United Continental Tuna Corporation, a Corporation v. United States of America, John A. Kroh, Sr. v. United States

This case requires us to consider the interrelationship of the 1960 amendments to the Suits in Admiralty Act, 46 U.S.C. §§ 741-752 , as amended, September 13, 1960, Pub.L. 86-770, § 3 , 74 Stat. 912 ; the Public Vessels Act, 46 U. S.C. §§ 781-790, and the Federal Tort Claims Act, 28 U.S.C. §§ 1346 (b), 2671 et seq. It arises in the context of two suits brought by the owners of a fishing vessel who allege that the boat’s sinking was caused by the U.S.S. Parsons, a naval destroyer and public vessel of the United States.

In late 1969, United Continental Tuna Corporation (Tuna Corporation) with funds furnished by American investors purchased a fishing vessel, the M.V. Orient, and refitted it at considerable expense. Tuna Corporation was organized as a Philippine corporation to enable the boat to operate in the Republic of the Philippines. On its first voyage it was overhauled and hailed 70 miles outbound from San Pedro by the U.S.S. Parsons; a collision followed which resulted in the sinking of the Orient with total loss. The corporation filed an action in District Court against the United States to recover its loss under both the Suits in Admiralty Act (SIA) and the Public Vessels…