Ryan Marine Systems, Inc. v. Yacht "Tulip II"

681 F. Supp. 789, 1988 A.M.C. 2704, 1987 U.S. Dist. LEXIS 14063, 1987 WL 44302
CourtDistrict Court, S.D. Florida
DecidedJuly 17, 1987
DocketNos. 80-6073-CIV-NCR, 80-6246-CIV-NCR
StatusPublished

This text of 681 F. Supp. 789 (Ryan Marine Systems, Inc. v. Yacht "Tulip II") is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ryan Marine Systems, Inc. v. Yacht "Tulip II", 681 F. Supp. 789, 1988 A.M.C. 2704, 1987 U.S. Dist. LEXIS 14063, 1987 WL 44302 (S.D. Fla. 1987).

Opinion

ROETTGER, District Judge.

This maritime matter represents a typical case arising out of the Fort Lauderdale division because it involves a luxury yacht. However, the factual background is unique almost to the point of being a farce on the high seas, even to some of the names. If one had to choose a title, perhaps Abbott and Costello at Sea. Laurel and Hardy would have rejected the script.

THE CAST (AND CASE STATUS)

Bickel, of Tulip Yachts, Ltd., bought a luxury yacht, defendant herein, a 79 feet, 20-year-old Feadship (hull number 9) named TULIP II, for the purposes of chartering it in the Virgin Islands during the winter season with the usual hope of making a profit. Alas, not atypically, Mr. Bick-el had never owned a boat before.

Intervening plaintiff, First National Bank of Boston, held a preferred ship’s mortgage on TULIP II and has already foreclosed its mortgage; the sale has been held by order of this court. The principal mortgage lien and accrued interest on the sale amount to $153,083.13 (uncontested amount and already distributed to the Bank); the proceeds of the sale were $231,-000.00, leaving a surplus of nearly $78,-000.00 which has been paid into the Registry of the Court. That surplus is the target of the parties in the suit.

First National Bank of Boston claims a total of $73,874.22, plus interest, for care and safekeeping of the vessel and transportation of the vessel back from the Virgin [790]*790Islands to Fort Lauderdale for purposes of sale. The other parties hotly contest the reasonableness of First National Bank of Boston’s claim for expenses, not surprisingly. The original plaintiff was Ryan Marine Systems, Inc. seeking recovery of $13,-642.45 for repair and services of TULIP II prior to its going to the Virgin Islands in 1979. Merrill Stevens Boat Yard installed stabilizers for the boat and claim the amount of $3,614.40, the unpaid balance of the original claim. Ryan Marine had planned to have the stabilizer work done at a local yard but the owner wanted it done at Merrill Stevens in Miami and moved it there for work. The only issue about the balance of Merrill Stevens’ claim is whether it should be borne by the owner, who has paid the remainder of Merrill Stevens’ claim, or by Ryan Marine; if the latter, is Ryan entitled to recover this from the proceeds, if Ryan has sufficient priority for its claim before the proceeds are exhausted?

The captain, who was aboard the boat for only a one month’s period in 1979 when TULIP II was at Guadalupe and Tortola in the British Virgins, represents himself and seeks recovery of allegedly unpaid wages of $1,800.00 for the one month, plus travel expenses of $679.00.

The owner placed a second mortgage on the vessel without permission of the first mortgagee and in contravention of the terms of the mortgage. That second mortgage was held by Wingding, Inc. which apparently concluded there’d never be enough left out of the proceeds for them and has waived any claim. Of course, the owner contests the claim of the First National Bank of Boston and seeks the balance after claims with priority.

ACT I: THE VOYAGE SOUTH

The vessel left Fort Lauderdale for the American Virgins in March of 1979 under the command of Capt. Brennan. Unfortunately, he ran aground near San Salvador and the owners suddenly received a phone call — predictably, on a Saturday morning— demanding $2,400 in cash from a boat owner in San Salvador who had taken the TULIP II in tow and was claiming a salvor’s lien. After the salvors were satisfied, the captain continued on with his boat to Guadalupe and was subsequently discharged. It’s not clear from the evidence whether his discharge had anything to do with the fact he also managed to run aground near Guadalupe. That grounding resulted in drawing mud and sand into the intakes thereby precluding the flushing of one of the passenger heads, among other problems.

Capt. Breau1 was then hired by Mr. Bickel as the captain of the vessel; he served in that capacity from 16 February to 16 March in 1979 at a salary of $1,800 a month to be paid semi-monthly. Owner Bickel testified he paid Capt. Breau the $1,800 which Capt. Breau flatly denied. From all the evidence, the court finds Capt. Breau was paid for the first half of the month because — together with other evidence — it doesn’t seem consistent with his personality for him to stay otherwise. However, in mid-March there was a stormy session between Capt. Breau and Bickel’s son-in-law, Mr. Douglas, who was Bickel’s on-board representative. Just observing the two men as they testified made the fact of their stormy dispute not at all surprising to the court. The court finds that Capt. Breau was not paid for the second half of his month of service.

Following the stormy session and his discharge or termination, Capt. Breau embarked on a rather unusual course of conduct. He immediately flew to Ft. Lauder-dale to plead his case with Mr. Bickel, the yacht owner. He felt he received a brushoff from Bickel so he managed to meet Mr. Johnson of Wingding, the second mortgagee, and ended up acting as the agent of Wingding in locating the vessel and filing suit, first trying to do so in the American Virgins and then in the British Virgins. In addition, he called the Iranian Embassy to warn the Shah’s brother-in-law, who had arranged a future charter aboard the yacht, that the generator had been inoperative for 3 days because of the sand intake. [791]*791Capt. Breau’s ostensible purpose in warning the Iranian authorities was to avoid any potential personal liability from food spoilage because of the generator’s not being operative during the time while he was captain of the vessel.2

The court further finds that Capt. Breau’s return to Ft. Lauderdale is also compensable in the amount of $679, for a total of $1,579.

ACT II: THE TORTOLAN CAPER

From Guadalupe the boat went to Tortola where suit was filed about April 5, 1979 by Wingding, but not against the bank, in the British Admiralty court in Tortola, British Virgin Islands. The boat was arrested despite questionable jurisdiction.

At the time of the suit by Wingding, Bickel’s mortgage to the bank was current and in good standing — other than the fact he had executed a mortgage to Wingding without permission of the bank. At the time of the boat’s arrest in Tortola, there were two charters for two weeks’ duration at $15,000 per charter which revenue would have accrued to defendant TULIP YACHTS (and Bickel). Both charters were naturally cancelled after the arrest.

At each stage of the Tortolan proceedings, the bank attempted to intervene; the judge finally permitted it at the final hearing just before he dismissed the case. Although the record is not completely clear, it appears from the evidence that the fact that Bickel and Wingding had a suit pending over their differences in a New York State Court, plus willingness on the part of Bickel and the bank to agree to a settlement, were among the reasons the judge permitted the intervention at that stage by the bank and these factors resulted in the dismissal of the Tortolan matter. What effect the jurisdiction question had on the disposition is not entirely clear.

The proceedings in Tortola did not proceed expeditiously because of the judge’s calendar, as well as a rather dramatic natural phenomenon. For example, the proceedings in April were continued because a volcano erupted on St. Vincent’s Island and the judge had a family on the island and returned to St. Vincent’s.

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Bluebook (online)
681 F. Supp. 789, 1988 A.M.C. 2704, 1987 U.S. Dist. LEXIS 14063, 1987 WL 44302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-marine-systems-inc-v-yacht-tulip-ii-flsd-1987.