In the Matter of the Complaint of William Martz et al

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ALASKA
In the Matter of the COMPLAINT of
William Martz and Jane Martz, as
owners of a Nautique vessel, for
Limitation of Liability
Case No. 3:20-cv-00152-SLG
ORDER RE MOTIONS FOR SUMMARY JUDGMENT
Before the Court at Docket 19 is Claimant Andrew Horazdovsky’s Motion for
(1) Summary Judgment Dismissing Complaint, (2) Vacating the Court’s June 30,
2020 Injunction, and (3) an Award of Reasonable Attorney Fees Incurred in
Responding to the Complaint.1 Limitation Plaintiffs William Martz and Jane Martz
responded in Opposition at Docket 23. Claimant replied at Docket 27. Also before
the Court is Limitation Plaintiffs’ Cross Motion for Summary Judgment at Docket
24. Claimant responded in opposition at Docket 32. Limitation Plaintiffs replied at
Docket 35. The Court heard argument on the motions on September 3, 2020.
1 The Court denied the portion of Claimant’s motion seeking attorney’s fees at the conclusion of
oral argument. See Docket 37.
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BACKGROUND
A. Procedural History
On June 25, 2020, Limitation Plaintiffs commenced this action for limitation
of liability.2 They seek to enjoin any action against them arising from a collision
involving their vessel and to confine any resulting liability to the value of their
interest in the vessel, which they estimate as $15,000.3 The vessel in question is
Limitation Plaintiffs’ “recreational vessel, a 21-foot 1998 Correct Craft Air Nautique”
(the “Nautique”).4 As described in the complaint, Limitation Plaintiffs’ son, Reagan
Martz, was operating the Nautique on June 9, 2018 on Flat Lake when it collided
with an inflatable raft being towed by a vessel operated by Andrew Horazdovsky.5
Jennifer Horazdovsky was in the raft and as a result of the collision, she died.6 On
June 4, 2020, Mr. Horazdovsky initiated an action in Alaska Superior Court
bringing several claims against Jane and William Martz, among others, arising
under state tort law and federal maritime and admiralty law.7
2 Docket 1 (Complaint).
3 Docket 1 at 6; Docket 1 at 4, ¶ 13.
4 Docket 1 at 2, ¶ 3.
5 Docket 1 at 3, ¶¶ 7–10.
6 Docket 1 at 3, ¶¶ 7–10.
7 Docket 1 at 3–4, ¶ 11; see also Docket 1-1 (Horazdovsky Complaint). The action in state
court is Horazdovsky v. Martz, et al., Case No. 3AN-20-06488CI. Mr. Horazdovsky brought the
action in his personal capacity, as well as in his capacity as personal representative of Jennifer
Horazdovsky’s estate, and on behalf of their minor child. See Docket 1-1 at 1.
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On June 30, 2020, finding that Limitation Plaintiffs had complied with the
procedural requirements necessary to initiate an action to limit liability pursuant to
46 U.S.C. § 30511, the Court appointed a Trustee to hold title to the Nautique as
well as a $1,000 deposit from Limitation Plaintiffs for costs.8 As prescribed by the
statute, the Court ordered that all claims against Limitation Plaintiffs and their
property shall cease and enjoined the further prosecution of any action or
proceeding against them with respect to any claim subject to limitation, including
those in the state court action.9
On July 3, 2020, Claimant filed the instant motion for summary judgment
and for vacatur of the Court’s June 30, 2020 injunction.10 On July 23, 2020,
Limitation Plaintiffs filed a cross-motion for partial summary judgment on the issue
of timeliness.11
8 Docket 17 at 5.
9 Docket 17. See In re Complaint of Moog, Case No. 3:19-cv-00030-DCN, 2019 WL 3849152,
at *3 (D. Idaho Aug. 14, 2019); 46 U.S.C. § 30511(c) (“When an action has been brought under
this section . . . all claims and proceedings against the owner related to the matter in question
shall cease); Fed. R. Civ. P. Supp. R. F(3) (“On application of the plaintiff the court shall enjoin
the further prosecution of any action or proceeding against the plaintiff or the plaintiff’s property
with respect to any claim subject to limitation in the action.”). The Court’s order also served as
notice to any person claiming damages as a result of the June 9, 2018 collision of the Nautique
to file any claims with this Court prior to August 31, 2020. Docket 17 at 6. No other claims
were filed.
10 Docket 19.
11 Docket 24.
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B. The Parties’ Correspondence
Prior to commencement of the state court action, counsel for Limitation
Plaintiffs and counsel for Claimant exchanged a series of e-mails and letters.
On June 18, 2018, on behalf of Claimant, attorney Timothy Lamb sent a
letter to Reagan Martz captioned “Re: Request for information concerning the boat
owner and whether the boat was insured for the accident at Flat Lake.”12 Mr. Lamb
indicated that he was “assisting Andrew Horazdovsky in searching for any potential
insurance coverage that might be available to compensate the Estate of his
deceased wife and their small child,” and asked for the name and contact
information of the vessel owner, and of their insurance broker, if any.13
On October 23, 2018, also on behalf of Claimant, attorney Carl Cook
emailed attorney Jonathon Katcher, counsel for the Martzes, requesting “the
statement of coverage for the insurance policies on the boat [Reagan] Martz was
driving and the property he was staying at that day.”14 Mr. Katcher responded that
there was no insurance for the boat, and that the property did not belong to the
Martzes.15 The following day, Mr. Cook inquired about Reagan Martz’s residence
and any accompanying insurance and whether his criminal attorney was being
12 Docket 25-4 at 11.
13 Docket 25-4 at 11.
14 Docket 25-4 at 13.
15 Docket 25-4 at 13.
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paid by an insurance company.16 Mr. Cook also asked for the identity of the vessel
owner.17 On November 8, 2018, Mr. Cook followed up on his inquiries with a letter
to Mr. Katcher titled “Re: Horazdovsky vs. Martz” (“Cook Letter).18 On November
20, 2018, Mr. Katcher responded by letter also captioned “Re: Horazdovsky vs.
Martz” (“November Katcher Letter”) wherein he explained that Reagan Martz did
not have renters’ insurance, and that there was no insurance company paying for
any attorneys working on the Martzes’ behalf.19 The November Katcher Letter also
identified William and Jane Martz as the owners of the Nautique at the time of the
accident.20
On December 4, 2018, a third attorney for Claimant, Robert Stone,
addressed a letter to Mr. Katcher captioned “Re: Horazdovsky v. Reagan Martz,
William and Jane Martz, and Betty Barce” (“Stone Letter”).21 It stated, in part:
I have had conversations with attorney Carl Cook regarding a boating
accident that occurred on or near Flat Lake, on or about June 9, 2018.
