the single most favorable writing from the series as the written notice. Far better for the record to reflect what actually occurred and for the district court to make its ruling accordingly. Thus, we shall consider whether the entire series of letters satisfies the "reasonable possibility" requirement.
We have not previously addressed the issue of what a writing must contain to give a vessel owner notice of a potential claim. Both RLB and the Butlers analogized to district court cases (primarily from courts outside this circuit) and emerge with two different methodologies for analyzing the facts at hand. RLB starts with an idea of what proper notice of a claim would look like and searches through Daniel's emails for statements matching that standard. RLB states that notice must "refer to the cause of [claimants'] injuries or the types of injuries sustained... and clearly assert blame on the petitioner." RLB also tries to disqualify Daniel's emails for "provid[ing] no details regarding the claims, injuries, or causes of injuries" and for not mentioning any "demand of a right, specific blame for damage, or call upon something due." RLB asserts that, even though Daniel's emails might have obliquely referred to a potential lawsuit, absent the magic words it sought, RLB "was never put on notice that [the Butlers] would be seeking a claim based on RLB's alleged negligence in connection with the vessel." RLB also claims that it had serious doubts as to the viability of the potential claim because of Butler's alleged contributory negligence. The Butlers point out that RLB cannot simultaneously disclaim knowledge of a pending claim and assert knowledge of a potential defense to that claim. Furthermore, the issue here is the "reasonable possibility" that a claim exists, not probability of success on the merits.
In contrast, the Butlers' approach is to start with the letters themselves, then consider whether together those letters reveal the reasonable possibility of a pending claim. Daniel's first letter instructed RLB "to preserve evidence as if a suit had been initiated"; his email of August 19, 2011, mentioned the evidence he had already gathered and requested mediation "before any lawsuit"; his email on May 30 of the following year discussed state and federal venues for the suit and again requested mediation; finally, his emails of June 8 and 14, 2012, explicitly bring up filing the lawsuit and service of process. According to the Butlers, these statements, when taken together, paint a picture of a pending claim.
The Butlers' approach is more compatible with the reasonable-possibility test's fact-intensive nature, as it starts with the
In its favor, RLB's position does invoke the benefits of a bright-line rule: A clear list of required statements and demands would provide guidance to future claimants and vessel owners alike. In addition to being less fact-focused, however, there are two additional problems with this approach. First, regarding damages, we have held that the risk of uncertainty lies with the vessel owner. It would be inconsistent to reverse that risk when it comes to notice of a potential claim. Second, mandating that written notice contain "magic words" or specific elements might well impose a requirement not found in the statutory text.
As the Butlers' analytical approach appears to be more compatible with our precedent, and as it is factually inconceivable that RLB had no notice of a claim after almost a year of emails discussing the case — culminating in the June 14 missive informing RLB that Butler had actually filed suit — we hold that by June 14, 2012, at the latest, RLB had notice of the Butlers' claim. This is obviously more than six months prior to the December 28, 2012, filing date of RLB's limitation action.
To the same extent that RLB had notice of the Butlers' potential wrongful death suit, it had notice that there was a reasonable possibility of damages in excess of $750,000, even though Daniel's emails never gave a specific number. Our recent decision in In re Eckstein Marine Service L.L.C. addressed almost precisely this same issue.
The Butlers have established that the pre-suit writings from their counsel to RLB's counsel conveyed the reasonable possibility that RLB faced a claim exceeding $750,000, the value of the Vessel. RLB thus had written notice under the Limitation Act earlier than six months before it filed its limitation action. The district court's dismissal of RLB's complaint as time-barred is AFFIRMED.