Bay Casino, LLC v. M/V Royal Empress

20 F. Supp. 2d 440 (1998)

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Bay Casino, LLC v. M/V Royal Empress

United States District Court for the Eastern District of New York
20 F. Supp. 2d 440 (1998)

AR

Facts

Bay Casino, LLC (Bay) (plaintiff) entered into a bareboat charter with SeaCo Ltd. to charter the M/V Royal Express (defendant), a vessel, for three years. Bay intended to use the vessel as a floating gambling facility. Under the agreement, Bay had to post in a conspicuous place in the vessel that the vessel was owned by SeaCo and under demise charter to Bay. Bay also had full use and exclusive control of the vessel and had to maintain the vessel at its own expense. SeaCo had to provide skills, knowledge, and financing and got a share of the anticipated profits and consulting fees. The agreement referred several times to SeaCo as “owner” and Bay Casino as “charterer.” After SeaCo allegedly defaulted on the agreement, Bay sued for an arrest and lien upon the vessel. SeaCo moved to vacate the arrest and lien by arguing that Bay could not obtain a lien on the vessel because their agreement should be viewed as a joint venture instead of a charter party.

Rule of Law

Issue

Holding and Reasoning (Johnson, J.)

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