I write to seek clarification regarding a number of insurance coverage
issues.
It is my understanding that Reagan Martz, son of William and Jane
Martz, was drinking heavily at a party sponsored by William and Jane
Martz. I also understand that Reagan’s grandmother, Betty Barce,
16 Docket 25-4 at 16.
17 Docket 25-4 at 19.
18 Docket 25-4 at 22; Docket 19-1 at 1.
19 Docket 25-4 at 24; Docket 19-2.
20 Docket 25-4 at 24; Docket 19-2.
21 Docket 25-4 at 26; Docket 19-3.
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has an ownership interest in the property. It is also my understanding
that Reagan was a permissive user of a boat owned by his parents.
The facts, as conveyed to me, suggest that Reagan Martz was
severely intoxicated, and that as a result of such intoxication, he
collided with a raft occupied by Jennifer Horazdovsky and two other
female occupants. As a result of the collision, Jennifer Horazdovsky
died. The other two occupants were seriously injured.
* * *
I have been told that Reagan Martz fled the scene, changed from the
boat to a jet ski, and continued to flee the scene until he was ultimately
apprehended.
It is my understanding that Reagan Martz has been charged with
manslaughter, assault, and driving under the influence.
You can appreciate our interest in investigating what potential
coverages exist to pay for the damages caused. Our investigation is
not complete. We are also not yet certain whether William Martz or
Jane Martz bear any responsibility.
* * *
I would like to avoid unnecessarily naming parties to a lawsuit.
* * *
If there has been a tender of coverage to any insurance companies,
please advise. I am interested in receiving a copy of any denial of
coverage, acceptance of coverage, and/or any reservation of rights
issued by any insurer to either Betty Barce, William or Jane Martz, or
Reagan Martz, regarding this June 9, 2018 collision.22
On December 5, 2018, Mr. Katcher responded by letter captioned “Re:
Horazdovsky v. Martz” (“December Katcher Letter”) stating, in part:
The alleged party in question was not in any manner sponsored or
supported by William and/or Jane Martz.
22 Docket 25-4 at 26–28; Docket 19-3 at 1–5.
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The cabin is not owned by any member of the Martz family. Our
information is that the cabin is owned by the family of Darren Barce.
See my October 23, 2018 email to Mr. Cook stating the same.
* * *
I have investigated and confirmed that Reagan Martz had no
insurance coverage of any kind for this accident. There is no basis
for William and Jane Martz having any liability for this accident. In any
event, William and Jane Martz had no insurance coverage that would
apply to this accident.
* * *
In light of the absence of any colorable assertion of coverage for this
accident under any insurance policies that might apply to Reagan,
William or Jane Martz, we have not tendered this claim to any
insurance companies.23
According to an affidavit from Mr. Katcher submitted in support of Limitation
Plaintiffs’ motion, in referencing “this claim” in his December Letter, he “was not
stating that the Horazdovskys had provided written notice of a claim,” but “was
merely stating that we had not tendered a claim for insurance coverage to any
insurance company.”24 Mr. Katcher, William Martz, and Jane Martz each declare
by affidavit that they did not consider any of the correspondence from Claimant’s
attorneys to be a written notice of a claim.25 Mr. Katcher adds that, in fact,
23 Docket 25-4 at 30–31; Docket 19-4 at 1–2 (emphasis in original).
24 Docket 25-4 at 7–8, ¶ 11.
25 Docket 25-2 at 3, ¶ 5 (William Martz Aff.) (“Prior to my receiving that complaint, I had never
received any written notice of any claim against me or Jane Martz related to the June 9, 2018
accident involving the Nautique.”); Docket 25-3 at 3, ¶ 5 (Jane Martz Aff.) (“Prior to my
receiving that complaint, I had never received any written notice of any claim against me or Bill
Martz related to the June 9, 2018 accident involving the Nautique.”); Docket 25-4 at 4, ¶ 2
(Katcher Aff.) (“None of those pre-state court lawsuit communications ever provided written
notice to me of any claim against William Martz or Jane Martz related to the accident.”).
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sometime after the parties’ correspondence, he spoke by telephone with Mr.
Stone, who informed him that “it was not his practice to sue people who were not
insured.”26
JURISDICTION
This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1333,
which grants it original jurisdiction over “[a]ny civil case of admiralty or maritime
jurisdiction.”27
LEGAL STANDARD
A. Summary Judgment
Federal Rule of Civil Procedure 56(a) directs a court to grant summary
judgment if the movant “shows that there is no genuine dispute as to any material
fact and the movant is entitled to a judgment as a matter of law.” An issue is
“genuine” if there is a sufficient evidentiary basis on which a reasonable fact-finder
could find for the non-moving party and a dispute is “material” if it could affect the
outcome of the suit under the governing law.28 When considering a motion for
summary judgment, “[t]he evidence of the nonmovant is to be believed, and all
justifiable inferences are to be drawn in his favor.”29
26 Docket 25-4 at 8, ¶ 12.
27 See also U.S. Const. art. III, § 2, cl. 2 (“The judicial Power shall extend . . . to all Cases of
admiralty and maritime Jurisdiction . . . .”).
28 Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986).
29 Moldex-Metric, Inc. v. McKeon Prods., Inc., 891 F.3d 878, 881 (9th Cir. 2018) (alteration in
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B. The Limitation of Liability Act
The Limitation of Liability Act (the “Act”) provides that “the liability of the
owner of a vessel for any claim, debt, or liability [subject to the Act] . . . shall not
exceed the value of the vessel and pending freight.”30 Claims arising from “injury
by collision” are subject to limitation under the Act provided that the conduct at
issue occurred “without the privity or knowledge of the owner.”31 To take
advantage of these protections, the owner of a vessel must bring a civil action in a
federal district court “within 6 months after a claimant gives the owner written notice
of a claim.”32
DISCUSSION
Claimant moves for summary judgment and dismissal of the instant matter,
contending that the case was not filed within six months of written notice of a claim
and is thus time-barred.33 Claimant maintains that the complaint in this action was
filed nearly 19 months after the vessel owners first received written notice of a
original) (quoting Anderson, 477 U.S. at 255).
30 46 U.S.C. § 30505(a).
31 46 U.S.C. § 30505(a); see also In re Complaint of Ross Island Sand & Gravel, 226 F.3d
1015, 1017 (9th Cir. 2000) (“A limitation of liability action is a proceeding in admiralty for vessel
owners that permits them to limit their lability (if any) to their interest in the vessel and its
freight, provided that the loss was incurred without their privity or knowledge.”).
