Merchant Royaltag:www.merchantroyalshipwreck.com,2008://12008-08-21T00:19:39ZMovable Type 3.35Peru Makes a Conditional Claim to the Black Swan Treasuretag:www.merchantroyalshipwreck.com,2008://1.1262008-08-19T19:06:59Z2008-08-21T00:19:39Z http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2007cv00614/197978/120/ Peru has filed a conditional claim to the Black Swan treasure. Peru wants access to all discovery information so that it may make a final determination as to whether or not it has a legitimate claim. Peru has...http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2007cv00614/197978/120/
Peru has filed a conditional claim to the Black Swan treasure. Peru wants access to all discovery information so that it may make a final determination as to whether or not it has a legitimate claim. Peru has stated that it does not have an interest in any vessel or vessel remains but also stated that it has not abandoned it's sovereign right to it's property.
Odyssey Marine Exploration Welcomes Peru's Filing In "Black Swan" Case
Odyssey Marine Exploration, Inc. announced today that the Republic of Peru filed a motion in federal court in one of the company's pending admiralty cases. As anticipated after numerous statements in the media, Peru formally filed a Verified Conditional Claim in the "Black Swan" admiralty case, which was originally filed by Odyssey Marine Exploration. The case is currently pending before the U.S. District Court in Tampa, Florida.
"Odyssey's position is to encourage every appropriate claimant to present its potential claims in a case like this, so we welcome Peru's filing, even as the Company reserves its legal position. If the court does not find that the property was abandoned, we believe that the property in the "Black Swan" case would be handled under the traditional law of salvage," said Greg Stemm, Odyssey Chief Executive Officer.
The nature of a salvage award is that the award to the salvor is not dependent upon the number of claimants. Claimants other than the salvor must either enter into an agreement amongst themselves to split the owner's percentage of a find or submit their individual claims to the court for adjudication. For instance, in the case of the Central America, an award of 92% of the cargo was made to the salvor, and the remaining 8% was held in trust while various insurance companies were given the opportunity to present their respective claims.
"We believe that Peru's filing raises a significant and timely question relating to whether a former colonial power or the colonized indigenous peoples should receive the cultural and financial benefit of underwater cultural heritage derived from the previously colonized nations. Odyssey would be pleased to involve Peru in the study and archaeological investigation of any property that is found to have originated in Peru, without regard for whether Peru has any legal rights to the property. We would also be pleased to extend the same courtesy to any other sovereign government, indigenous people, relatives or descendants who might have a legitimate claim or interest in property discovered on any of Odyssey's shipwrecks," Mr. Stemm added.
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Odyssey Marine has several ongoing projects: The HMS Sussex, the Black Swan (Nuestra Señora de las Mercedes ??), the Land's End site (Merchant Royal ??), the Ancona, the Firefly(El Salvador ??), Guernsey (La Vierge du Bon Port ??).
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Seeking Alpha - Odyssey Marine Explorationtag:www.merchantroyalshipwreck.com,2008://1.1252008-08-13T15:40:56Z2008-08-19T19:17:33Z An excellent summary of the current state of Odyssey Marine written by a hedge fund manager that is long OMEX. Full Article: http://seekingalpha.com/article/90675-august-is-the-time-to-buy-odyssey-marine-exploration Company Description Odyssey Marine Exploration, Inc. (OMEX) is engaged in the archaeologically-sensitive exploration and recovery of...
An excellent summary of the current state of Odyssey Marine written by a hedge fund manager that is long OMEX.
Full Article: http://seekingalpha.com/article/90675-august-is-the-time-to-buy-odyssey-marine-explorationCompany Description
Odyssey Marine Exploration, Inc. (OMEX) is engaged in the archaeologically-sensitive exploration and recovery of deep water shipwrecks that contain treasure throughout the world.
Odyssey’s May 2007 recovery of the estimated $500M Black Swan treasure and subsequent legal dispute with Spain has made headlines worldwide. Odyssey utilizes innovative methods and state-of-the-art sonar technology to conduct extensive deep ocean search and recovery operations on high value shipwreck targets.
