Zerega Avenue v. Hornbeck Offshore ( 2009 )


Menu:
  • 08-0639-cv
    Zerega Avenue v. Hornbeck Offshore
    UNITED STATES COURT OF APPEALS
    FOR THE SECOND CIRCUIT
    August Term 2008
    Heard: March 23, 2009                                         Decided: July 6, 2009
    Docket No. 08-0639-cv
    - - - - - - - - - - - - - - - - - - - - -
    ZEREGA AVENUE REALTY CORP. and FRED
    TODINO & SONS, INC.,
    Plaintiffs-Counter-Defendants-
    Appellees,
    v.
    HORNBECK OFFSHORE TRANSPORTATION, LLC,
    Defendant-Counter-Claimant-
    Cross-Defendant-Appellant.
    - - - - - - - - - - - - - - - - - - - - -
    Before: FEINBERG, NEWMAN, and KATZMANN, Circuit Judges.
    Appeal from the January 8, 2008, judgment of the United States
    District Court for the Southern District of New York (Kevin N. Fox,
    Magistrate Judge), awarding damages resulting from an allision between
    a barge and a bulkhead.               The Court of Appeals rules that the District
    Court erred in applying the Oregon rule to create a presumption with
    respect to causation, and in precluding expert testimony offered by
    the Defendant.
    Judgment reversed, award vacated, and case remanded.
    Joseph T. Stearns, New York, N.Y. (Gino A.
    Zonghetti, Kenny, Stearns & Zonghetti
    LLC, New York, N.Y., on the brief), for
    Defendant-Appellant.
    Alex Spizz, New York, N.Y. (Scott A.
    Markowitz, Todtman Nachamie Spizz &
    Johns, P.C., New York, N.Y., on the
    brief), for Plaintiffs-Appellees.
    JON O. NEWMAN, Circuit Judge.
    This appeal primarily concerns the proper application of the
    presumption of fault, applicable in maritime law, known as the “Oregon
    rule.” See The Oregon, 
    158 U.S. 186
     (1895).            Defendant-Appellant
    Hornbeck Offshore Transportation, LLC (“Hornbeck”) appeals from the
    January 8, 2008, judgment of the District Court (Kevin N. Fox,
    Magistrate Judge), finding Hornbeck liable to Plaintiffs-Appellees
    Zerega Avenue Realty Corp. (“Zerega”) and Fred Todino & Sons, Inc.
    (“Todino & Sons”) for more than $1.5 million in damages. See Zerega
    Avenue Realty Corp. v. Hornbeck Offshore Transportation, LLC, No. 04
    Civ. 9651, 
    2007 WL 3125318
     (S.D.N.Y. Oct. 23, 2007).       The damages were
    awarded because of an allision1 between Hornbeck’s barge and a bulkhead
    on Zerega’s property abutting Westchester Creek in Bronx County, New
    York.        Hornbeck principally claims that the Court erred by applying a
    presumption in favor of Zerega on the issue of causation and by
    1
    “An allision is a collision between a moving vessel and a
    stationary object.” Weyerhaeuser Co. v. Atropos Island, 
    777 F.2d 1344
    ,
    1346 n.1 (9th Cir. 1985).
    -2-
    excluding the testimony of Hornbeck’s experts.          We conclude that the
    Oregon rule’s presumption of fault does not shift from a plaintiff the
    burden of proving causation, and that the preclusion of Hornbeck’s
    expert testimony was an abuse of discretion. We therefore reverse the
    judgment, vacate the award, and remand.
    Background
    Zerega and Todino & Sons own property along Westchester Creek
    (the “Zerega property”).      At the waterfront of the Zerega property,
    there is a bulkhead (also called a retaining wall or relieving
    platform) and, farther inland, a one-story office building with a
    basement.    Hornbeck owns and operates the tug STAPLETON SERVICE (the
    “tug”) and the Barge ENERGY 2201 (the “barge”), which is approximately
    250 feet long and 50 to 60 feet wide.