32 46 U.S.C. § 30511(a); see also Fed. R. Civ. P. Supp. R. F(1) (“Not later than six months after
receipt of a claim in writing, any vessel owner may file a complaint in the appropriate district
court, as provided in subdivision (9) of this rule, for limitation of liability pursuant to statute.”).
33 Docket 19 at 1.
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claim arising from the June 9, 2018 collision of the Nautique.34 According to
Claimant, the owners “received written notice of a claim as early as November 8,
2018,” referencing the Cook Letter and the November Katcher Letter
acknowledging its receipt.35 Claimant adds that the vessel owners’ attorney
acknowledged the existence of “this claim” in the December Katcher Letter,
demonstrating that the vessel owners were on notice of a claim.36
Limitation Plaintiffs respond that they did not receive written notice of a claim
until the lawsuit was filed in Alaska Superior Court on June 4, 2020. They
acknowledge that they “received inquiries about the availability of insurance before
then” but maintain that “none of these insurance-related communications asserted
a demand of a right or supposed right against William or Jane Martz[,] . . . blamed
[them] for any damage or loss, . . . [or] called upon [them] to pay anything due to
anyone.”37 Limitation Plaintiffs contend that these inquiries did not constitute
written notice of a claim, and therefore, that the instant action was timely initiated
just three weeks after the state court complaint was filed.38
34 Docket 19 at 4–5.
35 Docket 19 at 8 (citing Docket 19-1); Docket 19 at 8 (citing Docket 19-2).
36 Docket 19 at 8 (quoting Docket 19-4 at 2).
37 Docket 23 at 2.
38 Docket 23 at 3.
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A. The Parties’ Arguments
The parties dispute both the requirements for a written notice of claim as
well as the implications of the substance of Claimant’s correspondence.39
i. Requirements for Written Notice
Claimant proposes a holistic, fact-intensive framework for evaluating a
written notice. He contends that correspondence should “be read as a whole,”40
and cites the District of Alaska’s Rachel K. Inc., Limitations Proceedings for the
proposition that “district courts deal with the adequacy of notice on an ad hoc
basis.”41 Claimant focuses on an excerpt from a law review article cited in Rachel
K., which posits that “it has been said that the notice is sufficient if it provides ‘all
details of the situation with regard to the claim,’ by which the court appears to have
meant little more than the identification of the incident and the party injured and
the nature of the damages.’”42 Claimant emphasizes that the limitation of liability
statute only requires written notice of a claim, and not written notice that a claim
will be pursued.43
39 The parties agree that the Ninth Circuit has not weighed in on the issue. See Docket 25 at
13; Docket 19 at 9 (quoting Rachel K. Inc., Limitations Proceedings, Case No. A95-0220-CV,
1996 WL 662495 (D. Alaska July 12, 1996)).
40 Docket 27 at 4.
41 Docket 19 at 9 (quoting Case No. A95-0220-CV, 1996 WL 662495 (D. Alaska July 12, 1996)).
42 1996 WL 662495, at *1 (D. Alaska) (quoting Graydon S. Starling, Limitation Practice &
Procedure, 53 Tulane L. Rev. 1134, 1144 (1979)).
43 Docket 27 at 2, 13–14.
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In contrast, Limitation Plaintiffs urge the Court to apply a factored test to
determine whether Claimant’s pre-suit correspondence constitutes written notice
of a claim.44 They contend that strict compliance with the notice requirement is
important to prevent undue burdens on vessel owners who must post security, as
well as to avoid needless litigation in federal courts and to prevent gamesmanship
by litigants.45 Limitation Plaintiffs highlight two existing tests that several courts
have employed.46 The first is referred to as the Doxsee/McCarthy test and asks
whether the notice “informs the vessel owner of an actual or potential claim . . .
which may exceed the value of the vessel . . . and is subject to limitation.”47 The
second test, referred to as the Moreira or Richardson test, asks whether the notice
“(1) demand[s] a right or supposed right, (2) blame[s] the vessel owner for any
damage or loss, and (3) call[s] on the vessel owner for anything due.”48 Limitation
Plaintiffs urge the Court to adopt the Moreira/Richardson test. Relying on an
44 Docket 25 at 14.
45 Docket 25 at 23.
46 Docket 25 at 14.
47 Orion Marine Constr., Inc. v. Carroll, 918 F.3d 1323, 1330 (11th Cir. 2019) (quoting Doxsee
Sea Clam Co. v. Brown, 13 F.3d 550, 554 (2d Cir. 1994)). See also In re Complaint of
McCarthy Bros. Co./Clark Bridge, 83 F.3d 821, 829 (7th Cir. 1996) (“The most authoritative
case states that a letter sent to a shipowner by a claimant is sufficient to trigger the six-month
period if (1) it informs the shipowner of an actual or potential claim (2) which may exceed the
value of the vessel (3) and is subject to limitation. Doxsee Sea Clam Co. v. Brown, 13 F.3d
550, 554 (2d Cir. 1994). As to the latter of these requirements, the written notice of claim must
reveal a ‘reasonable possibility’ that the claim made is one subject to limitation.”).
48 Orion, 918 F.3d at 1330–31 (citing Rodriguez Moreira v. Lemay, 659 F. Supp. 89, 91 (S.D.
Fla. 1987)). See also Richardson Constr. Co., 850 F. Supp. 555, 557 (S.D. Tex. 1993) (citing
Moreira factored test).
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Eleventh Circuit decision, they contend that the Doxsee/McCarthy test effectively
encompasses Moreira—which “teaches us what signals a ‘claim’”—and simply
adds on a value requirement.49 Thus, Limitation Plaintiffs contend that “to satisfy
46 U.S.C. § 30511 and Fed. R. Civ. P. Supp. F., the notice must include the
Moreira/Richardson factors,”50 maintaining that even those courts that adopt
Doxsee/McCarthy still examine whether the Moreira test is met.51
In his reply, Claimant cites to several different tests. Claimant highlights the
standard from the Fifth Circuit, which sets out a two part inquiry: “(1) whether the
writing communicates the reasonable possibility of a claim, and (2) whether it
communicates the reasonable possibility of damages in excess of the vessel’s
value.”52
49 Docket 25 at 16 (citing Orion, 918 F.3d at 1330–31).
50 Docket 35 at 10.
51 Docket 25 at 16–17 (citing In re Henry Marine Serv., Inc., 136 F. Supp. 3d 401, 411 (E.D.N.Y.
2015) and In re Complaint of Salty Sons Sports Fishing, Inc., 191 F. Supp. 2d 631, 636 (D. Md.
