Opinion ID: 2967150
Heading Depth: 3
Heading Rank: 1

Heading: This case is DISMISSED AGREED including

Text: all claims, matters, issues, interest, attorneys' fees, costs and custodial expenses incurred by the par- ties being DISMISSED WITH PREJUDICE. Moreover, the Settlement Agreement stated that upon completion of the conditions of settlement, each party would beconsidered released from the other from all liability of any nature whatsoever that may arise by virtue of any claim that was or may have been asserted in the action. Columbus-America Discovery Group, Inc. v. Unidentified, Wrecked and Abandoned Sailing Vessel, No. 87-363-N (E.D. Va. June 23, 1998) (Settlement Agreement). On June 23, 1998, the district court entered the agreed dismissal order, which by its terms, dismissed agreed with prejudice all claims pursuant to a valid settlement agreement. Then, in its order of July 1, 1998, the court vacated the agreed Order to the extent that the Agreed Order dismissed the in rem action against the Defendant wreck, but left intact all other rights and responsibilities of the parties under the Settlement Agreement. The district court stated two reasons for its entry of the July 1, 1998 order: one, to retain in rem jurisdiction over the wreck to protect the salvor-in-possession rights of Columbus-America, and two, the court found as fact that there had not been a meeting of the minds. The court noted that the parties disagree about whether their settlement agreement covers any future treasure salvaged from the wreck and a dispute will inevitably arise as to whether the Underwriters are entitled to any of it. We first note that both Columbus-America and the Underwriters agree that the Settlement Agreement eliminates the possibility of claims between the parties over future salvage. Columbus-America states in its brief that dismissal of all claims of the parties was a key, material term of the Agreement. [Blue brief pg 14]. The Underwrit15 ers also construe the Settlement Agreement as eliminating claims to future salvage. In their brief, they state thatUnderwriters confirm that in accordance with the Settlement Agreement, they have no future claim. Underwriters' position that the Settlement Agreement settles all claims with prejudice, including rights to any future treasure salvaged by CADG, is consistent with the understanding of CADG. [Red brief pg 20]. Thus, contrary to the district court's assertion and construction of the Settlement Agreement, the parties had a meeting of the minds on the issue of future salvage. The Underwriters have no claim in any future treasure salvage from the wreck, and we so hold. Any contrary indication in the order of the district court of July 1, 1999 is reversed. The settlement was conditioned upon entering an order dismissing all claims, matters, and issues raised in this case. ColumbusAmerica Discovery Group, Inc. v. Unidentified, Wrecked and Abandoned Sailing Vessel, No. 87-363-N (E.D. Va. June 23, 1998) (Settlement Agreement). The district court expressly reasoned that it changed the terms of the agreed dismissal order to retain in rem jurisdiction over the shipwreck and to adjudicate the Underwriters' claims to treasure recovered from the wreck in the future, claims the court found would inevitably arise. By amending the original order, which we and both parties interpret to deny all future claims of the Underwriters to future treasure salvaged from the Central America, the district court altered the Settlement Agreement by providing that future claims between the parties were in fact not settled, rather were inevitable, and the court would retain jurisdiction to adjudicate these future claims. The district court's alteration of the agreed dismissal order had the effect of re-writing the Settlement Agreement by eliminating a term to which both parties had already agreed, namely that the Underwriters had no claim to any future salvage from the Central America. The order of the district court filed July 1, 1998 was premised in part on its opinion that the Dismissed Agreed order, filed June 23, 1998, had dismissed the in rem action with regard to the defendant wreck. The order of July 1, 1998 then changed that part of the Dismissed Agreed order so that the in rem action must remain open to continue the court's jurisdiction over the defendant wreck. It stated that such order enabled the court to monitor CADG's activities as 16 salvor in possession and adjudicate any disputes with regard to treasure salvaged by CADG in the future. The district court concluded that [a]ccordingly, the Agreed Dismissed order is hereby vacated to the extent it dismisses this in rem action against the defendant wreck. This order, however, in no way relieves CADG and the Underwriters of the rights and responsibilities under the Settlement Agreement. As we have demonstrated above, there is no dispute with regard to any claim by the Underwriters to treasure salvaged by CADG in the future. There is no such claim by the Underwriters. So this support for changing the Dismissed Agreed order filed June 23, 1998, does not exist. We do not agree with the district court that the Dismissed Agreed order filed June 23, 1998 dismissed the in rem action with regard to the defendant wreck. The order is with respect toall claims, matters and issues raised in this case. (italics added). This case on appeal is the quarrel between the Underwriters and Columbus-America and is not a case with respect to the jurisdiction of the district court over the defendant wreck. That case is the in rem action of ColumbusAmerica Discovery Group, et al., v. The Unidentified Wrecked and Abandoned Sailing Vessel, in rem, et al., District Court No. 87-363- N, which has been pending for more than twelve years, and which the Settlement Agreement and the Dismissed Agreed order leave pending except that all of the quarrel between Columbus-America and the Underwriters is here disposed of. We thus construe the Dismissed Agreed order of June 23, 1998 as not relinquishing jurisdiction of the district court over the wreck of the Central America and are of opinion and hold that the jurisdiction of the district court over the wreck of the Central America in the in rem action yet continues despite the Dismissed Agreed order of June 23, 1998. Since the district court's jurisdiction continues over the wreck of the Central America and the in rem action with respect to that wreck, it is able to enforce its previous orders in the case with respect to that wreck. Our construction of the Dismissed Agreed order of June 23, 1998 is supported by the authorities and the Rules of Civil Procedure. This 17 is an interlocutory appeal in an admiralty case under 28 U.S.C. § 1292(a)(3). Such appeals decide only the matters which have been decided by the district court, and as with other interlocutory appeals under § 1292, the trial court has authority to pursue its own proceedings filed when a § 1292(a)(3) appeal is pending. Wright, Miller & Cooper, Federal Practice and Procedure,§ 3927 (2d ed. 1996). Although in slightly different context, the Court has spoken to the very problem before us here as to the effect of an interlocutory appeal. We think that reasoning applies in this case and follow it: Obviously that which is contemplated is a review of the interlocutory order, and of that only. It was not intended that the cause as a whole should be transferred to the appellate court prior to the final decree. The case, except for the hearing on the appeal from the interlocutory order, is to proceed in the lower court as though no such appeal had been taken, unless otherwise specially ordered. Ex parte Nat. Enameling & Stamping Co., 201 U.S. 156, 162 (1906). So, we are left with the change in the Settlement Agreement the district court effected in the Dismissed Agreed order with respect to whether Underwriters retain any rights to treasure salvaged by Columbus-America Discovery Group in the future, which was unauthorized as well as being in error. We conclude that the order of the district court filed July 1, 1998 effecting changes in the Dismissed Agreed order of June 23, 1998, must be, and it hereby is, vacated.