    In October 2005, the Plaintiffs-Appellees commenced an action for
    damages against their insurance carriers and Hornbeck.          The amended
    complaint alleged that on October 29, 2002, Hornbeck’s barge, while
    being pulled by its tug, struck the bulkhead on the Zerega property
    due   to   Hornbeck’s   negligent   operation   while   traveling   south   on
    Westchester Creek.      It further alleged that the allision resulted in
    the rapid and severe weakening of the bulkhead, which caused most of
    the bulkhead to collapse nearly two weeks later.            The Plaintiffs-
    Appellees sought damages for repair of the bulkhead and the office
    building.    After a four-day bench trial, the Magistrate Judge found
    Hornbeck liable for negligently causing damage to the bulkhead and the
    -3-
    office building and entered an award of $1,505,353, plus pre- and
    post-judgment interest, in favor of Zerega and Todino & Sons.2
    The Magistrate Judge, trying the case by consent, see 
    28 U.S.C. § 636
    (c), found that Hornbeck’s tug was pulling the barge, in light
    condition, southbound in Westchester Creek toward Unionport Bridge.
    The tug was being operated by Mate Steven Spurlock with assistance
    from Training Mate Eric Fuerstinger. Spurlock and Fuerstinger stalled
    the vessels in the immediate vicinity of the Zerega property in mid-
    afternoon, while waiting in the narrow channel for the Unionport
    Bridge to open.    During that time, Spurlock became concerned that the
    stern of the barge was drifting too close to the bulkhead of the
    Zerega property, and that the wind, which the Court found to be
    blowing toward the bulkhead, would cause the barge in its light
    condition to hit the retaining wall.     Spurlock maneuvered the tug in
    an attempt to straighten the barge.       As the Court found, Spurlock
    could not see the rear end of the barge while operating the tug, and
    Fuerstinger did not have a direct view of the rear of the barge on the
    starboard side.
    The Court found, on the testimony of four witnesses, that the
    barge allided with the bulkhead structure on the Zerega property.
    Christopher Todino (“Todino”), principal of Todino & Sons, and his
    2
    The insurance company defendants have apparently settled, and,
    in any event, are not named in the judgment.
    -4-
    business guest, Michael Justino (“Justino”), were meeting in an office
    located at the southern end of the office building at around 3:30 p.m.
    They each testified that they suddenly felt a strong jolt and observed
    from the office window a barge being pulled away from the Zerega
    property by a tug.      Louis Bruno, an office manager of Todino & Sons,
    working in the center of the office building at around 3:30 p.m.,
    testified that he felt a thump, heard Todino and Justino yelling, and
    ran to a window from which he observed a barge being pulled away from
    the bulkhead by a tug.     Laura Bruno, vice-president of Todino & Sons,
    testified that, upon hearing Todino and Justino yelling, she went to
    a window of the office building and observed a barge being pulled away
    from the Zerega property by a tug.
    At trial, there was no dispute that on November 11, 2002, nearly
    two weeks after the allision, a significant portion of the bulkhead on
    the Zerega property collapsed into Westchester Creek.           However, the
    parties disputed the cause of the collapse and sought to introduce the
    opinions of expert witnesses to support their competing theories.
    Zerega was permitted to introduce the expert testimony of Steven
    Schneider (“Schneider”), a professional engineer, that the bulkhead
    structure collapsed because either: (a) Hornbeck’s barge struck the
    retaining wall, causing the piles to shift, and, as the piles moved
    back,   they   ripped   the   planking   hardware   off   the   steel,   which
    undermined the retaining wall; or (b) timber or a pole, latched on to
    Hornbeck’s barge, was dragged along the face of the retaining wall,
    -5-
    like a stick being pulled along a picket fence, and destroyed the
    planking that was holding the earth underneath the structure in place,
    thereby causing the structure to collapse.
    The    Court   precluded        Hornbeck   from    introducing    the   expert
    testimony of Roderic Ellman (“Ellman”) and Pierce Power (“Power”),
    both professional engineers. Preclusion was ordered because the Court
    deemed Hornbeck to have failed to comply with a pretrial order of the
    Court.     That order stated that “on or before March 22, 2006, the
    parties shall provide to the Court such information as they reasonably
    believe    will     enable     the     Court    to     fulfill   the   gatekeeping
    responsibilities imposed upon it by the Supreme Court in Daubert v.
