Banco de Credito Indus., S.A. v. Tesoreria General
| Decision Date | 14 May 1993 |
| Docket Number | 92-3100 and 92-3298,Nos. 91-3922,s. 91-3922 |
| Citation | 990 F.2d 827 |
| Parties | , 25 Fed.R.Serv.3d 1042 BANCO de CREDITO INDUSTRIAL, S.A., Plaintiff-Appellee, v. TESORERIA GENERAL de la, SEGURIDAD SOCIAL de ESPANA,Intervenor-Appellant, v. STOLT LUISA PANDO M/T, Defendants. PARCEL TANKERS, INC., Plaintiff, and Banco de Credito Industrial, S.A., Plaintiff-Appellee, v. TESORERIA GENERAL de la SEGURIDAD SOCIAL de ESPANA, Intervenor-Appellant, v. STOLT LUISA PANDO M/T, et al., Defendants. WOODHOUSE DRAKE & CARRY, LTD., Plaintiff, and Banco de Credito Industrial, S.A., Plaintiff-Appellee, v. TESORERIA GENERAL de la, SEGURIDAD SOCIAL de ESPANA,Intervenor-Appellant, v. STOLT LUISA PANDO M/T, Defendant. BANCO de CREDITO INDUSTRIAL, S.A., Plaintiff-Appellee, v. TESORERIA GENERAL de la SEGURIDAD SOCIAL de ESPANA, Intervenor-Appellant, v. M/T STOLT MARIA PANDO, in rem, et al., Defendants. BANCO de CREDITO INDUSTRIAL, S.A., Plaintiff-Appellee, v. STOLT LUISA PANDO M/T, et al., Defendants, Felix Acha Fernandez, et al., Crewmembers of Stolt Luisa Pando M/T, Intervenors-Appellants. PARCEL TANKERS, INC., Plaintiff, and Banco de Credito Industrial, S.A., Plaintiff-Appellee, v. STOLT LUISA PANDO M/T, et al., Defendants, Felix Acha Fernandez, et al., Crewmembers of Stolt Luisa Pando M/T, Intervenors-Appellants. BANCO de CREDITO INDUSTRIAL, S.A., Plaintiff-Appellee, v. STOLT LUISA PANDO M/T, et al., Defendants, Felix Acha Fernandez, et al., Crewmembers of Stolt Luisa Pando M/T, Intervenors-Appellants. BANCO de CREDITO INDUSTRIAL, S.A., Plaintiff-Appellee, v. STOLT LUISA PANDO M/T, et al., Defendants, Felix Acha Fernandez, et al., Crewmembers of Stolt Luisa Pando M/T, Intervenors-Appellants. PARCEL TANKERS, INC., Plaintiff, and Banco de Credito Industrial, S.A., Plaintiff-Appellee, v. STOLT LUISA PANDO M/T, et al., Defendants, Felix Acha Fernandez, et al., Crewmembers of Stolt Luisa Pando M/T, Intervenors-Appellants. BANCO de CREDITO INDUSTRIAL, S.A., Plaintiff-Appellee, v. STOLT LUISA PANDO M/T, et al., Defendants, Felix Acha Fernandez, et al., Crewmembers of Stolt |
| Court | U.S. Court of Appeals — Fifth Circuit |
Derek A. Walker, Daphne P. McNutt, Douglas Grundmeyer, Chaffe, McCall, Phillips, Toler & Sarpy, New Orleans, LA, for Ministerio de Trabajo y Seguridad Soc., Tesoreria Gen., et al.
Christopher Ogilvie Davis, Phelps Dunbar, Brian D. Wallace, New Orleans, LA, for Banco de Credito Indus. S.A., in 92-3922
Richard J. Dodson, Richard P. Bullock, Baton Rouge, LA, for appellants in 92-3100 and 92-3298.
Luther Munford, Jackson, MS, Christopher Ogilvie Davis, Phelps Dunbar, Bethany Jackson, New Orleans, LA, for appellee in 92-3100.
Luther Munford, Jackson, MS, Christopher Ogilvie Davis, Phelps Dunbar, Brian D. Wallace, New Orleans, LA, for Banco de Credito in 92-3298.
Appeals from the United States District Court for the Eastern District of Louisiana.
Before DUHE and BARKSDALE, Circuit Judges, and HUNTER, 1 District Judge.
Two vessels subject to valid mortgages under Spanish law were seized by the mortgage-holder and sold in an American forum. Various claimants sought to intervene and share in the sale proceeds. The district court ascertained the validity of the various claims, and then ranked them. Appellants argue that the district court erred by denying preferred maritime lien status to claims for unpaid social security contributions due an agency of the Spanish government, and by denying a motion to intervene filed by the crewmembers of the seized vessels. We find no reversible error, and affirm.
In July 1990, the vessels STOLT LUISA PANDO and STOLT MARIA PANDO were arrested. 2 Both vessels were owned by Maritima Antares, S.A., a Spanish corporation, and were subject to a first preferred ship mortgage held by Banco de Credito Industrial, S.A. 3 ("BCI"), another Spanish entity. These vessels were sold by judicial auction, and over $40 million was placed in the district court's registry.
