RECOMMENDED FOR FULL-TEXT PUBLICATION
Pursuant to Sixth Circuit Rule 206
ELECTRONIC CITATION: 2001 FED App. 0120P (6th
Cir.)
File Name: 01a0120p.06
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT
_________________
Fairport International Exploration, Inc.,
Plaintiff-Appellant,
v.
The Shipwrecked Vessel, known as the Captain
Lawrence, in rem,
Defendant,
State of Michigan,
Intervenor-Appellee. |
No. 99-2415 |
Appeal from the United States District Court
for the Western District of Michigan at Marquette.
No. 94-00164--Robert Holmes Bell, District
Judge.
Argued: January 23, 2001
Decided and Filed: April 17, 2001
Before: BOGGS and MOORE, Circuit Judges; COHN,
District Judge.(*)
_________________
COUNSEL
ARGUED: Michael L. Donner, Sr., CARTER,
LEDYARD & MILBURN, Washington, D.C., for Appellant. Joshua W. Gubkin,
STATE OF MICHIGAN, Lansing, Michigan, for Appellee. ON BRIEF: Michael
L. Donner, Sr., CARTER, LEDYARD & MILBURN, Washington, D.C., for Appellant.
Stephen F. Schuesler, OFFICE OF THE ATTORNEY GENERAL, Lansing, Michigan,
for Appellee.
_________________
OPINION
_________________
BOGGS, Circuit Judge.
Plaintiff Fairport International Exploration, Inc. ("Fairport") appeals
the district court's dismissal of its in rem admiralty action seeking to
establish its right to a shipwrecked vessel, the Captain Lawrence.
For the following reasons, we affirm.
I
This is the latest
installment in the ongoing saga of the Captain Lawrence, a boat
that sank in 1933 near Poverty Island in northern Lake Michigan. Built
in 1898, the vessel was purchased in 1931 by Wilfred H. Behrens. The Captain
Lawrence met its demise when Behrens and his crew sailed from Milwaukee
to northern Lake Michigan in an attempt to locate gold which, legend has
it, sank in northern Lake Michigan during the Civil War. Decades after
the 1933 shipwreck and Behrens's death in 1959, Steven Libert, president
of Fairport, learned of the legend of the lost gold. Libert discovered
what he believes to be remains of the vessel during dives off Poverty Island
in 1984 and 1985. In 1993, the State of Michigan refused Libert's request
to dredge an area of lake bed where he believes the Captain Lawrence
is embedded. In 1994, Behrens's heirs assigned to Fairport the exclusive
right to salvage the remains of the vessel. The remaining facts of the
case appear in this court's last encounter with the Captain Lawrence.
Fairport Int'l Exploration, Inc. v. The Captain Lawrence, 177 F.3d
491, 493-94 (6th Cir. 1999). The pertinent facts related to the present
appeal will be set forth during the course of this opinion.
II
On June 27, 1994,
Fairport initiated this proceeding in the United States District Court
for the Western District of Michigan by filing an in rem admiralty action
against the Captain Lawrence. The State of Michigan ("the State")
intervened, asserting title to the wreck of the Captain Lawrence
under the Abandoned Shipwreck Act, 43 U.S.C. §§ 2101-06 ("the
ASA").(1) The State moved to dismiss Fairport's action
for lack of jurisdiction based on the Eleventh Amendment to the United
States Constitution. The district court determined that jurisdiction depended
on whether the ASA had transferred title to the Captain Lawrence
to the State, a question that turned on whether the owner of the Captain
Lawrence, Wilfred Behrens, had abandoned the vessel. The district court
conducted an evidentiary hearing and later dismissed Fairport's action.
Fairport Int'l Exploration, Inc. v. The Captain Lawrence, 913 F. Supp.
552 (W.D. Mich. 1995) ("Fairport I"). The court found that
the State did not need to establish definitively that the vessel was abandoned.
According to the court, the Eleventh Amendment would bar the suit if the
State showed by a preponderance of the evidence that Behrens abandoned
the Captain Lawrence and that, therefore, the State had a colorable
claim to it. The district court concluded that the State met this standard
and found that the State had a colorable claim of ownership of the Captain
Lawrence under the ASA. As a result, the district court held that the
Eleventh Amendment prohibited Fairport's action against the State.
