Opinion ID: 536603
Heading Depth: 1
Heading Rank: 2

Heading: Maritime Liens

Text: 9 Before addressing appellants' arguments, we first must characterize the nature of appellants' claims as maritime or nonmaritime dry land liens. See G. Gilmore & C. Black, The Law of Admiralty 586-89 (2d ed. 1975) (outlining the significant differences between common law or state law statutory liens and maritime liens) [hereinafter Gilmore]. This characterization is fundamental to our subsequent analysis, because preferred maritime liens take priority over a preferred ship mortgage, see SMA Sec. 953(b), whereas a nonmaritime lien is subordinate, see id. and discussion infra pp. 461-462. 10 A maritime lien arises for contract or tort claims against a maritime res for goods and services supplied to it or injury caused by it. See Gilmore at 587-89; 2 S. Friedell, J. Geraghty, S. Bellman & J. Loo, Benedict on Admiralty Sec. 31, at 3-1 to 3-2 (7th ed. 1988) [hereinafter 2 Benedict ]. Maritime liens generally are secret in that neither possession nor notice through filing is required to establish their validity. See Gilmore at 588; Comment, The Federal Maritime Lien Act: A Review and a Prospectus, 20 Hous.L.Rev. 861, 864 n. 17 (1983) [hereinafter Comment, 20 Hous.L.Rev.]; Comment, Developments in the Law of Maritime Liens, 45 Tul.L.Rev. 574, 575 (1971) [hereinafter Comment, 45 Tul.L.Rev.]. Only an admiralty court acting in rem can foreclose a maritime lien, because admiralty law engages in the fiction that the ship itself is the person who committed the offense and is legally responsible for the consequences. See Gilmore at 588-94; Hebert, The Origin and Nature of Maritime Liens, 4 Tul.L.Rev. 381, 382-92 (1930) [hereinafter Hebert, 4 Tul.L.Rev.]; Note, Priorities of Maritime Liens, 69 Harv.L.Rev. 525, 525-27 (1956) [hereinafter Note, 69 Harv.L.Rev.]; Comment, 20 Hous.L.Rev. at 864 & nn. 20-21. 11 In American admiralty law the existence of a maritime lien is synonymous with the scope of admiralty jurisdiction. See Gilmore at 622; H. Baer, Admiralty Law of the Supreme Court 464-65 (3d ed. 1979) [hereinafter Baer]; Robinson, Contract Jurisdiction in Admiralty, 10 Tul.L.Rev. 359, 360-62 (1936) [hereinafter Robinson, 10 Tul.L.Rev.]; Note, 69 Harv.L.Rev. at 526. It is an established principle of American admiralty law that contracts for building a ship, or supplying materials for the original construction of a ship, are not maritime contracts within the province of admiralty jurisdiction. See Gilmore at 16; Baer at 464-65; 1 S. Friedell, Benedict on Admiralty Sec. 186, at 12-30 to 12-31 (7th ed. 1988) [hereinafter 1 Benedict ]; Black, Admiralty Jurisdiction: Critique and Suggestions, 50 Colum.L.Rev. 259, 264 (1950); Robinson, 10 Tul.L.Rev. at 361. The Supreme Court so held in 1857 in People's Ferry Co. v. Beers, [61 U.S. (20 How.) 393, 15 L.Ed. 961 (1857) ], and has followed that ruling both in dicta and decision in every subsequent case in which the subject has been presented or reference to it made. 1 Benedict Sec. 186, at 12-30 (footnotes omitted) (citing in part East River S.S. Corp. v. Transamerica Delaval, Inc., 476 U.S. 858, 872 n. 7, 106 S.Ct. 2295, 2303 n. 7, 90 L.Ed.2d 865 (1986); Kossick v. United Fruit Co., 365 U.S. 731, 735, 81 S.Ct. 886, 889, 6 L.Ed.2d 56 (1961); New Bedford Dry Dock Co. v. Purdy, 258 U.S. 96, 99, 42 S.Ct. 243, 243, 66 L.Ed. 482 (1922); Thames Towboat Co. v. The Schooner Francis McDonald, 254 U.S. 242, 243, 41 S.Ct. 65, 65, 65 L.Ed. 245 (1920); The Winnebago, 205 U.S. 354, 363, 27 S.Ct. 509, 512, 51 L.Ed. 836 (1907); Edwards v. Elliott, 88 U.S. (21 Wall.) 532, 553, 22 L.Ed. 487 (1874)). 12 The necessary corollary to this principle is that contracts for building or supplying materials for the original construction of ships do not create maritime liens because such contracts are not maritime contracts. See Gilmore at 630 n. 98; 1 Benedict Sec. 125, at 8-18; Hebert, 4 Tul.L.Rev. at 398-99; Ray, Maritime Contract Liens, 47 Tul.L.Rev. 587, 606 (1973) [hereinafter Ray, 47 Tul.L.Rev.]. Even after a ship has been launched, but before it is sufficiently advanced to function as designed, any labor, materials, or equipment furnished to the ship that are necessary for its completion do not give rise to maritime liens. E.g., The Francis McDonald, 254 U.S. at 245, 41 S.Ct. at 66; The Winnebago, 205 U.S. at 362, 27 S.Ct. at 512; Nilo Barge Line, Inc. v. The M/V Bayou DuLarge, 584 F.2d 841, 842-43 (8th Cir.1978); The Boat La Sambra v. Lewis, 321 F.2d 29, 29-31 (9th Cir.1963); Hatteras of Lauderdale, Inc. v. Gemini Lady, 662 F.Supp. 1525, 1527 (S.D.Fla.1987), aff'd, 853 F.2d 848 (11th Cir.1988); see also 1 Benedict Sec. 186, at 12-31 & n. 5; Robinson, 10 Tul.L.Rev. at 364-66; Comment, 45 Tul.L.Rev. at 602-03. 13 Appellants admit that their claims are for materials, labor, and services rendered prior to the completion of construction on the Patriot. The district court made a finding of fact that the Patriot was ninety-nine percent complete on January 7, 1987. The record shows that all of appellants' materials and labor were furnished long before this approximate date of completion. 3 We therefore hold that appellants' claims constitute nonmaritime liens. 14