Zerega and Todino & Sons own property along Westchester Creek (the “Zerega property”). At the waterfront of the Zerega property, there is a bulkhead (also called a retaining wall or relieving platform) and, farther inland, a one-story office building with a basement. Hornbeck owns and operates the tug STAPLETON SERVICE (the “tug”) and the Barge ENERGY 2201 (the “barge”), which is approximately 250 feet long and 50 to 60 feet wide.
In October 2005, the Plaintiffs-Appellees commenced an action for damages against their insurance carriers and Hornbeck. The amended complaint alleged that on October 29, 2002, Hornbeck’s barge, while being pulled by its tug, struck the bulkhead on the Zerega property due to Hornbeck’s negligent operation while traveling south on Westchester Creek. It further alleged that the allision resulted in the rapid and severe weakening of the bulkhead, which caused most of the bulkhead to collapse nearly two weeks later. The Plaintiffs-Appellees sought damages for repair of the bulkhead and the office building. After a four-day bench trial, the Magistrate Judge found Hornbeck liable for negligently causing damage to the bulkhead and the office building and entered an award of $1,505,353, plus pre-and post-judgment interest, in favor of Zerega and Todino & Sons.2
The Magistrate Judge, trying the case by consent, see 28 U.S.C. § 636(c), found that Hornbeck’s tug was pulling the barge, in light condition, southbound in Westchester Creek toward Unionport Bridge. The tug was being operated by Mate Steven Spurlock with assistance from Training Mate Eric Fuerstinger. Spurlock and Fuerstinger stalled the vessels in the immediate vicinity of the Zerega property in midafternoon, while waiting in the narrow channel for the Unionport Bridge to open. During that time, Spurlock became concerned that the stern of the barge was drifting too close to the bulkhead of the Zerega property, and that the wind, which the Court found to be blowing toward the bulkhead, would cause the barge in its light condition to hit the retaining wall. Spurlock maneuvered the tug in an attempt to straighten the barge. As the Court found, Spurlock could not see the rear end of the barge while operating the tug, and Fuerstinger did not have a direct view of the rear of the barge on the starboard side.
The Court found, on the testimony of four witnesses, that the barge allided with the bulkhead structure on the Zerega property. Christopher Todino (“Todino”), principal of Todino & Sons, and his business guest, Michael Justino (“Justino”), were meeting in an office located at the southern end of the office building at around 3:30 p.m. They each testified that they suddenly felt a strong jolt and observed from the office window a barge being pulled away from the Zerega property by a tug. Louis Bruno, an office manager of Todino & Sons, working in the center of the office building at around 3:30 p.m., testified that he felt a thump, heard Todino and Justino yelling, and ran to a window from which he observed a barge being pulled away from the bulkhead by a tug. Laura Bruno, vice-president of Todino & Sons, testified that, upon hearing Todino and Justino yelling, she went to a window of the office building and observed a barge being pulled away from the Zerega property by a tug.
At trial, there was no dispute that on November 11, 2002, nearly two weeks after the allision, a significant portion of the bulkhead on the Zerega property collapsed into Westchester Creek. However, the parties disputed the cause of the collapse and sought to introduce the opinions of expert witnesses to support their competing theories. Zerega was permitted to introduce the expert testimony of Steven Schneider (“Schneider”), a professional engineer, that the bulkhead structure collapsed because either: (a) Hornbeck’s barge struck the retaining wall, causing the piles to shift, and, as the piles moved back, they ripped the planking hardware off the steel, which undermined the retaining wall; or (b) timber or a pole, latched on to Hornbeck’s barge, was dragged along the face of the retaining wall, like a stick being pulled along a picket fence, and destroyed the planking that was holding the earth underneath the structure in place, thereby causing the structure to collapse.
The Court precluded Hornbeck from introducing the expert testimony of Roderic Ellman (“Ellman”) and Pierce Power (“Power”), both professional engineers. Preclusion was ordered because the Court deemed Hornbeck to have failed to comply with a pretrial order of the Court. That order stated that “on or before March 22, 2006, the parties shall provide to the Court such information as they reasonably believe will enable the Court to fulfill the gatekeeping responsibilities imposed upon it by the Supreme Court in Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S. Ct. 2786 (1993).”
Ellman, one of the precluded witnesses, would have offered the opinion that the cause of the bulkhead collapse was horizontal forces applied from the direction of the land against the bulkhead structure, whose wood pilings had become disconnected due to the corrosion of the metal fasteners and had deteriorated due to the natural biological decay of the timber. Power would have offered the opinion that the barge did not strike the bulkhead.