Fairport appealed
the district court's decision in Fairport I. This court affirmed
the district court's ruling. Fairport Int'l Exploration, Inc. v. The
Captain Lawrence, 105 F.3d 1078 (6th Cir. 1997) ("Fairport II").
On April 27, 1998, the United States Supreme Court vacated Fairport
II and remanded the case to this court for proceedings consistent
with the Supreme Court's holding in California v. Deep Sea Research,
Inc., 523 U.S. 491 (1998).
In Fairport Int'l
Exploration, Inc. v. The Captain Lawrence, 177 F.3d 491 (6th Cir. 1999)
("Fairport III"), this court applied Deep Sea Research
and remanded the case to the district court with instructions to apply
the "clear and convincing evidence" standard in order to determine whether
the State proved that Behrens abandoned the Captain Lawrence under
the ASA. According to Deep Sea Research, it was improper for the
district court to conclude that the Eleventh Amendment barred suit against
the State once the State established that it had a colorable claim to the
vessel. This court noted that Deep Sea Research "definitively instructs
us that, if a State does not possess a shipwreck, the Eleventh Amendment
does not prevent a federal court from entertaining claims under the ASA
to the shipwreck." Fairport III, 177 F.3d at 497. This court
ordered the district court to "conduct only one 'abandonment' inquiry,
[which] does not ask a preliminary jurisdictional question, but rather
resolves whether Behrens abandoned the ship, and thus whether the ASA transfers
title to Michigan."
Ibid. The district court was instructed to "consider
whether Michigan can prove that it owns the shipwreck--that is, whether
clear and convincing evidence shows that Behrens abandoned the Captain
Lawrence." Id. at 501.(2)
This court elaborated
on the evidence that the district court was to consider when applying the
clear and convincing evidence standard:
[T]he district court must reexamine,
and supplement if necessary, the evidence adduced in the earlier proceedings
. . . . In light of the conflicting evidence regarding whether Behrens
had access to the technology necessary to salvage the ship, the lack of
evidence concerning whether Behrens ever returned to Poverty Island, and
the testimony regarding Behrens's intention to return, the district court
must determine 'whether the evidence is fit to induce conviction in the
minds of reasonable persons under this elevated, relatively stringent evidentiary
standard.' Miller's Bottled Gas, Inc. v. Borg-Warner Corp., 955
F.2d 1043, 1050 (6th Cir. 1992).
Id. at 501. In a footnote at the end of
this passage, this court stated:
While the record might support a
logical inference that Behrens did not intend to reclaim his ship, it also
appears to support a finding that Behrens passed away before he raised
the funds to effect a salvage operation; his lack of overt efforts to claim
the ship may comport as much with a concern for secreting the putative
gold as with an intent to abandon the ship.
Id. at 501 n.4.
Following remand,
on November 2, 1999, the district court again dismissed Fairport's claim.
Fairport Int'l Exploration, Inc. v. The Captain Lawrence, 72 F. Supp.
2d 795 (W.D. Mich. 1999) ("Fairport IV"). The district court
did not conduct an evidentiary hearing on remand. The court reviewed the
existing record in the case, including the conflicting evidence noted by
this court in Fairport III, and concluded that the evidence
clearly and convincingly supported the conclusion that Behrens abandoned
his vessel. Fairport timely filed a notice of appeal.
III
Fairport argues that
the district court should have conducted an evidentiary hearing before
determining if the State could prove by clear and convincing evidence that
the Captain Lawrence was abandoned. Fairport requests that we remand
this case to the district court with instructions to conduct an evidentiary
hearing. In the alternative, Fairport argues that the district court erred
in concluding that the State proved by clear and convincing evidence that
the Captain Lawrence was abandoned. We will address each of Fairport's
arguments in turn.
A
This court reviews
a district court's decision not to conduct an evidentiary hearing for abuse
of discretion. See Cook v. American Steamship Co., 134 F.3d 771,
775 (6th Cir. 1998). Under this standard, this court will affirm the district
court unless this court is left with "a definite and firm conviction that
the trial court committed a clear error of judgment."