2002)). In Henry Marine Serv., the district court applied the Doxsee/McCarthy test, but in
concluding that the email in question “did not provide . . . sufficient written notice of . . .
potential damages,” also relied on Moreira. 136 F. Supp. 3d at 410–11. Similarly, in Salty
Sons, the district court applied the Moreira/Richardson test but also considered whether there
is a reasonable possibility that the claims would exceed the value of the ship, as required under
Doxsee. 191 F. Supp. 2d. at 636. Thus, both courts seemingly adopted elements from both
tests.
52 Docket 27 at 3 (quoting In re CDM Resource Mgmt., LLC, Case No. 15-112, 2015 WL
6473155, at *6 (E.D. La. 2015) (quoting Complaint of RLB Contracting, Inc. v. Butler, 773 F.3d
596, 602–03 (5th Cir. 2014) (emphasis in original)). Limitation Plaintiffs seek to distinguish
CDM, noting that the letter at issue there contained, among other things, a request for
personnel files, medical records, photos, statements by the parties, and other documentation,
which the court had likened to discovery, rather than simply making insurance inquiries. Docket
35 at 11–13.
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ii. Content of the correspondence
Claimant contends that the written correspondence between the parties in
2018 “clearly identif[ies] the details of the situation with regard to the claim” by
describing the vessel collision.53 He adds that the Stone Letter was captioned to
reflect the parties dispute as “Re: Horazdovsky v. Reagan Martz, William and Jane
Martz, and Betty Barce,”54 and that courts have credited such styling as providing
notice of a potential lawsuit.55 Claimant contends that the detailed letter, along
with the caption and Mr. Katcher’s subsequent reference to “this claim,” provide
“conclusive evidence of Limitation Plaintiffs having sufficient notice of the
reasonable probability of a possible action” against them.56
Limitation Plaintiffs respond that Claimant’s correspondence does not
satisfy the Moreira/Richardson test as it is devoid of “any demand of right, any
53 Docket 19 at 9. Claimant adds that Limitation Plaintiffs were on notice of the possibility of a
claim as soon as the accident happened, since boat owners are strictly vicariously liable for the
negligence of a permissive user of the boat under Alaska law. Docket 27 at 5 (citing Alaska
Statute 05.25.040). However, the federal limitations statute requires written notice of a claim,
and therefore Limitation Plaintiffs’ knowledge of vicarious liability separate and apart from any
written notice is not dispositive.
54 Docket 27 at 7.
55 Docket 27 at 6 (citing In re Complaint of Beesley’s Point Sea-Doo, Inc., 956 F. Supp. 538,
541 (D.N.J. 1997)). In Beesley’s, the district court dismissed a petition for limitation of liability
as time-barred after evaluating the “whole tenor” of the correspondence between the parties.
Id. at 541. Among other things, it credited that the letters indicated the claimant was injured on
the owner’s jet-skis, provided a theory of liability (negligence), urged the owner to inform his
insurance carrier, made reference to claims, and itemized medical expenses. Id. at 542–544.
The court also gave weight to the fact that a letter was captioned in the manner of a lawsuit:
“Re: Gillespie vs. Beesley’s Point Sea Doo, Inc. t/a Sea Isle Sea Doo, et al.” along with the
date of the incident. Id. at 542.
56 Docket 27 at 7.
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blaming of William or Jane Martz for damage or loss, any call for something due .
. . or any accusations of negligence or any demands for payment.”57 They maintain
it lacks an adversarial tone and is tentative about legal action,58 and that the
caption of Horazdovsky vs. Martz only indicates a “present controversy” and not a
claim.59 Limitation Plaintiffs contend that the written notice must do more than
recite facts creating the potential for a claim.60 They maintain that Mr. Katcher’s
reference to “this claim” in his December Letter was a reference to a claim for
insurance coverage information made in response to Mr. Stone’s questions.61
Limitation Plaintiffs contend that it is “entirely possible to inquire about insurance
without making a claim,” reasoning that the attorneys did so to determine whether
it was worth making a claim.62 They contend that, regardless, the issue is not
57 Docket 25 at 25.
58 Docket 25 at 25.
59 Docket 25 at 21–22 (quoting Doxsee, 13 F.3d at 554).
60 Docket 25 at 18–19 (citing Rachel K, Petition of J.E. Brenneman Co., 157 F. Supp. 295, 297
(E.D. Pa. 1957); The Belleville, 35 F. Supp. 934 (E.D.N.Y. 1940); Petition of Anthony O’Boyle,
Inc., 51 F. Supp. 430, 431 (S.D.N.Y. 1943); and In re Henry Marine Serv., Inc., 136 F. Supp. 3d
at 411)). Limitation Plaintiffs acknowledge that the Doxsee test refers to a “potential claim,” but
contend that it is best understood as referencing a potential lawsuit, and not merely the
potential existence of a claim. Docket 25 at 19–20 (citing In re the Complaint of RLB
Contracting, Inc., 773 F.3d 596, 604 (5th Cir. 2014)).
61 Docket 25 at 26. In his affidavit, Mr. Katcher states that his use of the term “this claim” was
in reference to the fact that they “had not tendered a claim for insurance coverage.” Docket 25-
4 at 7, ¶ 11.
62 Docket 35 at 7. Limitation Plaintiffs also contend that courts have held that “insurance
inquiries do not constitute written notice of a claim.” Docket 25 at 21. In support of this
statement, they cite three cases: In re Hollis B. Corp., Case No. 2016-14, 2016 WL 8732310,
at *3 (D.V.I. Sept. 30, 2016); In re Cameron, Case No. 3:17-cv-1460-J-20JRK, 2018 WL
2688758, at *2 (M.D. Fla. April 18, 2018); and Int’l Ship Repair & Marine Servs., Inc. v. Estate
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whether Mr. Katcher referenced a claim, but rather, whether Claimant sufficiently
put them on notice of a claim.63 Limitation Plaintiffs emphasize that, in light of Mr.
Stone’s verbal representation that he does not sue individuals without insurance,
they had no reason to bring a limitation action,64 and they note that Claimant never
responded to Mr. Katcher’s statement that he saw no basis for liability as to
of Morales-Montalvo, Case No. 8:08-cv-1617-T-23AEP, 2010 WL 181575, at *4 (M.D. Fla. Jan.
