United States v. Pacific Far East Lines, Inc., and Pacific Far East and Maritime Employees Association, Claimant-Appellant

The United States filed a complaint in the district court against the M/V Atlantic Bear, in rem, and against Pacific Far East Lines, Inc. (“PFEL”), in personam, to foreclose a preferred ship’s mortgage and to recover any resulting deficiency judgment. Pacific Far East and Maritime Employees Association (“the Association”) intervened seeking loss of pay and employment benefits for its members who were “shoreside” employees of PFEL. The Association contended the claims of its members should have priority over the United States’ preferred ship’s mortgage because of the nature of the claims and the conduct of the government. The district court granted the government’s motion for summary judgment and dismissed the Association’s claims. We affirm.

The district court, the Hon. Charles A. Legge presiding, in its Opinion and Order for Summary Judgment filed September 30,1985, accurately summarized the facts, analyzed the contentions of the parties, and applied the law in this case. The opinion is well reasoned, and we adopt the following portions of it as the opinion of this court:

FACTS

“The United States Maritime Administration (‘MARAD’) is an agency of the United States of America…