Company Must Pay for Barge Accident
Eight injured in crash awarded $19.2 million; judge rebukes allegations captain was drunk.

By PAUL PINKHAM
The Times-Union

A Jacksonville construction company was ordered Monday to pay $19.2 million to eight people injured when the boat they were on slammed into a dimly lit barge in the Cedar River three years ago.

U.S. District Judge Harvey E. Schlesinger said Superior Construction Co. was entirely to blame for the collision for inadequately lighting the 128-foot "black invisible" barge and improperly placing it and a tugboat in the channel beneath the Blanding Boulevard bridge. He said the company never notified the U.S. Coast Guard, which could have warned boaters it was there.

"The locations and lighting of the barge and the tug fell far below even the lowest safety requirements," Schlesinger wrote in a sweeping 48-page order released late Monday afternoon. "The barge was in the shadow of the bridge and visually disappeared into the darkness below the bridge line. ... No one from Superior checked the visibility of the tug and the barge from the water."

Superior officials and the company's lawyer couldn't be reached for comment Monday. They had argued at the trial in May that the boat's pilot, Charles Brock, was to blame because he'd been drinking, but Schlesinger found no merit in that claim.

"Others who were looking ahead and who had not been drinking ... did not see the barge either," the judge wrote. He said Brock's speed of 22 mph wasn't excessive.

Brock and his passengers, mostly relatives, were on the river to look at Christmas lights Dec. 29, 2001, when the collision occurred just before 7 p.m. Several people were thrown off his 25-foot Bilinear pleasure boat into the frigid water. Brock and eight of his passengers were injured.

The most seriously hurt was family matriarch Betty Wright, who was left with "catastrophic" leg damage and hasn't been able to stand on her own since the accident, her attorneys said. Schlesinger awarded her $8.6 million and divided the remaining amount among the other seven claimants.

"Because Betty Wright more likely than not has a future need for full-time attendant care, an award including such care is proper," Schlesinger wrote. "Wright should not be forced to accept housing in a nursing home facility. Instead, she may select from among a number of reasonable alternatives, including full-time attendant care in the comfort of her home."

Wright was elated when informed of the judge's decision, but said she didn't want to speak with a reporter. Her attorney, Campbell Ford, teared up when he spoke of the importance of Schlesinger's order.

"It awarded these people the money that they so justly deserved, and it also cleared Charles Brock's name," said Ford, who represented all but one of the claimants. "It said he didn't cause the accident, which we knew all along."

Schlesinger awarded Brock $770,000.

Ford's partner, Mark Miller, said most of their clients have "huge" continuing medical bills.

"They'll never be made whole again," Miller said.

Attorney Eddie Farah, whose office represented passenger Jimmie White, said the case shows what the court system is all about. He said Superior offered to settle the case for a "minuscule" amount less than 1 percent of the final judgment.

"They just didn't take any of the injuries seriously," Farah said. "They really put profits over safety."

White, who was one of the passengers who wound up in the water, was awarded $3.3 million.

It is unknown if Superior plans to appeal Schlesinger's decision to the 11th Circuit Court of Appeals in Atlanta.

Auto company wants JEA plant closed
As Seen in Jacksonville Daily Record

by Mike Sharkey
Staff Writer www.jaxdailyrecord.com

Attorneys representing Distribution & Auto Service, Inc. have contacted Jacksonville Port Authority officials about possibly closing the JEA coal fired plant on Blount Island. In a letter to JPA executive director Rick Ferrin, attorney G.J. Rod Sullivan Jr. said fallout from the coal fired plant is tainting many of the 144,000 cars that DAS — an auto processing company based outside of Los Angeles — brings into the port annually.

“That’s not going to happen,” said JEA spokesperson Bruce Dugan. The situation, apparently, is bad enough that Jacksonville could lose the DAS operation if an equitable solution can’t be found. “At this time we don’t have any comment,” said Gary Davis, the general manager for the local DAS facility.

