1715 Fleet-Queens Jewels, LLC v. Unidentified Wrecked & Abandoned Vessell
861 F.3d 1278
11th Cir.2017Background
- Original in rem admiralty action began in 1979 when Cobb Coin recovered a cannon from the 1715 Spanish fleet wreck off Florida; district court exercised in rem jurisdiction and entered a permanent injunction in 1982 granting exclusive salvage protection and annual distribution hearings.
- Cobb Coin’s salvage rights were later assigned to 1715 Fleet-Queens Jewels, LLC, which continued annual salvage and distribution procedures established by the court; the wreckage spans ~41 miles of Florida coast.
- Gold Hound, a subcontractor (formed c.2008), developed proprietary maps/data and worked for Fleet-Queens; after contract negotiations collapsed in 2013, Fleet-Queens allegedly used Gold Hound’s data to recover treasure in 2015.
- Gold Hound sought to intervene (Sept. 2015) asserting in rem claims, a maritime lien, and state-law claims (trade-secret, contract, fiduciary duty); district court denied intervention as untimely and rejected the maritime lien claim; Gold Hound appealed.
- Eleventh Circuit held the district court had valid and continuing admiralty jurisdiction (in rem constructive possession based on the 1979 cannon/arrest and 1982 injunction), reversed denial of intervention (Gold Hound may intervene as to in rem claims), and remanded to decide maritime lien and supplemental jurisdiction over state-law claims.
Issues
| Issue | Plaintiff's Argument (Gold Hound) | Defendant's Argument (Fleet-Queens / State) | Held |
|---|---|---|---|
| Whether district court still has subject-matter admiralty jurisdiction over the scattered 1715 wreck | Cannon recovery and 1982 injunction gave constructive in rem possession of the wreck; jurisdiction continues despite debris field | Court’s constructive possession theory invalid for widely scattered res; ASA displaced federal jurisdiction | Court: Jurisdiction proper — constructive in rem jurisdiction is valid here and ASA does not defeat it (proceeding predated ASA) |
| Whether the Abandoned Shipwreck Act (ASA) divested federal court and returned title/jurisdiction to Florida | ASA transfers title/jurisdiction to state for abandoned shipwrecks; thus court lost jurisdiction | Proceedings began in 1979; §2106(c) preserves pre-1988 proceedings; Florida has participated and consented | Court: ASA does not apply because the action began before ASA effective date; federal jurisdiction remains |
| Whether Gold Hound should have been permitted to intervene in the in rem action | Timely (given its later formation and discovery of alleged misappropriation); has concrete interests (maritime lien, challenging exclusive salvage rights); existing parties don’t adequately represent its interests | Motion untimely; claims could be raised at distribution hearing; Florida protects public interest so Gold Hound’s interest is adequately represented | Court: Denial of intervention was error — Gold Hound satisfied Rule 24(a)(2) and S.D. Fla. Local Admiralty Rule E(2); may intervene for in rem claims; district court to decide scope and supplemental jurisdiction on remand |
| Whether Gold Hound has a maritime lien for contributing proprietary maps/data leading to the 2015 recoveries | Creation/provision of proprietary maps and data materially contributed to salvage and thus may give rise to a maritime lien | Allegations better suited to in personam contract/damages action; Gold Hound did not physically recover artifacts | Court: Facts disputed; cannot resolve on current record; remand for district court factfinding on whether Gold Hound materially contributed to the salvage and thus has a maritime lien |
Key Cases Cited
- The Brig Ann, 13 U.S. 289 (recognizing necessity of actual or constructive control of res for in rem jurisdiction)
- The Mary, 13 U.S. 126 (admiralty in rem judgments are "against the whole world")
- Republic Nat’l Bank of Miami v. United States, 506 U.S. 80 (Supreme Court discussion of actual or constructive control for in rem forfeiture suits)
- R.M.S. Titanic, Inc. v. Haver, 171 F.3d 943 (4th Cir. 1999) (affirming constructive in rem jurisdiction over scattered shipwreck remains)
- Odyssey Marine Expl., Inc. v. Unidentified Shipwrecked Vessel, 657 F.3d 1159 (11th Cir. 2011) (discussing custody of res and constructive possession for shipwrecks)
- Treasure Salvors, Inc. v. Unidentified Wrecked & Abandoned Sailing Vessel, 640 F.2d 560 (5th Cir. 1981) (finders may obtain constructive possession consistent with res’s nature)
- Darlak v. Columbus-Am. Discovery Grp., Inc., 59 F.3d 20 (4th Cir. 1995) (surveyor who provided proprietary data may deserve salvage award but must assert claim in the in rem proceeding)