TCW Special Credits v. F/V Kassandra Z

7 Am. Samoa 3d 3
CourtHigh Court of American Samoa
DecidedMarch 4, 2003
DocketAP No. 05-00; AP No. 09-00
StatusPublished

This text of 7 Am. Samoa 3d 3 (TCW Special Credits v. F/V Kassandra Z) 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
TCW Special Credits v. F/V Kassandra Z, 7 Am. Samoa 3d 3 (amsamoa 2003).

Opinion

OPINION AND ORDER

TCW Special Credits (“TCW”) appeals from a judgment of the Trial Division holding that following its foreclosure of a preferred ship mortgage on the F/V Kassandra Z (Kassandra Z), TCW must pay Michael Datin, et al., Kassandra Z’s crew, statutory wages under 46 U.S.C. § 11107 and quantum meruit damages because the chip’s former owner failed to do so prior to the arrest of the ship in 1996. The crew also appealed and cross-appealed. The Trial Division had jurisdiction over this action pursuant to A.S.C.A. § 3.0208(a). We have jurisdiction [6]*6over these timely appeals pursuant to A.S.C.A. § 3.0208(c). We affirm in part, reverse in part, and remand to the Trial 'Division for further proceedings.

I.

The Kassandra Z was part of a family of eleven tuna seiners owned by the Zuanich family who operated out of various ports, including American Samoa, Guam, New Zealand, and San Diego, California. The Zuanich family began to experience financial difficulty in 1995. Seeking relief, the Kassandra Z Fishing Co., Inc., one of the companies owned by the Zuanich family granted a preferred ship mortgage to TCW secured against its vessel, the Kassandra Z. On July 2, 1996, TCW filed a foreclosure action against the Kassandra Z in the Trial Division and had the vessel arrested by the High Court Marshal. The crew members on board were removed from the ship, and most were repatriated to their homeland in Croatia.

Thereafter, the crew members intervened in the foreclosure action, alleging that they were owed unpaid wages for two full voyages, as well as “short checks” — adjustments in pay based on the cannery’s final calculation of the haul to be canned — left unpaid from other trips. Because the crew members were never given written fishing agreements as required by 46 U.S.C. § 10601 they asserted they were entitled to statutory wages under 46 U.S.C. § 11107. Section 11107 provides that “[a]n engagement of a seaman contrary to a law of the United States is void. A seaman so engaged ... is entitled to recover the highest rate of wages at the port from which the seaman was engaged or the amount agreed to be given the seaman at the time of engagement, whichever is higher.” 46 U.S.C. § 11107.

Following a three-day trial the Trial Division awarded judgment for the crew in the amount of $713,623.14. The Court determined the amount of the award based upon unpaid wages under Section 11107 for two trips, wages for the time the crew spent waiting in port for what was to be the final voyage of the ship, prejudgment interest, and other costs. Both sides moved for reconsideration of portions of the Trial Division’s decision, and the Court issued a second order, holding that Section 11107 wages for the short checks were available, and adjusting the crew’s award to $1,396,155.55.

On appeal, TCW argues that the wages awarded to the crew under 46 U.S.C. § 11107 are really “penalties” that cannot be recovered in rem with priority over TCW’s preferred ship mortgage. It also argues that the Trial Division erred in awarding wages under Section 11107 for the “short checks” that were never paid. TCW alleges that the Trial Division erred in allowing the crew to prove the rate of wages to which they were [7]*7entitled under Section 11101 by a “prima facie” showing only. Finally, it asserts that the Trial Division erred in awarding any wages for the crew’s in-port waiting time for the final journey that never happened. The crew argues on cross-appeal that the court erred in requiring the crew to prove any comparability under Section 11107. They assert that instead they should receive the highest wage paid to “any seaman” on board the ship. In the alternative, they suggest that the Trial Division should have used a rating system as suggested by the Court of Appeals for the Ninth Circuit in TCW Special Credits v. Chloe Z Fishing Co., 129 F.3d 1330 (9th Cir. 1997).

n.