    Merrell Dow Pharmaceuticals, Inc., 
    509 U.S. 579
    , 
    113 S. Ct. 2786
    (1993).”
    Ellman, one of the precluded witnesses, would have offered the
    opinion that the cause of the bulkhead collapse was horizontal forces
    applied from the direction of the land against the bulkhead structure,
    whose wood pilings had become disconnected due to the corrosion of the
    metal fasteners and had deteriorated due to the natural biological
    decay of the timber.         Power would have offered the opinion that the
    barge did not strike the bulkhead.
    Although the testimony of Ellman was precluded, Hornbeck was
    permitted to introduce other evidence regarding the deterioration of
    the bulkhead.     Hornbeck introduced the pretrial deposition testimony
    of Paul Cirillo, who owned the Zerega property from the late 1960s to
    -6-
    the mid-1990s, that a sinkhole would develop in the bulkhead structure
    every eight to twelve months and require filling, and that in July and
    August of 2002, he observed a small sinkhole in the bulkhead of the
    Zerega     property,   which    grew    larger    over    time.      Spurlock   and
    Fuerstinger also stated through direct testimony that they observed a
    sinkhole on the Zerega property when they passed it on October 29,
    2002.      The District Court determined that the testimony of Cirillo,
    Spurlock, and Fuerstinger lacked credibility in light of the totality
    of   the    evidence   and    inconsistencies      brought   out    during   cross-
    examination. See Zerega Avenue Realty Corp., 
    2007 WL 3125318
    , at *3 &
    n.3.     Apart from that testimony, the only other evidence on which
    Hornbeck relied was the testimony of Stanley White (“White”), Zerega’s
    expert on the amount of damages.                 White acknowledged on cross-
    examination     that   more    than    one    plausible    explanation    for   the
    bulkhead’s collapse existed and that certain hardware was missing from
    the area where the bulkhead collapsed, but also stated that the
    hardware could be at the bottom of the Creek.
    In determining Hornbeck’s liability, the District Court applied
    what is known in admiralty law as the “Oregon rule.”               The Court stated
    the rule as follows: “It is a well-established proposition of maritime
    collision law that when a moving vessel collides with a stationary
    object, an inference of negligence arises and the burden is then upon
    the owners of the vessel to rebut the inference of negligence.” Id. at
    *5 (internal quotation marks omitted).             The Court ruled that, once
    -7-
    Zerega established that the barge struck the bulkhead, a presumption
    arose that the barge was being negligently operated.                       The Court
    further ruled that Hornbeck could rebut that presumption by showing,
    by a preponderance of the evidence, that it acted with reasonable
    care, that the allision was the fault of the stationary object, or
    that the allision was an unavoidable accident. See id. at *6.
    Implicitly      concluding     that    Hornbeck     had   not   rebutted     the
    inference of negligent operation, the Court then applied the Oregon
    rule to the issue of causation, casting on Hornbeck the burden of
    rebutting a presumption that its negligence caused Zerega’s damages.
    See id. at *5-*6 & n.4.3       In evaluating Hornbeck’s evidence, the Court
    3
    The Court’s use of the presumption is placed in some doubt by the
    last sentence of footnote 4: “[E]ven if the burden of proof remained
    on   the     plaintiffs   to   establish     causation    and   damages,    once    an
    inference of negligence arose, the plaintiffs met their burden.” The
    sentence could mean either that the inference of negligence is what
    enabled the Plaintiffs to meet their burden on causation and damages
    or that, independent of any presumption, the Plaintiffs met their
    burden      on   causation   and   damages   by   their   evidence.      The     Court
    apparently relied on the presumption when it stated as a conclusion:
    “[T]he defendant failed to rebut the presumption of fault, on the part
    of the tug and barge, for (a) striking the plaintiffs’ bulkhead
    structure, through the negligent operation of the vessel; and (b)
    -8-
    ruled that Hornbeck “failed to proffer evidence at the trial that
    would establish, by a preponderance, that the cause of the collapse of
    the plaintiffs’ bulkhead structure was its deterioration and unsound
    condition.” Id. at *6.   The Court therefore held Hornbeck liable and,
    finding White’s testimony as to damages to be credible, awarded
    Plaintiffs-Appellees $1,505,353 for the damage to the bulkhead and the
    office building, with pre- and post-judgment interest.
