Metal Company Loses Round in Dry-Dock Suit

NEW ORLEANS (CN) - A scrap-metal company could end up reimbursing the government for removing a dry dock that sunk in a New Orleans harbor in the aftermath of Hurricane Katrina, the 5th Circuit ruled.

Judge Dennis determined that, under the 1986 amendments to the Wreck Act, the United States may bring a statutory action to hold Southern Scrap Metal liable for the dock's removal.

The court also found that the claim is not subject to the Limitation Act.

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