12, 2010). Upon review, the Court finds that none of these cases holds that insurance inquiries
cannot satisfy a written notice of claim; rather, in each opinion, the district court carefully
considered the relevant correspondence and found it wanting in some respect. The cases are
factually distinct from the one at bar. For instance, the notice in Hollis did not specify the
details of the accident or the injuries suffered. 2016 WL 8732310, at *3. In Cameron, the
correspondence was entirely by text message and lacked any Docket 25 at 18–19 (citing
Rachel K, Petition of J.E. Brenneman Co., 157 F. Supp. 295, 297 (E.D. Pa. 1957); The
Belleville, 35 F. Supp. 934 (E.D.N.Y. 1940); Petition of Anthony O’Boyle, Inc., 51 F. Supp. 430,
431 (S.D.N.Y. 1943); and In re Henry Marine Serv., Inc., 136 F. Supp. 3d at 411)). Limitation
Plaintiffs acknowledge that the Doxsee test refers to a “potential claim,” but contend that it is
best understood as referencing a potential lawsuit, and not merely the potential existence of a
claim. Docket 25 at 19–20 (citing In re the Complaint of RLB Contracting, Inc., 773 F.3d 596,
604 (5th Cir. 2014)).
62 Docket 25 at 26. In his affidavit, Mr. Katcher states that his use of the term “this claim” was
in reference to the fact that they “had not tendered a claim for insurance coverage.” Docket 25-
4 at 7, ¶ 11.
62 Docket 35 at 7. Limitation Plaintiffs also contend that courts have held that “insurance
inquiries do not constitute written notice of a claim.” Docket 25 at 21. In support of this
statement, they cite three cases: In re Hollis B. Corp., Case No. 2016-14, 2016 WL 8732310,
at *3 (D.V.I. Sept. 30, 2016); In re Cameron, Case No. 3:17-cv-1460-J-20JRK, 2018 WL
2688758, at *2 (M.D. Fla. April 18, 2018); and Int’l Ship Repair & Marine Servs., Inc. v. Estate
of Morales-Montalvo, Case of the formality of the letters here. 2018 WL 2688758, at *2. And in
International Ship Repair, the letters only requested statutorily mandated disclosure of
insurance information. 2010 WL 181575, at *4.
63 Docket 35 at 8.
64 Docket 25 at 24.
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Limitation Plaintiffs.65 Limitation Plaintiffs conclude that, all in all, “these letters
hardly paint a picture of a lawsuit in the offing.”66
In his reply, Claimant disputes Limitation Plaintiffs’ contention that the
correspondence does not satisfy the Moreira factors; he contends that the
correspondence “paint[s] a vivid picture of the incident”67 and clearly indicates the
basis of his claim by stating that Reagan Martz was a permissive user of the
Nautique when he collided with the raft carrying Jennifer Horazdovsky, causing
her death.68 Claimant adds that the Stone Letter specifically mentions the
damages resulting from the incident involving Limitation Plaintiffs’ vessel,69 and
emphasizes that the vessel owners conceded that the value element of the
Doxsee/McCarthy test is met.70 Lastly, Claimant disputes that the vessel owners
could have interpreted the letters as relating exclusively to insurance inquiries,
65 Docket 25 at 22 (citing In re Henry Marine Serv., Inc., 136 F. Supp. 3d at 410).
66 Docket 25 at 25.
67 Docket 27 at 9. Claimant relies on the analysis in Okeanos Ocean Research Found., Inc. v.
M/V Finback, 704 F. Supp. 412, 414 (S.D.N.Y. 1989). There, the District Court for the Southern
District of New York distinguished the letter at issue, which it found did not constitute notice,
from letters found sufficient by other courts, including the Second Circuit, on the basis that it
was “void of any details of the incident in question . . . [and] does not mention the cause of the
injuries, the type of the injuries sustained or [their] severity . . . .” Id. at 416.
68 Docket 27 at 10.
69 Docket 27 at 11.
70 Docket 27 at 3.
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reasoning that “[i]t is axiomatic that for there to [be] an investigation of insurance
coverage, there must be a claim.”71
B. Analysis
The parties do not dispute any material facts; their dispute is limited to
whether Claimant’s pre-suit written correspondence provides notice of a claim as
required by 46 U.S.C. § 30511. If it does, then Limitation Plaintiffs’ June 25, 2020
petition is untimely and dismissal of the limitation proceeding is warranted. If it
does not, then this action may proceed.72
The Limitation of Liability Act of 1851 adopted a rule limiting a shipowner’s
liability to the value of their vessel and cargo in an effort to encourage shipbuilding
and investment.73 As it exists today, the central provision of the Act allows the
owner of a vessel to limit their liability to no more than “the value of the vessel and
pending freight” for any claim subject to limitation.74 This provision covers claims
for “injury by collision,” including death.75 In its original form, the Act did not provide
71 Docket 27 at 12. In their reply to the cross-motion, Limitation Plaintiffs maintain that “[t]here
is no such axiom,” as it is “entirely possible to inquire about insurance without making a claim.”
Docket 35 at 7.
72 But see Lewis v. Lewis & Clark Marine, Inc., 531 U.S. 438, 448–51, 454 (2001)
(recognizing conflict between saving to suitors clause and the Limitation Act, and
holding that district court may dissolve injunction, stay limitation proceedings, and allow
claimant to proceed in state court, if vessel owner’s right to seek limitation can be
adequately protected).
73 Esta Later Charters, Inc. v. Ignacio, 875 F.2d 234, 235 (9th Cir. 1989); In re Complaint of
McCarthy Bros. Co., 83 F.3d 821, 826 (7th Cir. 1996).
74 46 U.S.C. § 30505(a).
75 46 U.S.C. § 30505(b); see also Matter of City of Huntington Beach, Case No. SACV 10-641-
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a time limit for vessel owners to petition for limitation of liability, and courts would
allow petitions even after entry of judgment.76 However, the Act was amended to
include a six-month time limit for filing a petition: “[t]he action must be brought
within 6 months after a claimant gives the owner written notice of a claim.”77
The Act does not specify the requirements for the written notice of a claim
and while many district courts and some circuit courts have addressed the issue,
the Ninth Circuit has not. Courts have adopted a variety of approaches to evaluate
a written notice of a claim; however, there exist some well-established principles.
For one, it is widely accepted that a formal complaint is not necessary to satisfy
the requirement and that letters by claimants to vessel owners may constitute
notice.78 Moreover, the notice need not exist in a singular letter and can be issued
through a body of correspondence.79 It is also the case that courts evaluating
JST (RNBx), 2011 WL 13225113, at *4–5 (C.D. Cal. Apr. 4, 2011) (“Finally, a claim for wrongful
death resulting from a collision with a vessel in navigable waters is a claim subject to the
limitation.”).
76 Esta Later Charters, 875 F.2d at 236.
77 Id. (citing Act of June 5, 1936, Pub. L. No. 662, 49 Stat. 1479 (revising R.S. § 4283 et seq. as
amended)).
