Panama Canal Co. v. Compania Nacional De Navegacion, S. A.

SEAR, District Judge.

This action arises out of an April 29,1976 collision of the M/V TAIRONA, owned by the Compañía Nacional de Navegación, S.A. (“Navenal”), with the breakwater at the Atlantic entrance to the Panama Canal, at Cristobal in the Canal Zone. Shortly after the collision, the vessel sank inside Cristobal harbor, partly blocking the entrance channel to the Canal. The Panama Canal Company (“Company”), as operator of the Panama Canal, demanded assurances that the owners would remove the wreck by May 3, 1976. Failing such assurances, the Company informed Navenal it would remove the…