Roy Anderson Corp. v. Treasure Bay Gaming & Resorts, Inc. (In Re Treasure Bay Corp.)

205 B.R. 490
CourtUnited States Bankruptcy Court, S.D. Mississippi
DecidedJanuary 29, 1997
Docket19-00390
StatusPublished
Cited by4 cases

This text of 205 B.R. 490 (Roy Anderson Corp. v. Treasure Bay Gaming & Resorts, Inc. (In Re Treasure Bay Corp.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roy Anderson Corp. v. Treasure Bay Gaming & Resorts, Inc. (In Re Treasure Bay Corp.), 205 B.R. 490 (Miss. 1997).

Opinion

MEMORANDUM OPINION

JERRY A. BROWN, Bankruptcy Judge.

The motion of Roy Anderson Corporation (“Anderson”) for summary judgment (PI. 3) and the objection and cross-motion for summary judgment of First Trust National Association (“First Trust”), as indenture trustee (PI. 41), raises the question of whether two dockside gambling casinos are “vessels” for purposes of the Ship Mortgage Act, 46 U.S.C. § 31301 et seq.

For the following reasons, the court holds that they are not. 1

I.Factual Background

The parties are not in disagreement as to the basic, relevant facts concerning the two gambling casinos owned and operated by Treasure Bay Corp. 2 The two casinos — one located at One Treasure Bay Drive, Robin-sonville, Tunica County, Mississippi (“Treasure Bay Tunica”) and the other at 1938 Beach Boulevard, Biloxi, Harrison County, Mississippi (“Treasure Bay Biloxi”) have certain common features.

1. Both are permanently moored through extensive connections to land-based structures and utilities. Affidavit of David W. Hill (“Hill aff.”), p. 3; Affidavit of Luis F. Gal-nares, Jr. (“Galnares aff.”), pp. 2, 3.

2. Neither has means of self-propulsion, a rudder, an anchor, or a steering mechanism. (Hill aff., p. 4; Galnares aff., pp. 3-4).

3. Neither has self-contained power, water, fire protection, sewerage, or a life-safety or rescue system. (Hill aff., p. 4; Galnares aff., p. 3).

4. Neither has navigational equipment or navigational lights. (Hill aff., p. 4; Galnares aff., p. 3).

5. Neither has life rafts, life vests, or any of the other usual marine saving equipment. (Hill aff., p. 4; Galnares aff., pp. 3-4).

6. Neither has a captain or a crew. (Hill aff., p. 4; Galnares aff., p. 4).

7. The electrical, mechanical, water, fire protection, and sewerage systems for both casinos were designed by engineers in accordance with the Southern Building Code and other commercial/industrial building codes, not in accordance with the U.S. Coast Guard and American Bureau of Shipping (“ABS”) requirements. (Hill aff., p. 4; Galnares aff., p. 3).

The following additional facts as to the two gambling casinos are gleaned from the affidavits of two of the men on the job during construction: (1) Hill, assistant project manager, Treasure Bay Tunica, and (2) Galnares, project engineer, Treasure Bay Biloxi.

A. Treasure Bay Tunica

To construct this casino facility, a large canal was dug approximately 3,000 feet from the Mississippi River to the permanent site of the casino. The area between the river and the beginning of the man-made canal is 300-400 yards of wetlands. For the majority of the year, these wetlands are covered by only a couple of feet of water. Once the canal was completed it was flooded to allow passage of the four barges hereinafter described to the permanent location. After the barges were floated down the canal, three man-made dams were constructed along the canal.

Each of the four barges making up the casino structure was approximately 229 feet long and 57 feet wide. After they were floated separately down the man-made canal, they were arranged in a rectangular configu *492 ration with two barges side-by-side and the other two barges in line behind them to form a rectangle approximately 458 feet long and 114 feet wide. The barges were aligned in this formation in the basin by August 1993.

The barges were then interconnected by welding steel members and steel plates along the entire length of each barge both at the top and the bottom, thus connecting the four barges and forming a single watertight structure. Then a concrete slab was poured over the entire deck to provide a level surface. The concrete slab was completed by mid-October 1993. Shortly thereafter, Anderson began the erection of structural steel on one end of the structure.

Treasure Bay Tunica has only three levels, but each of these is higher than a traditional story of a building. The casino rises approximately 80 feet above the deck of the barges, including a 40 foot roof parapet extending above the third floor. The total height is equivalent to an eight story building. In addition, the casino has three mast poles with the center mast extending approximately 400 feet from the deck of the barges.

Treasure Bay Tunica is connected to permanent mooring at two locations. The moorings are concrete and steel. The connections are embedded in concrete to the moorings and the mooring steel would have to be cut to allow the casino to be disconnected. There are also six ramps permanently attached to the casino that serve as entrance ways and stairs, and there is no means to raise or lower such ramps from their permanent location. The entrance ways and stairs are all connected to the land outside the boat basin. If the casino were to be moved, 3 these entrance ways and stair towers would have to be cut or disconnected and there would be no means of egress for people on the casino.

Treasure Bay Tunica was situated in a basin approximately 350 feet by 600 feet. The basin was comprised on the north and east side of steel sheet pilings driven to a depth of 40 feet. Beyond the sheet piling was an asphalt paved parking lot. The west side was enclosed by an earthen dam which is reinforced by vertical steel piling. The south side was boarded by an asphalt paved parking lot.

B. Treasure Bay Biloxi

Treasure Bay Biloxi was constructed on a single barge measuring 300 feet by 90 feet. The barge has an additional 30 foot pud on the front end to allow construction of the bow shape. Once the barge was provided to Anderson by the owner, a concrete slab was poured over the entire deck to provide a level surface to build upon. This work was completed by October 1993. When the concrete slab was poured, Anderson immediately began the erection of structural steel.

The Biloxi casino has only three levels, but each of these is much higher than a traditional story of a building. The casino rises approximately 45 feet above the deck of the barge. The height is equivalent to a four story building. The casino has three mast poles with a center mast extending approximately 210 feet above the deck of the barge. The casino structure itself is structural steel and concrete slab. The structure was designed by Richardson Engineering in accordance with standard commercial/industrial building codes and not pursuant to the regulation of the U.S. Coast Guard or the ABS.

The Biloxi casino is connected to permanent moorings at six locations. The moorings are constructed out of steel casings filled with concrete. The connections are welded to the moorings, and the mooring steel would have to be cut to allow the casino to be disconnected.

The Biloxi operation has a land-based facility referred to as the fort. The fort is a three story building with an adjacent parking lot for customers.

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Cite This Page — Counsel Stack

Bluebook (online)
205 B.R. 490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roy-anderson-corp-v-treasure-bay-gaming-resorts-inc-in-re-treasure-mssb-1997.