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Ship Finance, Martime Liens & Workouts
Magnolia Ocean Shipping Corp. v. M/V MERCEDES MARIA, 1982 A.M.C.
731 noted at 644 F.2d 880 (4th Cir. 1981).
Phil represented the Spanish Receiver in Bankruptcy for the owner of the
M/V MERCEDES MARIA in fighting off an alleged buyer of the ships from
the bankrupt's shareholders. Magnolia sought a possessory arrest, in rem,
pursuant to Rule D, asking for a decree transferring title pursuant to
a contract of sale. The District Court dismissed the arrest, and the Fourth
Circuit Court of Appeals affirmed, on the grounds that a contract for
the sale of a ship is not a maritime contract.
Sands Construction Co., Inc. v. United Virginia Bank, 1985 A.M.C.
1165 (E.D.Va. 1984).
Phil represented the owner of the M/V CAYUGA in connection with a claim
for damage to her rudder while docking at a coal berth in Norfolk. The
owner contracted with Sands for removal of the rudder on a lump sum basis.
When the work took longer than projected, the contractor sued for additional
sums, and his sub-contractors intervened, asserting liens against the
vessel for their un-paid sub-contractor invoices. The District Court granted
Owner's motion for summary judgment on the grounds that sub-contractors
had relied on the credit of their prime, not the vessel.
CSX Transp., Inc. v. U.S. Cruises, Inc. and The S.S. UNITED STATES,
in rem, 989 F.2D 492 (Table, Text in WESTLAW), unpublished disposition,
25 Fed.R.Serv. 3d 282, 1993 WL 89813 (4th Cir. 1993).
CSX Transportation, Inc. v. S.S. UNITED STATES, in rem, Civil Action
No. 91-141-NN, on appeal to U.S. Fourth Circuit Court of Appeals, Appeal
No. 92-1677.
Represented buyer of the S.S. UNITED STATES at U.S. Marshal sale. Obtained
confirmation of sale over objection of disappointed bidder who claimed
that vessel could only be sold to a corporation owned 80% by U.S. citizens.
Dismissed appeal to Fourth Circuit on grounds of untimely intervention
by disappointed bidder.
Flayer Corp. v. Schiller & Price Industrial Consultants, Inc. and
Gary Lee Walker, et. al., Civil Action No. 88-238-N, Eastern District
of Virginia - Norfolk Division
Represented plaintiff Flayer Corp., the owner of the U.S. documented drillship
E.A. WILDER, in an action to try its title. Flayer had employed a lawyer
in West Virginia to document the vessel. The lawyer fraudulently transferred
title to Schiller & Price Industrial Consultants, who was preparing
to sell her to foreign ship breakers and have her transferred to a foreign
flag. The Commandant of the Coast Guard and the Secretary of Transportation
were named defendants to prevent the sale and transfer. On June 24, 1988,
petitioned the court for a temporary restraining order to suspend the
proposed sale and transfer. The action to try title was before Honorable
J. Calvitt Clarke, Jr. on July 11-14, 1988 who held in favor of Flayer
Corp.
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