Opinion ID: 545490
Heading Depth: 2
Heading Rank: 2

Heading: The Maritime Lines

Text: 32 Plaintiffs contend that the district court erroneously dismissed their maritime liens against the five vessels. We are unable to review this contention because the district court made no findings with respect to these liens. In an earlier opinion, reported at 668 F.Supp. 225, the court had denied a motion by the vessel owners for partial summary judgment on the validity of the liens. It found that under the relevant statute, 46 U.S.C. Sec. 971 (repealed effective Jan. 1, 1989), plaintiffs' leasing of containers and chassis to AES Ltd. constituted the furnishing of necessaries to a vessel. However, it held that there were genuine issues of material fact as to whether the equipment was used outside maritime commerce, id. at 230, and whether at least one plaintiff, Flexi-Van, relied on the creditworthiness of AES [Ltd.], rather than the security interest in the vessels themselves, when they entered into the leases, id. at 230 n. 6. The court concluded that if the vessel owners could prove either of these contentions at trial, they would defeat the maritime liens. The court's final opinion in the case, however, merely contained a broad statement that all of plaintiffs' claims were dismissed, without including any specific statement about the maritime liens. 33 In any case tried without a jury, the court is required to state findings of facts and conclusions of law. See Fed.R.Civ.P. 52(a). This requirement exists, in part, to permit effective appellate review of trial court decisions. Since the district court made no findings on the matter of the maritime liens, we are unable to evaluate plaintiffs' contention that the liens were erroneously dismissed. 34 Accordingly, we vacate the judgment insofar as it dismissed plaintiffs' claims against the vessels, and we remand to the district court for findings of facts and conclusions of law on those claims.C. The Default of AES Ltd. 35 Plaintiffs also brought this suit against AES Ltd., which had signed the container leases; their claims against AES Ltd. are independent of their claims against SCL. AES Ltd. apparently was served, but never officially appeared, though it did give a deposition and produce documents. Even participation in discovery appears to have ceased in April 1986, when AES Ltd. was put into voluntary liquidation by its shareholder. Plaintiffs asked the district court to enter a default judgment against AES Ltd., and they contend here that the failure to enter such a judgment, and the dismissal of their claims instead, were error. Though we are inclined to agree, we are again hampered by the lack of any explication by the district court, which prevents our reaching a definitive conclusion. 36 The district court found that plaintiffs entered into leases with AES Ltd., and there seems to be no question that it failed to continue payments on the leases. Thus, the facts as found by the district court would seem to support a judgment against AES Ltd. even if it had not defaulted. We note that the AES Ltd. liquidation proceedings were brought in England, and that the United States bankruptcy laws therefore did not afford protection against litigation automatically, see 11 U.S.C. Sec. 362 (1988), and we have seen no indication in the record that any representative of the corporation applied for protection in the bankruptcy court against proceedings in this country, see id. Sec. 304. 37 The district court made no statement as to why plaintiffs' request for a default judgment was denied. Accordingly, we vacate the judgment dismissing plaintiffs' claims against AES Ltd., and we remand to permit the court either to enter a default judgment against AES Ltd. or to explain why such a default should not be entered.