First National Bank of Jefferson Parish v. M/v Lightning Power, Eagle Fleet, Inc., Intervenor-Appellant

ALVIN B. RUBIN, Circuit Judge:

A mortgagee holding a $900,000 mortgage on a vessel, which had a current market value in excess of $500,000, bid $5,000 for the vessel at an interlocutory sale in the foreclosure proceeding without obtaining court authority to bid up to the amount of its mortgage. The sale was confirmed by the district court over the objection of a third party who contended that it held a lien on the vessel for seaman’s wages that would have primed the mortgage, that the sale price was grossly inadequate, and that it would have bid $150,000 for the vessel. Because the price is…