In re Complaint of Felgate

IN THE MATTER OF THE COMPLAINT of

ALAN FELGATE and JOHN ALLEN WALKER,

as Owners of a 1987 Flying Junior Sailboat,

for Exoneration from or Limitation of Liability, Petitioners

IN THE MATTER OF THE COMPLAINT of

CLINTON SAILING CLUB

as Owner of a 1987 Flying Junior Sailboat,

for Exoneration from or Limitation of Liability, Petitioners

No. 3:18-cv-910 (VLB)

No. 3:17-cv-1286 (VLB)

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT

March 30, 2020

ORDER AND RULING ON MOTIONS FOR SUMMARY JUDGMENT AND MOTIONS TO DISMISS [Dkts. 42, 60, 46, 61]

Petitioners Clinton Sailing Club, Inc., Alan Felgate, and John Allen Walker (collectively, "Petitioners") filed this action seeking exoneration from or limitation of liability for injuries suffered by Julia Farnoli on August 17, 2016 while she was on board a Flying Junior One Design sailboat (the "Vessel"). Petitioners each claim to be an owner of the Vessel. Claimant Laura Farnoli ("Claimant" or "Ms. Farnoli") brings claims as parent and next friend of minor child Julia Farnoli. Petitioners seek an order either (1) adjudging them not liable for any claims for loss, damage, or injury arising out of the incident; or (2) limiting their liability to the value of the Vessel as of the date of the alleged incident, in the maximum amount of $1,000.00. Claimant asks the Court to dismiss the case for lack of subject matter jurisdiction

Before the Court are the Petitioners' motions for summary judgment [Dkts. 42 (Felgate and Walker Mot. Summ. J.), 60 (Clinton Sailing Club Mot. Summ. J.)], and Claimant's Motions to Dismiss for Lack of Jurisdiction [Dkts. 46 (Claimant Mot. Dismiss as to Walker and Felgate), 61 (Claimant Mot Dismiss as to Clinton Sailing Club)]. Petitioners seek summary judgment on the grounds that there exists no evidence of negligence as a matter of law and that Claimant waived liability, so they are exonerated from all liability. Claimant seeks to dismiss Petitioner's complaint on the grounds that the Petitioners are not entitled to limitation because Felgate and Walker are not owners of the Vessel, and Clinton Sailing Club had privity or knowledge of the relevant negligence. For the reasons set forth below, the Court DENIES each motion.

I. Background

A. Limitation of Liability Actions

The Limitation of Liability Act, (the "Limitation Act"), 46 U.S.C. § 30501 et seq., allows "a vessel owner to limit liability for damage or injury, occasioned without the owner's privity or knowledge, to the value of the vessel or the owner's interest in the vessel." Lewis v. Lewis & Clark Marine, Inc., 531 U.S. 438, 446 (2001). "Congress passed the Limitation Act in 1851 'to encourage ship-building and to induce capitalists to invest money in this branch of industry.'" Id. (citing Norwich & N.Y. Transp. Co. v. Wright, 13 Wall. 104, 121 (1871)).

Supplemental Admiralty and Maritime Claims Rule F ("Rule F") provides the procedure for limitation. Rule F requires that the vessel owner file a complaint seeking exoneration or limitation of liability "[n]ot later than six months after receipt of a claim in writing." After the complaint is filed, Rule F sets forth the following procedures:

The district court secures the value of the vessel or owner's interest, marshals claims, and enjoins the prosecution of other actions with respect to the claims. In these proceedings, the court, sitting without a jury, adjudicates the claims. The court determines whether the vessel owner is liable and whether the owner may limit liability. The court then determines the validity of the claims, and if liability is limited, distributes the limited fund among the claimants.

Lewis, 531 U.S. at 448, quoted in In re Henry Marine Serv., Inc., 136 F. Supp. 3d 401, 403 (E.D.N.Y. 2015). The Limitation Act does not affect the liability of a master, officer, or seaman, even if the individual is also an owner of the vessel. 46 U.S.C.A. § 30512.

B. Factual Background¹

1. The Vessel and the Parties

The Vessel is a Flying Junior (FJ) One Design sailboat, with a fair market value of not more than $1,000. [Dkt. 47 at 21 (Ex. C: June 19, 2017 Survey of Vessel)]. Its title owner is Clinton Sailing Club. Id. The Vessel was equipped withboom rope cleats. [Dkt. 77-1 (Ex. G, J. Farnoli Dep. Dec. 9, 2019) at 56; see also [Dkt. 44-5 (Ex.E: J. Farnoli Feb. 15, 2019 Dep.) at 30:9-19].²

Clinton Sailing Club, Inc ("Clinton Sailing Club") is a 501(c)(3) nonprofit organization dedicated to providing sailing lessons to children ages eight to eighteen in the Clinton, Connecticut community regardless of their ability to pay. [Dkt. 42-1 (56(a)1 Statement of Facts), ¶1].

Petitioner Alan Felgate ("Felgate") was a founder of the Clinton Sailing Club. [Dkt. 42-1, ¶1]. Felgate has been a member of the board since its founding in 2016 and was its President at the time of the accident. Ibid. He is not involved in sailing lessons. Ibid. Felgate recruited a board of directors and raised funds. [Dkt. 52-3 (Ex. 3: June 14, 2019 Felgate Dep.) at 21:3-4]. Felgate met with the town of Clinton to obtain use of their beach space. [Dkt. 52-3 at 25:8-15].

