Maine Uniform Rental, Inc. v. Nova Star M/V
875 F.3d 38
| 1st Cir. | 2017Background
- Nova Star Cruises chartered the M/V NOVA STAR to operate a ferry-as-hotel service; it contracted with Pratt Abbott to rent and service linens and related items under a five-year rental/servicing Agreement that included a default purchase clause if the contract terminated early.
- Pratt Abbott purchased specialty linens and equipment and retained title to inventory; it provided delivery, cleaning, rotation, and restocking services while the ferry operated.
- Nova Star Cruises ceased operations after the 2015 season, stopped using the rented inventory, and did not pay certain invoices; Pratt Abbott retained much of the inventory in its Maine warehouse.
- Pratt Abbott filed an in rem maritime-lien claim against the arrested vessel seeking unpaid service charges ($16,187.50) and the contractually specified replacement cost of stored inventory ($178,023.02), asserting those were "necessaries."
- The district court found (and parties did not dispute) that the rental and cleaning services constituted "necessaries" while the ship was operating, awarded Pratt Abbott unpaid service charges and a lien for items left aboard, but denied a maritime lien for replacement cost of inventory remaining in Pratt Abbott's warehouse because those items were not "delivered" to the vessel at arrest.
- The First Circuit affirmed: maritime lien limited to accrued service charges and items actually aboard; it declined to extend maritime liens to replacement cost of inventory retained by supplier after contract termination.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Pratt Abbott supplied "necessaries" that give rise to a maritime lien | Rental and cleaning services (and the rotated inventory) were necessaries that supported a lien for unpaid charges and replacement cost under the Agreement | Necessaries existed only while the vessel operated; replacement cost for inventory retained off‑vessel is not subject to maritime lien | Rental and cleaning services were necessaries during operation; lien allowed for unpaid service charges and unrecoverable items aboard, but not for replacement cost of inventory stored ashore after termination |
| Whether the lien may include contractually-set replacement cost of inventory held by supplier off the vessel | The inventory had been consistently delivered/rotated to the ship and was earmarked for its exclusive use, so replacement cost should be lienable | Continued supplier ownership and off‑vessel storage mean the inventory was not "delivered" at time of arrest; lien should be limited to rental/use value already accrued | Court refused to extend lien to replacement cost of off‑vessel inventory; no maritime lien for items retained in supplier warehouse after contract terminated |
| Proper interpretation of "delivered" or "furnished" for maritime-lien purposes | "Delivered" should be construed broadly to include rotating supply that enabled the vessel’s function | "Delivered" requires physical delivery or constructive dispatch to the owner/agent for use on the designated vessel at time relevant to lien; rotating use does not convert stored inventory into subject of lien | "Delivered" limited to items provided or constructively dispatched for vessel use; prior rotations do not create lien on stored inventory after service ceased |
| Whether exclusivity/earmarking of supplies creates a lien despite supplier ownership | Exclusive purchase/earmarking for vessel and reliance on vessel credit converts inventory into liensubjects | Record did not support exclusivity finding; mere earmarking/anticipated sale on breach does not create maritime lien | No record support for exclusive‑use finding; exclusivity alone (absent delivery/use at time lien accrues) does not create lien on stored inventory |
Key Cases Cited
- Cianbro Corp. v. George H. Dean, Inc., 596 F.3d 10 (1st Cir.) (discusses delivery/constructive dispatch requirement for necessaries)
- Piedmont & George's Creek Coal Co. v. Seaboard Fisheries Co., 254 U.S. 1 (Supreme Court) (no lien where supplies were not delivered to a particular vessel)
- Equilease Corp. v. M/V Sampson, 793 F.2d 598 (5th Cir.) (broad treatment of what may be "furnished," including nonphysical services like insurance)
- Trico Marine Operators, Inc. v. Falcon Drilling Co., 116 F.3d 159 (5th Cir.) (necessaries include goods/services that enable vessel's function)
- Dampskibsselskabet Dannebrog v. Signal Oil & Gas Co. of Cal., 310 U.S. 268 (Supreme Court) (necessaries doctrine and maritime lien policy)
- Itel Containers Int'l. Corp. v. Atlanttrafik Express Serv. Ltd., 781 F. Supp. 975 (S.D.N.Y.) (limits on liens for rented items; focus on use/rental value)
- S.C. State Ports Auth. v. M/V Tyson Lykes, 67 F.3d 59 (4th Cir.) (maritime lien for port services like dockage/wharfage while loading/unloading)