Although the testimony of Ellman was precluded, Hornbeck was permitted to introduce other evidence regarding the deterioration of the bulkhead. Hornbeck introduced the pretrial deposition testimony of Paul Cirillo, who owned the Zerega property from the late 1960s tolike a stick being pulled along a picket fence, and destroyed the planking that was holding the earth underneath the structure in place, thereby causing the structure to collapse. The Court precluded Hornbeck from introducing the expert testimony of Roderic Ellman (“Ellman”) and Pierce Power (“Power”), both professional engineers. Preclusion was ordered because the Court deemed Hornbeck to have failed to comply with a pretrial order of the Court. That order stated that “on or before March 22, 2006, the parties shall provide to the Court such information as they reasonably believe will enable the Court to fulfill the gatekeeping responsibilities imposed upon it by the Supreme Court in Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S. Ct. 2786 (1993).” Ellman, one of the precluded witnesses, would have offered the opinion that the cause of the bulkhead collapse was horizontal forces applied from the direction of the land against the bulkhead structure, whose wood pilings had become disconnected due to the corrosion of the metal fasteners and had deteriorated due to the natural biological decay of the timber. Power would have offered the opinion that the barge did not strike the bulkhead. Although the testimony of Ellman was precluded, Hornbeck was permitted to introduce other evidence regarding the deterioration of the bulkhead. Hornbeck introduced the pretrial deposition testimony of Paul Cirillo, who owned the Zerega property from the late 1960s to the mid-1990s, that a sinkhole would develop in the bulkhead structure every eight to twelve months and require filling, and that in July and August of 2002, he observed a small sinkhole in the bulkhead of the Zerega property, which grew larger over time. Spurlock and Fuerstinger also stated through direct testimony that they observed a sinkhole on the Zerega property when they passed it on October 29, 2002. The District Court determined that the testimony of Cirillo, Spurlock, and Fuerstinger lacked credibility in light of the totality of the evidence and inconsistencies brought out during crossexamination. See Zerega Avenue Realty Corp., 2007 WL 3125318, at *3 & n.3. Apart from that testimony, the only other evidence on which Hornbeck relied was the testimony of Stanley White (“White”), Zerega’s expert on the amount of damages. White acknowledged on crossexamination that more than one plausible explanation for the bulkhead’s collapse existed and that certain hardware was missing from the area where the bulkhead collapsed, but also stated that the hardware could be at the bottom of the Creek.
In determining Hornbeck’s liability, the District Court applied what is known in admiralty law as the “Oregon rule.” The Court stated the rule as follows: “It is a well-established proposition of maritime collision law that when a moving vessel collides with a stationary object, an inference of negligence arises and the burden is then upon the owners of the vessel to rebut the inference of negligence.” Id. at *5 (internal quotation marks omitted). The Court ruled that, once Zerega established that the barge struck the bulkhead, a presumption arose that the barge was being negligently operated. The Court further ruled that Hornbeck could rebut that presumption by showing, by a preponderance of the evidence, that it acted with reasonable care, that the allision was the fault of the stationary object, or that the allision was an unavoidable accident. See id. at *6.
Implicitly concluding that Hornbeck had not rebutted the inference of negligent operation, the Court then applied the Oregon rule to the issue of causation, casting on Hornbeck the burden of rebutting a presumption that its negligence caused Zerega’s damages. See id. at *5-*6 & n.4.3 In evaluating Hornbeck’s evidence, the Court ruled that Hornbeck “failed to proffer evidence at the trial that would establish, by a preponderance, that the cause of the collapse of the plaintiffs’ bulkhead structure was its deterioration and unsound condition.” Id. at *6. The Court therefore held Hornbeck liable and, finding White’s testimony as to damages to be credible, awarded Plaintiffs-Appellees $1,505,353 for the damage to the bulkhead and the office building, with pre- and post-judgment interest.
Judge(s): Feinberg, Newman, and Katzmann
Jurisdiction: U.S. Court of Appeals, Second Circuit
Related Categories: Civil-Procedure, Civil-Remedies, Damages, Maritime, Property
| Appellant Lawyer(s) | Appellant Law Firm(s) |
| Joseph T. Stearns | Gino A. Zonghetti, Kenny, Stearns & Zonghetti LLC |
| Appellee Lawyer(s) | Appellee Law Firm(s) |
| Alex Spizz | Scott A. Markowitz, Todtman Nachamie Spizz and Johns |





Barge Damage to Bulkhead Claimed