Exxon Co. v. Sofec, Inc.

OVERVIEW

Exxon Shipping Co. and Exxon Company U.S.A. (collectively, “Exxon”) appeal the district court’s judgment following a bench trial in Exxon’s admiralty action seeking damages for loss of its tanker, the Exxon Houston, and costs of oil spill cleanup and loss of cargo. Exxon maintains that the failure of a Single Point Mooring System (“SPM”) manufactured by defendant Sofec and sold by defendants Pacific Resources, Inc. and associated corporations (collectively, “HIRI” 1 ) was the actual and proximate cause of its losses. The district court found in Phase One of a bifurcated proceeding that Exxon’s negligence superseded any damage caused by the failure of the SPM, and was the sole proximate cause of the Houston’s standing. On appeal, Exxon argues that the district court improperly bifurcated the proceedings and that the doctrine of superseding cause *572 has no application to cases in admiralty. We affirm the district court’s order.

FACTS

This case arises from the stranding of the Exxon Houston on March 2, 1989, near the Island of Oahu, several hours after it broke away from an SPM owned and operated by defendants HIRI. The Houston, a steam propulsion oil tanker weighing…