Hener v. United States

The barge Harold was transporting silver bullion off of Staten Island in 1903 when it pitched violently in a storm and lost most of its cargo overboard. Most of the silver was soon recovered through a dredging and diving operation. Approximately 15 percent of the silver remained unrecovered, however, and by the 1980s this lost silver was purported to be worth between $10 and $20 million. Commercial and amateur diving groups were interested in attempting to salvage the silver. Three groups began to dispute the right to dive in the area where they believed the silver to be located. The Hener group (plaintiff) was made up of amateur divers who had no commercial recovery experience. Ocean Salvage, Inc. (the Ocean group) (plaintiff) was made up of commercial divers and investors, as was the third group, American Divers, Inc. (the American group) (defendant). Both the Ocean group and the American group took tangible steps toward recovering the lost cargo, including identifying specific locations of interest, engaging in preliminary dives, obtaining necessary equipment, and bringing that equipment to the location. Neither party had actually located or recovered any silver, however. The Hener group did not engage in this level of exploration or preparation but claimed to have information about the location of the silver and the ability to begin diving for it. During these disputes, the United States Coast Guard established a safety zone in the area that prevented anyone from continuing with recovery efforts. The Hener group brought a suit to enjoin the Coast Guard from enforcing the safety zone, and the Ocean group joined the suit as an intervenor. The American group intervened in the suit as a defendant. The Coast Guard disclaimed any interest in who should be allowed to dive but asked the court to determine which party had the right to attempt salvage in the area.