Carlissa Churchill, Personal Administratrix of the Estate of Patrick Churchill, Deceased, and Dale Carlough v. The F/v Fjord

Carlissa Churchill, personal administrator of the estate of Patrick Churchill, and Dale Carlough (“Claimants”) appeal from the order granting exoneration of the limitation bond posted by vessel owner William McLinn in this wrongful death and personal injury action. The Claimants contend the district court erred in granting the motion for exoneration, notwithstanding the fact the vessel owner and the vessel were found not liable, because the fund represented by the bond should have been applied to satisfy the judgment obtained against the operator of the vessel. We affirm because the Limitation of Liability Act of 1851, 46 U.S.C.App. §§ 181-195 (hereinafter “the Act”), does not authorize a court to use a bond posted pursuant to the Act to satisfy a judgment obtained against a third person who operated a skiff without the owner’s consent.

. I.

The Claimants filed an admiralty action in the United States District Court for the District of Alaska for wrongful death and personal injury arising from the collision, of two skiffs. The Claimants also alleged pendent state claims. The Claimants eventually settled their claims against all parties except the F/V Fjord, a vessel involved in…