Captain Of Vessel Who Was A Joint Venturer In The Vessel Did Not Have A Maritime Lien Against The Vessel
DONALD J. LEBLANC v. M/V NAUMACHIA (O.N. 672110), herengines, tackle and appurtenances, inrem
CA No. 04-009 ML
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF RHODEISLAND
2005 U.S. Dist. LEXIS 5152; 2005 AMC 506
January 4, 2005, Decided
PROCEDURAL POSTURE: In an in rem action, pro se plaintiff former captain asserted maritime liens against a vessel. After the vessel was arrested, claimant bank intervened asserting that it held a preferred ship mortgage against vessel superior to any lien asserted by the captain.
OVERVIEW: It was undisputed that the bank's mortgage was a preferred mortgage under the Commercial Instruments and Maritime Liens Act, 46 U.S.C.S. ยง 31301 et seq. The bank disputed the very existence of the liens asserted by the captain and argued instead that the captain was a joint venturer who was legally incapable of asserting a maritime lien against the vessel. The court engaged in a five-part analysis and determined that a joint venture existed. The captain and his former fiancee intended to purchase the vessel together, but could not because of the captain's poor credit. The captain controlled nearly all of the operational activities of the vessel. While his former fiancee was legal owner of the vessel, the captain nonetheless managed the operations of the vessel and, as such, had a proprietary interest in the vessel and its success. The final two factors considered the share of the venture's profits and losses. The captain and his former fiancee agreed to equally share all profits. The fact that they never discussed who would bear the enterprise's losses did not necessarily foreclose a determination that the captain was a joint venturer.
OUTCOME: The bank had a preferred ship mortgage against the vessel, but the captain had no valid maritime liens. The vessel was ordered sold, and the resulting proceeds would first be allocated to any expenses that had accumulated while the vessel was detained in custodia legis. The remainder would then be paid into the registry of court for disbursement on any claims made.
