United States v. Dixie Carriers, Inc.

ELR Citation: ELR 20625
No(s). 77-2090 §”E”(3) (E.D. La. Apr 4, 1983)

The court rules that defendant barge owner may not credit the oil spill cleanup costs it voluntarily incurred against the removal costs owed the federal government under §311 of the Federal Water Pollution Control Act. The court first holds that the credit is not authorized by §311(f). While it finds merit in defendants' contention that the credit would serve a valuable public purpose in encouraging spillers to initiate cleanup efforts on their own, neither the language of §311 nor its legislative history establish that Congress intended to authorize such a credit. Next, the court rules that the Coast Guard's supervision of the removal efforts does not entitled defendants to reimbursements under §311(d). Section 311(d) encompasses only expenses incurred by the United States. Nor is the United States estopped from seeking the maximum cleanup cost recovery by the fact that it encouraged defendants to remove the oil. Finally, the court rules that in directing the cleanup efforts, the Coast Guard was merely carrying out the coordinating functions contemplated in §311(d) and did not establish an agency relationship with defendants thereby obligating the United States to reimburse defendants' costs.

Counsel for Plaintiff
Allen van Emmerik
Civil Division
Department of Justice, Washington DC 20530
(202) 724-7290

William Baity, Leonard Avery, Ass't U.S. Attorneys
Fed. Bldg., 500 Camp St., New Orleans LA 70130
(504) 589-2921

Counsel for Defendants
Machale A. Miller
Barham & Churchill
Suite 300, 400 Lafayette St., New Orleans LA 70130
(504) 523-3565

Henry J. Read
Montgomery, Barnett, Brown & Read
1100 Whitney Bldg., New Orleans LA 70130
(504) 581-3333

Donald R. Abaunza
Liskow & Lewis
50th Floor, One Shell Sq., New Orleans LA 70139
(504) 581-7979

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