    Discussion
    On appeal, Hornbeck makes several challenges to the District
    Court’s findings and rulings.     We conclude that two of Hornbeck’s
    challenges have merit.    Most importantly, we write to clarify the
    proper application of the Oregon rule in maritime allision cases.
    I. The Presumption of Fault
    In admiralty law, liability for collisions and allisions is based
    upon a finding of fault that caused or contributed to the damage
    incurred. See 2 Thomas J. Schoenbaum, Admiralty and Maritime Law
    (“Schoenbaum”) § 14-2, at 89 (4th ed. 2004).   As in any tort case, the
    claimant generally has the burden of proving negligence. See East
    River S.S. Corp. v. Transamerica Delaval Inc., 
    476 U.S. 858
    , 859
    causing the bulkhead structure’s collapse.” Zerega Avenue Realty, 
    2007 WL 3125318
    , at *3 (emphasis added).     In any event, at oral argument
    the parties agreed that the presumption applies only to negligence and
    not to causation.
    -9-
    (1986) (noting that admiralty law “recognizes a general theory of
    liability for negligence”); Schoenbaum § 14-2, at 100. Admiralty law,
    however, recognizes a presumption, first formulated in The Oregon,
    that applies when a vessel under its own power allides with an
    anchored vessel or a stationary object. See 
    158 U.S. at 192
    .              Under
    such circumstances, the moving vessel is presumed to be at fault and
    bears the burden of rebutting the presumption by showing that the
    allision was the fault of the stationary object, that the moving
    vessel acted with reasonable care, or that the allision was an
    unavoidable accident. See 
    id. at 192-93
    ; Folkstone Maritime, Ltd. v.
    CSX Corp., 
    64 F.3d 1037
    , 1050 (7th Cir. 1995); Delta Transload, Inc.
    v. MV Navios Commander, 
    818 F.2d 445
    , 449 (5th Cir. 1987); City of
    Boston v. S.S. Texaco Texas, 
    773 F.2d 1396
    , 1398 (1st Cir. 1985) (“The
    rule is well settled that when a vessel under its own power collides
    with an anchored vessel or a navigational structure, the burden of
    proving absence of fault or vis major rests on the pilot vessel.”).
    The presumption “derives from the common-sense observation that moving
    vessels do not usually collide with stationary objects unless the
    vessel is mishandled in some way.” Wardell v. Dep’t of Transportation,
    National Transportation Safety Board, 
    884 F.2d 510
    , 512 (9th Cir.
    1989).
    The    Appellant   initially     challenges      the    District   Court’s
    application of the Oregon rule on the ground that the Court erred in
    finding    that   Hornbeck’s   tug   did    not   exercise   reasonable   care.
    -10-
    Hornbeck claims that it offered evidence of reasonable care through
    the testimony of Spurlock and Fuerstinger concerning the slow speed at
    which the tug and barge were operated, the posting of Fuerstinger as
    lookout in the wheelhouse, and the crew’s vigilance in the area of the
    retaining wall.
    “Following a bench trial, we set aside findings of fact only when
    they are clearly erroneous, and we give due regard to the trial
    court’s credibility determinations.” Design Strategy, Inc. v. Davis,
    
    469 F.3d 284
    , 300 (2d Cir. 2006) (internal quotation marks omitted).
    The Court found that Spurlock navigated the unloaded barge down the
    narrow channel into the immediate vicinity of the bulkhead on the
    Zerega property, became concerned that the barge’s stern would drift
    into the bulkhead, and tried to straighten the barge without either
    his view of the stern or that of his mate.       The Court discredited
    Spurlock’s and Fuerstinger’s testimony with respect to the direction
    of the wind, Fuerstinger’s view of the bulkhead from the wheelhouse,
    and their ability to perceive whether the barge hit the bulkhead.
