Opinion ID: 1319429
Heading Depth: 2
Heading Rank: 2

Heading: vessel ownership points

Text: The regulations adopted by the CFEC allow up to six points for investment as of [January 1, 1973] in vessel, gear or set net site used or to be used in the fishery for which application is being made. 20 AAC 05.630(b)(3). Jones claims that he is entitled to points for his investment as of the qualification date in two fishing vessels: the Glacier, to which he had salvage rights, and the Lila D, in which he had an equitable interest. The CFEC rejected Jones' claims, finding that he had effectively abandoned any interest he may have had in the Glacier and that he had failed to show by a preponderance of the evidence an interest in the Lila D. Jones argues on appeal that there is no substantial evidence in the record to support the CFEC's decision. [4] Jones and his brother purchased the Glacier in 1957. In 1958, the vessel exploded and sank in Ketchikan, where it still lies at the bottom of the harbor. Jones' brother received an insurance settlement on the boat, while Jones kept the fish share, the seine and the skiff. [5] The brothers retained the salvage rights to the boat. Jones argues that since he still had salvage rights to the Glacier as of January 1, 1973, he is entitled to vessel ownership points. Jones relies on a letter written to his attorney by a hearing officer stating that it had been the informal policy of the CFEC in 1975 to grant vessel ownership points in some instances where a vessel had sunk, where there had been no insurance settlement, and where the owner retained salvage rights. However, we agree with the CFEC that even if there was such an informal policy, that policy need not be applied in a situation where, as here, there had been an insurance recovery and the owner had not acted on his salvage rights for 14 years. Thus, we conclude that there was substantial evidence to support the CFEC's finding that Jones had abandoned his interest in the Glacier for the purposes of the award of vessel ownership points under 20 AAC 05.630(b)(3). Jones claims he is also entitled to vessel ownership points for his interest in the Lila D as of January 1, 1973. From 1960 to 1966, Jones held a gear license in the Southeast purse seine fishery. During that time, he operated the Lila D under a lease-purchase contract with the New England Fish Company (NEFCO). Late in 1966, the Lila D was declared a total loss after hitting a rock in Canoe Pass. The evidence as to Jones' interest in the Lila D is conflicting. Jones apparently understood that by late 1966 he had $13,500 in credit toward the purchase of the vessel. However, NEFCO's balance sheet showed that the payments totalled only $1,063.38. According to Jones, when he tried to recover his equity in the Lila D from NEFCO, he was offered $6,000. Jones testified that he refused the offer and decided to bring suit against NEFCO, but that he did not pursue the lawsuit because he felt he was too small and they were too big and because during his divorce his wife had threatened to attach any proceeds he recovered. In a CFEC administrative hearing, the applicant is required to prove by a preponderance of the evidence that a determination of the commission is erroneous. 20 AAC 05.820(d). The CFEC found that the evidence submitted by Jones on this issue was very inconclusive. Further, the CFEC found that Jones may have abandoned his claim because six years had elapsed since the Lila D was destroyed. Thus, the CFEC concluded that Jones had failed to satisfy his burden of proof. We find that the record supports the CFEC's conclusion and that the CFEC therefore correctly denied Jones' claim for vessel ownership points for the Lila D.