Monette v. AM-7-7
Baking Co., 929 F.2d 276, 280 (6th Cir. 1991); Davis v. Jellico
Community Hosp., Inc., 912 F.2d 129, 133 (6th Cir. 1990).
Fairport argues that
the district court erred in not conducting an evidentiary hearing when
this case was remanded to the district court pursuant to Fairport
III. Fairport contends that the original evidentiary hearing conducted
on April 12-13, 1995 was insufficient in light of the subsequent legal
developments that occurred in the case. In addition, Fairport claims that
this court "strongly hinted" that another evidentiary hearing may be helpful,
when stating in Fairport III, "[W]e observe that the district
court must reexamine, and supplement if necessary, the evidence adduced
in the earlier proceedings." 177 F.3d at 501. In Fairport III, this
court specifically mentioned that conflicting evidence existed as to whether
Behrens: (1) possessed the technology to salvage the Captain Lawrence,
(2) returned to Poverty Island, and (3) intended to return to salvage his
ship. Ibid. Fairport claims that the fact that this court mentioned
the existence of this conflicting evidence supports the need for another
evidentiary hearing.
This court did not
mandate that the district court conduct an evidentiary hearing on remand,
however. That decision rested solely in the discretion of the district
court. This court ordered the district court to reexamine the evidence
presented in the earlier proceedings. The district court did indeed do
so, including discussing the areas of conflicting evidence that this court
described in Fairport III. This court also instructed the district
court to supplement the evidence if necessary, leaving the final
decision on conducting an evidentiary hearing in the hands of the district
court.
In deciding not to
conduct a second evidentiary hearing, the district court noted that given
the increased burden placed on the State on remand, Fairport had no greater
incentive to bring evidence of non-abandonment than it had at the original
evidentiary hearing:
Because the State was held to a lower
standard of proof at the [original] evidentiary hearing, Plaintiff had
a strong incentive to make its best case on the issue of abandonment at
the time of the original hearing. Because the State is now being held to
a higher burden of proof, Plaintiff has no greater incentive on review
than it had at the initial evidentiary hearing to bring forward evidence
in support of its position of non-abandonment. The Court does not believe
a second evidentiary hearing is necessary to protect Plaintiff's interests.
Fairport IV, 72 F. Supp. 2d at 797-98.
The district court offered a rational explanation for its decision not
to conduct a second evidentiary hearing in light of the higher burden of
proof being applied to the State on remand.
The only case Fairport
relies upon to support its position is Employers Ins. of Wausau v. Petroleum
Specialties, Inc., 69 F.3d 98 (6th Cir. 1995). In that case, however,
the district court granted summary judgment sua sponte without the
non-moving party having had the opportunity to develop a record. Id.
at 105. That, of course, is a much different situation than here, in which
a record had been developed, new evidence had not come to light after the
initial evidentiary hearing, and the case was returned to the district
court to re-analyze the evidence under a different legal standard.
In Fairport III,
this court did not mandate a second evidentiary hearing. In Fairport
IV, the district court offered a rational explanation for why it believed
a second evidentiary hearing was not necessary. In this appeal, Fairport
has not presented a convincing legal argument that the district court abused
its discretion in not conducting a second evidentiary hearing. Therefore,
we conclude that the district court did not abuse its discretion in not
conducting a second evidentiary hearing.
B
In reviewing the
district court's determination that the State proved by clear and convincing
evidence that the Captain Lawrence was abandoned, we note that a
factual determination of the district court will not be overturned by this
court unless it is clearly erroneous. A factual determination is clearly
erroneous if, upon review of the entire evidence, this court is level with
the definite and firm conviction that a mistake was committed. See Bldg.
Serv. Local 47 Cleaning Contractors Pension Plan v. Grandview Raceway,
46 F.3d 1392, 1399 (6th Cir. 1995). This court normally gives great deference
to the district court's factual determinations since the district court
is in a superior position to appraise the evidence and to judge the credibility
of witnesses. See ibid.
