Star-Kist Samoa, Inc. v. The M/V Conquest

3 Am. Samoa 2d 25
CourtHigh Court of American Samoa
DecidedJune 25, 1986
DocketAP. NO. 13-85
StatusPublished

This text of 3 Am. Samoa 2d 25 (Star-Kist Samoa, Inc. v. The M/V Conquest) is published on Counsel Stack Legal Research, covering High Court of American Samoa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Star-Kist Samoa, Inc. v. The M/V Conquest, 3 Am. Samoa 2d 25 (amsamoa 1986).

Opinion

This.case, obliges us once again to define the jurisdiction of the High Court of American Samoa, and again, although we feel constrained to rule as we. do, we are not happy with the result. At issue is a provision of the Ship Mortgage Act of 1920, 46 U.S.C. §§' 911-984 (1982), concerning foreclosure of preferred ship mortgages. Title 46, §' 951 of the United States Code provides:

Upon the default of any term or condition of the mortgage, la preferred ship mortgage lien) may be enforced by the mortgagee by suit in rem in admiralty. Original jurisdiction of all such suits is granted to the district courts- of the United States exclusively.

The primary question facing this Court is whether the High Court of American Samoa has jurisdiction under the Ship Mortgage Act to entertain appellee's foreclosure action.

[26]*26I. Factual Background

On May 19, 19B1 Conquest Fishing Corp. (Conquest), owner of the M/V Conquest of Seattle, Washington, borrowed $1,600,000 from Security Pacific National Bank of California (SPNB). Conquest properly executed and delivered to SPNB a promissory note, secured by a First Preferred' Ship Mortgage executed in accordance with 46 U.S.C. § 922, and recorded by the United States Coast Guard at bong Beach, California. Conquest defaulted, and SPNB has received no payments on the note. SPNB filed an admiralty in rem action in the High Court, of American Samoa to foreclose its preferred ship mortgage, and Star-Kist intervened claiming preferred maritime liens for various alleged payments for crew wages and expenses.

On December 5, 1984, the trial court denied plaintiff-appellee SPNB's motion for summary judgment, holding that the court had no jurisdiction to enforce SPNB's preferred ship mortgage, because 46 U.S.C. § 1951 grants United States District Courts exclusive jurisdiction to foreclose on such mortgages, and the Trial Division of the High Court of American Samoa is not a United States District Court. On January lO, 1985, however, on plaintiff's motion for reconsideration, the trial court reversed its original ruling. The court, per Chief Justice Robert Gardner, held instead that the trial court did have jurisdiction to entertain plaintiff's foreclosure action, that plaintiff hacf a valid preferred ship mortgage on the M/V Conquest in the amount of $1,600,000 plus interest, costs, and attorney fees, ancf that the mortgage could be foreclosed under 46 U. S. Cl §" 951.

The matter went to trial on February 5, 1985, and the trial court concluded that the bank had’ a valid" first preferred mortgage, under the Ship Mortgage Act, which mortgage constituted a lien on the ship and took priority over all other claims against the ship except preferred maritime liens. The court further found that appellants Star-Kist were entitled to a preferred maritime lien in the amount of $25,065 for crew wages, separation and transportation, and unsecured liens for certain other expenses.

In this appeal, appellants are challenging the jurisdiction of the High Court of American Samoa to foreclose SPNB's preferred ship mortgage. In addition, appellants take issue with the trial [27]*27court's findings concerning the amounts owed to Star — Kist under their preferred maritime lien.

II. This court lacks jurisdiction to foreclose appellee's ship mortgage.

The issue of this court's jurisdiction is unfortunately clear. Both the statutory language and the precedents of this court prevent us from entertaining SPNB's foreclosure action.

A. Statutory Construction

The language of § 951 is clear and unambiguous: "Original jurisdiction ... is granted to the district courts of the United States exclusively." It is beyond dispute that the courts of this territory are not article III district courts. In re Complaint of Interocean Ships, Inc., AP No. 32-84, slip op. at 5 (Nov. 19, 1985); The Vessel Pacific Princess v. Trial Division of the High Court of American Samoa, 2 A.S.R. 2d 21, 23 (1984); Meaamaile v. American Samoa, 550 F. Supp. 1227, 1236 (D. Hawaii 1982). Nor has Congress vested our courts with the jurisdiction of a non-article III district court pursuant to the "territorial exception.* Northern Pipeline Co. v. Marathon Pipe Line Co., 458 U.S. 50, 64-65 (1982). Rather, the High Court of American Samoa is a territorial court of discrete and limited jurisdiction, created pursuant to articles II and IV of the United Constitution, and does not come within the plain meaning of "district courts of the United States."

Absent any clear indication of legislative intent to the contrary, the plain language of S 951 must control its construction. E.g., Ford Motor Credit Co. v. Cenance, 452 U. S. 155, 158 n.3 (1981); Letuli v. Government of American Samoa, 4 A.S.R. 830, 833 (1975). This court has examined the legislative history of the Ship Mortgage Act, and there is no clear evidence that Congress intended the language "district courts” to encompass courts of American Samoa. Appellees are correct in pointing out that the legislative history suggests that Congress was concerned with keeping the foreclosure proceedings uniform. Thus, Congress made jurisdiction exclusive in the federal district courts to prevent states courts from adjudicating these foreclosure actions. The legislative history makes no mention of the jurisdiction of American Samoa or other territories. Hearings on H.R. 8873 Before the [28]*28House Committee on Merchant Marine and Fisheries, 66th Cong., 1st Sess. 95 (1919) (remarks of Mr. Ira A. Campbell, Esq., September 11, 1919); see also Smith, Ship Mortgages, 47 Tul. L. Rev. 608, 611 n.18 (1973).

Congress has demonstrated that it can integrate American Samoa into the district court system when it intends to do so, and not necessarily by extending the jurisdiction oi American Samoa's courts. For example, the Ocean Dumping Act, 33 U.S.C. S' 1401(g) and the Marine Mammal Protection Act, 16 U.S.C. S 1362(3) specifically provide that "the term 'district court of the United States' includes . . . in the case of American Samoa . . . the District Court oi the United States for the District of Hawaii.*

Even if Congress simply overlooked American Samoa and other United States territories when it passed the Ship Mortgage Act, this court cannot of its own accord reinterpret S 951 to enlarge the jurisdiction beyond that clearly spelled out in the Act. American Samoa is unique among the American territories because it is the only one that is not within- the jurisdiction of a United States District Court. Congress has created District Courts in the Virgin Islands, the Canal Zone, Guam, and the northern Mariana Islands. Decisions from these courts are appealable to United States Circuit Courts of Appeals for their respective circuits. By contrast, decisions from American Samoa are not appe*alable within the United States judicial system. This is a significant'reason why this court should hesitate to increase its jurisdiction without explicit directive from Congress.

B. Precedent

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3 Am. Samoa 2d 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/star-kist-samoa-inc-v-the-mv-conquest-amsamoa-1986.