United States v. Trident Crusader

DUHÉ, Circuit Judge:

This case presents the question whether a preferred ship mortgage is void if recorded after a vessel was documented, but before the vessel construction was complete. Appellant Det Norske Veritas (DNV) intervened in this foreclosure action by Appellee, the Maritime Administration of the United States Department of Transportation (MARAD), the holder of the first preferred ship mortgage. The MTV TRIDENT CRUSADER was seized and sold to MARAD as a credit bid against MARAD’s mortgage debt, and the interve-nor’s claim was referred to the proceeds. The district court found that…