When this court remanded
this case to the district court to determine if the State had proven by
clear and convincing evidence that the Captain Lawrence was abandoned,
the district court was instructed that the State may prove by inference
that a shipwreck last owned by a private party was "abandoned." Fairport
IV, 72 F. Supp. 2d 795, 797 (citing Fairport III, 177 F.3d at
500). This court noted that neither lapse of time nor an owner's failure
to return, standing by themselves, will necessarily establish abandonment.
Ibid. Instead, these may be part of a combination of facts that may
support a finding of abandonment if, taken together, they clearly and convincingly
show that abandonment occurred. Fairport III, 177 F.3d at
500.
In remanding the
case to the district court, this court noted several facts about which
there existed conflicting evidence, namely: (1) whether Behrens had access
to the technology necessary to salvage the ship, (2) whether Behrens ever
returned to Poverty Island, (3) whether Behrens intended to return, and
(4) whether a lack of funds or "a concern for secreting the putative gold"
explained why Behrens did not attempt to salvage the ship. Id. at
501 & n.4. Fairport challenges the district court's findings as to
each of these facts. First, Fairport claims that the district court did
not "clearly and convincingly exclude the hypothesis that it was poverty,
not an intent to abandon, that kept Behrens from returning to salvage the
Captain
Lawrence." Plaintiff-Appellant's Brief at 12. Second, Fairport claims
that the district court erred in its factual findings that Behrens had
access to the technology necessary to recover the Captain Lawrence
and that Behrens did not attempt or intend to attempt to salvage the Captain
Lawrence. As a result of these errors, Fairport claims that the district
court erred in its ultimate finding that the State clearly and convincingly
proved that the Captain Lawrence was abandoned. We will first address
Fairport's arguments regarding the poverty hypothesis and then address
Fairport's arguments regarding the district court's finding of abandonment.
1
Fairport argues that
this court's language in footnote four of Fairport III indicates
that this court intended that the district court weigh the hypothesis that
it was poverty that caused Behrens not to attempt to recover the Captain
Lawrence with the hypothesis that Behrens abandoned the ship. Fairport
contends that the district court erred by not weighing these hypotheses.
Before considering
Fairport's argument that the district court did not adequately weigh the
competing hypotheses, we must address Fairport's initial assertion that
this court directed a weighing of hypotheses. Nowhere in Fairport
III did this court state that the district court was required to
weigh the poverty hypothesis against the abandonment hypothesis. Nor did
this court direct the State to disprove the poverty hypothesis by clear
and convincing evidence. The test was clearly stated: The State had to
prove clearly and convincingly that Behrens abandoned his ship. This court
noted that evidence in the record might support a finding that Behrens
was unable to raise the funds necessary to attempt to recover the ship,
but this brief mention in a footnote cannot be interpreted as Fairport
would have it. Fairport III, 177 F.3d at 501 n.4. It was not necessary
for the district court, nor is it necessary for this court, to engage in
a weighing of hypotheses. It also was not necessary for the district court,
nor is it necessary for this court, to force the State to disprove the
poverty hypothesis by clear and convincing evidence. Such a standard has
no support in the ASA or in case law.
While it was not
necessary for the district court to engage in a weighing of hypotheses,
it was appropriate for the district court to consider evidence that poverty
or a motivation to conceal the putative gold explains why Behrens did not
return to the ship. The district court did consider this evidence and concluded
that it was not sufficient to prevent the court from finding that Behrens
abandoned the Captain Lawrence. On appeal, we review the evidence
Fairport presents regarding Behrens's alleged poverty not to weigh the
evidence against that of abandonment, but to consider whether the evidence
is so strong as to undermine the district court's ultimate finding of abandonment.
Fairport relies on
the following evidence to support its theory that it was poverty, not an
intent to abandon, that prevented Behrens from salvaging the Captain
Lawrence:
(1)The district court found in Fairport
I that Behrens, after 1933, never owned "another boat worthy of the
lake waters around Poverty Island." 913 F. Supp. at 555.
