Cape Ann Commercial Fisheries Loan Fund, Inc. v. Schlichte

This is an action to recover a balance due on a promissory note secured by a Preferred Ship’s Mortgage on afederally documented fishing boat. Judgmentwas entered for the plaintiff.

The defendants’ appeal to this Division presents the following issues: (1) whether this action was beyond the subject matter jurisdiction of the trial court because the plaintiffs claim is within the exclusive admiralty jurisdiction of the federal courts; and (2) whether the defendants’ payment of a higher rate of interest on the promissory note entitled them to a forgiveness of their debt upon the loss at sea of…