    While the Court did not explicitly state that Hornbeck failed to
    establish reasonable care, that is the only reasonable inference
    available from the Court’s opinion.    Moreover, the Court’s invocation
    of the Oregon rule and its subsequent consideration of the issue of
    causation leaves no doubt that the Court found that Hornbeck’s tug was
    not operated with reasonable care.    The evidence fully supports that
    finding.
    -11-
    II. Causation
    Although the Oregon rule creates a presumption of negligent
    operation, it does not create an additional presumption that the
    allision caused whatever damages are alleged.               “[T]he Oregon rule
    . . . speaks explicitly only to a presumed breach on the part of the
    alliding    vessel,   and    is   not   a   presumption   regarding   either   the
    question of causation (either cause in fact or legal cause) or the
    percentages of fault assigned parties adjudged negligent.” In re Mid-
    South Towing Co., 
    418 F.3d 526
    , 532 (5th Cir. 2005) (footnotes
    omitted).    As in any negligence case, the plaintiff in a maritime
    allision case bears the burden of proving by a preponderance of the
    evidence that the defendant’s negligence caused the alleged damages.
    See Torch Operating Co. v. M/V BLANCHE CANDIES, Civ. A. No. 92-2282,
    
    1994 WL 320992
    , at *4 (E.D. La. June 28, 1994).
    In the pending case, the District Court concluded that “the
    defendant failed to rebut the presumption of fault, on the part of the
    tug and barge, for: (a) striking the plaintiffs’ bulkhead structure,
    through the negligent operation of the vessel; and (b) causing the
    bulkhead structure’s collapse.” Zerega Avenue Realty, 
    2007 WL 3125318
    ,
    at *6.      Applying the Oregon rule’s presumption to the issue of
    causation was error.        The burden remained on Zerega and Todino & Sons
    to establish that the allision resulting from Hornbeck’s negligent
    operation of the tug and barge caused the alleged damages.                     The
    improper use of the Oregon rule to spare the Plaintiffs-Appellees the
    -12-
    burden of proving that the allision, resulting from the Defendants-
    Appellants’ negligence, caused the alleged damages requires a remand.
    III. Preclusion of Hornbeck’s Expert Testimony
    We turn now to Hornbeck’s challenge to the preclusion of its
    expert witnesses.      Hornbeck argues that the District Court exceeded
    its discretion in precluding sua sponte the testimony of Hornbeck’s
    experts Ellman and Power due to Hornbeck’s failure to comply with an
    order of the Court dated March 9, 2006.          That order stated that “on or
    before March 22, 2006, the parties shall provide to the Court such
    information as they reasonably believe will enable the Court to
    fulfill the gatekeeping responsibilities imposed upon it by the
    Supreme Court in Daubert v. Merrell Dow Pharmaceuticals, Inc., 
    509 U.S. 579
    , 
    113 S. Ct. 2786
     (1993).”            On March 21, one day before the
    deadline, Hornbeck filed a motion in limine to preclude Zerega from
    offering the expert opinion of Steven Schneider as to causation and
    damages.     Zerega neither filed a motion in limine nor submitted any
    other documents concerning its expert witnesses on or before the March
    22   deadline.   On    March   31,    after   the   deadline,   Zerega   opposed
    Hornbeck’s    motion    by   filing    papers,   which   included   Schneider’s
    declaration describing his qualifications and the basis for his
    opinions.    On May 31, Hornbeck filed affidavits containing the direct
    testimony of four prospective witnesses, including Ellman and Power,
    in accordance with another of the Court’s pretrial orders.               On June
    12, the Court issued an order precluding Hornbeck from calling its two
    -13-
    expert witnesses on the basis that “neither the docket sheet                     . . .
    nor the Court’s chamber’s file contains any record of submissions
    having been made by Hornbeck, in accordance with the Court’s March 9,
    2006 order, that would have enabled the Court to determine, as
    required by Daubert, the propriety of permitting Messrs. Ellman and
    Power to present opinion testimony.”
