American River Transportation v. United States, Corp of Eng

WOLLMAN, Circuit Judge.

This case comes to us on appeal a second time after the district court sua sponte dismissed the limitation action brought by the American River Transportation Company (Artco), concluding that the limitation proceeding could not go forward because the United States’ potential claims were not subject to the Limitation of Shipowners’ Liability Act, 46 U.S.C, §§ 30501-30512 (the Limitation Act). The district court declined to hold the United States in contempt for violating the court’s order enjoining suits outside the limitation proceeding. We reverse the court’s dismissal…