Suwannee River Finance, Inc. v. United States

OPINION

KOZINSKI, Chief Judge.

Plaintiffs sue for construction-differential subsidy payments 1 in the amount of $1,339,682 for changes made in the construction of three ships. The Maritime Administration (MarAd) denied such payments pursuant to a directive that stopped all subsidies for non-essential changes.

Facts

The Merchant Marine Act of 1936, 46 U.S.C. §§ 1101-1295g (1982), was enacted to foster the development of the merchant marine and ship construction industry. Pursuant to the Act, MarAd is responsible for maintaining a large, well-equipped and efficient domestic merchant fleet. See…