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In re Manson Construction Co.

Citations: 883 F. Supp. 2d 659; 2012 WL 3062744; 2012 U.S. Dist. LEXIS 104093Docket: Civil Action Nos. 11-3041, 11-3092

Court: District Court, E.D. Louisiana; July 26, 2012; Federal District Court

Narrative Opinion Summary

This case involves multiple Southeast Louisiana oyster harvesters who filed a third-party complaint against the State of Louisiana, alleging that negligent dredging operations overseen by the State harmed their oyster leases. The dredging was part of the Barrier Berm Project conducted by Manson Construction Co. and Great Lakes Dredge & Dock Co. LLC, which led these companies to seek limitation of liability under the Shipowner’s Limitation of Liability Act. The claimants argued that the State waived its Eleventh Amendment sovereign immunity by filing related lawsuits against third parties concerning the Deepwater Horizon Oil Spill. However, the court found that the State maintained its immunity, as it had not unequivocally waived it. The court emphasized that the Eleventh Amendment prohibits suits against a state by its citizens and dismissed the third-party complaint for lack of jurisdiction under Rule 12(b)(1). The limitation proceedings were not deemed to invoke Eleventh Amendment issues, but the claimants' direct suit against the State was barred. Consequently, the court granted the State's motion to dismiss, affirming the State's sovereign immunity and denying federal jurisdiction over the claims presented by the oyster harvesters.

Legal Issues Addressed

Burden of Proof for Jurisdiction

Application: The court reaffirmed that the burden of proving jurisdiction lies with the party asserting it, a principle pivotal in the dismissal under Rule 12(b)(1).

Reasoning: The burden of proof for establishing jurisdiction lies with the party asserting it.

Eleventh Amendment Sovereign Immunity

Application: The court ruled that the State of Louisiana is entitled to Eleventh Amendment immunity, barring the claimants' third-party complaint against the state.

Reasoning: The third-party complaint filed by Claimant oyster harvesters against the Office of Coastal Protection and Restoration, a Louisiana agency, is deemed a suit against the state and is barred by the Eleventh Amendment.

Federal Jurisdiction and Eleventh Amendment

Application: The court emphasized the limitation of federal jurisdiction under the Eleventh Amendment, dismissing the third-party complaint based on lack of subject matter jurisdiction.

Reasoning: The Court concludes that the third-party complaint by Claimants is barred by the Eleventh Amendment, which denies federal jurisdiction over claims entitled to immunity.

Limitation of Liability Act and Sovereign Immunity

Application: The court noted that limitation proceedings are not considered suits against a state under the Eleventh Amendment, although this principle did not apply to the claimants' third-party complaint.

Reasoning: Limitation proceedings are not considered 'suits against a state' under the Eleventh Amendment, as established by various circuit decisions.

Waiver of Sovereign Immunity

Application: The court found that the State did not waive its Eleventh Amendment immunity by initiating separate litigation related to the Deepwater Horizon Oil Spill.

Reasoning: The Court rejects the argument that the State waived its Eleventh Amendment immunity by filing a separate lawsuit in federal court concerning the Oil Spill.