(2)Before Behrens set out on his
fateful voyage, he did not purchase a new boat, but instead he purchased
the Captain Lawrence, a boat built in 1898 that had been raised
from the bottom of the Menominee River in 1931. At the time he purchased
it, the Captain Lawrence had depreciated to a fraction of what Behrens
would have had to spend on a comparable new boat. Behrens paid $150 for
the Captain Lawrence and recorded his loss in the Record of Casualty
at $200. New boats ranged in value from $165 for an 8-foot dinghy, $1200
for a 22-foot outboard motor launch, $2500 for a 40-foot schooner, and
$14,500 for a 60-foot schooner similar to the Captain Lawrence.
In addition, Behrens was unable to afford insurance on the Captain Lawrence.
(3)In Fairport I, the
district court found that "[Behrens's daughters] recalled that he would
go up north on diving expeditions . . . and that he was concerned about
getting funds to finance an expedition." 913 F. Supp. at 555.
(4)Alice Bergmans, Behrens's daughter,
testified that: (1) when Behrens died he was so poor that other family
members had to pay to bury him; (2) Behrens "mentioned his boat, the Captain
Lawrence, and he was trying to finance it so that he could go back
and repair it or do something to it;" (3) "I don't think he ever gave up
the thought of it because he was trying to get money to do it, and I don't
think he ever gave it up because he always talked about his boat . . .
. ;" (4) "I think that's where he did go [the Captain Lawrence wreck
site] to try to make arrangements and everything, but it was the money
that he had to get his crew together and everything."
The district court was
not required to consider this evidence as a hypothesis to be weighed against
a separate hypothesis that Behrens abandoned the Captain Lawrence.
Rather, the district court was to consider this evidence in light of the
remaining evidence presented by the State in order to prove that Behrens
abandoned the Captain Lawrence. This is precisely what the district
court did in concluding that, even in light of this evidence of Behrens's
alleged poverty, the State proved by clear and convincing evidence that
Behrens intended to abandon the Captain Lawrence.
We agree with the
district court's finding. The evidence Fairport relies upon to demonstrate
that poverty prevented Behrens from recovering the Captain Lawrence
is meager. Most of the evidence does not even address Behrens's financial
status after the wreck of the Captain Lawrence. The most substantial
portion of the evidence as to this point was the testimony of Bergmans.
However, the district court determined that it would not give the testimony
much weight, stating that it was "based on very old and incomplete memories"
and was of a "self-serving nature." 72 F. Supp. 2d at 800. Upon review
of Bergmans's testimony and the district court's explanation for why it
did not believe the testimony was credible, we conclude that the district
court acted properly in not according it significant weight.
Fairport claims that
the district court's only(3) other attempt to address
the poverty hypothesis was noting that in 1936 a salvage diver charged
approximately $100 per day for Lake Michigan salvage from a rental boat.
Id. at 799. This evidence was placed into the record by Kenneth
R. Pott, a witness for the State. Fairport contends that Pott's testimony
was hearsay-within-hearsay, because his testimony was based on information
in a newsletter published by the Wisconsin Marine Historical Society containing
an historical account of the cost of salvage divers in 1936. Fairport's
contention that this evidence is hearsay is without merit. Pott, a maritime
archaeologist and curator of the Michigan Maritime Museum, testified as
an expert witness. The basis for his opinion on salvage costs in the 1930s
was of a type reasonably relied upon by experts in the field. Furthermore,
Fairport did not object to Pott's testimony when it was given.
In light of the meager
evidence presented by Fairport, the district court's proper determination
not to give great weight to Bergmans's testimony, and the additional evidence
relied upon by the district court in finding that Behrens could afford
to salvage the Captain Lawrence, we conclude that the district court's
finding that poverty did not prevent Behrens from attempting to salvage
the Captain Lawrence was not clearly erroneous.
2
Fairport also claims
that, regardless of the poverty hypothesis, the district court's finding
that Behrens abandoned the
Captain Lawrence was clearly erroneous.