    We review the District Court’s preclusion order for abuse of
    discretion.    See    Softel,    Inc.      v.    Dragon    Medical   and   Scientific
    Communications,      Inc.,    
    118 F.3d 955
    ,    961    (2d   Cir.   1997).     “In
    determining whether a district court has exceeded its discretion, we
    consider the following factors: (1) the party’s explanation for the
    failure to comply with the discovery order; (2) the importance of the
    testimony of the precluded witness; (3) the prejudice suffered by the
    opposing party as a result of having to prepare to meet the new
    testimony; and (4) the possibility of a continuance.” 
    Id.
     (citing
    Outley v. City of New York, 
    837 F.2d 587
    , 590-91 (2d Cir. 1988)).
    Although the trial judge is accorded considerable discretion in
    enforcing its pretrial orders, we conclude that the order to preclude
    Hornbeck’s    two    expert   witnesses         exceeded   the   discretion   of   the
    District Court.        Initially we note that the March 9 order was
    susceptible to some misunderstanding, stating its requirement in terms
    of what the parties themselves considered to be required for the Court
    -14-
    to meet its Daubert obligation.4           More significantly, although both
    parties failed to comply with the March 9 pretrial order with respect
    to   their     own   witnesses,   only   Hornbeck     was   sanctioned   with    the
    preclusion order.       Zerega was permitted to elicit the expert opinion
    of Schneider, even though the documents Zerega submitted to explain
    the basis for Schneider’s opinions were filed after the Court’s
    deadline.       Moreover, Zerega was also permitted to call White to
    testify as to damages, even though Zerega did not inform the Court of
    its intention to call White until May 25.
    Furthermore, the testimony of Ellman was critical to Hornbeck’s
    defense on the issue of causation.              Ellman would have offered an
    opinion, based on his inspection of the bulkhead and the barge on
    December 9, 2002, that the bulkhead collapse was caused by horizontal
    forces applied from the direction of the land against a deteriorated,
    unattached,      and   undermined   platform    and   not   by   a   barge   strike.
    Without Ellman’s testimony, the opinion of Zerega’s expert Schneider
    on the critical issue of causation went uncontroverted.                Power would
    4
    The parties’ conduct appears to demonstrate some misunderstanding
    of the March 9 order by both sides.         It was reasonable for Hornbeck to
    believe that the order required the parties to make any Daubert
    challenges to their opponent’s prospective experts, which Hornbeck in
    fact made in a timely manner.
    -15-
    have offered an opinion, based on his inspection of the bulkhead, that
    the allision did not occur.
    Finally, allowing Ellman and Power to testify would not have
    caused prejudice to Zerega.          Zerega had already deposed Ellman and
    Power during discovery, and since they were prepared to testify, there
    would have been no need for a continuance.
    For these reasons, we conclude that it was an abuse of discretion
    to preclude Ellman and Power from testifying.              On remand, Ellman and
    Power should be permitted to testify.
    IV. Other Evidentiary Rulings
    Hornbeck’s remaining arguments, challenging a number of the
    District Court’s evidentiary decisions, lack merit. Hornbeck contends
    that the Court should have precluded the testimony of Schneider as
    unreliable    and,    in   the   absence   of    his   testimony,    dismissed   the
    complaint for failure to prove that the allision caused the collapse.
    The decision to admit expert testimony is left to the broad discretion
    of the trial judge and will be overturned only when manifestly
    erroneous. See Salem v. U. S. Lines Co., 
    370 U.S. 31
    , 35 (1962);
    Boucher v. U.S. Suzuki Motor Corp., 
    73 F.3d 18
    , 21 (2d Cir. 1996).
    Our   Court   has    stated   that   a   trial   judge   should     exclude   expert
    testimony if it is speculative or conjectural or based on assumptions
    that are “so unrealistic and contradictory as to suggest bad faith” or
    to be in essence “an apples and oranges comparison.” Boucher, 
    73 F.3d at 21
     (internal quotation marks omitted).              “[O]ther contentions that
    -16-
    the assumptions are unfounded go to the weight, not the admissibility,
    of the testimony.” 
