United States v. Pacific Far East Lines, Inc., and Pacific Far East and Maritime Employees Association, Claimant-Appellant

DAVID R. THOMPSON, Circuit Judge:

The United States filed a complaint in the district court against the M/V Atlantic Bear, in rem, and against Pacific Far East Lines, Inc. (“PFEL”), in personam, to foreclose a preferred ship’s mortgage and to recover any resulting deficiency judgment. Pacific Far East and Maritime Employees Association (“the Association”) intervened seeking loss of pay and employment benefits for its members who were “shoreside” employees of PFEL. The Association contended the claims of its members should have priority over the United States’ preferred ship’s mortgage because…