Should DAS leave Jacksonville — and take its 166 jobs — Brunswick would be the likely destination. Moving would also be detrimental to the Port. DAS’s 144,000 cars represent almost 25 percent of cars brought in by the Port each year. And, with a $1.8 million annual lease and $1.4 million in wharfage/terminal usage fees, there would be a severe negative economic impact.

“This is a case of the Port working with JEA,” said Brad Thoburn, director of intergovernmental regulations for the City. “Everyone needs to sit down and figure out their options. The City can be involved. The Port needs to take the lead. They [DAS] are a tenant of the Port and they need to do what they can to make the tenant happy. It’s a good business that provides a lot of jobs and they’re definitely a contributor to our economy.”

It seems the prevailing winds during the months of May through August are from the north. Each time the plant powers up and heavy black smoke is emitted, the fallout winds up on DAS cars such as Nissans and Kias. The particulate fallout must be washed off before the cars can be distributed to various car dealerships in the Southeast.

In his letter, Sullivan indicated that from May 6 until Aug. 21, there were several instances of what is deemed “heavy and hot” fallout, meaning the pH levels of the fallout were hovering around one, the highest pH level. During that period, DAS has documented fallout on 48,833 cars which cost the company $94,265.06 to wash. At this point, the situation isn’t dire — DAS has been able to wash off the fallout before it can damage the vehicles. However, Sullivan says the real danger would occur if there was a light, misty rain or heavy dew shortly after the plant is fired up, and that hasn’t happened yet.

Dugan said the Port is well-aware of the problem, but is not convinced the fallout is from JEA’s St. Johns River Power Park. After examining the letter and accompanying satellite photo and pictures, Dugan said the fallout is likely coming from JEA’s Northside Unit 3 plant.

“Since it’s not coming from SJRPP, we are not going to shut that plant down,” said Dugan. “We have been working with that unit and we think we’ve been successful. We implemented some operational changes in August. We are monitoring it closely, even on a daily basis.”

Dugan said JEA officials and DAS officials have met a few times regarding the issue and JEA is confident the new measures will alleviate the problem. In addition to strict monitoring, Dugan said JEA will pay particular attention to wind direction and speed before firing up the power plant.

“If we decide the wind will blow the fallout over Blount Island, we will change what we are doing,”said Dugan. “We will ramp down our power or change the fuel mixture.”

Dugan added JEA will continue to reimburse DAS for clean up costs as long as it is deemed that new cars are dirty as a result of JEA power plant emissions. Robert Peek, manager of public relations for the Port, said the simple solution would be to relocate the DAS cars during the months the fallout on their leased space is heaviest. But there’s no place to move the cars.

“There’s a couple of reasons they can’t be moved,” said Peek. “Our half of Blount Island is about 900 acres and it’s all being used. And, we might move the cars into an area where there is also fallout. It’s not just a three-acre plot. There’s fallout all over the region.”

David Kaufman, the director of planning and external affairs for the Port, said everything possible will be done to prevent DAS from even considering relocating. “Our role is, and will continue to be, that when a tenant raises an issue, to bring that issue to a satisfactory resolution,” said Kaufman. “Brunswick is always a threat and an easy option.”

Port tenant threatens pullout over soot
JEA plant 'fallout' angers car servicer - As Seen in Jacksonville.com, Nov. 5, 2002

By David Bauerlein
Times-Union staff writer www.Jacksonville.com

Soot coming from the JEA's Northside Generating Station has prompted a Jacksonville Port Authority tenant to consider moving its automobile processing facility out of Jacksonville.

Distribution and Auto Services Inc. washed soot off thousands of cars over the summer before shipping the vehicles to auto dealers. The company sent a letter last week to the Jacksonville Port Authority, warning that leaving Jacksonville is an option if the problem persists. The company's departure would be a blow to the port's standing as the busiest site in the nation for putting the final touches on vehicles.

