There was an entrance to the AIWW at Fernandina Beach that the tug could have used if necessary. The parties further agreed that the tug would wait for favorable weather forecasts before departing and, once underway, would proceed from Port Canaveral to the vicinity of Fernandina Beach, at which point the weather forecasts would be reevaluated. The parties came to an understanding that the tug would, if possible, avoid seas in excess of five feet, as such seas had the potential to damage the pipe however, it was also understood between the parties that favorable weather could not be guaranteed and that, despite all precautions, the tug and tow might be exposed to seas in excess of five feet. Beyel quoted Burke a price of $3,000 per day for the tow and Burke estimated that the tow would take ten days, five days out and five days back. Burke rejected this proposal as too expensive.Įventually, the parties orally agreed that Beyel Brothers would tow the pipes in the ocean, up the coast, using the tug Dorothy McAllister. Beyel quoted Burke a price of $60,000 for the job, which would require two tug boats and would also require that the raft be towed approximately 50 miles in open water to reach the first acceptable lock.
GREAT LAKES DREDGE SERIES
Beyel told Burke that the safest way to transport the pipe would be up the Atlantic Intra coastal Waterway ("AIWW"), a long series of canals running up the eastern seaboard.
Burke and Beyel discussed various options for towing the pipe. Tim Burke, a buyer for Great Lakes, represented Great Lakes in negotiating the towing contract. In any event, the evidence is undisputed that, during this entire time period, the raft of pipe was not closely inspected by any personnel from Great Lakes or by any person with expertise in rafting pipe. From February 7, 1997, until the towing project eventually began on April 20, 1997, the pipe was moored offshore adjacent to Beyel Brothers' property and was subjected to tidal changes that may have damaged the pipe and, more likely than not, weakened the raft. However, that project was canceled and Great Lakes decided to use the pipe on a project in Wilmington, North Carolina. The raft of pipe remained in Green Cove Springs until early February of 1997, when Great Lakes had it towed to Cape Canaveral in anticipation of its use for a beach renourishment project. Great Lakes used the pipe for various projects in 1995-1996 and, in April of 1996, rafted the pipe together and towed the pipe from Hutchinson Island, Florida to Green Cove Springs, Florida.
This Court finds that, more likely than not, there were five pieces of pipe. Great Lakes borrowed the pipe from Weeks in 1995 and it was in Great Lakes's possession at all times prior to its loss at sea.īeyel Brothers maintains that there were only four pieces of pipe and the evidence on this point was not conclusive. The pipe belonged to Weeks Dredging Company ("Weeks"), a nonparty to this action. The pieces of pipe ranged in length from approximately 690 to 800 feet and were tied or lashed together by Great Lakes to form a make-shift raft. In early March 1997 Great Lakes contacted Beyel Brothers to arrange for the towing of five pieces of dredge pipe from Port Canaveral, Florida, to Wilmington. Defendant Beyel Brothers is a Florida corporation that provides towing services. Great Lakes is one of the world's largest dredging contractors and has significant expertise in dredge pipe use and maintenance. Plaintiff Great Lakes Dredge and Dock Company ("Great Lakes") is a New Jersey Corporation with its principal place of business in Illinois.
GREAT LAKES DREDGE TRIAL
Following a bench trial on January 18-20, 2000 and extensive briefs by the parties, this Court now makes the following Findings of Fact and Conclusions of Law, pursuant to Fed.R.Civ.P. This case is within the admiralty and maritime jurisdiction of this Court under Article III Section 2 of the United States Constitution, and 28 U.S.C. Beyel Brothers, Inc., the owner and operator of the Dorothy McAllister disputes these claims and has counterclaimed for an amount it contends Great Lakes owes it for towage services which it claims the Dorothy McAllister performed. This action was brought by Great Lakes Dredge Dock Company ("Great Lakes") for damages and indemnification due to the loss of, or damage to, dredge pipes, which occurred while the pipe was under tow by the tug Dorothy McAllister.
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