Into this fray ventured Tesoreria General de la Seguridad Social de Espana ("Tesoreria General"), the Spanish Social Security administration. Tesoreria General alleged that Maritima Antares failed to remit to it social security contributions for the seamen employed by Maritima Antares aboard the STOLT LUISA PANDO and the STOLT MARIA PANDO. Tesoreria General attempted to satisfy Maritima's obligation out of the sale proceeds deposited in the court's registry.
Also seeking access to these funds were crewmembers who had served aboard the respective ships. 4 The crewmen asserted that they were entitled to a "preferred maritime lien" for wages due them. See 46 U.S.C. § 31301(5)(D) (Supp.1992). 5 Preferred maritime liens "prime" or outrank a preferred ship mortgage. Id. at § 31326(b)(1). If the seamen's wage claim was permitted, it would take priority over BCI's vessel mortgage.
The district court allowed only partial intervention. Crewmembers were permitted to assert claims they may have against BCI for monies withheld by Maritima but not remitted to the appropriate agencies of the Spanish government. The district court, however, denied the seamen's request to assert claims against Maritima Antares and the sale proceeds. The crewmembers were given a deadline within which to file materials to support a claim against BCI. When this deadline passed without any action by the crewmembers, the court dismissed the crewmembers' intervention request in its entirety. The crewmembers now urge us to find that the district court's decision went beyond the dictates of Federal Rule Civil Procedure 24, 6 and that intervention against the sale proceeds should have been permitted.
The district court also held that BCI's ship mortgage was a "preferred mortgage" under 46 U.S.C. § 31301(6)(B). 7 In an attempt to prime BCI's preferred ship mortgage, Tesoreria General asserted that its claim for unpaid social security contributions was in the same preferred category and entitled to the same status as claims for crew wages. The district court concluded that the law of Spain governed the "validity and substance" of Tesoreria General's lien claim because that lien, if any, would have to be created under Spanish law. Neither party contests the application of Spanish law to this issue. Tesoreria General contends that the district court incorrectly determined that Spain does not accord lien status, similar to a claim for wages, to unpaid social security contributions.
The district court held that the crewmen did not have an "interest relating to the property or transaction," as required in Rule 24, at least with regard to accessing sale proceeds held by the court. See Fed.R.Civ.P. 24(a)(2). It found that the crewmen assigned any wage claims they may have had against Maritima Antares to BCI by virtue of a January 1991 agreement negotiated between BCI and the seamen's representative, the Merchant Marine Syndicate U.G.T. ("the Union").
The de novo standard governs our review of the crewmens' intervention request. See United States v. Texas Eastern Transmission Corp., 923 F.2d 410, 413 (5th Cir.1991); Mothersill D.I.S.C. Corp. v. Petroleos Mexicanos, S.A., 831 F.2d 59, 61-62 (5th Cir.1987). Our review of the district court's interpretation of the January 1991 agreement is also de novo. Shelton v. Exxon Corp., 921 F.2d 595, 602 (5th Cir.1991).
The crewmens' right to intervene turns on whether or not the January 1991 agreement between the Union and BCI abrogated potential wage claims the crewmen could assert against Maritima Antares. If the district court was correct in concluding that, by virtue of the January 1991 agreement, the crewmembers assigned all wage claims to BCI, the seamen do not possess the necessary interest in the controversy to support intervention of right. See Fed.R.Civ.P. 24(a)(2); New Orleans Public Service, Inc. v. United Gas Pipe Line Co., 732 F.2d 452, 466 (5th Cir.) (en banc), cert. denied, 469 U.S. 1019, 105 S.Ct. 434, 83 L.Ed.2d 360 (1984).
Like the district court, we find nothing ambiguous about the January 1991 agreement. In its opening paragraph, the Merchant Marine Syndicate U.G.T. indicates that it is acting in a representative capacity on behalf of the employees of Maritima Antares, S.A. See Case No. 92-3100 R. vol. 1, at 74. 8 The latter provisions of the agreement clearly evince the intent of the parties:
FIRST--That, by virtue of proceedings pursuant to the employment regulation approved by the Resolution of 12-13-90 and adopted by the Provincial Labor Directorate of Cantabria on 12-21-90, the employment relations of CIA. MARITIMA ANTARES, S.A. and its seamen were resolved.
SECOND--That the CIA. MARITIMA ANTARES, S.A. owes said employees, included in the aforementioned proceedings, the amount of 414,931,064 million pesetas for wages up to 12-21-90, [which figure] includes the final liquidation of its debts.
* * * * * *
THIRD--That BANCO DE CREDITO INDUSTRIAL, S.A. is a creditor of CIA. MARITIMA ANTARES, S.A., having secured its advances with mortgages on the following vessels belonging to the company, STOLT MARIA PANDO, STOLT LUISA PANDO....
FOURTH--In that the aforementioned labor credits owed to the employees have preferred status with respect to the mortgage credits held by BANCO DE CREDITO INDUSTRIAL, S.A. in accordance with the legislation specifically controlling maritime credits [liens], said Bank is interested in acquiring the referenced credits [held by the employees] and, as the employees are in agreement, both parties do so in conformity with the following[.]
From the foregoing, it is evident that both parties were aware they were bringing the matter to a conclusion: the employment relations between Maritima Antares and the seamen were "resolved," and this resolution was approved by the Provincial Labor Directorate. BCA acquired the labor...
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