Industry Overview
Sea exploration has dramatically changed due to state-of-the-art technologies that enable the search, discovery and recovery of shipwrecks that were previously beyond reach. Odyssey is transforming activities long associated with "pirates and treasure hunters", into a serious and legitimate commercial industry founded on strong business practices, a commitment to the environment and high archaeological standards. There are well over 1,000 high-value shipwreck targets ($50 million - $2+ billion).
Investment Thesis
Odyssey is our favorite “lottery ticket” play for the next 6 months given its massively outsized risk/reward profile. August is the time to buy OMEX. Odyssey has been operating in the English Channel this season. The recovery season in the Channel runs from May - October due to weather. Hence, announced recoveries usually come August - October. Odyssey arrested 2 shipwrecks on May 29, 2008 in the English Channel. It is logical to conclude that Odyssey has been working on recovery operations on those 2 sites.
Odyssey’s combination of the best research department, superior sonar technology, and the most operations experienced team combine to generate a steady flow of identified and arrested high-value shipwreck targets. In order to have a successful and sustainable business in the shipwreck recovery business, 3 requirements must be met…
1. FINDING: Can the company consistently find the high-value shipwreck targets?
2. RETAINING: Can the company retain the majority of the value of the recovery?
3. MONETIZING: Can the company effectively monetize the value of the recovery?
1) Finding High Value Targets
Odyssey has a team of 8 archeologists that have identified the most attractive shipwreck targets and have reviewed literally hundreds of thousands of historical documents to provide the most likely areas to conduct the searches.
Odyssey owns and employs state-of-the-art technology, including both search and recovery vessels, side-scan sonar and magnetometer equipment, remotely operated vehicles ("ROVs") and other advanced technological innovations. Over the past 10 yrs, OMEX has markedly improved side-scan sonar and magnetometer technology. A ship with traditional commercial side scan sonar can cruise at approximately 2 knots, where OMEX’s ships can now travel at up to 8 knots while towing a side-scan sonar buoy. This allows Odyssey to cover up to 4 times the research area over the same period of time. Odyssey has also significantly improved the search resolution and data analysis which creates more precise vectors leading to massive efficiencies and time savings by reducing false positives.
2) Retaining the Recovery
In order for the salvor to legally retain the value of the recovery, the shipwreck must not be subject to “sovereign immunity.” Below is a brief primer on the relevant law.
Legal
There are two important subject areas connected to any shipwreck. The Law of the Sea Convention establishes the rights of a country based on location and Admiralty and Maritime Law governs maritime questions and offenses.
The Law of Sea Convention establishes three separate zones off the coast of any country:
* Territorial Water (<12 miles)
* Contiguous Zones (12 - 24 miles)
* Exclusive Economic Zones [EEZ] (24 - 200 miles)
A shipwreck in Territorial Water (within 12 miles) is considered to be the property of that country if the shipwreck is not deemed to be sovereign immune (see “Sovereign Immunity” below for definition). Commercial wrecks in Territorial Water are only eligible for arrest or a salvage award when permitted by that country’s laws or if there is a pre-existing agreement in place between Odyssey and the country.
Sovereign Immunity
Under international law, warships and other vessels or aircraft owned or operated by a country and used only on government non-commercial service ("State vessels and aircraft'') may continue to enjoy sovereign immunity after sinking, wherever they are located. This typically makes any sovereign vessel immune from arrest, salvage claim and salvage award.
However, if a military ship is on a mission that has any commercial business, the ship is no longer considered a sovereign immune vessel. Commercial vessels and mail ships are also not considered sovereign immune vessels. Odyssey only targets vessels that are deemed to be non-sovereign vessels. The only exception is if Odyssey has a pre-existing agreement in place with that country (similar to Odyssey’s agreement with the U.K. for the sovereign vessel, the HMS Sussex).
