Rocky B. Fisheries, Inc. v. North Bend Fabrication & MacHine, Inc.

676 P.2d 319, 66 Or. App. 625
CourtCourt of Appeals of Oregon
DecidedJanuary 25, 1984
DocketA8110-06552; CA A25230
StatusPublished
Cited by5 cases

This text of 676 P.2d 319 (Rocky B. Fisheries, Inc. v. North Bend Fabrication & MacHine, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rocky B. Fisheries, Inc. v. North Bend Fabrication & MacHine, Inc., 676 P.2d 319, 66 Or. App. 625 (Or. Ct. App. 1984).

Opinion

*627 BUTTLER, P. J.

This action at law for damages arose out of the in rem seizure of a fishing vessel, the Rocky B, pursuant to ORS 783.010 et seq. Plaintiffs contend that defendants are liable under 42 USC § 1983, because the seizure was accomplished without due process of law, and are also liable for failure to comply with the requirements for issuance of provisional process specified in ORS 29.020 et seq (now codified in ORCP 81-85). They also seek recovery under theories of conversion, abuse of process and interference with contractual relations. The trial court granted defendant North Bend’s motion for summary judgment and the individual defendants’ motion to dismiss; plaintiffs appeal from the resulting judgment dismissing all claims except one, which was added as a separate claim after the court had ruled on the motions. 1

In May, 1979, plaintiffs Brown, now the sole shareholders of plaintiff Rocky B. Fisheries, Inc., began construction of a fishing vessel, the Rocky B. Construction was financed by Southern Oregon Production Credit Association (PCA), which secured its loan of more than $427,000 with what plaintiffs characterize as “preferred ship’s mortgages.” Defendant North Bend supplied services and materials on an open account for the construction, fitting, furnishing and equipping of the vessel. An outstanding balance of $5,410.04 was due when North Bend, through its attorneys, defendants Finneran and Dudrey, claimed a nonmaritime lien on the vessel in that amount pursuant to ORS 783.010(2).

On August 1, 1980, North Bend filed an action against the Rocky B, seeking a judgment against it for the balance due, and moved for an order authorizing the arrest of the Rocky B. On August 5, 1980, after requiring North Bend to post a bond, a circuit court judge ordered the clerk of the court to issue a warrant for the seizure of the vessel. The warrant was issued by the clerk, and the vessel was seized by the sheriff. Plaintiffs learned of the seizure immediately and demanded that defendants release it. Because the seizure of *628 the vessel constituted a default on the mortgage, PCA commenced an action in federal district court to foreclose its mortgage. The marshal, acting pursuant to an order of that court, seized the vessel and currently holds it under arrest.

Under ORS 783.010, every boat or vessel used 2 in the waters of, or constructed in, the state is liable and subject to a lien, so far as relevant:

“(1) For wages due to persons employed, for work done or services rendered on board such boat or vessel.
“(2) For all debts due to persons by virtue of a contract, expressed or implied, with the owners of a boat or vessel, or with the agents, contractors or subcontractors of such owner, or with any person having them employed to construct, repair or launch such boat or vessel, on account of labor done or materials furnished by mechanics, tradesmen or others in the building, repairing, fitting and furnishing or equipping such boat or vessel, or on account of stores and supplies furnished for the use thereof, or on account of premiums for insurance placed on or with respect to such boat or vessel, or on account of launchways constructed for the launching of such boat or vessel.”

Under ORS 783.030 and 783.040, a creditor claiming a lien under ORS 783.010 may commence an in rem state court action directly against a vessel by filing a complaint setting forth his demand in all its particulars in the circuit court of the county in which the vessel is located. ORS 783.050 provides that when the complaint is filed, the clerk of the court shall issue a warrant commanding the sheriff to seize the vessel named , in the complaint. Seizure of the vessel under that statutory procedure is a prerequisite to the perfection of a lien under ORS 783.010. Paddack v. Rasmussen, 294 Or 599, 604, 660 P2d 677 (1983).

On return of the warrant for the arrest of the vessel, “proceedings shall be had in circuit court against the boat or vessel seized, in the same manner as if the action had been commenced against the person on whose account the demand *629 accrued.” ORS 783.060. The master, owner, agent or consignee of the vessel may appear and answer the complaint, ORS 783.070, but if no appearance is made, the plaintiff may obtain a default judgment against the vessel, which is the defendant. ORS 783.080. ORS 783.090 provides that the master or other interested person may have the vessel released prior to adjudication of the underlying claim by entering into an undertaking in favor of the plaintiff, with sufficient security to be approved by the judge or clerk of the court.

Plaintiffs contend that the prejudgment seizure of the Rocky B under chapter 783 violated their due process rights under the Fourteenth Amendment to the United States Constitution, giving rise to a claim under 42 USC § 1983. Their catalog of perceived constitutional defects in chapter 783 is drawn from the deficiencies exposed in four Supreme Court cases that dealt with the constitutionality of state laws governing the seizure of a debtor’s property before judgment: Sniadach v. Family. Finance Corp., 395 US 337, 89 S Ct 1820, 23 L Ed 2d 349 (1969); Fuentes v. Shevin, 407 US 67, 92 S Ct 1983, 32 L Ed 2d 556 (1972); Mitchell v. W.T. Grant Co., 416 US 600, 40 L Ed 2d 406, 94 S Ct 1895 (1974), and North Georgia Finishing, Inc. v. Di-Chem, Inc., 419 US 601, 95 S Ct 719, 42 L Ed 2d 751 (1975).

In Sniadach v. Family Finance Corp., supra, the Court invalidated a Wisconsin garnishment statute which allowed a creditor, without prior notice or hearing, to attach the wages of a debtor pending the outcome of the creditor’s claim. Similarly, in Fuentes v. Shevin, supra,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Weatherspoon v. Allstate Insurance
89 P.3d 1277 (Court of Appeals of Oregon, 2004)
Mt. Sexton Properties, Inc. v. Department of Revenue
10 Or. Tax 467 (Oregon Tax Court, 1987)
Chapman v. Perron
685 P.2d 492 (Court of Appeals of Oregon, 1984)
Hornbuckle v. Harris
686 P.2d 418 (Court of Appeals of Oregon, 1984)
Morrow Crane Co. v. Biltmore Construction Co.
680 P.2d 1014 (Court of Appeals of Oregon, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
676 P.2d 319, 66 Or. App. 625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rocky-b-fisheries-inc-v-north-bend-fabrication-machine-inc-orctapp-1984.