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30 J. Mar. L. & Com. 73 (1999)
The Continuing Debate over Custodia Legis: An Argument for Bankruptcy Court Primacy

handle is hein.journals/jmlc30 and id is 85 raw text is: Journal of Maritime Law and Commerce, Vol. 30, No. 1, January, 1999 The Continuing Debate Over Custodia Legis: An Argument for Bankruptcy Court Primacy CHARLES A. LOVELL* AND EUGENE G. BERNARDO, II** I INTRODUCTION The 1983 bankruptcy of the Greek shipping company Hellenic Lines Ltd., at the time one of the world's largest maritime concerns, caused an intense debate over the question of whether a United States bankruptcy court could sell a vessel free of all maritime liens. Despite the passage of fifteen years, a definitive answer has not yet emerged. While some courts hold that a bankruptcy court can deliver clear title,' others are of the view that only an admiralty court can do So.2 This article suggests that the time has come to recognize the power of bankruptcy courts to convey clear title to a vessel. It begins by recalling the proceedings of the Hellenic Lines bankruptcy. It then examines the judicial doctrine of custodia legis, under which the first court to obtain jurisdiction over a vessel normally administers the sale of that vessel. Finally, it presents various arguments in favor of recognizing the primacy of bankruptcy courts despite the doctrine of custodia legis. *Partner, Partridge, Snow & Hahn (Providence, Rhode Island). B.A., University of Rhode Island; J.D., Suffolk University. **Associate, Partridge, Snow & Hahn (Providence, Rhode Island). B.A., Rollins College; M.P.A., University of Rhode Island; J.D., Roger Williams University. The authors gratefully acknowledge the research assistance of Elizabeth Sabilia. 'See, e.g., In re Fougner Concrete Shipbuilding Co., 286 F. 379 (2d Cir. 1923); Korrosion Kontrollers, Inc. v. Devaney, 1980 AMC 82 (S.D.N.Y. 1979); In re People's Mail S.S. Co., 19 F. Cas. 211 (E.D.N.Y. 1869). 2See, e.g., Morgan Guaranty Trust Co. of New York v. Hellenic Lines Ltd., 38 B.R. 987, 1984 AMC 1074 (S.D.N.Y.), modified, 585 F. Supp. 1227, 1984 AMC 2409 (S.D.N.Y. 1984); In re Interocean Transp. Co. of Am., 232 F. 408 (S.D.N.Y. 1916); The Philomena, 200 F. 859 (D. Mass. 1911).

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