JEA spokesman Bruce Dugan said the source of soot is "fallout" coming from the smokestack of a decades-old unit at the Northside Generating Station off Heckscher Drive. The JEA replaced two other station units with cleaner-burning coal and petroleum coke boilers, but the third unit still burns oil and natural gas.

Dugan said converting two of the units -- boosting the electric generation while reducing air pollution -- reduces the JEA's need to use the third unit, particularly when the wind is blowing toward port property on Blount Island. Dugan said the JEA will make adjustments in use of the third unit to sharply reduce the frequency of incidents where soot blows toward the port facilities.

"It should absolutely happen less and we hope it will be next to non-existent," Dugan said yesterday.

The JEA paid $82,000 to the vehicle-processing company to cover the cost of washing automobiles during the summer, Dugan said. He added in some cases, JEA made the payments because the utility could not prove the soot didn't come from a power plant.

Distribution and Auto Services officials declined comment yesterday.

Vehicle processing companies prepare automobiles for dealers by cleaning, inspecting and fixing defects. Processors also customize vehicles by installing options such as stereos and roof racks. In 2001, companies at JPA processed 579,924 vehicles.

Distribution and Auto Services processes 144,000 vehicles a year. It employs 166 people and pays $3.2 million a year in lease and fees, according to the company.

In an Oct. 30 letter, attorney Rod Sullivan, representing the company, listed 10 incidents between May and August when equipment measured fallout on Blount Island or people saw heavy black smoke coming from the JEA power plant.

The company washed 50,000 vehicles to remove soot, the letter says. The soot has not caused any damage to the vehicles, but fallout occurring during a drizzle or when dew forms on vehicles could release acid that mars plastic equipment, the letter says.

The letter also says the company has not decided to leave Jacksonville but is advising the port that "this pattern of fallout and car washing cannot go on" and if it does, "we will be forced to move our operations off Blount Island and likely out of the city of Jacksonville."

Dave Kaufman, the JPA's director of strategic planning and external affairs, said the loss of Distribution and Auto Services "would have a large impact on us" and the port is working with JEA for a solution.

He said he is not aware of any requests by the company to renegotiate its lease based on complaints about the fallout.

Dugan said the JEA will track emissions from the Northside Generating Station and continue making payments if JEA fallout settles on vehicles. He added, however, that the JEA's generating station is not the only source of soot, which can come from anything that burns oil.

Inspector “arrests” huge crane
As Seen in Jacksonville.com, September 7, 2001

By P. Douglas Filaroski
Times-Union staff writer www.Jacksonville.com

A ship carrying a 180-foot crane arrives at JEA's Northside Generating Station last month. The crane has been seized.

Everybody involved in a fight between a shipper and manufacturer wondered how a government agent planned to "arrest" the subject of the dispute: a 180-foot high, 1,200-ton crane docked in Jacksonville.

"Really big handcuffs," someone said as lawyers (Rod Sullivan ), workers and the crane's owners waited yesterday for the inspector to take custody of the mammoth blue crane on the docks behind a JEA power plant. Continued>

Giant slumbers on St. Johns
245-foot ship was being converted to yacht until becalmed in legal limbo
As Seen in Jacksonville.com, September 5, 2001

By David Bauerlein
Times-Union staff writer www.Jacksonville.com

The Giant has led many lives.

Originally built as a rugged icebreaker for the Russian navy, the 245-foot ship has been docked for more than a year at the Jacksonville Shipyards, stuck in a legal limbo.

Inside the vessel, mahogany walls, cherry floors, Jacuzzis and chandeliers are a testament to a multimillion-dollar attempt to remake the Giant as a Lifestyles of the Rich and Famous getaway for travelers who desire both the tropical sun and the Arctic chill on their vacations.

Former Russian icebreaker and rescue ship Giant sits docked on the North Bank, tied up in litigation and liens from several countries. On Nov. 8, the U.S. Marshals Service will auction the Giant at the federal courthouse in Jacksonville. -- John Pemberton/Staff

But the Giant hasn't moved since August 2000, when a judge ordered its "arrest" after a billing dispute landed in court. The motor yacht happened to be in Jacksonville undergoing repairs at the time, so the case was filed at the federal courthouse here.