Fairport notes that in Fairport IV, the district court incorporated
its findings of fact from Fairport I. The findings included
the following: (1) the Captain Lawrence was a relatively recent
wreck; (2) the
Captain Lawrence sank in 40-60 feet of water; (3)
it was technologically feasible to recover the Captain Lawrence
in 1933; (4) Behrens valued the Captain Lawrence at $200 and wrote
it off as a "total loss" on the casualty report he filed; (5) Behrens had
no insurance on the Captain Lawrence when it sank; (6) Behrens declined
lifesaving assistance from the Coast Guard; (7) Behrens never attempted
to salvage the wreck; and (8) Behrens died intestate. Fairport IV,
72 F. Supp. 2d at 798. Fairport concedes all of these findings of fact
except (3) and (7). Fairport claims that these two findings of fact,(4)
however, were clearly erroneous and that, as a result, the district court's
ultimate finding that Behrens abandoned the
Captain Lawrence was
clearly erroneous.
In concluding that
it was technologically feasible for Behrens to recover the Captain Lawrence
in 1933, the district court relied on a number of facts. The district court
noted evidence indicating that the remains of the Captain Lawrence
were accessible to Behrens. In the Report of Casualty, Behrens stated that
a wind came up and threw the Captain Lawrence onto the beach. Fairport's
president, Steven Libert, testified that portions of the wreckage, including
a door, were found on Poverty Island. In addition, there was evidence that
the vessel was pounded to pieces. Finally, to the extent that portions
of the Captain Lawrence sank in the water, testimony revealed that
the wreckage allegedly associated with the Captain Lawrence is in
40 to 60 feet of water along the north coast of Poverty Island. Ibid.
The district court
also noted that Behrens had the capability of recovering portions of the
wreckage of the Captain Lawrence. The district court stated that
SCUBA, which was not invented until World War II and was not commonly used
in the United States until the 1950s, would not have been necessary for
Behrens to have used to recover the remains of the
Captain Lawrence.
Id. at 798-99. Evidence indicated that Behrens continued to engage
in salvaging operations after the destruction of the Captain Lawrence
and that he dove with a hard hat, a heavy suit, and lead boots, and breathed
through a hose that supplied air from the surface. Id. at 799. The
district court stated that "[t]here appears to be no dispute that a hard
hat diver could have engaged in salvaging operations at depths of 40-60
feet. Moreover, the wreckage would not have been so widely scattered before
the winter storms and the lapse of some 60 years." Ibid.
According to the
district court, only evidence relating to visibility supported the possibility
that it was not feasible to recover the Captain Lawrence. There
was evidence in the record that walking of the lake bottom in lead boots
would have stirred up silt on the lake bottom and reduced visibility to
close to zero. However, the district court concluded that, "Although salvaging
might have been more difficult in the days before SCUBA, the Court does
not find that Behrens lacked access to the technology necessary to salvage
the vessel." Ibid.
Fairport challenges
these factual findings. Fairport states that the district court found in
Fairport I that the Captain Lawrence was embedded
in the bottom of Lake Michigan. 913 F. Supp. at 557. As a result, Fairport
asserts that it would be impossible for hard hat divers of the 1930s, or
for SCUBA divers, to locate the wreck. According to Fairport, the technology
necessary to locate an embedded wreck is remote sensing technology, which
allows salvagers to find wrecks embedded in the bottomland, but which was
not available until the 1980s. Fairport also disputes the district court's
statement regarding visibility. Fairport relies on the testimony of one
of the State's witnesses, John Halsey, who stated that salvage under these
conditions would be not just more difficult, but "almost impossible." Fairport
asserts that since the remains of the Captain Lawrence were embedded
and visibility for a hard hat diver on the lake bottom would be "almost
impossible," the district court erred in concluding that it was technologically
feasible for Behrens to recover the Captain Lawrence in 1933.
The evidence relied
upon by Fairport simply is not enough to demonstrate that the district
court clearly erred in its finding that it was technologically feasible
for Behrens to recover the Captain Lawrence in 1933. It is true
that in Fairport I, the district court stated that the Captain
Lawrence was embedded, but the district court was referring to the
present state of remains of the vessel. 913 F. Supp. at 556. At no time
has the district court stated that the remains of the Captain Lawrence
were embedded in bottomland immediately after the shipwreck or soon thereafter.