78 Doxsee Sea Clam Co. v. Brown., 13 F.3d 550, 554 (2d Cir. 1994); In the Matter of the
Complaint of Vulcan Constr. Materials, LLC, 427 F. Supp. 3d 694, 696–97 (E.D. Va. 2019)
(“The statute does not elaborate on what constitutes appropriate notice, although ‘[i]t is well-
settled that a letter sent by a claimant (or claimant’s attorney) to a vessel owner may constitute
notice of a claim . . . .”) (quoting Norfolk Dredging Co. v. Wiley, 357 F. Supp. 2d 944, 947–49
(E.D. Va. 2005)).
79 See In re the Matter of the Complaint of RLB Contracting Inc., 773 F.3d 596, 603 (5th Cir.
2014) (collecting cases where courts have considered “a body of correspondence rather than
each of its individual constituent parts”).
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notices apply “a broad and flexible standard of review—reading letters of notice in
their entirety and considering their ‘whole tenor’” as they engage in a fact-intensive
inquiry,80 even when applying a factored test.81
Several such tests have emerged as courts grapple with determining what
constitutes a notice of a claim. These include those identified by Limitation
Plaintiffs—the Doxsee/McCarthy test and the Moreira/Richardson test—as well as
the Fifth Circuit’s two-part “reasonable possibility” test identified by Claimant. The
elements of each of these tests is set out supra.82 This is by no means a
comprehensive list, but illustrates some of the variety—and some of the
similarities—among the existing tests, none of which is binding on this Court.83
80 Doxsee Sea Clam Co. v. Brown., 13 F.3d 550, 554 (2d Cir. 1994) (quoting In re Allen N.
Spooner & Sons, Inc., 253 F.2d 584, 586 (2d Cir. 1958)); see also Rodriguez Moreira v. Lemay,
659 F. Supp. 89, 90–91 (S.D. Fla. 1987) (“Although the notice of claim need not be presented
in a particular form, it must inform the owner of the claimant’s intention to seek damages from
the owner.”).
81 Vulcan, 427 F. Supp. 3d at 697 (“Most courts have utilized a variation of the above tests in
conducting a holistic, fact-intensive approach to determining whether a letter is sufficient.”);
RLB Contracting Inc., 773 F.3d at 605 (concluding that “mandating that written notice contain
‘magic words’ or specific elements might well impose a requirement not found in the statutory
text”); Int’l Ship Repair & Marine Services, Inc. v. Estate of Wilfredo Morales-Montalvo, Case
No. 808-cv-1617-T-23AEP, 2010 WL 181575, at *3 (M.D. Fla. Jan. 12, 2010) (summarizing
available tests but adding that the notice of claim “need not be presented in a particular form”).
82 See supra at 12–13.
83 For example, Claimant highlighted other tests. Docket 27 at 3, 12. See also In re Oceanic
Fleet, Inc., 807 F. Supp. 1261, 1262 (E.D. La. 1992) (“Courts have concluded that written
notice must inform the owner both of ‘details of the incident’ and ‘that the owner appeared to be
responsible for the damage in question.’”) (quoting In re Complaint of Okeanos Ocean
Research Found., Inc., 704 F. Supp. 412, 415 (S.D.N.Y. 1989)); Coastal Excursions, Inc. v.
Khoury, Case No. 3:07 CV 2782, 2007 WL 4553961 (N.D. Ohio Dec. 19, 2007) (“Courts have
also determined that the written notice must inform the vessel owner of (1) the details of the
occurrence, (2) the claimant's assertion that the owner was to blame for the injury, and (3) his
intention to seek damages from the vessel owner”) (quoting In re Wepfer Marine, 344 F. Supp.
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Limitation Plaintiffs urge the Court to apply the Moreira/Richardson factors—
either on their own or as a subset of the Doxsee/McCarthy test. However, at least
one circuit court has found that the Doxsee/McCarthy test is “the most widely-
accepted” and most authoritative, whereas the Moreira test has “fallen into
desuetude.”84 The Eleventh Circuit concluded that the Doxsee/McCarthy test was
superior because the value requirement “serves the six-month limitation period’s
purpose by encouraging shipowners to act promptly while at the same time
eliminating consideration of small-value cases unlikely to benefit from the Act’s
protection.”85 The Court is persuaded that a value requirement aligns with the
purposes of the Act and moreover, finds that hueing too strictly to enumerated
factors, like those in the Moreira/Richardson test, is counterproductive to what is
an inherently fact-specific inquiry.86
The Court also finds that the notice need not make an unequivocal demand
to the vessel owner for compensation for a loss; it is enough if the notice presents
a reasonable possibility of a claim subject to limitation. The Fifth Circuit, in
2d 1120, 1128 (W.D. Tenn. 2004)).
84 Orion Marine Constr., Inc. v. Carroll, 918 F.3d 1323, 1331 (11th Cir. 2019).
85 Id.
86 See, e.g., RLB Contracting, Inc., 773 F.3d at 605 (“mandating that written notice contain
‘magic words’ or specific elements might well impose a requirement not found in the statutory
text”); In re Complaint of Beesley’s Point Sea-Doo, Inc., 956 F. Supp. 538, 541 (D.N.J. 1997)
(reasoning that the court must consider the “whole tenor” of the letter and not apply Richardson
factors too narrowly and concluding that the letter constituted written notice of a claim “although
the letter does not include an express ‘demand of a right or supposed right’”).
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adopting this approach, explained that “[t]he purpose of the ‘reasonable possibility’
standard [as to the amount of the loss] is to place the burden of investigating claims
on the vessel owner,” as it is the vessel owner that has much to gain from the
statutory right to limit liability.87 The Circuit Court then concluded that this same
standard should apply to the first prong as well—the reasonable possibility of a
claim—by reasoning that “it would be inconsistent to reverse that risk when it
comes to notice of a potential claim,.” The Fifth Circuit also reasoned that imposing
a clear demand requirement instead of a reasonability possibility of such a demand
being made “might well impose a requirement not found in the statutory text.”88
Rather, the Fifth Circuit adopted “a broad and flexible standard of review—reading
letters of notice in their entirety and considering their ‘whole tenor’—when
determining if sufficient notice was given.”89
Notably, the Doxsee/McCarthy test parallels the Fifth Circuit’s “reasonable
possibility” test. Both tests consider whether the written notice informed the vessel
owner of a claim—the former asking if the written notice informs the owner of “an
actual or potential claim” and the latter whether it communicates the “reasonable
possibility” of a claim—and both inquire whether the notice discloses that the
87 RLB Contracting, Inc., 773 F.3d at 602. See also In re Eckstein Marine Serv., 672 F.3d 310
(5th Cir. 2012).
