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Smit Americas, Inc. v. M/T Hobby

2001 AMC 1456 (2001)

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Smit Americas, Inc. v. M/T Hobby

United States District Court for the Eastern District of Pennsylvania
2001 AMC 1456 (2001)

AR

Facts

Smit Americas, Inc. (Smit) (plaintiff) filed an action in rem against the M/T Hobby (defendant) for salvage services in Puerto Rico. An in personam action was also brought against the Hobby’s then-owner, Metro Freighting Corp. (Metro). The Hobby was not within the jurisdiction of the Puerto Rico court when the suit was filed and was not served with process. Metro appeared and answered, and Metro and Smit continued their litigation. Three years later, the Hobby was sold to Alchemy Shipping Corp. of Liberia (Alchemy). More than five years passed, and Smit still did not perfect service of process upon the Hobby, even though the vessel had made more than 100 calls in ports within the jurisdiction of the United States, including several calls in the ports of Puerto Rico. Smit also did not record the lien in the Hobby’s home port. Smit filed a new action against the Hobby in rem. Alchemy opposed the claim, arguing that the claim was barred by the applicable two-year statute of limitations. Smit responded that its in personam claim against the Hobby’s prior owners tolled the statute of limitations.

Rule of Law

Issue

Holding and Reasoning (Surrick, J.)

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