Salvage Law
“Salvage” is the reward given to persons who voluntarily assist a ship or recover its cargo from impending or actual peril or loss. If a shipwreck is not subject to sovereign immunity, it is deemed to be a “commercial vessel” and comes under maritime and admiralty salvage law. Under maritime and admiralty salvage law, a salvor is typically entitled to 90% of the recovery. Thus, if a country or another claimant has a legitimate claim on a commercial ship, in a best case the country or claimant is awarded 10%...leaving 90% to the salvor. Hence, Odyssey is likely to receive at least 90% of any find to which they are granted salvage regardless of who the claimants are.
3) Monetizing the Recovery
To maximize the value of the recovered coins and artifacts, the coins should be well promoted and packaged.
Discovery Channel Series
In May 2008, Odyssey and Discovery Communications (owner of the Discovery Channel) announced a significant production deal. Similar to the show “The Deadliest Catch”, Discovery intends to air a series based upon Odyssey’s shipwreck recoveries. There will be a 2 part episode on the Black Swan (currently slated for November 2008) and the regular series is slated to air either near the end of 1Q09 or the beginning of 2Q09. Filming started at the beginning of June 2008. Odyssey receives a fee per episode that covers a significant portion of the operating budget of the recovery ship.
Marketing Partners
We expect Odyssey to announce relationships with top-tier public companies that specialize in the packaging and sales of collectible coins and artifacts. This will markedly increase the speed of monetization of the recoveries.
The Black Swan Litigation with Spain
The company has already recovered approximately 500,000 coins (estimated by at least one external expert to be valued at $500M) from a site code-named the Black Swan. We believe that it is likely that Odyssey will be granted rights to 90% of this find by the Admiralty Court of the United States.
On August 8, 2008 the stock price was $4.75, which is the same level that the shares were at BEFORE the announcement of the recovery of the Black Swan treasure in May 2007. That implies that the market is giving Odyssey zero chance to keep any of the Black Swan treasure. Spain has been quite vocal in the press talking about how Spanish galleons are part of Spain’s heritage and therefore, Spain demands the return of the coins and artifacts from Spanish shipwrecks. Oddly, Spain seems to neglect to acknowledge that the gold and silver coins and gemstones from the Black Swan were coming back from the New World where Spain enslaved and killed countless people in South America during its colonial period. Grand standing aside, what actually will dictate the outcome of the trial is admiralty law (as discussed above).
Spain can only refuse salvage on a vessel that is “sovereign immune.” In order for a vessel to be sovereign immune, it must have been a Spanish warship that was 100% engaged in non-commercial activity at the time of its sinking.
Spain has several severe challenges with its legal case in the Black Swan. First, Odyssey Marine did not recover a single item from the site to indicate that there was a ship at that site. The Black Swan recovery site is just a debris field. There is not a canon, a ship’s bell, moorings, the ship’s spine, or anything else to indicate that the site is that of a shipwreck. One possible explanation is that during battle, if a ship was taking on water or needed to lighten its load so that it could better escape, it would throw the heaviest items overboard. Odyssey Marine recovered 17 tons of coins and artifacts from the site.
Even if Spain is successful in proving that the Black Swan site is that of a shipwreck, Spain has the burden of proof to prove which shipwreck it is. Spain claims that it is the Nuestra Senora de la Mercedes which sunk in 1804. Odyssey claims that there are some pieces of data that support that conclusion, but other pieces of data that do not support that conclusion.
Even if Spain is able to prove that the Black Swan site is (1) that of a shipwreck and (2) that the shipwreck is the Mercedes, Spain must then prove that the Mercedes was subject to sovereign immunity. There is no debate that the Mercedes was a Spanish warship. However, on the return voyage from the New World upon which it was sunk, documentation exists that demonstrates that approximately 72% of the cargo on the ship was commercial. Given that the Mercedes was not on a 100% non-commercial mission, the shipwreck site cannot be subject to sovereign immunity. Instead, if Spain is successful in proving that the site is that of the shipwreck of the Mercedes, the recovery would come under salvage law. Under salvage law, approximately 90% of the recovery is typically granted to the salvor. In this case, the salvor is Odyssey Marine. The remaining 10% would be shared among any legitimate claimants.