The legal stakes escalated after the boat's owner -- Alpha GmbH & Co. Schiffsbesitz KG, based in Germany -- filed a notice of bankruptcy. Continued>

As Seen in the Florida Times Union, February 12, 1999

The firm handled the case for the M/V Nord Lady whose crew was stranded in port for a siezure by the U.S. Marshals of their refrigerator vessel over a commercial dispute involving a $1.7 million cargo of frozen chicken.  The crew was barred from coming ashore by the Border Patrol, leaving the Lithuanian crew confined to the ship without pay.

This story was also featured on WTLV - Ch 12 and Fox 30 news stations

Rod Sullivan and Company deliver $100,000 in back wages to the crew of the Nord Lady

The firm’s lawyers are experienced in vessel arrest and maritime lien cases, like this case involving the gambling vessels M/V Leisure Lady and M/V Vegas Express.

Gaming ships sold in 7 minutes at downtown auction
2 vessels that defaulted loans go for fraction of worth

By David Bauerlein
Times-Union staff writer Jacksonville.com

Just past lunchtime yesterday, a small group gathered at the steps of the federal courthouse for a short, sweat-drenched auction of two unusual items -- a pair of gambling cruise ships.

Neither attracted any high-rollers.

By the time the U.S. Marshals Service had finished the bidding, the 174-foot MV Vegas Express was sold for $400,000 and the 137-foot Leisure Lady was going, going, gone for $1.25 million. That was just a fraction of the multimillion-dollar values each had been appraised for three years ago.

In a sign of how low the bidding was, the winner in both cases was Foothill Capital Corp., which forced the sale of the boats by filing a lawsuit against six defendants over the default of more than $8 million in loans.

Foothill officials were prepared to let someone else buy the boats if the bidding had gone high enough, in which case the proceeds would have gone to Foothill. Instead, Foothill decided to buy the vessels and will seek to resell them at a higher price, said David Evans, senior vice president of Foothill, which is a Wells Fargo company.

The legal proceeding landed in the federal courthouse in Jacksonville because the Vegas Express and Leisure Lady were docked in Green Cove Springs when Foothill foreclosed on the mortgages in November.

Foothill wanted to operate gambling cruises from Fort Myers, but the marina there instead leased the space to SunCruz Casinos, according to court documents. SunCruz started operating another ship out of Mayport in January as it sought to expand its Florida operations.

The gambling boats Leisure Lady (left) and the Vegas Express were auctioned off by the U.S. Marshals Service yesterday. -- Reggie Jarrett/Special

U.S. District Judge Henry Lee Adams ordered the sale of the Vegas Express and Leisure Lady on May 21.

In 1998, the casino cruise business, in which passengers go a short distance to sea for a gambling excursion, appeared to be smooth sailing. Marcon International, which appraised the Leisure Lady for $5 million at that time, called Florida the "Mecca of the cruise to nowhere industry." Marcon put the fair market value of the Vegas Express at $6.25 million.

"We're seeing a softening of the market," Evans said.

Yesterday's auction was a brisk, businesslike affair that brought bidders from around the country -- Foothill is based in California, and bidders also came from companies located in Homasassa on Florida's Gulf Coast, Virginia and New Jersey. In just seven minutes, the auction was over and they were headed back home empty-handed.

The defendants in the lawsuit are Leisure Time Cruise Corp. of Colorado, Florida Casino Cruises Inc. of Georgia, Leisure Time Technology Inc. of Georgia, Leisure Time Casinos and Resorts of Colorado, Leisure Express Cruise L.L.C., of Colorado, and Alan N. Johnson of Ohio. Still at issue in the lawsuit is how much each of defendants owes to Foothill.

Copyright Jacksonville.com/tu-online & Times-Union 2001

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