United States District Court, D. Alaska
ORDER
H.
Russel Holland United States District Judge.
Order
Amending Findings of Fact and Conclusions of Law
Tyche
High Seas Capital Corporation (“Tyche”) moves to
amend[1] the findings of fact and conclusions of
law filed in this case on August 28, 1998.[2] Keesal, Young
& Logan (“KYL”) has opposed Tyche's
motion.[3] Tyche served and filed its
reply.[4] Oral argument was requested and heard on
June 11, 2019.
KYL has
withdrawn its opposition to Tyche's motion to amend
findings of fact and conclusions of law.[5] In doing so, KYL
advises that it has “no objection to the Motion being
granted.”[6] KYL represents that it and Tyche
“have agreed that as between them, whatever rights KYL
may have will be and are fully preserved and that KYL's
abilities to protect and assert its interests are fully
preserved as if the Motion had not been made or granted by
the Court.”[7]
KYL was
permitted to intervene in these proceedings for one purpose
only: to gain access to reports being filed with this court
by Ocean Mar under seal.[8] Those reports were being sought because
of litigation between KYL and Islander Partners, LP, over the
payment of KYL's attorney fees earned in the
representation of Ocean Mar.[9] As reflected by the court's
1998 findings of fact, the insured gold cargo lost in the
sinking of the SS ISLANDER is the property of Marine
Insurance Company. Ocean Mar was Marine Insurance
Company's contract salvor. KYL has never had any property
rights in the gold. The litigation between KYL and Islander
Partners, LP, had nothing to do with Ocean Mar's contract
rights to seek to recover Marine Insurance Company's
gold. As reflected by a recent Ocean Mar report,
[10]
Ocean Mar's salvage contract has expired and was not
renewed. KYL had no standing to oppose Tyche's instant
motion, and KYL has prudently withdrawn its opposition to
that motion.
Tyche
moves pursuant to Rule60(b)(6), Federal Rules of Civil
Procedure, for relief from the court's judgment and
findings of fact and conclusions of law entered in this case
in 1998.[11] This is indeed a situation where there
is good reason justifying relief with respect to the
court's judgment and conclusions of law. Although a
non-party to this litigation, Tyche “is in some form of
privity with a party to the judgment [being] attacked”
and Tyche's “interests [are] directly or strongly
affected by the judgment.” Flame S.A. v. Indus.
Carriers, Inc., 24 F.Supp.3d 513, 516 (E.D. Va. 2014);
Eyak Native Village v. Exxon Corp., 25 F.3d 773, 777
(9th Cir. 1994). As regards privity, Tyche is Marine
Insurance Company's successor salvage contractor. The
judgment and conclusions of law as presently written directly
affect Tyche's interest, for the court's conclusions
of law hold that “Ocean Mar is entitled to exclusive
salvage rights with respect to the wreckage of the SS
Islander.”[12]
The
court's 1998 conclusion that Ocean Mar had exclusive
salvage rights with respect to the wreckage of the SS
ISLANDER was rendered in the context of the court's
further conclusion that, “the Canadian Bank of Commerce
gold shipment which is now the legal property of Marine
Insurance Company [is] subject to Ocean Mar's rights
under the salvage contract.”[13] Ocean Mar is no longer
Marine Insurance Company's contract salvor,
[14]
and Tyche's U.K. solicitor avers that Royal & Sun
Alliance Insurance, plc, a group of British insurance
companies, is now the owner of Marine Insurance
Company.[15]Royal & Sun Alliance Insurance has
entered into a new salvage contract with Tyche.[16]
Marine
Insurance Company's ownership of the gold shipment is no
longer subject to Ocean Mar's salvage contract. Ocean Mar
has lost its exclusive salvage rights by virtue of the
expiration and non-renewal of Marine Insurance Company's
salvage contract with Ocean Mar. In consideration of the
foregoing, the court's 1998 conclusions of law that Ocean
Mar holds exclusive salvage rights are withdrawn.
The
court recognizes Tyche High Seas Capital Corp. as Marine
Insurance Company's contract salvor with exclusive
salvage rights with respect to the wreckage of the SS
ISLANDER.
At the
time that the court's findings of fact, conclusions of
law, and judgment were entered in 1998, there was, as
reflected by the court's findings, a contest between two
would-be salvors: Yukon Recovery, LLC, and Ocean Mar, Inc.
That situation no longer exists. Ocean Mar concedes that its
salvage contract has expired and was not renewed, and there
is no known party having a legal interest in salvaging the
wreck of the SS ISLANDER other than Tyche. The State of
Alaska does still have an interest in the recovery and
preservation of artifacts that may be found and raised in
connection with Tyche's salvage operations. A state's
attorney participated at the hearing on Tyche's motion,
and it is clear to the court that Tyche and the State of
Alaska are well along in the negotiation of a new contract
for the preservation of artifacts that might be raised from
the wreck of the SS ISLANDER.
In
consideration of the foregoing, the court perceives no
ongoing need for this court to retain jurisdiction. The
court's ongoing jurisdiction is terminated. Neither Ocean
Mar nor Tyche are obligated to file any further reports with
the court.
Tyche's
motion to amend findings of fact and conclusions of law is
granted. The portions of conclusions of law recognizing Ocean
Mar as Marine Insurance Company's exclusive salvor are
withdrawn. The clerk of court shall enter an amended judgment
in which Tyche High Seas Capital Corp. is substituted for
Ocean Mar as the duly authorized contract salvor of Marine
Insurance Company.
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