Justia Admiralty & Maritime Law Opinion Summaries

WI buys furniture wholesale. OEC provided WI with non-vessel-operating common carrier transportation services. WI signed an Application for Credit that granted a security interest in WI property in OEC’s possession, custody or control or en route. As required by federal law, OEC also publishes a tariff with the Federal Maritime Commission, which provides for a Carrier’s lien. WI filed voluntary Chapter 11 bankruptcy petitions. OEC sought relief from the automatic stay, arguing that it was a secured creditor with a possessory maritime lien. OEC documented debts of $458,251 for freight and related charges due on containers in OEC’s possession and $994,705 for freight and related charges on goods for which OEC had previously provided services. The estimated value of WIs’ goods in OEC’s possession was $1,926,363. WI filed an adversary proceeding, seeking release of the goods. The bankruptcy court ruled in favor of WI, citing 11 U.S.C. 542. The district court affirmed, holding that OEC did not possess a valid maritime lien on Pre-petition Goods. The Third Circuit reversed, noting the strong presumption that OEC did not waive its maritime liens on the Prepetition Goods, the clear documentation that the parties intended such liens to survive delivery, the familiar principle that a maritime lien may attach to property substituted for the original object of the lien, and the parties’ general freedom to modify or extend existing liens by contract. View "In re: World Imports LTD" on Justia Law

An Automated Maritime Telecommunications System (AMTS) is a U.S. communication service between land and vessels in navigable waterways, existing on specific broadcast frequencies. Advances in technology have greatly expanded the potential uses of AMTSs. Under the original site-based system, small geographic regions were defined by location and the waterway served and the FCC provided licenses at no cost to the first applicant. In 2000, the FCC stopped issuing site-based licenses and began issuing licenses by competitive bidding; it divided the U.S. into 10 regions and, at public auctions, sold “geographic” licenses for two blocks of AMTS frequencies in each region. Although geographic licensees may generally place stations anywhere within their region, they may not interfere with the functioning of existing site-based stations, so the location of a site-based station creates a gap in a geographic licensee’s coverage area. Plaintiffs obtained geographic licenses in areas overlaying pre-existing site-based licenses. Site-based operators refused to provide plaintiffs with the operating contours for their site-based locations within plaintiffs’ geographic locations. Plaintiffs filed suit, alleging violation of the Federal Communications Act and the Sherman Antitrust Act. The Third Circuit affirmed dismissal of the FCA claims and a determination that no antitrust conspiracy existed. Plaintiffs did not identify particular actions that were determined by the FCC to be unreasonable or unjust and, therefore, do not possess a private right of action. View "Havens v. Mobex Network Servs., LLC" on Justia Law

An Automated Maritime Telecommunications System (AMTS) is a U.S. communication service between land and vessels in navigable waterways, existing on specific broadcast frequencies. Advances in technology have greatly expanded the potential uses of AMTSs. Under the original site-based system, small geographic regions were defined by location and the waterway served and the FCC provided licenses at no cost to the first applicant. In 2000, the FCC stopped issuing site-based licenses and began issuing licenses by competitive bidding; it divided the U.S. into 10 regions and, at public auctions, sold “geographic” licenses for two blocks of AMTS frequencies in each region. Although geographic licensees may generally place stations anywhere within their region, they may not interfere with the functioning of existing site-based stations, so the location of a site-based station creates a gap in a geographic licensee’s coverage area. Plaintiffs obtained geographic licenses in areas overlaying pre-existing site-based licenses. Site-based operators refused to provide plaintiffs with the operating contours for their site-based locations within plaintiffs’ geographic locations. Plaintiffs filed suit, alleging violation of the Federal Communications Act and the Sherman Antitrust Act. The Third Circuit affirmed dismissal of the FCA claims and a determination that no antitrust conspiracy existed. Plaintiffs did not identify particular actions that were determined by the FCC to be unreasonable or unjust and, therefore, do not possess a private right of action. View "Havens v. Mobex Network Servs., LLC" on Justia Law

WFS Singapore filed suit attempting to recover a debt arising from the supply of fuel oil bunkers in Singapore to a Panamanian-flag vessel, which is beneficially owned by a United States company, operated and managed by a United States company, and which was chartered by a German company. The court affirmed the district court's conclusion and substantially with its reasoning. The district court, on summary judgment, applied Singapore law to the formation of the fuel sales contract, enforced the parties’ choice of law as the “General Maritime law of the United States,” and concluded that the vessel lien under the Federal Maritime Lien Act, 42 U.S.C. 31341 and 31342, was enforceable. View "World Fuel Serv. Singapore PTE v. Bulk Juliana MV" on Justia Law

