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  5. 795 F.2d 756 (1986)
 

IN THE MATTER OF COMPLAINT OF PARADISE HOLDINGS, INC.

Nos. 85-1648, 85-1889.

795 F.2d 756 (1986)

In the Matter of The Complaint of PARADISE HOLDINGS, INC., a Hawaii corporation, as owner of, and Paradise Cruise, Limited, a Hawaii corporation, as lessee and charterer of the P/V PEARL KAI, Official Number 527 873, for exoneration from or limitation of liability. Terry Lee K. STONE, Individually; As Special Administratrix of the Estate of Paul Henry Stone; and As Guardian Ad Litem for Paul Henry Stone, Jr., a minor, and Jeremy Noah Kamealohaokuulei Stone, a minor, Claimants-Appellants, v. PARADISE HOLDINGS, INC. and Paradise Cruise, Limited, Appellees.

United States Court of Appeals, Ninth Circuit.

Decided July 25, 1986.

Attorney(s) appearing for the Case

George W. Playdon, Jr., Robert K. Merce, Honolulu, Hawaii, for claimants-appellants.

Robert G. Frame, Leonard Alcantara, Alcantara & Frame, Honolulu, Hawaii, for appellees.

Before FERGUSON, CANBY and HALL, Circuit Judges.

CANBY, Circuit Judge:

On June 19, 1984, Paul Stone was killed while bodysurfing in a recreational area known as Point Panic, near Kewalo Basin in Honolulu. Boating is prohibited in Point Panic, and navigation is at best treacherous due to shallow water and large reefs. By contrast, the adjacent Kewalo Basin Channel is dredged and is an established shipping lane.

According to the allegations, at about noon on June 19, the P/V Pearl Kai, owned by Paradise,

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