Ceres Marine Terminals, Inc. v. M/V HARMEN OLDENDORFF

913 F. Supp. 919, 1995 A.M.C. 2769, 1995 U.S. Dist. LEXIS 20603, 1995 WL 795687
CourtDistrict Court, D. Maryland
DecidedSeptember 14, 1995
DocketCiv. A. S94-2587
StatusPublished
Cited by15 cases

This text of 913 F. Supp. 919 (Ceres Marine Terminals, Inc. v. M/V HARMEN OLDENDORFF) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ceres Marine Terminals, Inc. v. M/V HARMEN OLDENDORFF, 913 F. Supp. 919, 1995 A.M.C. 2769, 1995 U.S. Dist. LEXIS 20603, 1995 WL 795687 (D. Md. 1995).

Opinion

MEMORANDUM AND ORDER

SMALKIN, District Judge.

This matter is before the Court on cross-motions for summary judgment. The motions have been thoroughly briefed, and no oral argument is deemed necessary. Local Rule 105.6. (D.Md.).

I. Factual Background

The MW HARMEN OLDENDORFF and the MW CATHARINA OLDENDORFF are container cargo ships. Between July, 1993 and December, 1993, the MW HARMEN OLDENDORFF and the MW CATHARINA OLDENDORFF each made several calls at the Dundalk Marine Terminal in Baltimore, Maryland. During this time, the ships were owned by Egon Oldendorff (Hong Kong) Ltd. (“Oldendorff’), and chartered to Netu-mar Lines (“Netumar”). Some time before 1993, Netumar entered into a contract with Ceres Marine Terminal, Inc. (“Ceres”), the plaintiff in this action. Under the contract, Ceres was to provide stevedoring and other services at various ports, including Baltimore, to all ships under charter to Netumar. When the MW HARMEN OLDENDORFF and the MW CATHARINA OLDENDORFF called at Dundalk, Ceres provided marine terminal services to the vessels pursuant to the contract and billed Netumar for the services. Ceres billed Netumar $156,507.70 for services provided to the MW HARMEN OL-DENDORFF and $135,637.64 for services provided to the MW CATHARINA OLDEN-DORFF between July and December, 1993.

In February, 1994, Netumar filed for bankruptcy. Netumar had not paid Ceres’ bills for servicing the MW HARMEN OL-DENDORFF and the MW CATHARINA OLDENDORFF. Ceres, an unsecured creditor of Netumar, filed in this Court a complaint in rem against the MW HARMEN OLDENDORFF and the MW CATHARINA OLDENDORFF, asserting that its provision of services to the vessels gave rise to maritime liens in its favor. Oldendorff, the owner of the vessels, answered Ceres’ complaint. Ceres and Oldendorff subsequently filed cross motions for summary judgment with respect to all issues.

II. Summary Judgment Standards

The court will grant summary judgment if there is “no genuine issue as to any material fact and ... the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). A fact is material only if, under the governing substantive law, it affects the outcome of the lawsuit. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). Thus, where the record could not support a finding by the trier of fact for the non-movant, there is no genuine issue for trial and summary judgment is appropriate. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986).

Ceres and Oldendorff both argue that the material facts are undisputed and that they are entitled to judgment as a matter of law. Nonetheless, each party also suggests to this Court that, should its motion be denied, this Court should not grant the motion of the opposing party but should hold, instead, that *922 disputes of material fact preclude the entry of summary judgment. 1

III. The Cross-Motions for Summary Judgment

Ceres alleges that its provision of steve-doring services to the M/V HARMEN OL-DENDORFF and the MTV CATHARINA OLDENDORFF gave rise to a maritime hen against the vessels in the amount of the value of its services. The parties agree that the maritime lien, if any, would arise under 46 U.S.C. §§ 31341-31343 (part of the Commercial Instruments and Maritime Liens Act, or “CIMLA”). 2 The Act provides in part as follows:

“[A] person providing necessaries to a vessel on the order of the owner or a person authorized by the owner—
(1) has a maritime lien on the vessel;
(2) may bring a civil action in rem to enforce the hen; and
(3) is not required to allege or prove in the action that credit was given to the vessel.”

46 U.S.C. § 31342. Section 31341 of CIMLA sets forth categories of persons who are presumed to be authorized by the owner to procure necessaries and, therefore, to create maritime hens. 46 U.S.C. § 31341. 3 The list includes “an officer or agent appointed by— ... a charterer.” 46 U.S.C. § 31341(4).

Ceres argues that its stevedoring services to the M/V HARMEN OLDENDORFF and the M/V CATHARINA OLDENDORFF were “necessaries” within the meaning of 46 U.S.C. § 31342, furnished on the order of a person with authority to bind the vessels under 46 U.S.C. § 31341, namely Netumar, the charterer. Thus, according to Ceres, its provision of services gave rise to a maritime hen against the vessels as a matter of law.

Oldendorff maintains that at least some of the services were not provided on the order of a person with authority under the Act to bind the vessels because they were provided by subcontractors of Ceres, rather than by Ceres itself. Oldendorff also contends that Ceres is precluded from asserting a hen against the M/V HARMEN OLDENDORFF and the M/V CATHARINA OLDENDORFF because it had actual notice of a no-hen provision in the time charters between Olden-dorff and Netumar. Challenging specific charges, Oldendorff argues that some of Ceres’ claims he outside the admiralty jurisdiction of this Court and that other services were not “necessaries” under CIMLA.

A. Can services provided by subcontractors give rise to a maritime lien?

It is undisputed that Ceres provided stevedoring services to the M/V HARMEN OLDENDORFF and the M/V CATHARINA OLDENDORFF at Netumar’s request, pursuant to its contract with Netumar. CIMLA includes among the class of persons presumed to have authority to procure necessaries for a vessel the charterer and its agents. 46 U.S.C. § 31341(a)(4)(B). Thus, a time charterer ordinarily holds sufficient legal authority over the management of a chartered vessel to subject the vessel to maritime hens. See also, e.g., S.C. State Ports Authority v. M/V TYSON LYRES, 837 F.Supp. 1357 (D.S.C.1993); Kaleidoscope Tours v. M/V “TROPICANA”, 755 F.Supp. 382 (S.D.Fla.1990).

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913 F. Supp. 919, 1995 A.M.C. 2769, 1995 U.S. Dist. LEXIS 20603, 1995 WL 795687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ceres-marine-terminals-inc-v-mv-harmen-oldendorff-mdd-1995.