    Id.
     (internal quotation marks omitted).
    Hornbeck’s contentions are of the latter variety.                      Hornbeck
    argues     that   Schneider’s     testimony     should    have   been     barred   as
    unreliable because he did not inspect the collapse of the bulkhead
    until August 2005, performed no engineering calculations, and provided
    nothing    approaching     an    informed    opinion     based   upon    engineering
    principles. While these shortcomings may diminish the probative value
    of Schneider’s testimony, it was not erroneous for the Court to admit
    this testimony, which was otherwise based on witness statements,
    Schneider’s inspections of the bulkhead structure from 2001 to 2002,
    drawings and photographs of the bulkhead, reports and videotapes
    prepared    by    the   defendants,    and    approximately      thirty    years    of
    engineering experience with marine structures.
    Hornbeck also challenges the Court’s exclusion of photographs
    purportedly showing sinkholes in the bulkhead that Hornbeck sought to
    introduce through Christopher Todino.             At his pretrial deposition,
    Todino testified that the photographs showed the Zerega property
    before the allision.       The Court sustained Zerega’s objections to the
    admission of the photographs for lack of a proper foundation.
    The    standard    for     admissibility   of     photographs      requires   the
    witness to recognize and identify the object depicted and testify that
    the photograph is a fair representation of what it purports to
    portray. See Kleveland v. United States, 
    345 F.2d 134
    , 137 (2d Cir.
    -17-
    1965).      Although Todino’s witness identified the photographs as
    “pictures of the relieving platform at 1000 Zerega Avenue,” counsel
    failed to follow up with the customary question as to whether the
    photographs fairly and accurately portrayed the area shown.         The
    objection for lack of a proper foundation was therefore properly
    sustained.5
    Finally, Hornbeck argues that the District Court improperly
    refused to admit the testimony and email of John Bowie, an employee of
    Hornbeck, who received a report from Laura Bruno about the allision.
    For the purpose of impeaching Bruno, Hornbeck sought to introduce her
    hearsay statement to Bowie that no one at Zerega saw the barge strike
    the bulkhead and that no one identified the name of the barge until
    the name was obtained from the operator of the Unionport Bridge.    The
    Court sustained Zerega’s objection to the testimony of Bowie on the
    ground that it was hearsay, and rejected Hornbeck’s argument that the
    statement was admissible as an admission because Laura Bruno was a
    party to the action.    We conclude that the statement was admissible
    under Federal Rule of Evidence 801(d)(2)(D) because Bruno, as vice-
    president of Todino & Sons, was the agent of a party to the action
    acting within the scope of her employment.   This error, however, was
    5
    It would have been preferable for the District Court, when
    discussing the foundation issue with counsel at sidebar, to have
    offered the helping hand of a properly framed follow-up question.
    -18-
    harmless because three eye-witnesses testified to feeling the impact
    of the allision and immediately seeing the tug and barge pulling away,
    and the District Court found their testimony to be credible.
    V. Remedy
    The errors in applying the Oregon rule to the issue of causation
    and in excluding Hornbeck’s expert witnesses, Ellman and Power,
    require a remand.      However, the issues of Hornbeck’s negligence and
    the   amount   of   damages    need    not   be    retried.    Upon    remand,     the
    Magistrate Judge should retry only the factual issue of whether the
    allision occurred and the issue of causation, with the burden of proof
    on the Plaintiffs.      In doing so, the Magistrate Judge should make
    distinct determinations as to whether the allision, if it occurred,
    has been shown to have caused damage to the bulkhead and to the office
    building.    If causation is found, as to either or both structures, the
    findings already made as to the amount of damages sustained by both
    structures may stand.         Since this was a bench trial, the Magistrate
    Judge may rely on the existing record, supplemented by Ellman’s and
    Power’s testimony and whatever additional evidence the Magistrate
    Judge permits. The Defendants-Appellants’ request for reassignment to
    a different judge is denied.
    Conclusion
    The   judgment   is   reversed,     the     award   vacated,    and   the   case
    remanded for further proceedings consistent with this opinion.
    -19-