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USL Capital v. New York 30

975 F. Supp. 382 (1996)

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USL Capital v. New York 30

United States District Court for the District of Massachusetts
975 F. Supp. 382 (1996)

AR

Facts

The New York 30 (defendant), a vessel, was sold pursuant to a court order to pay a mortgage held by USL Capital (USL) (plaintiff). USL brought a foreclosure action against the vessel to recover amounts due under the mortgage. Simpson Towing & Salvage Company, Inc. (Simpson) moved to intervene, asserting it had a lien against the vessel for towage services it provided. USL moved to dismiss Simpson’s claim, arguing that res judicata barred Simpson from pursuing an in rem claim against the vessel. Specifically, Simpson had already won a claim against the vessel’s owner for the unpaid towage services, and the owner had paid a portion of that judgment before declaring bankruptcy. Simpson responded that its in rem suit against the vessel was intended to recover the still unpaid towing charges.

Rule of Law

Issue

Holding and Reasoning (Lasker, J.)

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Admiralty

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