Maritrans' Claim for Damages from OPA 90 Denied

Thursday, January 24, 2002
The U.S. Court of Federal Claims ruled on December 21, 2001 that the double hull requirement of the Oil Pollution Act of 1990 ("OPA") does not constitute a "taking" of Maritrans' petroleum barges. Maritrans is currently evaluating whether to take an appeal. OPA prohibits existing single-hull tank vessels from continuing operation through their useful life, mandating a phase-out schedule over a period of years. In 1996, Maritrans filed a lawsuit alleging that the forced retirement of its predominantly single-hulled vessel fleet represents a "taking" under the Fifth Amendment of the United States Constitution, which prohibits the taking of property by the government without just compensation. In 1998, the Court ruled that Maritrans' suit was only "ripe" with respect to vessels that had been sold, scrapped or rebuilt after enactment of OPA. Trial concluded in February 2001 with respect to eight of Maritrans' single-hull barges that had been sold, scrapped or rebuilt. In its decision the Court essentially held that, even though OPA had deprived Maritrans of a substantial portion of the value of its vessels, Maritrans had been able to recoup its investment during the period from enactment of OPA until the OPA retirement date. Therefore the government's ban on further use constituted a non-compensible diminution in value, and not a "taking." Maritrans believes strongly that the forced retirement of Maritrans' vessels did in fact meet the legal test of a taking under the Fifth Amendment, and is evaluating the merits of an appeal. Stephen A. Van Dyck, Chairman and CEO of Maritrans, said, "Naturally, we are extremely disappointed by this ruling. While a favorable outcome would have returned substantial value to our shareholders and provided additional funding for completion of our ongoing rebuild program, the Court's ruling will not adversely affect Maritrans' rebuilding program, our financial strength or our outlook for the future. This decision in no way affects the Company's present tender offer that we commenced on December 17, 2001. Additionally, this decision does not diminish our ability to generate substantial earnings going forward, and does not change our earnings outlook as we look ahead to 2002."
Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


New Chair for Townsville Port

The Palaszczuk Government has appointed one of Queensland’s most respected businesswomen, Renita Garard as the new Chair of the Port of Townsville. In a statement released earlier today,

New Jersey Transportation Chief to Resign

New Jersey Governor Chris Christie on Friday said his transportation commissioner Jamie Fox would step down by the end of the month to return to the private sector after only a year in the position.

Eletrobras says Compensation for Hydro Plants Could be $330 mln

Brazil's state-run utility Eletrobras said on Friday a report into six hydroelectric plants found the assets had a remaining value of 1.3 billion reais ($332


Kruszewski Joins Braemar Engineering

Braemar Engineering, the specialist maritime engineering consultancy, today announced the appointment of Chis Kruszewski to the role of Senior Electrical Engineer in its Offshore,

RigNet Partners Inmarsat to Offer Fleet Xpress

RigNet, Inc., a global provider of remote managed offshore communications solutions, telecoms systems integration services and collaborative applications to the oil and gas industry,

Italy's Eni Arrives Arctic as Shell Departs

As Shell retreats from the Arctic, the Italian oil giant Eni is making final preparations for its own oil exploration venture in the Norwegian Arctic, reports the Guardian.

Maritime Careers / Shipboard Positions Maritime Contracts Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1168 sec (9 req/sec)