U.S. District Judge Stephen N. Limbau: Casino, barge owners to share

Daily Record and the Kansas City Daily News-Press, Jul 29, 2008 by Donna Walter

The President Casino and the owners of four barges damaged when they hit the Admiral 10 years ago are all entitled to be paid from a $2.2 million fund created to cover property-damage claims.

On Friday, Senior U.S. District Judge Stephen N. Limbaugh denied the barge owners' request to be paid first from the fund. The parties are to submit a final tally of their damages by today.

"Since it is quite probable that the Fund will not fully compensate these parties, this Court believes that giving priority to one party for 100% of its damages and thereby liquidating the Fund, and leaving one of more other parties without a means of financial redress would be grossly unfair," Limbaugh concluded in his order.

The barge owners -- Pinnacle Barge Co., Pinnacle Transportation Inc. and Brennan Marine Co. -- said they are 100 percent "innocent parties" and should be given a priority distribution from the fund.

The accident occurred in 1998 when the towboat Anne Holly hit the Eads Bridge. This caused some of the 15 barges it was towing to break loose and hit the Admiral, which is permanently moored on the Mississippi River. The Admiral houses the President Casino. The boat moved north of the Eads Bridge in 2000.

Just days after the collision, American Milling Co., which owned the Anne Holly, sued in the St. Louis-based federal court to limit its liability under the Limitation of Liability Act to the value of the towboat. In 2005, the 8th U.S. Circuit Court of Appeals upheld Limbaugh's decision that the towboat was worth $2.2 million.

According to a stipulation submitted in March, the casino's damages total almost $3 million, and the barges' damages come to about $522,000. These numbers don't include the prejudgment interest the parties are due. In addition, the casino's damages are subject to a 20 percent reduction to reflect its portion of fault.

Last week, Limbaugh determined the casino was entitled to $4.5 million on its business-interruption claim, plus prejudgment interest beginning on June 1, 1998, at 6.4 percent compounded annually. Because the claim arises out of property damage, the money would also come out of the limitation fund.

In Friday's order, Limbaugh said he would not grant any extensions "except for good cause shown." Thursday is Limbaugh's last day on the federal bench, and he is trying to finish the massive case before he retires.