United States v. Ray

294 F. Supp. 532, 1969 A.M.C. 380, 1969 U.S. Dist. LEXIS 10838
CourtDistrict Court, S.D. Florida
DecidedJanuary 2, 1969
Docket65-271-Civ.-CF
StatusPublished
Cited by3 cases

This text of 294 F. Supp. 532 (United States v. Ray) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Ray, 294 F. Supp. 532, 1969 A.M.C. 380, 1969 U.S. Dist. LEXIS 10838 (S.D. Fla. 1969).

Opinion

MEMORANDUM OPINION

FULTON, Chief Judge.

This cause is reminiscent of a fairy tale beginning:

They thought I was crazy when I bought the island. I said it was a bargain * * * They thought it was anarchy to fly my own personal flag * * * 1

The United States brought this action to prevent private construction atop several coral reefs underlying the high seas. Triumph and Long Reefs are located about four and one-half miles east of Elliot Key, off the southeast coast of Florida, close to Miami. 2 Two separate groups of private entrepreneurs claim the reefs are islands, discovered by them and subject to their colonization. The United States Government charges that the reefs are seabed, subject to its control.

The defendant, Louis M. Ray, envisioned an island nation, the Grand Capri Republic. He testified:

* * * I had originally set out to build an island out there about, I believe it was, five hundred feet wide and two thousand feet long, but I never did obtain any kind of permission if it was necessary out there. So I set out to take possession of the four reefs individually — that is, me and some other investors. And it was my thinking that it would be necessary to claim, occupy and defend the area against all comers in order to lay the proper claim for title to it * * *. [T]hat is namely, Triumph, Long Reef, Pacific Reef, and I believe the other one is Ajax * * *. [W]e decided to move out there and take possession by means of inhabiting the reefs and holding possession of them. That was to be done, of course, in my individual name and my investors’ * * *. [W]e had planned to expend several hundred thousand dollars, and Acme General Contractors was planning a big operation to do this work * * *. We were going to *535 bring in hydraulic dredges to build a big island * * *. I went out there and I sat on that island and I built these caissons and a house and I was going to put a family in the house and I going to make some semblance of a defense. And don’t get me wrong by saying if I am going to attack the Coast Guard or Navy, but I was going to have some semblance of a defense and I was going to build it and claim it and I occupied it, and I was going to defend it to the best of my ability and I was going to own it. Now, am I a nation? Me and four investors? Transcript pp. 542-43; 555; 597; 600.

Atlantis Development Corporation, Ltd., a Bahamian corporation, intervened in this action. Its officers and directors are speculators who intended to name their country Atlantis, Isle of Gold. Their plans were more sophisticated than Mr. Ray’s. William Timothy Thomas Anderson, witness for Atlantis, testified upon cross examination concerning that group’s intentions:

Q. What was the total amount [of capital] that it was estimated would be needed ?
A. $150,000,000 is what he’s got here.
Q. Further on it [intervenor’s exhibit No. 20] says, “This is not the total needed for the completion of the full 2,600 acres, but rather 350 acres on Long Reef and 150 acres on Ajax Reef.” And does it not say that additional funds will be needed in addition to the $150,-000,000?
A. Yes, sir. It says, “An additional $100,000,000 would be required to complete this entire project.”
Q. “ * * * or a total of $250,000,-000?”
A. Yes.
Q. And in the very last sentence it says, “Using Miami Beach and Las Vegas as comparables, the price of this land would be worth approximately $1,000,000,000.” Is that correct?
A. Yes, sir.
Q. Now, do you have any idea what that was based on?
A. Let me say this, sir. One time there was a group went out there of eighteen millionaires from Miami Beach and walked all around on this, and this one man came back and said, “You don’t have a million dollar deal; you’ve got a billion dollar deal.”
Q. That is what it was based on?
A. I know personally that it would be worth more than that. Just if you take the hundred thousand feet on both sides of the reefs, it would give you one hundred thousand — about one hundred ten thousand feet. And I have been told by different men that the land would be worth $8,000 to $10,000 a front foot. That is your ocean frontage, sir.
Q. Was there any reason for including “using Miami Beach and Las Vegas as comparables”?
A. Not especially.
Q. Was it your intention or was it the intention of the present group of which you are a member to establish a gambling casino out there ?
A. It was conceived that it could be done.
Q. It was your intent, was it not, to establish what amounts to a new sovereign nation, is that correct?
A. That’s correct, sir.
Q. And referring to the last page of Intervenor’s Exhibit No. 20, under item 8, you had allotted $1,500,000 for a radio and television station and tower * * *.
******
A. Yes, sir. We had a man who wanted to buy that right off of us.
*536 Q. And No. 9, post office, building offices, stamp department and foreign offices, $2,500,000?
A. Yes, sir.
Q. Is that correct?
A. That was for printing stamps and everything else, sir.
Q. And at No. 11 it lists the government palace and congress. That was $1,000,000?
A. That’s correct. That’s what the man wrote down there.
Q. And then No. 12, “International bank and a mint?”
A. Yes, sir. We had a group that wanted to put a bank there where people could bank by number just as they do in Switzerland.
Q. Was the money * * * to be paid [you] by the currency of Atlantis Isle of Gold? ******
A. No, sir. It was to be paid not in the currency of the new nation. That was in good old hard American money. Transcript pp. 660-664.

The United States instituted this cause April 9, 1965. Twelve days later the Court entered a preliminary injunction to halt all dredging, filling, or similarly destructive activities on the reefs. On June 10, 1965, the motion of Atlantis to intervene was denied under former Fed.R.Civ.P. 24(a). Upon appeal by Atlantis, the Court of Appeals noted the 1966 Amendments to the Rules and reversed, allowing intervention under new Rule 24(a).

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Related

United States v. Louis M. Ray
423 F.2d 16 (Fifth Circuit, 1970)
United States v. Ray
423 F.2d 16 (Fifth Circuit, 1970)

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Bluebook (online)
294 F. Supp. 532, 1969 A.M.C. 380, 1969 U.S. Dist. LEXIS 10838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-ray-flsd-1969.