Moreover, the district court noted in Fairport IV that, "portions
of the wreckage, including a door, were found on Poverty Island. There
is also evidence that the vessel was pounded to pieces. To the extent that
portions of the vessel sank in the water, the testimony revealed that the
wreckage allegedly associated with the Captain Lawrence is in 40
to 60 feet of water along the north coast of Poverty Island." 72 F. Supp.
2d at 798. In addition, the district court noted evidence in the
record that, "the wreckage would not have been so widely scattered before
the winter storms and the lapse of some 60 years." Id. at 799.
Fairport cannot rely
on the district court's finding that the Captain Lawrence is presently
embedded to support its argument that it was not technologically feasible
for Behrens to recover the vessel. Evidence in the record supports the
district court's finding that during Behrens's lifetime, portions of the
ship were not embedded and could have been salvaged with the technology
available to him. Fairport is left to rely solely on evidence relating
to visibility on the lake bottom. That evidence was based on a dive made
in 1994, over sixty years after the wreck of the Captain Lawrence.
Fairport I, 913 F. Supp. at 555. The district court properly
considered and discounted this evidence. The district court did not clearly
err in concluding that, although it may have been difficult, it was technologically
feasible for Behrens to recover the Captain Lawrence.(5)
The other finding
of the district court challenged by Fairport is whether Behrens attempted
or intended to attempt to salvage the remains of the Captain Lawrence.
The district court concluded that "There was no evidence that Behrens
ever returned to Poverty Island to attempt to salvage the Captain Lawrence,
or even evaluate the feasibility of salvaging the vessel." Fairport
IV, 72 F. Supp. 2d at 799. Fairport argues that the district
court improperly excluded evidence of Behrens's subsequent trips to Poverty
Island and of his intent to salvage the Captain Lawrence presented
in the testimony of his daughters, Alice Bergmans and Gladys Nally.
The district court
explained at length its decision to discount this testimony, concluded
that the evidence was vague, ambiguous, and self-serving. The district
court stated that the testimony was "based on very old and incomplete memories."
Id.
at 800. According to the court, it was "not clear from the testimony whether
they are recalling their father's desire to engage in salvaging in upper
Lake Michigan in general, or specifically to return to the Captain Lawrence."
Ibid.
Furthermore, the district court noted that pursuant to the
Salvage Bill of Sale assigning the Behrens family's remaining rights to
the Captain Lawrence to Fairport, "the family was to receive 20%
in kind distribution of the property salvaged from the shipwreck and two
percent in kind distribution of any artifacts recovered from within an
injuncted area in the vicinity of the Captain Lawrence." Ibid.
In light of this fact, the district court made a credibility judgment
that, "[a]fter years of disinterest and silence, the daughters' current
recollections are undoubtedly colored by the potential of receiving some
memento from their father." Ibid. The district court did not summarily
exclude the testimony of Behrens's daughters. Rather, the court provided
a detailed explanation for why the testimony was not reliable and lacked
credibility. After reviewing the testimony presented and the district court's
reasons for not relying upon it, we conclude that the district court acted
properly in finding that Behrens did not return or intend to return to
salvage the Captain Lawrence.
Fairport's remaining
argument as to this issue is that the district court incorrectly shifted
the burden of proof from the State to Fairport as to whether Behrens returned
or intended to return to salvage the Captain Lawrence. Fairport
claims that the State had the burden of proving this issue and that since
the State did not present evidence as to this issue, the district court
should have drawn an inference of non-abandonment in favor of Fairport.
This argument is without merit. The State did not have the burden of proving
that Behrens did not return or intend to return to salvage the Captain
Lawrence; it had only the burden of proving by clear and convincing
evidence that Behrens abandoned the Captain Lawrence. In order to
meet the burden of proving that Behrens did not return or intend to return
to salvage the Captain Lawrence, the State would have to demonstrate
an affirmative statement or action on Behrens's part indicating his intent
not to return to Poverty Island to salvage his ship. This would mean that
the State would have had the burden of proving express abandonment, a test
that this court specifically refused to impose in this case. Fairport
III, 177 F.3d at 499-500.
