Bemis v. RMS LUSITANIA

884 F. Supp. 1042, 1995 A.M.C. 1665, 1995 U.S. Dist. LEXIS 5068, 1995 WL 231348
CourtDistrict Court, E.D. Virginia
DecidedApril 18, 1995
DocketCiv. A. 2:94cv226
StatusPublished
Cited by10 cases

This text of 884 F. Supp. 1042 (Bemis v. RMS LUSITANIA) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bemis v. RMS LUSITANIA, 884 F. Supp. 1042, 1995 A.M.C. 1665, 1995 U.S. Dist. LEXIS 5068, 1995 WL 231348 (E.D. Va. 1995).

Opinion

MEMORANDUM ORDER & OPINION

CLARKE, District Judge.

I. RELEVANT FACTUAL AND PROCEDURAL HISTORY

On May 7, 1915 the luxury liner RMS LUSITANIA (“Lusitania”) was struck by a single torpedo fired by a U-Boat of the German Imperial Navy. She sank in less than 18 minutes, settling about 12 miles off the coast of Ireland.

The Plaintiff, F. Gregg Bemis, Jr. (“Bemis”), filed a Verified Complaint against the vessel on February 22, 1994. In an Order issued May 24, 1994 this Court concluded that it had jurisdiction to properly address Bemis’ claims for title, salvage, and injunctive relief based on conditions set forth in that Order. Accordingly, the Court entered the Order for a Warrant of Arrest. 1

On July 30, 1994, Ms. Muriel Light, the widow of John Light, wrote a letter to the Court. The contents of the letter disputed Bemis’ Complaint and the Court construed *1045 her letter as' an Answer to the Complaint 2 . On September 7, 1994 Fifty Fathom Ventures, Inc. (“FFV”) lodged a Claim and Answer. FFV sought a declaration of title and rights to the LUSITANIA. FFV based its claim on a recreational diving expedition undertaken to the shipwreck in June 1994. Argument with respect to FFVs claim was heard on November 9, 1994. In an Order dated November 10, 1994 the Court found that several factual underpinnings remained unresolved and therefore, the Court decided to re-examine the issue after a further hearing set for November 22, 1994. However, in a conference call on November 21,1994, both parties asked the Court to continue the hearing for ten (10) days. In an Order dated November 22, 1994 the Court granted the combined motion and reset the ease for evidentiary hearing and argument on FFVs claim on all issues including the issue of whether this Court has proper jurisdiction over the Lusitania.

On December 7, 1994 the Court heard live testimony and arguments on the timeliness of FFVs claim and ruling from the bench it denied FFVs Motion to File a Late Claim. Further, on December 8, 1994 the Court, with FFVs participation, heard evidence with respect to the Court’s subject matter jurisdiction. In an Order dated January 6, 1995 this Court concluded that it was proper for the Court to retain jurisdiction, consistent with the Court’s earlier Order dated May 24, 1994.

In addition, on February 22, 1995, the Court entered an Order dismissing with prejudice the claim of Mrs. Muriel Light, after Mrs. Light and Bemis represented to the Court that all matters in controversy between the two parties had been compromised and settled.

The Court held a hearing regarding Bemis’ claim to title by both conveyance and salvage on March 17, 1995. The Court heard live testimony from Bemis and Mr., George Ma-comber (“Macomber”), Bemis’ former business partner in the Lusitania venture. Additionally, the Court received exhibits and four de bene esse depositions.

II. TITLE BY CONVEYANCE

The Lusitania was sunk on May 7,1915 off the southern coast of Ireland. In May 1915 Cunard Steamship Co. (“Cunard”) owned the Lusitania. The Liverpool and London War Risks Insurance Association Limited (“Liverpool and London”) paid a total loss claim to Cunard and the rights and interest in the vessel passed to Liverpool and London. By a letter dated March 2, 1967, Liverpool and London sold to John F. Light (“Light”) “the rights and interest in the wreck of the LUSITANIA on the. understanding that it would not be salved as a whole, repaired and put into commission again, and also that the purchaser takes over all liabilities and expenses which might attach to the wreck.” Ex. I. 3

On April 16, 1967 Light entered into an agreement with Holt, Rinehart and Winston, Inc. (“HRW”), known as the “Photographic Agreement”. Ex. 6. HRW advanced $136,-785.47 to Light under the Photographic Agreement. Id. The Photographic Agreement provides:

the repayment of all moneys advanced to Light or for his account shall be secured by a first lien and security interest on, among other things, all his salvage and other proprietary rights in and to the wreck of the Lusitania and all photographic, television, diving and marine equipment and other tangible property acquired or used by him to conduct the photographic operations and salvage operations.

Id.

The Photographic Agreement further requires Light at HRWs request to execute, acknowledge and deliver any assignment, mortgage, financing statement or other instrument or conveyance that HRW may request to secure and perfect HRWs rights under or otherwise implement the provisions of the Photographic Agreement. Further, it *1046 provides that in the event of Light’s refusal or failure to do so, HRW shall have full power and authority as attorney-in-fact for Light to execute, acknowledge and deliver any such instrument or conveyance. Ex. 6 at 15, ¶ 9.

By Bill of Sale dated January 10, 1968 Light transferred sixty (60) percent of his interest in the Lusitania to Macomber. Ex. 5. Shortly thereafter, by Bill of Sale dated July 29, 1968, Light transferred to Macomber an additional six and two-thirds percent interest in the vessel. Ex. 8. The Bills of Sale were signed for Light by attorney F. William Andres under a Power of Attorney. The Power of Attorney was executed on April 24, 1967 or 1968. Ex. 7. 4 When looking at the document the year is unclear: 1967 is typed in, however, an eight is written in just above the typed year. None of the witnesses’ addressed this issue; however, the Court finds it ultimately immaterial. Ma-comber testified that these transfers were in consideration of Macomber’s refraining from discontinuing to finance the project. The Sales were subject to the lien secured by HRW.

Testimony of both Bemis and Macomber indicate that in late 1968, Macomber sold fifty (50) percent of his interest to Bemis. On April 12, 1968 Light agreed to give.Ma-comber and Bemis each the right to a one-third share of the proceeds and benefits of the Photographic Agreement. Ex. 9.

By an agreement made July 12, 1969 between HRW and Macomber, HRW with Light’s consent, assigned to Macomber, acting for himself and Bemis, HRW’s entire right to and interest in the Photographic Agreement. Therefore, Macomber and Bemis acquired HRW’s rights and interests in the Photographic Agreement. In consideration for said assignment Macomber paid HRW $136,785.47. Ex. 11.

On June 4, 1971 Macomber wrote a letter to Light requesting Light to execute and deliver to attorney D.F. Williams of Cork, Ireland several mortgage documents, including the document for the Lusitania. Exs. 12 & 13. Macomber had the authority to demand this from Light pursuant to the Photographic Agreement that Light entered into with HRW and which rights in the Photographic Agreement HRW subsequently sold to Macomber. Ex. 6.

On June 7, 1971 Bemis wrote a similar letter demanding payment of notes due. Ex. 14. Bemis had the same authority as Ma-comber to make such a demand as outlined above.

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Bluebook (online)
884 F. Supp. 1042, 1995 A.M.C. 1665, 1995 U.S. Dist. LEXIS 5068, 1995 WL 231348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bemis-v-rms-lusitania-vaed-1995.