1715 Fleet-Queens Jewels, LLC v. Unidentified Wrecked & Abandoned Vessell

861 F.3d 1278, 2017 A.M.C. 1988, 98 Fed. R. Serv. 3d 299, 2017 WL 2858770, 2017 U.S. App. LEXIS 11957
CourtCourt of Appeals for the Eleventh Circuit
DecidedJuly 5, 2017
Docket16-11246
StatusPublished
Cited by12 cases

This text of 861 F.3d 1278 (1715 Fleet-Queens Jewels, LLC v. Unidentified Wrecked & Abandoned Vessell) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1715 Fleet-Queens Jewels, LLC v. Unidentified Wrecked & Abandoned Vessell, 861 F.3d 1278, 2017 A.M.C. 1988, 98 Fed. R. Serv. 3d 299, 2017 WL 2858770, 2017 U.S. App. LEXIS 11957 (11th Cir. 2017).

Opinion

*1282 MARCUS, Circuit Judge:

This in rem admiralty proceeding began in 1979, when Cobb Coin Company retrieved a cannon from wreckage discovered off the coast of Florida. That cannon was part of a shipwreck' dating back to 1715, when eleven Spanish galleons carrying gold, silver, and precious jewels perished off the Florida coast in a hurricane. Over the next 264 years, the shifting tides spread and then buried the remains of these ships and their cargo along the coastline. In 1982, Cobb Coin was awarded exclusive salvaging rights to the shipwreck of one of those galleons, and the district court held (and continues to hold) a yearly distribution hearing to adjudicate title to the recovered artifacts and allow competing claimants to be heard. This process has been carried out faithfully since 1982.

Sometime in 2010, Cobb Coin’s successor-in-interest assigned its exclusive salvaging rights to plaintiff-appellee 1715 Fleet-Queens Jewels, LLC (“Fleet-Queens”). By this time, the wreckage had spread out along forty-one miles of the South Florida coastline. Fleet-Queens worked with subcontractors, including in-tervenor-appellant Gold Hound, LLC, to assist it in its salvaging operations. Gold .Hound utilized allegedly proprietary maps, data, and software to salvage a specific area on behalf of Fleet-Queens. In 2013, Fleet-Queens sought to renegotiate its contract with Gold Hound and asked Gold Hound to relinquish ownership of this proprietary information; Gold Hound refused and the parties did not renew the contract.

During the 2015 salvage season, Fleet-Queens recovered approximately four hundred gold coins, among other treasures, from an' area that Gold Hound had allegedly been salvaging while acting as a subcontractor for Fleet-Queens. Gold Hound claimed that this discovery was made using its proprietary maps and software, and accordingly it sought to intervene in the in rem action to assert a maritime lien over some of these artifacts and to assert several state-law claims. It also sought to contest Fleet-Queens’s exclusive salvage rights because Fleet-Queens allegedly mishandled the artifacts in violation of the district court’s 1982 order. The district court denied the motion to intervene. Gold Hound then filed a claim asserting a maritime lien and participated in the 2015 distribution hearing, but the district court concluded that it was not entitled to a maritime lien. Gold Hound now appeals these rulings and also challenges the district court’s continued exercise of subject-matter jurisdiction over the entire dispute.

After review, we conclude that the district court properly determined that it had and continues to have subject-matter jurisdiction over the res. However, Gold Hound should be granted leave to intervene in this proceeding to assert its in rem claims. On remand, we leave it to the district court’s sound discretion to determine whether to exercise supplemental jurisdiction over Gold Hound’s related state-law claims, including, inter alia, its claims for breach of contract, misappropriation of trade secrets, breach of fiduciary duty and constructive trust, and tortious interference. As for Gold Hound’s claimed maritime lien, we cannot decide on this record whether Gold Hound may succeed because basic facts remain in dispute. We, therefore, vacate the district court’s denial of Gold Hound’s motion to intervene and its denial of Gold Hound’s claim to a maritime lien and remand the case to the district court for further proceedings consistent with this opinion.

