McCorkle v. First Pennsylvania Banking & Trust Co.
Decision Date | 07 December 1970 |
Docket Number | Civ. No. 70-158-K. |
Citation | 321 F. Supp. 149 |
Parties | William R. McCORKLE and Jeanne D. McCorkle v. The FIRST PENNSYLVANIA BANKING & TRUST CO. |
Court | U.S. District Court — District of Maryland |
Malcolm B. Kane, Columbia, Md., for plaintiffs.
James N. Vaughan, Ellicott City, Md., for defendant.
Plaintiffs seek a declaratory judgment pursuant to 28 U.S.C. § 2201, asking this Court to declare that the gas screw yacht "Safari," No. 507907, is not subject to a claim asserted by the defendant, The First Pennsylvania Banking & Trust Co., Philadelphia, a Pennsylvania corporation.1
Plaintiffs have moved for summary judgment under Rule 56 of the Federal Rules of Civil Procedure. There is no factual dispute herein. Thus, the case is ripe for consideration under Rule 56.
Defendant asserts a claim to the "Safari" arising from a purchase money security interest which defendant obtained from one Patrick J. Murphy in October, 1966. At that time, defendant properly perfected its security interest by filing on October 25, 1966 a financing statement under the Uniform Commercial Code, Md.Ann. Code art. 95B, § 9-401(1), in the Circuit Court for Harford County, Maryland.2 At that time, also, the "Safari" had not been registered as a "vessel of the United States," with its home port at Baltimore, Maryland, pursuant to 46 U.S.C. § 11. However, sometime in March, 1967, Murphy did enroll in the Collector's office in Baltimore the "Safari" as such a vessel, but did not disclose or indicate in connection with that enrollment any reference to any interest in that vessel of the defendant or of any person other than Murphy himself.
Plaintiffs bought the "Safari" from Murphy on December 19, 1967. Before so doing, plaintiffs searched the "Safari's" Abstract of Title in the Baltimore Customs House. That search disclosed no mortgages, liens or encumbrances against the boat. Indeed, plaintiffs did not learn of defendant's interest until January 30, 1969 when defendant, by letter, informed plaintiffs of the security interest defendant had obtained from Murphy.3
The perfection by defendant of its security interest prior to the "Safari" being enrolled as a "vessel of the United States," does not enable that security interest to prevail against the rights of subsequent bona fide purchasers. This is so because defendant did not record its mortgage with the Collector of Customs of the vessel's home port, in accordance with the Ship Mortgage Act, 46 U.S.C. § 921.4
Defendant relies on Stinson v. Minor, 34 Ind. 89 (1870). In Atlas Imperial Diesel Engine Co. v. Criscuolo, 32 Cal. App.2d 244, 89 P.2d 674, 676-677 (1939), cert. denied, 308 U.S. 620, 60 S. Ct. 265, 84 L.Ed. 517 (1940), reh. denied, 308 U.S. 639, 60 S.Ct. 382, 84 L. Ed. 531 (1940), the Court wrote:
In the Perkins case, the Maine Court stated (at 320-321):
See also Foster v. Chamberlain & Co., 41 Ala. 158 (1867). And in The Vigilancia, 73 F. 452, 455 (C.C.A. 2, 1896), the Court stated:
State statutes are inoperative as to vessel mortgages which have been properly recorded pursuant to the laws of congress.
In Stewart & Co. v. Rivara, 274 U.S. 614, 618, 47 S.Ct. 718, 720, 71 L.Ed. 1234 (1927), the Supreme Court of the United States noted:
The Recording Act (9 Stat. 440) was passed to furnish information...
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McCorkle v. First Pennsylvania Banking and Trust Co.
...question for the first time at the appellate level, we reluctantly accept its contentions. The judgment of the District Court, 321 F.Supp. 149, must be vacated and the case dismissed for lack of subject-matter I. Facts There is no contest concerning the facts. In October 1966, Patrick Murph......
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In re Velikopoljski, Bankruptcy No. 84-02386-BKC-SMW
...successfully resisted by the trustee in bankruptcy. emphasis added Penglase, supra, at 596.6 See also McCorkle v. First Pennsylvania Banking & Trust Co., 321 F.Supp. 149 (Maryland 1970).7 The issues and facts in the present case are not affected by the provisions of the Bankruptcy Code whic......