Tagaropulos, S.A. v. S.S. Santa Paula SS Hans Isbrandtsen

• Decision Date: 05 September 1974
• Docket Number: No. 73-2708,73-2708
• Citation: 1974 A.M.C. 2453,502 F.2d 1171
• Parties: TAGAROPULOS, S.A., a corporation, Appellant, v. S.S. SANTA PAULA ex SS HANS ISBRANDTSEN, its engines, tackle, apparel, furniture and spares, and all persons intervening for their interests therein, and Allied Tankers, Inc., a corporation, Defendants, Santa Margarita Tankers, Inc., Appellee.
• Court: U.S. Court of Appeals — Ninth Circuit

Page 1171

502 F.2d 1171

TAGAROPULOS, S.A., a corporation, Appellant, v. S.S. SANTA PAULA ex SS HANS ISBRANDTSEN, its engines,

tackle, apparel, furniture and spares, and all persons

intervening for their interests therein, and Allied Tankers,

Inc., a corporation, Defendants, Santa Margarita Tankers,

Inc., Appellee.

No. 73-2708.

United States Court of Appeals, Ninth Circuit.

Sept. 5, 1974.

Allan F. Bullard, San Pedro, Cal., for appellant.

Francis J. MacLaughlin, of Lillick, McHose, Wheat, Adams & Charles, Los Angeles, Cal., for appellee.

OPINION

Before ELY and CARTER, Circuit Judges, and EAST, District Judge. n1

ELY, Circuit Judge:

This appeal arises from the District Court's judgment denying the claim of appellant Tagaropulos, S.A., a corporation, (hereinafter Tagaropulos) against appellee Santa Margarita Tankers, Inc. (hereinafter Santa Margarita). The action was brought under 46 U.S.C. 971, entitling to persons furnishing necessaries to vessels the right to a maritime lien, and under 28 U.S.C. 1333. We have jurisdiction under 28 U.S.C. 1291.

The District Court found that Tagaropulos's alleged lien was barred by laches. The sole issue here is whether that finding was clearly erroneous. We affirm.

There is no significant dispute as to the facts. Tagaropulos, which operated a ship chandlering business in the Panama Canal Zone, delivered provisions to the ship from November, 1968, to June, 1970. During that time, the vessel was owned by Allied Tankers, Inc., a subsidiary of the Isbrandtsen Line. Although the terms of credit called for payment in thirty days, Tagaropulos allowed over two years to expire before the shipowner made any payment whatsoever. Allied's purchasing agent, central Purchasing & Service, Inc., did pay Tagaropulos $1,463.78 on February 17, 1970, and $11,431.32 on June 6, 1970. With a balance of over seven thousand dollars still owing, Tagaropulos allowed the ship's purchasing agent to charge additional supplies to the ship on June 18, 1970. The amount of this purchase was $24,261.44. No further payments were ever made, and the ship never returned to the Canal Zone.

It is apparent, we think, that Tagaropulos was inexcusably dilatory in attempting to collect the amounts owed to it by the ship. Despite the fact that Tagaropulos could have arrested the ship on any of the dates when it traversed the Canal between November, 1968, and June, 1970, Tagaropulos took no action other than attempting to contact the ship's purchasing agent. Furthermore, Tagaropulos could have ascertained the location of the ship after June, 1970, by either contacting Isbrandtsen's local agent or by requesting information from the Military Sea Transport Service. Tagaropulos knew that the ship was being operated under military contract. Tagaropulos did not file suit against either Allied Tankers or Central Purchasing & Services, Inc., nor did it seek to file a lien against the ship in its home port pursuant to 46 U.S.C. 925(a).

The ship, which was advertised for sale for over a year, was eventually purchased from Allied Tankers by Santa Margarita on December 6, 1970. Prior to the purchase, Santa Margarita had checked both the home port and the ship's log for liens outstanding against the ship. Although no liens were entered in the log, Santa Margarita did discover therein entries for repairs. Santa Margarita contacted the shipyards that had...