*1283 I.

This case began long ago as an in rem action brought by Cobb Coin Company against the “remains of what is believed to be the Almiranta of the New Spain Group of the 1715 Plate Fleet, known to the Spanish by two names: San Christo del Valle and Nuestra Señora de la Concepcion,” which rests somewhere off the coast of Florida near Vero Beach (“the 1715 wreck”). Cobb Coin Co. v. Unidentified, Wrecked & Abandoned Sailing Vessel, 549 F.Supp. 540, 545 (S.D. Fla. 1982). The complex procedural history of this lawsuit began on August 17, 1979, when Cobb Coin filed an in rem admiralty complaint against the vessel in the United States District Court for the Southern District of Florida to notify the district court and the U.S. Marshal that it intended to retrieve a cannon from the 1715 wreck; the cannon served as the basis for in rem jurisdiction. Id. at 547. Cobb Coin sought a declaration that it was the owner in possession of the wrecked vessel and sought exclusive salvage rights over the wreck. Cobb Coin Co. v. Unidentified, Wrecked & Abandoned Sailing Vessel, 525 F.Supp. 186, 190 (S.D. Fla. 1981). Because the area and cargo at issue lay within the territorial limits of the state of Florida, the State intervened, claiming ownership of the vessel and its cargo under the Florida Archives and History Act, Fla. Stat. ch. 267. See Cobb Coin, 525 F.Supp. at 197, 200.

Three days later, on August 20, 1979, Cobb Coin retrieved the cannon from the wreck site. Id. at 191. The district court concluded that it had subject-matter jurisdiction under 28 U.S.C. § 1338 and that Cobb Coin’s possession of the cannon “constituted constructive possession of the wreck itself and everything that is a part thereof, wherever located, and whenever removed therefore, past, present or future.” Id. (quotations omitted). Florida then sought injunctive relief designed to prevent Cobb Coin from continuing to salvage the site; the district court denied that request and Cobb Coin continued to salvage the 1715 wreck. Id. at 191-92.

On July 7, 1981, the district court entered a temporary restraining order for Cobb Coin and enjoined the State from interfering with Cobb Coin’s ongoing salvage operations. Id. at 192-93. The district court subsequently converted this order into a preliminary injunction. Id. at 220. And on August 31, 1982, after a two-day bench trial, the district court made the preliminary injunction permanent, concluding that “Cobb Coin ha[d] established a right to the protection of this Court to conduct further salvage activities, for as long as it demonstrates the requisite diligence and success in its efforts.” Cobb Coin, 549 F.Supp. at 561.

The district court retained jurisdiction “[t]o protect the Plaintiffs valid salvage operations on the defendant wreck,” “to adjudicate its rights vis-a-vis competing salvors who may assert a superior right to salve the defendant wreck,” and “[t]o adjudicate the plaintiffs claim to a salvage award on a periodic basis.” Id The district court set a schedule accordingly: on February 1 of each year, Cobb Coin would be required to file a claim stating the value of the salvage services performed and cata-loguing the artifacts salvaged in the previous calendar year. Id. Failure to file by that date would constitute prima facie evidence that Cobb Coin had abandoned the-wreck, and it would have thirty days to rebut that presumption through appropriate pleadings. Id The state of Florida, in turn, was “invited to intervene and seek certain artifacts to be exhibited throughout the State for the benefit of the People of Florida.” Id

This injunction was never appealed or reversed and remains in effect today. In *1284

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Bluebook (online)
861 F.3d 1278, 2017 A.M.C. 1988, 98 Fed. R. Serv. 3d 299, 2017 WL 2858770, 2017 U.S. App. LEXIS 11957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1715-fleet-queens-jewels-llc-v-unidentified-wrecked-abandoned-vessell-ca11-2017.