Zych v. Unidentified, Wrecked & Abandoned Vessel, Believed to Be the SB "Lady Elgin"

746 F. Supp. 1334, 1991 A.M.C. 359, 1990 U.S. Dist. LEXIS 12180
CourtDistrict Court, N.D. Illinois
DecidedSeptember 13, 1990
Docket89 C 6501, 89 C 6502
StatusPublished
Cited by12 cases

This text of 746 F. Supp. 1334 (Zych v. Unidentified, Wrecked & Abandoned Vessel, Believed to Be the SB "Lady Elgin") is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zych v. Unidentified, Wrecked & Abandoned Vessel, Believed to Be the SB "Lady Elgin", 746 F. Supp. 1334, 1991 A.M.C. 359, 1990 U.S. Dist. LEXIS 12180 (N.D. Ill. 1990).

Opinion

MEMORANDUM OPINION AND ORDER

ROVNER, District Judge.

I. INTRODUCTION

The Lady Elgin, built in 1851, was a celebrated sidewheel steamer which carried passengers, mail and freight on Lake Michigan and Lake Superior. On September 8, 1860, she was overloaded with approximately 450 passengers returning to Milwaukee after attending a Democratic Party rally in Chicago for presidential candidate Stephen Douglas. A violent storm arose, decreasing the visibility, and she was fatally rammed by the lumber schooner Augusta. She sank soon afterwards in what is perhaps the most famous shipwreck in the history of the Great Lakes. 1 At least 100 passengers were saved, but some 300 perished in the calamity. Those who went down with the ship included so many Irish political activists that the sinking has been credited with transferring the balance of power in Milwaukee from the Irish to the Germans.

Diving enthusiasts have vied for years to become the discoverer of the Lady Elgin’s, remains, but until recently Lake Michigan refused to give up her treasure. In 1989, however, after 16 years of searching, plaintiff Harry Zych, who owns and operates American Diving and Salvage Company, discovered what he believes is the wreck of the Lady Elgin. He then filed an in rem complaint in this Court seeking ownership of her remains or, alternatively, a salvage award.

*1337 On April 9, 1868, the Seabird, another sidewheel steamer which was carrying 100 passengers, sank in the waters of Lake Michigan. As described by author James L. Elliott:

In late March of 1868, the Seabird was brought out of winter lay-up at Manito-woc and made ready for the coming summer season. She was given a thorough going over and freshly painted inside and out.
During midmorning of April 8, 1868, she loaded passengers and freight for her first downbound trip of the new season. Her destination was Chicago with stops scheduled for Milwaukee, Racine, and Kenosha. Departure was at noon from Johnston’s pier. Captain John Morris was in command.
A news item and a small ad in the Milwaukee Sentinel on the morning of April 8, 1868, announced that the side-wheel steamer Seabird, Captain John Morris, would leave at 7:00 P.M. for Chicago inaugurating a new service for the season of 1868. The fare was $1.00, which was less than by railway, and there was no charge for staterooms.
Everything went well on that first trip until Seabird was off Waukegan, a little after 6:00 A.M. on the morning of April 9. The night had been cold and the large stove in the main cabin had been kept going all night to provide some warmth and comfort for the passengers. As daylight came, the porter cleaned the fire in the cabin stove and then stepped to the rail to throw the still hot ashes over the side. Unfortunately he emptied his container into the wind and the hot ashes, fanned by the brisk northwesterly wind, blew back aboard and into the cargo stowed on the main deck. Some highly varnished tubs, packed in excelsior, were quickly ignited and the dread cry of “Fire!” swept the ship! As the flames made their way topside and into the cabin area they were fed by the newly painted woodwork and the entire steamer was soon engulfed in a mass of flame. There was no place for the terrified passengers and crew to go except over the side into the numbing cold waters of Lake Michigan. Survival in the 36-degree water lasted only a few minutes for most....
Only two passengers were saved. They were A.C. Chamberlain and Edwin Henneberry, both from Sheboygan.

J. Elliott, Red Stacks Over the Horizon 41-43 (1967).

The remains of the Seabird lay hidden on the bed of Lake Michigan until they too were discovered by Zych in 1989. Zych then filed an in rent action seeking ownership of the Seabird or a salvage award.

The two cases were consolidated because they raised similar issues. Plaintiff moved \ for an order of default, but before that motion could be ruled on, the Illinois Department of Transportation and the Illinois Historic Preservation Society (collectively, “the State”) intervened for the limited purpose of moving to dismiss the cases on the basis of the State's sovereign immunity guaranteed by the Eleventh Amendment of the U.S. Constitution. Plaintiff argued that the Eleventh Amendment did not bar the action, and that even if the Eleventh Amendment would otherwise bar the action, the State had waived its immunity. Plaintiff’s arguments included a challenge to the constitutionality of the Abandoned Shipwreck Act of 1987, 43 U.S.C. §§ 2101 et seq. Accordingly, the United States intervened and submitted briefs defending the Act’s constitutionality. Amicus briefs were also submitted by various interested parties. 2

While the motion to dismiss was pending, plaintiff formed the Lady Elgin Foundation in order to pursue another avenue of gaining possession of the wreck. The Foundation reached an agreement with CIGNA Property & Casualty Company, which holds a claim of title to the wreck based on its insurance of the hull and cargo of the Lady Elgin and its payment on a claim by its insured. Pursuant to that agreement, CIG- *1338 NA transferred its ownership interest in the vessel to the Foundation in exchange for twenty percent of the proceeds of any artifacts recovered from the wreck and sold by the Foundation. After reaching this agreement, the Foundation moved to intervene in the Lady Elgin case for the purpose of joining in plaintiff's objections to the State’s motion to dismiss. Because this development placed the Lady Elgin case in a very different posture than the Seabird case, the Court vacated its consolidation order. 3

II. APPLICABILITY OF ELEVENTH AMENDMENT

Analysis of the applicability of the Eleventh Amendment 4 in the context of an in rem action concerning a shipwreck is governed by the case of Florida Department of State v. Treasure Salvors, Inc., 458 U.S. 670, 102 S.Ct. 3304, 73 L.Ed.2d 1057 (1982). That case involved the wreck of a 17th-cen-tury Spanish galleon discovered in international waters off the coast of Florida. During litigation over title to the wreck, the plaintiff filed a motion for an order commanding the United States Marshal to arrest and take custody of artifacts which were in the possession of officials of the State of Florida. Florida opposed the motion on the ground of sovereign immunity.

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746 F. Supp. 1334, 1991 A.M.C. 359, 1990 U.S. Dist. LEXIS 12180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zych-v-unidentified-wrecked-abandoned-vessel-believed-to-be-the-sb-ilnd-1990.