88 RLB Contracting, Inc., 773 F.3d at 605.
89 Id. (citing Doxsee Sea Clam Co. v. Brown, 13 F.3d 550, 554 (2d Cir. 1994)).
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damages may exceed the vessel’s value. The Court agrees with this approach
and considers whether Claimant’s correspondence communicates to Limitation
Plaintiffs the reasonable possibility of a claim and the reasonable possibility that
the claim may exceed the value of the Nautique.
The value requirement is readily determined; the parties agree that the
damages arising from the June 9, 2018 accident at Flat Lake would exceed the
value of the Nautique and satisfy the value requirement of either the
Doxsee/McCarthy or the “reasonable possibility” test.90 In the Court’s view,
Limitation Plaintiffs’ knowledge that the potential damages from the fatal accident
involving their vessel far exceeded the value of that vessel diminishes the
likelihood that they could reasonably interpret Claimant’s communications as mere
inquiries about insurance.91
The key inquiry, however, is whether Claimant’s correspondence sufficiently
communicated to the vessel owners the reasonable possibility of a claim. Turning
to the correspondence, the Court considers first its style and appearance, as these
90 See Docket 25 at 17 (“Limitation Plaintiffs in this case do not contest that, if there had been a
written notice of a claim against them for the fatal accident that occurred here, and if that
writing had satisfied the basic requirements for it to be considered a claim . . . then on these
facts it would certainly have also satisfied the additional value/amount requirement that
Doxsee/McCarthy imposed.”); see Docket 27 at 3. Claimant’s correspondence clearly states
that Jennifer Horazdovsky lost her life in the collision and that others were injured as well. See
Docket 25-4 at 11, 26, 27; Docket 19-3 at 3.
91 In re Ufo Chuting of Hawaii, 233 F. Supp. 2d. 1254, 1259 (D. Haw. 2001) (distinguishing case
where injured party had “clearly suffered significant injuries known to the owner,” noting that
“even before the notice was sent, the boat owner knew that damages could exceed the value
of the speedboat and its then pending freight”).
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are “necessary components to analyzing the note in its entirety and determining
the tenor of the note as a whole.”92 All of the correspondence from Claimant to
vessel owners came by way of his attorneys, immediately lending it some formality
and import. Alongside an e-mail exchange, Claimant sent three letters: the Lamb
Letter,93 the Cook Letter, and the Stone Letter.94 Each appears on law firm
letterhead, and the Cook and Stone Letters are captioned with reference to the
adversarial posture of the parties.95 In Beesley’s, the District Court for the District
of New Jersey found a similarly styled caption to satisfy the notice requirement
holding that “[a]lthough the letter does not include an express ‘demand of a right
or supposed right,’ the caption at the top provides sufficient notice of potential
lawsuit.”96 The Court finds that the professional style of Claimant’s letters and the
92 Vulcan, 427 F. Supp. 3d at 698 (“As would any recipient, the Court begins by analyzing the
style and appearance of the note.”).
93 The Lamb Letter was addressed to Reagan Martz, and not Limitation Plaintiffs, but was
provided to the Martzes’ attorney, who treats it as part of the body of correspondence. See
Docket 25-4 at 4, ¶¶ 3–4; Docket 25-4 at 11.
94 See Docket 25-4 at 11; Docket 25-4 at 22; Docket 19-1 at 1; Docket 25-4 at 26; Docket 19-3
at 1.
95 See Docket 25-4 at 26 and Docket 19-3 at 1 (captioned Horazdovsky v. Reagan Martz,
William and Jane Martz, and Betty Barce); Docket 25-4 at 22 and Docket 19-1 at 1 (captioned
Horazdovsky vs. Martz).
96 956 F. Supp. at 542 (letter was captioned “Gillespie vs. Beesley’s Point Sea Doo, Inc. t/a Sea
Isle Sea Doo, et al” with the date of the accident); see also Doxsee Sea Clam Co. v. Brown, 13
F.3d 550, 554 (2d Cir. 1994) (crediting that “the ‘Re:’ line of the letter was styled in the manner
of an actual, present controversy: ‘Christian Brown v. Doxsee Sea Clam Company,’” in
concluding that letter provided written notice of a claim).
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captions of the Cook and Stone Letters contribute to the serious tenor of the
communications.
The Court turns next to the substance of the correspondence. The first few
missives from Claimant are fairly limited in scope. The Lamb Letter provides that
Claimant is “searching for any potential insurance coverage that might be available
to compensate the Estate of” Jennifer Horazdovsky and asks for the name and
contact information of the vessel owner, as well as any insurance information.97
Similarly, Mr. Cook, in his email exchange with Mr. Katcher and in his letter
following up on that exchange, requests information about any insurance coverage
for the vessel, or for Reagan Martz separate and apart from his parents, as well as
for information about vessel ownership and about funding for Reagan Martz’s
attorneys’ fees.98 The Court concludes that, on their own, these written
communications are insufficient to put the vessel owners on notice of a claim.
Although they mention that Claimant is seeking compensation for his wife’s estate
and for his young child, they are otherwise focused on gathering information from
the Martzes.
However, the Stone Letter is far more substantive. It provides significant
details about the June 9, 2018 collision and outlines a theory of liability that
97 Docket 25-4 at 11.
98 Docket 25-4 at 13, 16, 19, 22.
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implicates the vessel owners.99 Specifically, Mr. Stone blames Reagan Martz for
the collision that resulted in Jennifer Horazdovsky’s death and adds that “Reagan
was a permissive user of a boat” owned by Limitation Plaintiffs.100 Moreover, Mr.
Stone expressly mentions a lawsuit, and, by stating that he “would like to avoid
unnecessarily naming parties to a lawsuit,” communicates that Claimant intends to
bring one.101 Mr. Stone adds that “[o]ur investigation is not complete . . . [w]e are
. . not yet certain whether William Martz or Jane Martz bear any responsibility,”
indicating that they are among those who could be named in the lawsuit.102
The Stone Letter is undoubtedly tentative; however, “a writing may constitute
sufficient notice of claim even if it is couched in tentative terms, referring only to
the ‘possibility’ of legal action.”103 The Court must look at the letter “in its entirety
99 See Beesley’s, 956 F. Supp. at 544 (holding that a letter conferred notice where it provided
an opinion about what caused claimant’s injuries, offered a theory of liability, and listed the
medical expenses).
100 Docket 25-4 at 26; Docket 19-3 at 1 (“Reagan Martz was severely intoxicated, and . . . as a
result of such intoxication, he collided with a raft. . . [a]s a result of the collision, Jennifer
Horazdovsky died.”).