After James McIndoe died from complications related to mesothelioma, McIndoe's legal heirs filed suit against defendants, arguing that McIndoe’s exposure to asbestos-containing materials aboard their ships contributed to his death. The district court granted defendants' motions for summary judgment. The court agreed with the district court that McIndoe’s heirs cannot sustain an action for strict products liability premised upon the notion that the warships in question are themselves “products” under maritime law. The court also concluded that, although plaintiffs have established that there was a genuine issue of fact as to whether McIndoe was exposed to asbestos-containing materials originally installed upon such ships, plaintiffs have established no genuine issue of fact regarding whether any such exposure was a substantial factor in McIndoe’s injuries. Therefore, plaintiffs cannot prevail on their general negligence claims. Accordingly, the court affirmed the judgment. View "McIndoe v. Huntington Ingalls Inc." on Justia Law

Malin filed suit against OSA for the balance of its unpaid invoices for work, services, materials, and supplies that it had provided to OSA at the request of Con-Dive. The court affirmed the district court's denial of OSA's motion to vacate the attachment, concluding that, under Texas law, title to the bunkers at issue passed to OSA on delivery. OSA held title to the bunkers at the time of Malin's attachment, and title to property unquestionably suffices as an attachable interest under Supplemental Admiralty Rule B. Therefore, the district court had personal jurisdiction over OSA by virtue of the attachment of the bunkers on the vessel that it had chartered. The court affirmed the district court’s determination that no material issues of fact exist as to whether OSA received and ratified the invoices, including their interest and attorneys fees provisions. Thus, the court concluded that the district court committed no error in granting summary judgment for Malin. The court affirmed the judgment. View "Malin Int'l Ship Repair v. Oceanografia, S.A. de C.V." on Justia Law

Petitioner, a pilot, seeks review of the final order of the NTSB that permanently revoked his certificates based on his criminal conviction, contending that the FAA’s earlier administrative action bars the FAA’s permanent revocation order by operation of various preclusion doctrines, double jeopardy, and due process. In this case, petitioner fraudulently sold helicopter rotor blades with maintenance records he had altered to hide the fact that another mechanic had deemed the blades to be unrepairable scrap. The court concluded that 49 U.S.C. 44726(b)(1)(A) plainly authorizes revocation of any airman certificate after a qualifying conviction, even if the FAA unsuccessfully pursued a prior subsection (B) administrative action based on the events underlying the conviction. The court further concluded that revocation of airman certificates in those circumstances is a civil, remedial measure aimed at protecting public safety that does not offend principles of preclusion, double jeopardy, or due process. Accordingly, the court denied the petition for review. View "Lauterbach v. Huerta" on Justia Law

Petitioner, a pilot, seeks review of the final order of the NTSB that permanently revoked his certificates based on his criminal conviction, contending that the FAA’s earlier administrative action bars the FAA’s permanent revocation order by operation of various preclusion doctrines, double jeopardy, and due process. In this case, petitioner fraudulently sold helicopter rotor blades with maintenance records he had altered to hide the fact that another mechanic had deemed the blades to be unrepairable scrap. The court concluded that 49 U.S.C. 44726(b)(1)(A) plainly authorizes revocation of any airman certificate after a qualifying conviction, even if the FAA unsuccessfully pursued a prior subsection (B) administrative action based on the events underlying the conviction. The court further concluded that revocation of airman certificates in those circumstances is a civil, remedial measure aimed at protecting public safety that does not offend principles of preclusion, double jeopardy, or due process. Accordingly, the court denied the petition for review. View "Lauterbach v. Huerta" on Justia Law

Maher, a marine terminal operator, challenges a decision of the Commission authorizing preferential lease terms to a competitor, APM-Maersk. The court concluded that, assuming arguendo that the Commission adequately responded to Maher’s contention that the same rates should be extended to it, the Commission’s explanation as to why APM-Maersk’s preference was based on a “transportation factor” was hopelessly convoluted, particularly in light of its precedent. The court remanded the case to the Commission for a more adequate explanation of its decision and policy. Accordingly, the court granted the petition for review and remanded. View "Maher Terminals, LLC v. FMC" on Justia Law

Defendant appealed his conviction for failing to maintain an oil record book aboard a foreign-flagged merchant sea vessel, in violation of 33 U.S.C. 1908(a) and 33 C.F.R. 151.25. The district court denied defendant's motion for judgment of acquittal under Rule 29 of the Federal Rules of Criminal Procedure. The court reversed, concluding that the plain language of 33 C.F.R. 151.25 states that only the “master or other person having charge of the ship” has a duty to maintain the record book. The government concedes that defendant was not the “master or other person having charge” of the vessel at issue. The court vacated the conviction and remanded for entry of acquittal. View "United States v. Fafalios" on Justia Law