Massachusetts Trustees of Eastern Gas & Fuel Associates v. United States

WYZANSKI, District Judge.

A. INTRODUCTION

This controversy involves the validity and interpretation of Part I Clause E and Part II Clauses 2 and 13 of the standard bareboat charter contract of the Maritime Commission under § 709(a) of The Merchant Marine Act, 1936, 49 Stat. 1985, 46 U.S.C.A. § 1199(a), and § 5(b) and (c) of The Merchant Ship Sales Act, 1946, 60 Stat. 41, 50 U.S.C.A.Appendix, § 1738 (b, c). Essentially the dispute turns on whether the Commission acted intro vires in providing in the charter for the recapture of a charterer’s profits by the Government on the basis of a…