South Carolina State Ports Authority v. M/V Tyson Lykes

67 F.3d 59
CourtCourt of Appeals for the Fourth Circuit
DecidedOctober 16, 1995
DocketNos. 93-2460, 93-2465 to 93-2467
StatusPublished
Cited by2 cases

This text of 67 F.3d 59 (South Carolina State Ports Authority v. M/V Tyson Lykes) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Carolina State Ports Authority v. M/V Tyson Lykes, 67 F.3d 59 (4th Cir. 1995).

Opinion

Affirmed by published opinion. Judge WIDENER wrote the opinion, in which Judge RUSSELL and Judge HALL joined.

OPINION

WIDENER, Circuit Judge:

Appellant, the South Carolina State Ports Authority, appeals from a finding of the district court that certain charges incurred at the Port of Charleston in the servicing of two vessels, the Tyson Lykes and the Tillie Lykes,1 owned by appellee and cross-appellant First American Bulk Carrier Corp. and chartered by Topgallant Lines, a presently bankrupt charterer (Topgallant), are not secured by liens on the vessels because the charges were incurred by an independent contractor (Allsouth) and not an agent of Topgallant, as required under the Federal Maritime Lien Act, 46 U.S.C. §§ 31341 and 31342. Appellee First American cross-appeals from a finding of the district court that the Ports Authority did not waive its statutory liens on the vessels by making a guarantee arrangement with Topgallant’s Charleston agent, Southeastern Maritime Company, before agreeing to provide terminal services to the vessels. We affirm.

First American chartered the ships to Top-gallant, which made Southeastern its authorized agent in Charleston. In 1987, Topgal-lant and the Ports Authority negotiated for a variance in the terms of the Ports Authority tariff, which governs the cost of services provided by the Port Authority in Charleston, but the negotiations were never consummated. Upon the Port Authority’s request, Southeastern guaranteed the Authority’s charges incurred while Topgallant’s ships were in port at Charleston. Topgallant contracted with Allsouth, a stevedoring company, to load and discharge containers of the ships in Charleston. Allsouth was compensated on a “pick-rate” basis, which is a flat rate per container basis out of which Allsouth paid the Authority for all its services to Allsouth. The Ports Authority was the only entity at the Port of Charleston that possessed the cranes and container-handling equipment necessary to perform certain of the stevedoring services.

Topgallant declared bankruptcy in December 1989. The ships were arrested in Germany to satisfy creditors of Topgallant, but the Ports Authority did not participate in those proceedings, instead notifying Southeastern that it was calling Southeastern’s guarantee. A plan was worked out whereby Southeastern would repay Topgallant’s debts to the Authority, and a similar plan was agreed to by the Authority and Allsouth for amounts owed by Allsouth to the Authority. At some point in May or June 1990, Southeastern ceased payments to the Ports Authority, as did Allsouth. When the ships, renamed and rechartered, returned to Charleston in 1990, the Ports Authority asserted its liens against them, and First American offered a letter of undertaking in October 1990 to avoid the arrest of the ships in Charleston.

The Ports Authority brought suit against the ships in rem and First American as claimant of the ships, seeking recovery of various terminal service charges in a total amount of $241,550.33. The district court dismissed certain claims for lack of jurisdiction. It then found that all the remaining claims were secured by hens under the Maritime Lien Act as “necessaries to a vessel,” 46 U.S.C. § 31342(a),-but that those incurred by Allsouth2 were not secured by hens on the [61]*61vessels. As to the remainder of the claims,3 the district court granted liens to the Ports Authority in the amount of $118,781.76, finding no merit to First American’s prohibition-of-lien, laches, or waiver defenses. Only the question of waiver is raised on appeal.

We review the fact findings of the district court on the first issue, Allsouth’s authority to bind the vessels, for clear error, McAllister v. United States, 348 U.S. 19, 20, 75 S.Ct. 6, 7-8, 99 L.Ed. 20 (1954); Norfolk Shipbuilding & Drydock Ccnp. v. The M/Y La Belle Simone, 537 F.2d 1201, 1203 (4th Cir.1976), and find none. The Maritime Lien Act, in relevant part, states that “a person providing necessaries to a vessel on the order of the owner or a person authorized by the owner ... has a maritime lien on the vessel. ...” 46 U.S.C. § 31342(a)(1). The district court found, and it is not disputed on appeal, that the services provided by the Ports Authority to Allsouth, the rental of container cranes and container-handling equipment, were “necessaries,” and that Top-gallant, as charterer, was “a person author rized by” First American, the owner of the ships. Thus the question is whether the use of the Authority’s equipment was provided “on the order of-’ Topgallant, or in the alternative, whether Allsouth was “a person authorized” by First American to order the Authority’s provision of stevedoring equipment. In effect, the issue is whether All-south was Topgallant’s agent for purposes of procuring the use of the Authority’s stevedoring equipment. If not, then the Authority has no lien against the vessels.

On the evidence in this ease, we agree with the district court that the Authority failed to satisfy its burden of proving that Allsouth was Topgallant’s agent. See Hofherr v. Dart Indus., Inc., 853 F.2d 259, 262 (4th Cir.1988). Although there was a dispute regarding the amount of control Topgallant retained over Allsouth’s operations, there is no question but that sufficient evidence was presented for the district court to conclude that Allsouth acted independently in contracting with the Ports Authority for crane rental, container-handling services, and stevedore usage fees.4 In this connection, we note that the Authority billed Allsouth for its services, not Topgal-lant; Topgallant agreed with Allsouth for stevedoring, not the Authority; Allsouth even- now prosecutes its lien for the same services for which the Authority claims its liens here; and Topgallant paid Allsouth on a “pick-rate,” basis, that is, by the container, from which Allsouth paid the Authority for all the services in question here. We are also persuaded by the observation that it has not been shown that a court has found an agency relationship between an operator and a stevedore in the absence of contractual provisions or clear evidence of control and supervision by the -operator. Accordingly, the district court was not clearly erroneous in finding that Allsouth had no authority to bind the vessels to the Authority’s rental charges and fees, and thus the Authority has no maritime lien for those charges.

We now address First American’s cross-appéal. The parties dispute the appropriate standard of review of the district court’s conclusions. Although the issue of intent to waive a lien is one of fact reviewed for clear error, see Farrell Ocean Servs., Inc. v. United States, 681 F.2d 91, 94 (1st Cir.1982), First American argues that the district court failed to consider that certain conduct constitutes a waiver of maritime liens, see W.A. Marshall & Co., Inc. v. S.S.

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67 F.3d 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-carolina-state-ports-authority-v-mv-tyson-lykes-ca4-1995.