John Allen Walker is also a founding board member of Clinton Sailing Club. [Dkt. 42-1, ¶3]. He was later employed by Clinton Sailing Club as a certified sailing instructor. Ibid. He was present on the day of the incident, and rigged the Vessel. [Dkt. 42-1, ¶20]. He examined the Vessel after the accident and found that it was in good condition: it was still properly rigged and nothing aboard was broken. Ibid. Walker helps organize fundraising activities including silent auctions, pub events,care washes and regattas. [Dkt. 52-4 (Ex. 4: June 13, 2019 Walker Dep.) at 33:15-24:6]. He designed Clinton Sailing Club's website and assisted with registering students. Id. at 51:13.

Clinton Sailing Club's board of directors chose and hired sailing instructors, who possessed U.S. Sailing Level 1 certifications. [Dkt. 52-3 at 43:3-44:10]. The board authorized the procurement of Clinton Sailing Club's FJ boats from the University of Rochester. Id. at 35:25.

2. Julia Farnoli's Previous Instruction

Julia Farnoli ("Farnoli") was a student of the Clinton Sailing Club. [Dkt. 42-1, ¶5]. In 2016, she completed one five day sailing class with the Clinton Sailing Club. [Dkt. 42-1, ¶5]. She "learned different parts of the boat, points of sail, how to tack and jib, how to rig a boat." Ibid. She testified that after the class, she "could sail the sailboats." [Dkt. 42-1, ¶6].

In her deposition, Farnoli explained the basics of sailing, including that the skipper is the person who steers the boat with the tiller and who holds the mainsheet (the line that trims the main sail). Id. at ¶ 7. Farnoli explained that skippers face the bow (front) of the boat. Id. at ¶ 8. She testified that, on the Vessel, the mainsheet pulls the mainsail in to make the boat go faster, or lets the mainsail out to go slower (trimming the sails). Id. at ¶ 9.

She testified that Clinton Sailing Club taught her the sailing maneuvers of "tacking" and "jibing," that is, maneuvering the boat by turning it through the wind. Id. at ¶ 10. She explained that taking and jibing involves turning the boat with the tiller. Id. at ¶ 10. She testified that part of tacking and jibing is ducking your headbecause the sailboat's boom swings across the boat. Id. at ¶11. She also testified that the Clinton Sailing Club teaches students to make an announcement before tracking and jibing, and then to duck under the boom as it swings across the boat. Id. at ¶14. Clinton Sailing Club never instructed Farnoli, as a skipper, to hand the mainsheet to the crew. [Dkt. 44-5 (Ex. E: J Farnoli Feb. 15, 2019 Dep.) at 49].

3. Release

Before participating in her second sailing camp, Julia Farnoli and her father, Greg Farnoli, signed a release of liability provided by Clinton Sailing Club. [Dkt. 44-4 (Ex. D: August 15, 2016 Release)]. The release provided that "this Agreement shall be governed by the laws of Connecticut and that any dispute arising from this Agreement shall be adjudicated in the courts located in Middlesex County, Connecticut." Id. The Court takes judicial notice of the fact that no federal courts are located in Middlesex County.

4. August 17, 2016 Incident

On August 17, 2016, Julia Farnoli took the Vessel out with Theresa Tine ("Tine"), another student, as part of a second class, and to help teach her how to sail. [Dkt. 42-1 at ¶17]. Farnoli was the skipper. Id. at ¶ 17. The conditions were different from those she had experienced: it was colder and the waves were bigger. [Dkt. 44-3 at 40:15-23]. No one seemed very comfortable. Ibid. People were a little bit cautious and scared. Ibid. She was assigned to the boat by an employee of the Clinton Sailing Club. Id. at 41:13-23.

While in the navigable waters of the Clinton Harbor, Farnoli handed the mainsheet to Tine so that Farnoli could figure out the direction of the wind. Id. at ¶18. Farnoli faced away from the boat trying to find clues for the wind. Id. at ¶ 18. Tine shouted her name, and, when Farnoli turned to face her, the Vessel's boom hit her. Id. at ¶ 18. Unconscious, she fell into the water, and sustained a broken and deformed nose, among other injuries. [Dkt. 44-5 54:20-56:16].

Neither party provides evidence that there was any problem with the Vessel the day of the Vessel. Id. at ¶ 19 (Farnoli statement that she was not aware of any problem with the Vessel); Id. at ¶20 (Walker statement that there was no problem with the Vessel the day of the accident).

C. Procedural History

1. Clinton Sailing Club

On August 1, 2017, Clinton Sailing Club filed its complaint for exoneration from or limitation of liability pursuant to 46 U.S.C. § 30501 et seq. [Dkt. 1, 17-cv-1286, member case]. Clinton Sailing Club received a letter from counsel for Julia Farnoli dated February 13, 2017 advising that Farnoli had legal representation for injuries she sustained on August 17, 2016. [Dkt. 1, 17-cv-1286, at ¶ 4.] On September 11, 2017, the Court (Eginton, J.)...