Governor & Company of Bank of Scotland v. Maria S.J. M/V
United States District Court for the Eastern District of Louisiana
1999 AMC 774 (2000)

- Written by Carolyn Strutton, JD
Facts
Golden Lines Shipping Inc. (Golden Lines) owned the M/V Maria S.J. (defendant). Golden Lines defaulted on a $15 million preferred ship mortgage held by the Bank of Scotland (the bank) (plaintiff) on the vessel. The bank brought an in rem action against the Maria S.J. to enforce the lien that attached to the vessel for the mortgage. A group of more than 100 former crew members on the Maria S.J. intervened in the action, asserting claims for unpaid wages. Approximately half of the crew members also asserted the right to penalty wages arising from delays in wage payments. The Maria S.J. was sold at auction to the bank for $3.7 million, with the bank using that portion of the outstanding mortgage value to serve as a credit bid in lieu of cash payment. The bank moved for summary judgment to dismiss the claims of the former crewmembers, alleging that the wages and the penalty wages were only recoverable from Golden Lines as the former owner of the vessel.
Rule of Law
Issue
Holding and Reasoning (Fallon, J.)
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