U.S. v. Lober, 80-1034

Decision Date12 November 1980
Docket NumberNo. 80-1034,80-1034
Citation630 F.2d 335
PartiesUNITED STATES of America, Plaintiff-Appellee, v. Claire LOBER et al., Defendants-Appellants. Summary Calendar.
CourtU.S. Court of Appeals — Fifth Circuit

McGlinchey, Stafford & Mintz, James M. Tompkins, New Orleans, La., Eastham, Watson, Dale & Forney, John P. Forney, Jr., Houston, Tex., for defendants-appellants.

C. Joanne Whitt, Constance Y. Singleton, Asst. U. S. Attys., Houston, Tex., for plaintiff-appellee.

Appeal from the United States District Court for the Southern District of Texas.

Before CHARLES CLARK, VANCE and SAM D. JOHNSON, Circuit Judges.

PER CURIAM:

This is an appeal from a successful action brought by the Government in the district court to enforce three administrative subpoenas. The subpoenas were issued by the Coast Guard in connection with a collision between the M/V STATE WAVE and an offshore oil platform in the Gulf of Mexico. We affirm the district court's enforcement of the subpoenas.

On July 13, 1978 the M/V STATE WAVE collided with an offshore oil platform in the Gulf of Mexico. The M/V STATE WAVE was owned by National Offshore Corporation and under bareboat charter to Hyco Sub-Sea, Inc. Hyco Sub-Sea contracted with State Boat Corporation to operate the vessel for a daily operating fee. Within two weeks of the collision, the Coast Guard issued subpoenas to the individual appellants in this case: Robert T. Lober, Dave S. Miller, and Claire Lober. These individuals are officers of the corporate appellants in this case. Robert T. Lober is president of National Offshore Corporation and National Boat Corporation; Dave S. Miller is vice president of National Offshore Corporation and National Boat Corporation; and Claire Lober is president and treasurer of State Boat Corporation.

The purpose of the Coast Guard investigation was to determine the cause of the accident and whether there was any evidence of misconduct or willful violation of the law by any licensed officer or the owner or agent of the M/V STATE WAVE. The Coast Guard issued the subpoenas to "unravel the complex corporate and management scheme involving the use of the M/V STATE WAVE" and to determine whether the M/V STATE WAVE was being operated in violation of 46 U.S.C. § 404 by carrying passengers or freight for hire without a valid Certificate of Inspection. The appellants make two objections to the subpoenas. First, appellants argue that the Coast Guard has no authority to investigate possible violations of Title 52 of the Revised Statutes, which includes 46 U.S.C. § 404, when there are no licensed officers or holders of Certificates of Service involved in the investigation. Second, appellants urge that the investigating officer failed to satisfy the requirements of due process in his investigation.

Under 46 U.S.C. § 239(d) (1958)

All acts in violation of any of the provisions of title 52 of the Revised Statutes or of any of the regulations issued thereunder, whether or not committed in connection with any marine casualty or accident, and all acts of incompetency or misconduct, whether or not committed in connection with any marine casualty or accident, committed by any licensed officer acting under authority of his license ... and all marine casualties and accidents and the attendant circumstances shall be immediately investigated as provided in subsections (a) and (b) of this section.

46 U.S.C. § 239(b) (1958) provides that

The Commandant of the Coast Guard shall establish rules and regulations for the investigation of marine casualties and accidents not involving loss of life, any act in violation of any of the provisions of title 52 of the Revised Statutes or of any of the regulations issued thereunder, and all cases of acts of incompetency or misconduct committed by any licensed officer or holder of a certificate of service ....

Reading Sections 239(b) and (d) together, appellants' contention that the Coast Guard is without authority to investigate violations of Title 52 when a licensed officer is not involved is untenable. Such a construction would enable an owner of a vessel to escape the provisions of 46 U.S.C. § 404, which requires the inspection of certain vessels and requires those vessels to be navigated by licensed officers. An owner, under appellants' interpretation, could avoid inspection of his vessel by the Coast Guard. Furthermore, he could circumvent the requirement of employing licensed officers to navigate the vessel. When the Coast Guard investigated, the owner could then assert that the Coast Guard lacked authority because no licensed officer was involved. We cannot accept this construction, because it clearly would frustrate the purposes of the inspection and licensing provisions. Accordingly, appellants' first challenge to the subpoenas is rejected.

Appellants also contend...

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