101 Docket 25-4 at 27; Docket 19-3 at 3.
102 Docket 25-4 at 27; Docket 19-3 at 3.
103 In re Complaint of Bayview Charter Boats, Inc., 692 F. Supp. 1480, 1485 (E.D.N.Y. 1988).
To the extent it is disputed, the Court finds that notice of a potential claim, as opposed to notice
of an actual claim, satisfies the statutory requirements. Limitation Plaintiffs do not point to any
authority that expressly supports their contention that a potential claim refers only to a potential
lawsuit. Docket 25 at 20. The Act requires notice of a claim—not notice of a lawsuit;
accordingly, the Court is not persuaded that the reference to a “potential claim” in Doxsee
should be interpreted strictly as reference to a potential lawsuit and not to a potential claim
more broadly.
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to determine whether it is too ambiguous or non-adversarial to constitute notice.”104
In addition to its formal style and adversarial caption, the Stone Letter (1) details
the accident and resulting damages, (2) provides a theory by which Limitation
Plaintiffs are liable, (3) refers to a lawsuit, and (4) informs the Martzes that their
responsibility is under investigation. The Court does not find the letter to be so
ambiguous or non-adversarial so as to fail to constitute notice of a claim. The
“tentative” language in the Stone Letter is quite similar to the language held to be
adequate in Spooner, where the claimant’s letter stated that “the Port Authority is
presently determining the extent of the claim which it may have against you . . .
.”105 After considering the entirety of the letter, the Second Circuit concluded that
“[t]o adopt the view that the notice would be effective if the word ‘shall’ had been
substituted for ‘may,’ but not otherwise, would indeed exalt hair-splitting over
substance. Read in its entirety the letter is a notice of claim . . . .”106 Similarly, the
Court finds that the Stone Letter, read in its entirety, constitutes a notice of claim;
the disclosures by Claimant are sufficient to put the vessel owners on notice of the
reasonable possibility of a claim against them.
Moreover, considering the broader context of Claimant’s correspondence
further supports the Court’s conclusion. “A letter from an attorney that informs a
104 Norfolk Dredging Co. v. Wiley, 357 F. Supp. 2d 944, 948 (E.D. Va. 2005).
105 In re Allen N. Spooner & Sons, Inc., 253 F.2d 584, 586 (2d Cir. 1958).
106 Id. at 586.
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vessel owner of the attorney’s representation of a person who was injured while
operating that owner’s vessel and advises the owner to contact its insurance
company is sufficient to put the owner on notice of a potential claim.”107 In the
Court’s view, Claimant’s repeated inquiries by e-mail and otherwise into the vessel
owners’ insurance coverage is equivalent to telling the owners to contact their
insurance company. When combined with the Stone Letter’s recitation of the
details of the collision and its proposed theory of liability, the e-mails and letters
from Mr. Cook and Mr. Lamb contributed to putting the vessel owners on notice of
a claim. Read as a whole, Claimant’s correspondence was clearly sent in
anticipation of litigation.
Claimant makes much of the fact that Mr. Katcher refers to “this claim” in his
December Letter. Having already determined that the Stone Letter, alone or in
combination with the remaining body of Claimant’s correspondence, provides
written notice of a claim, the Court does not reach the implications of Mr. Katcher’s
statement. The Court agrees with Limitation Plaintiffs that it is Claimant’s
correspondence that must be examined for written notice of a claim and not the
vessel owners’ responses. In the same vein, Mr. Stone’s verbal reassurance to
Mr. Katcher that he does not typically sue individuals without insurance is
peripheral to the Court’s analysis and of limited significance. While Limitation
107 Beesley’s, 956 F. Supp. at 541 (citing Complaint of Bayview Charter Boats, Inc., 692 F.
Supp. 1480, 1485–86 (E.D.N.Y. 1988)).
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Plaintiffs contend that Mr. Stone’s statement lulled them into a sense of false
security, in doing so, they betray some understanding that Claimant’s written
communications signaled to them that he had at least a potential claim and was
considering whether it was worth pursuing.108 Moreover, Mr. Stone’s preferred
litigation tactics do not bear on whether Claimant had the reasonable possibility of
a claim, or whether Limitation Plaintiffs received written notice of that fact.
Lastly, although Limitation Plaintiffs stress the burden on vessel owners who
must front equity and spend resources to file suit in federal court, those burdens
are slight in comparison to the benefits they stand to reap from the protections of
the Act.109 This is particularly true here where Limitation Plaintiffs’ approximate
their interest in the Nautique as $15,000 but where the underlying claim is for
wrongful death.110 Thus, while it is important that a written notice be clear, vessel
owners cannot ignore what is commonsensically a written notice of a claim in the
108 The Court agrees with Claimant that it is reasonable to assume on some level that a party
repeatedly asking about insurance coverage for damages from a collision has an actual or
potential claim. At oral argument, counsel for Limitation Plaintiffs posited that “those insurance
inquiries [were] made, because, as I said before, plaintiff’s counsel were trying to find out if it
was worth making a claim.” Docket 38 at 2:10–13. Implicit in this statement is an
understanding that Claimant had an actual or potential claim.
109 See Esta Later Charters, Inc. v. Ignacio, 875 F.2d 234, 239 (9th Cir. 1989) (“”[S]hipowners
are in a poor position to rely on equitable principles . . . [t]he Liability Act provides shipowners a
generous measure of protection not available to any other enterprise in our society.”); see also
In re the Matter of the Complaint of RLB Contracting, Inc., 773 F.3d 596, 602 (5th Cir. 2014)
(“Assigning the risk of uncertainty to the vessel owner fits the purpose of the six-month
limitation, which is ‘to require the shipowner to act promptly to gain the benefit of the statutory
right to limit liability.’”).
110 Docket 1 at 4, ¶ 13; Docket 1-1 at 3.
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hope that a claimant will decide not to pursue the claim because of the
unavailability of insurance coverage or for any other reason.
Because Limitation Plaintiffs failed to file for limitation of liability in a timely
fashion, they cannot pursue this limitations action under 46 U.S.C. § 30511.
Claimant is entitled to summary judgment and dismissal of the instant complaint.
CONCLUSION
In light of the foregoing, Limitation Plaintiffs William Martz and Jane Martz’s
Motion for Summary Judgment at Docket 24 is DENIED. Claimant Andrew
Horazdovsky’s Motion for Summary Judgment at Docket 19 is GRANTED and the
complaint is dismissed. The Court’s June 30, 2020 injunction at Docket 17 is
VACATED. The Clerk of Court is directed to enter a final judgment accordingly.
DATED this 3rd day of November, 2020, at Anchorage, Alaska.
/s/ Sharon L. Gleason
UNITED STATES DISTRICT JUDGE
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