The remainder
of Fairport's argument is based on the assertion that if the district court's
findings of fact as to feasibility and lack of intention to return are
in error, then the remaining facts(6) relied upon by
the district court are not sufficient to support the district court's ultimate
finding of abandonment. Fairport concedes that the remaining findings of
fact are supported by the record. Fairport only asserts that these findings
of fact cannot support a finding of abandonment. The district court properly
found that it was technologically feasible for Behrens to recover Captain
Lawrence, but that he did not attempt or intend to attempt to do so.
In addition, we note that Behrens described his vessel as a "total loss"
on the Record of Casualty. These facts go far in supporting the district
court's finding that the State clearly and convincingly proved that Behrens
abandoned the Captain Lawrence. To the extent that Fairport casts
doubt on the weight of the remaining findings of fact relied upon by the
district court, we conclude that it is insufficient to render the district
court's ultimate finding of abandonment clearly erroneous.
IV
For the foregoing
reasons, the judgment of the district court is AFFIRMED.
*The Honorable Avern Cohn, Senior United States District
Judge for the Eastern District of Michigan, sitting by designation.
1 The relevant portions of the ASA state:
(a) United States title
The United
States asserts title to any abandoned shipwreck that is-
(1) embedded in submerged lands of
a State;
. . . .
(c) Transfer of title to States
The title
of the United States to any abandoned shipwreck asserted under subsection
(a) of this section is transferred to the State in or on whose submerged
lands the shipwreck is located.
43 U.S.C. § 2105.
2 The district court was instructed that the State "may
prove abandonment by circumstantial evidence," but that the circumstantial
evidence presented should be analyzed under the clear and convincing standard.
Fairport III, 177 F.3d at 500.
3 The district court also noted that "Poverty Island
is not located out in the middle of Lake Michigan. It is in a chain of
islands, stretching south from the Garden Peninsula of Michigan to the
Door Peninsula of Wisconsin and could be easily accessed from Michigan
or Wisconsin." 72 F. Supp. at 799. The district court appeared to be indicating
that the proximity of the island to the shorelines of Michigan and Wisconsin
would have enabled Behrens to purchase a cheaper craft to salvage the ship.
Fairport claims that "[t]his contention is belied by the record, which
shows that the Captain Lawrence itself sank close to shore." Plaintiff-Appellant's
Brief at 17. It appears that Fairport is arguing that since the Captain
Lawrence, a more substantial craft, sank near Poverty Island in poor
conditions, a cheaper craft could not have been used to salvage the ship
in normal conditions. This argument is specious. Although the Titanic was
sunk by an iceberg, lifeboats were still able to navigate the icy waters
of the North Atlantic to save its passengers.
4 These two findings of fact correspond with the three
issues on which this court noted the existence of conflicting evidence
in Fairport III, namely (1) whether Behrens had access to
the technology necessary to salvage the Captain Lawrence, (2) whether
Behrens ever returned to Poverty Island, and (3) whether Behrens intended
to return to Poverty Island. 177 F.3d at 501. The district court's finding
that Behrens never attempted to salvage the Captain Lawrence subsumes
both the issues of whether he ever returned, or intended to return, to
Poverty Island.
5 In addition, as the State rightly points out, even
if it was not technologically feasible for Behrens to recover the
Captain
Lawrence, such a finding of fact could still be used to support the
conclusion that Behrens abandoned the ship. Once Behrens would have realized
that it was not technologically feasible to recover the Captain Lawrence,
he may very well have lost hope of salvaging the vessel and have decided
to abandon it. Therefore, even if Fairport could demonstrate that it was
clearly erroneous for the district court to find that it was technologically
feasible for Behrens to recover the
Captain Lawrence, this error
would not add much support to Fairport's argument that the district court's
ultimate finding of abandonment was clearly erroneous.
6 The remaining facts relied upon by the district court
were: (1) the Captain Lawrence was a relatively recent wreck; (2)
the Captain Lawrence sank in 40-60 feet of water; (3) Behrens valued
the Captain Lawrence at $200; (4) Behrens had no insurance on the
Captain Lawrence when it sank; (5) Behrens declined lifesaving assistance
from the Coast Guard; and (6) Behrens died intestate. Fairport IV,
72 F. Supp. 2d at 798. |