United Air Lines Employees' Credit Union v. The M\V Sans End

15 Am. Samoa 2d 95
CourtHigh Court of American Samoa
DecidedJune 4, 1990
DocketCA No. 17-89
StatusPublished

This text of 15 Am. Samoa 2d 95 (United Air Lines Employees' Credit Union v. The M\V Sans End) 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
United Air Lines Employees' Credit Union v. The M\V Sans End, 15 Am. Samoa 2d 95 (amsamoa 1990).

Opinion

[96]*96This case concerns distribution of the proceeds of the judicial sale of a sailing yacht. Plaintiff Credit Union was the holder of the preferred ship’s mortgage whose foreclosure led to the sale. Intervenor Rizzo is the owner of another sailing yacht which was damaged after becoming entangled, both in law and in fact, with the defendant vessel. The principal dispute between the parties concerns the extent to which the doctrines of "intervening negligence" and "last clear chance" in maritime tort actions should be held to have survived the United States Supreme Court’s decision in United States v. Reliable Transfer Co., 421 U.S. 397 (1975).

I. Facts and Procedural History

The M/V Sans End, defendant in rem, is a 48-foot wooden trimaran built in 1969. It appears to have been purchased in 1985 by defendant in personam Harry Baars, then a resident of Huntington Beach, California, with the assistance of a $30,000 loan from the plaintiff Credit Union. In 1987 Baars executed a First Preferred Ship Mortgage to secure the balance on the loan, which had increased to about $32,000 due to late payments and refinancing.

Baars promptly fell even further behind on his payments. Apparently seeking a definitive and peaceful resolution of this problem, he then set sail for Hawaii, where, however, the Credit Union soon tracked him down. Baars then made a number of payments; but the balance still hovered around $30,000, and the payments stopped altogether in October of 1988. About two months later Baars and the Sans End turned up in Pago Pago.

The Credit Union somehow managed yet again to find Baars. It retained counsel in American Samoa who instituted the present action, seeking foreclosure of the Preferred Ship Mortgage as well as judgment in personam against Baars for $30,388.69 plus interest, costs, and attorney fees. On March 1, 1989, the Marshal of the High Court served Baars personally with a summons and complaint and also arrested the Sans End.

In the meantime, however, Baars and the Sans End had become involved with intervenor Rizzo and his vessel, the Curved Air.

Upon arriving in Pago Pago Harbor, Baars had moored the Sans End in a location regarded as dangerous by the local yacht community. [97]*97Baars was warned by occupants of neighboring vessels that boats moored in this area have a tendency to "drag anchor" in high winds. He nevertheless left the Sans End in this location for an indeterminate period, probably several weeks. On or about January 31, 1989, the vessel did drag anchor and collided with the Curved Air. It is undisputed that this collision resulted solely from the negligence of the Sans End’s captain Baars in improperly mooring his vessel. The Curved Air, a 46-foot trimaran of wood and fiberglass construction, suffered chafing and cracking on its starboard float. The anchor lines of the two vessels also became entangled.

In an effort to prevent further damage, Baars lashed his vessel to the Curved Air. He then went to find Rizzo to tell him what had happened and to ask permission to keep the Sans End lashed to the Curved Air until he could untangle the anchor lines. Rizzo gave him one day to do this. Baars, however, did not remove his vessel until about seven days later, after a further incident in which the wind propelled the Curved Air and the Sans End together across the harbor. The boats did not collide with anything this time, but Rizzo complains that his vessel suffered further chafing during the time it was lashed to the Sans End. This he attributes to Baars’ incompetent lashing.

Another yachtsman, whose deposition was admitted into evidence, agreed that the boats were not tied tightly enough together and also, that "[t]he lines were everywhere. I mean there were lines lying over the water, lying everywhere, screwing all over the boat." ,

On or about February 7, Baars finally untied the two, boats. Rizzo, who was then living and working onshore, went out that evening to inspect the Curved Air. He did not board the vessel but took a quick look around, inspected the coupling by which the Curved Air was attached to her mooring, and saw nothing amiss.

One afternoon a few days or weeks later, the occupants of nearby yachts observed the Curved Air in the process of sinking. Some of these observers went to the boat and others went onshore to find Mr. Rizzo, who soon arrived to oversee the effort to raise the vessel. He and others bailed with buckets until someone arrived with a power-driven suction pump. One of those present dived overboard to inspect the bottom of the boat; he discovered that the rudder had come off, leaving a one-and-one-half inch hole through which water had been allowed to enter. The hole was plugged and the Curved Air was raised, but its interior, equipment, and contents suffered substantial water damage.

[98]*98It is far from clear how the rudder came off. It has not been found. (The water in this part of Pago Pago Harbor affords practically no visibility.) Mr. Rizzo, a boat builder by trade, testified that the rudder and its accompanying shaft were designed not to detach unless the upper housing inside the boat were first removed. He also testified, however, that another one of the people helping him to raise the Curved Air had discovered a loose springline dangling in the water from a starboard cleat. Mr. Rizzo said he did not recognize the line, that it did not belong to him, and that he would never have left a line dangling in the water. He inferred that Mr. Baars must have left the line dangling when he untied the Sans End; that it must have snagged the rudder, and also some other object such as the reef below; and that the line pulled the rudder loose.

The Court has not heard Mr. Baars’s version of the story. He never answered the complaint or filed any sort of appearance for himself or the Sans End. He was thought to have left the Territory by the time of trial. The Credit Union took a default judgment against Mr. Baars in the amount of $32,706.35 plus costs and attorney fees; probably it will find him again someday.

Sans End was sold at a judicial auction. The Court originally set a $30,000 reserve bid and ordered that the auction be advertised not only in American Samoa but also in Honolulu, in order to ensure a fair price and minimize the amount of any deficiency judgment against Mr. Baars. Ultimately, however, the vessel brought only $17,000. This sum has been held in the registry of the Court pending the trial of intervenor’s claim that he was injured by a maritime tort of the Sans End, is entitled to recover from the proceeds of the sale, and has priority over the Credit Union.

Counsel for plaintiff Credit Union, forced by the procedural posture of the case into the awkward position of defending the hapless Baars, does not propose an alternative theory of what happened to the rudder. Rather, he confines himself (1) to doubting Rizzo’s springline hypothesis; and (2) to arguing that, no matter how the rudder came loose, the proximate cause of the water damage was Rizzo’s own negligence in not conducting a thorough inspection of the Curved Air after it had been untied from the Sans End.

We find that the detachment of the rudder did result in some way from the lengthy encounter between the Sans End and the Curved Air. Mr. Rizzo proved to our satisfaction that the rudder assembly was [?]

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Bluebook (online)
15 Am. Samoa 2d 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-air-lines-employees-credit-union-v-the-mv-sans-end-amsamoa-1990.