One preliminary matter deserves attention. Long after briefing had closed and just weeks before oral argument, the crew filed what it styled a “supplemental brief,” which urged that under the unpublished decision in TCW Special Credits v. Barandiaran, 238 F.3d 431 (Table), 2000 WL 1277939 (9th Cir. Sept. 8, 2000), the Trial Division additionally erred in ruling that the Kassandra Z’s Master and Fish Captain were not entitled to wages under Section 11107. The Court of Appeals for the Ninth Circuit does not ordinarily allow citation to unpublished decisions. Ninth Circuit Rule 36-3(b). The crew does not provide a reason why we should consider a decision the authoring court does not deem to be of precedential authority.

However, we need not decide this issue. We conclude the crew’s claim in its “supplemental brief’ is jurisdictionally barred. While parties may direct our attention to legal authority established subsequent to briefing, they are not free to raise new arguments not addressed in their briefs. The crew did not raise this issue in either their appellee’s brief or their cross-appeal brief. Therefore, the “supplemental brief’ does not meet the ten-day time limitation for filing a notice to appeal, A.C.R. 4(a). Because the deadline for filing a notice of appeal is jurisdictional, A.S.C.A. § 43.0802(b), Taulaga v. Patea, 17 A.S.R.2d 34, 35 (App. Div. 1990), we will not address this issue.

in.

We review questions of law de novo. Anderson v Vaivao, 21 A.S.R.2d 95, 98 (App. Div. 1992). We may not set aside the findings of fact of the Trial Division unless they are clearly erroneous. A.S.C.A. § 43.0801(b); Anderson, 21 A.S.R.2d at 98. A finding is clearly erroneous when “the entire record produces the definite and firm conviction that the court below committed a mistake,” according particular weight to the trial judge’s assessment of conflicting and ambiguous facts.” E. W. Truck & Equip. Co. v. Coulter, 20 A.S.R.2d 88, 92 (App. Div. 1992).

[8]*8With this in mind, we turn first to whether the Trial Division erred in concluding that the statutory wages it awarded the crew for unpaid trips under 46 U.S.C. § 11107 were recoverable in rem against the Kassandra Z and with a preferred lien status over TCW’s ship mortgage.

TCW urges us to call these statutory wages “penalties” or “punitive damages,” and asserts that we should hold that they are not recoverable in rem with priority over TCW’s preferred ship mortgage. TCW correctly points out that the purpose of the portion of statutory wages awarded under Section 11107 that is more than what the seaman would have received had his fishing agreement been valid is designed to punish ship owners who illegally engage seamen. Seattle-First Nat’l Bank v. St. Elias Ocean Prods., Inc.,

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The John G. Stevens
170 U.S. 113 (Supreme Court, 1898)
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281 U.S. 52 (Supreme Court, 1930)
Czaplicki v. the Hoegh Silvercloud
351 U.S. 525 (Supreme Court, 1956)
Griffin v. Oceanic Contractors, Inc.
458 U.S. 564 (Supreme Court, 1982)
Connecticut National Bank v. Germain
503 U.S. 249 (Supreme Court, 1992)
Jimmy Yelverton v. Mobile Laboratories, Inc.
782 F.2d 555 (Fifth Circuit, 1986)
Buckley v. Oceanic S. S. Co.
5 F.2d 545 (Ninth Circuit, 1925)
HB General Corp. v. Manchester Partners, L.P.
95 F.3d 1185 (Third Circuit, 1996)
Seattle-First National Bank v. Conaway
98 F.3d 1195 (Ninth Circuit, 1996)
TCW Special Credits v. Chloe Z Fishing Co.
129 F.3d 1330 (Ninth Circuit, 1997)
Gerber v. Spencer
278 F. 886 (Ninth Circuit, 1922)

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Bluebook (online)
7 Am. Samoa 3d 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tcw-special-credits-v-fv-kassandra-z-amsamoa-2003.