Schiffahartsgesellschaft Leonhardt & Co. v. A. Bottacchi S.A. De Navegacion

773 F.2d 1528, 1986 A.M.C. 1, 1985 U.S. App. LEXIS 21852
CourtCourt of Appeals for the Eleventh Circuit
DecidedOctober 1, 1985
Docket83-8019
StatusPublished
Cited by33 cases

This text of 773 F.2d 1528 (Schiffahartsgesellschaft Leonhardt & Co. v. A. Bottacchi S.A. De Navegacion) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schiffahartsgesellschaft Leonhardt & Co. v. A. Bottacchi S.A. De Navegacion, 773 F.2d 1528, 1986 A.M.C. 1, 1985 U.S. App. LEXIS 21852 (11th Cir. 1985).

Opinions

TJOFLAT, Circuit Judge:

I.

On May 25, 1982 the clerk of the U.S. District Court for the Southern District of Georgia issued a writ of attachment against bunkers and stores owned by the appellee, A. Bottacchi S.A. de Navegación (“Bottacchi”), and located aboard the vessel M/V Puntas Malvinas. The writ was sought by the appellant, Schiffahartsge-sellsehaft Leonhardt & Co. (G.M.B.H. & Co.) (“Leonhardt”). This appeal questions the constitutionality of the maritime attachment procedures employed by the district court.

Bottacchi, an Argentine corporation, time-chartered1 the M/V Barbara Leon-hardt from Leonhardt pursuant to a New York Produce Exchange charter party dated March 26, 1982.2 On or about April 14, 1982, while operating under the charter party on a voyage from St. Johns, Canada, to Buenos Aires, Argentina, the M/V Barbara Leonhardt and her cargo were damaged, allegedly as a result of Bottacchi’s negligence, during heavy weather. Upon arrival of the vessel in Buenos Aires, Leon-hardt was required to post security of $450,000 in favor of various cargo interests to avoid arrest of the ship. Alleging that it was entitled to indemnity or contribution from Bottacchi for any damages it might be adjudged to owe the cargo interests, Leonhardt, on May 24, 1982, filed a complaint in admiralty, and petition to compel arbitration, in the Southern District of Georgia and sought the issuance of a sum[1530]*1530mons with process of attachment against the M/V Puntas Malvinas, which was docked in Savannah, Georgia, and was listed in the most recent supplement of Lloyd’s Register of Shipping as being owned by Bottacchi. In accordance with Rule B(l) of the Supplemental Rules for Certain Admiralty and Maritime Claims to the Federal Rules of Civil Procedure (“Rule B(l)”), Leonhardt’s attorney verified the complaint since none of Leonhardt’s officers were present in the district. In addition, pursuant to Rule B(l) the lawyer also submitted an affidavit that to the best of his belief Bottacchi could not be found within the district.

Although Bottacchi was listed in Lloyd’s Register as the owner of the vessel, documents presented by Bottacehi’s attorney the following day revealed that Bottacchi did not own the vessel3 but rather operated under a bareboat charter.4 Under this arrangement Bottacchi owned only certain bunkers and stores aboard the ship. Leon-hardt immediately amended its complaint and prayed for issuance of process of attachment against the bunkers and stores. On May 25, 1982, the clerk of court ordered the U.S. Marshal to initiate process. Before executing the writ of attachment, the marshal had notified the ship’s local husbanding agent of the impending seizure. The agent immediately contacted the attorney in Savannah who represented Bottac-chi’s interests. Bottacchi, pursuant to Supplemental Rule E(5), effectuated an immediate release of the property after posting security for Leonhardt’s claims.

On May 26, 1982, the district court convened to hear Bottacchi’s objections to the attachment. Bottacchi at this time argued that Rule B(l) violated due process in failing to provide adequate judicial supervision of the attachment process and that, because the rule constituted the sole authority for the court’s issuance of the writ, the writ had to be dissolved. Upon hearing this objection, the court directed Bottacchi to incorporate the objection in a formal motion, and on June 4, 1982, Bottacchi moved the court, pursuant to Supplemental Rule E(8), to dismiss the complaint and quash the process of attachment. The court heard the motion on July 22, 1982. Noting that Bottacchi not only had preseizure notice but also enjoyed an immediate postseizure hearing, the court found that Bottacchi had been accorded due process under the circumstances.5 The court, however, proceeded to hold Rule B(l) invalid under the due process clause, citing the Supreme Court’s decision in Sniadach v. Family Finance Corp., 395 U.S. 337, 89 S.Ct. 1820, 23 L.Ed.2d 349 (1969), and a line of similar cases. The constitutional deficiency resulted from the absence of: (1) procedural safeguards in place of preseizure notice and hearing; and (2) a prompt postattachment hearing. Schiffahartsgesellschaft Leonhardt & Co. v. A. Bottacchi S.A. de Navegacion, 552 F.Supp. 771, 781-84 (S.D.Ga.1982).

On May 29, 1984, a panel of this court reversed the district court. 732 F.2d 1543 (11th Cir.1984). The panel held that because Bottacchi was accorded due process in the particular case, the lower court erred in proceeding to determine the facial constitutionality of Rule B(l). Id. at 1549. We have taken the case en banc to address the confusion that appears to have arisen in the district courts over the relationship between Rule B(l) and the courts’ inherent [1531]*1531admiralty powers. The court below, as have others,6 viewed too narrowly its traditional maritime powers and, believing that its sole authority to issue a writ of attachment derived from Rule B(l), found it necessary to pass on the facial constitutionality of the rule. We find that the district courts should take a more expansive view of their power to fashion admiralty procedures and that, as a result, the constitutionality of Rule B(l) need not, and should not, be reached.

II.

We note at the outset that, if the district court had the power to issue the writ of attachment independent of its authority derived under Rule B(l), a finding that Bot-tacchi was accorded due process would make a ruling on the facial constitutionality of Rule B(l) unnecessary and therefore unwarranted. We conclude that the district court had such power.

The Constitution established a separate jurisdictional base in the federal courts for admiralty cases in article III, section 2, clause l,7 which extends the judicial power of the United States “to all Cases of admiralty and maritime Jurisdiction.”8 This grant of jurisdiction implies the adoption of the then existing maritime law as the law of the United States:

As there could be no cases of “admiralty and maritime jurisdiction,” in the absence of some maritime law under which they could arise, the provision presupposes the existence in the United States of a law of that character. Such a law or system of law existed in colonial times and during the Confederation, and commonly was applied in the adjudication of admiralty and maritime cases. It embodied the principles of the general maritime law, sometimes called the law of the sea, with modifications and supplements adjusting it to conditions and needs on this side of the Atlantic. The framers of the Constitution were familiar with that system and proceeded with it in mind. Their purpose was not to strike down or abrogate the system, but to place the entire subject — its substantive as well as its procedural features — under national control, because of its intimate relation to navigation and to interstate and foreign commerce.

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Cite This Page — Counsel Stack

Bluebook (online)
773 F.2d 1528, 1986 A.M.C. 1, 1985 U.S. App. LEXIS 21852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schiffahartsgesellschaft-leonhardt-co-v-a-bottacchi-sa-de-navegacion-ca11-1985.