In Re SS Norberto Capay

MEMORANDUM OPINION, FINDINGS OF FACT, AND CONCLUSIONS OF LAW RE CLAIMS OF FIRST NATIONAL CITY BANK

46 U.S.C. § 971 reads as follows:

The Marine Midland Grace Trust Company, the holder of first preferred mortgages on the above-named vessels, answers that the “advances” herein cannot be considered to be of “necessaries” within the purview of § 971. It further argues that even if the crews’ wages fall under § 971, the facts of this case indicate that there was no reliance by FNCB on the credit of the vessels, and that the presumption of the statute should therefore be deemed overcome.

The questions herein have been extensively briefed by both parties, who have submitted depositions and exhibits to backstop their respective positions. The parties have, furthermore, agreed that the claims of FNCB may be decided by the Court without further trial or hearing. Before, however, rendering its Findings of Fact and Conclusions of Law as required by Rule 51, the Court deems it expedient to clarify the following points concerning the applicable law:

Claimant herein is the First National City Bank (FNCB). FNCB, between 1955 and 1968, supplied travelers’ checks to the Liberty Navigation &…