The next step in the litigation with Spain is that the presiding magistrate has asked Spain to lay out its entire case to establish its claim that the Black Swan is subject to sovereign immunity. Spain's dispositive motion is due on or before September 22, 2008. A victory by Odyssey in the Black Swan case will establish firm and wide-reaching precedent regarding the “commercial” status (vs. “sovereign immune”) of all State warships that were transporting some commercial cargo or non-military passengers at the time of the sinking.
Upcoming Catalysts
4 major events will likely act as positive catalysts for Odyssey’s shares….
1) Settlement or Legal Victory in the Black Swan Case
a. Settlement - any settlement would likely be in the form of a split (50/50) of the Black Swan treasure and the terms would extend to any other Spanish shipwreck that Odyssey recovers regardless of whether the ship is commercial or sovereign immune. Additionally, in order to ensure that the market for the coins and artifacts is kept in balance, if Spain ever wanted to sell a portion of its percentage of the recoveries, the sale would be managed by Odyssey. We believe that a settlement is unlikely until sometime after September 22, 2008. This is the date when Spain’s response is due in Admiralty Court as to why it believes that the Black Swan is subject to sovereign immunity. If Spain’s support for its position is not legally compelling, it is possible that the court could signal to Spain that it feels that it is Spain’s best interest to settle the dispute or risk establishing a very negative precedent against Spain.
b. Legal Victory - If Spain declines to settle the Black Swan case and Odyssey prevails, then Odyssey would be granted a salvage award on the Black Swan and likely retain over 90% of the recovery. More importantly, direct legal precedent will have been established and it is open season on the 100s of Spanish mixed-use shipwrecks (warships that had some commercial goods on them at the time of the sinking) that are in international waters. It is believed that the vast majority of the high-value ($200M - $3+ billion) Spanish shipwrecks were mixed-use.
2) Recovery of another high-value shipwreck – As mentioned above, we believe that Odyssey is currently engaged in at least one recovery operation in the English Channel. Given that the recovery season in the Channel is from May – October (due to weather), we would not be surprised if there were meaningful developments before the end of this year’s English Channel recovery season.
3) Airing of the Odyssey series on Discovery Channel – the series on Discovery will bring worldwide attention to the company. It is expected that the Discovery Channel will air a 2 part episode on the Black Swan in late 2008, which will lead into the series that will air in late 1Q09 or early 2Q09.
4) Announcement of wide-sweeping country agreements – we believe that it is likely that Odyssey is working on partnership agreements with various countries that would cover numerous shipwrecks of the country in question.
Valuation
These are the major sites that Odyssey Marine may have already discovered:
1. Black Swan
500,000 silver and several hundred gold coins have been recovered and it is estimated that this is only half of the cargo. Odyssey will be returning to the site to conclude recovery operations.
Estimated Value: $500M - $1 billion
2. HMS Sussex
HMS Sussex was an English warship lost in a severe storm in 1694. Historical documents and other evidence suggest that there was approximately 10 tons of Gold aboard the vessel when it sank. If the research is correct, then the numismatic value estimates for the cargo range from several hundred million to a billion dollars or more, depending on whether the cargo referenced in historical documents is gold or silver, the condition of the coins, which denominations may be represented. Odyssey and the Government of the United Kingdom have signed an exclusive partnering agreement for the shipwreck of the British warship HMS Sussex. This is the first time in history any government entered into an agreement with the private sector for the archaeological excavation of a sovereign warship.
Estimated Value: $300 - $1+ billion
3. Merchant Royal
The Merchant Royal set sail in late August 1641, trailed by her sister ship, the Dover Merchant. But during the journey she began to leak and rescuers were unable reach her in time. The loss of the treasure made headlines. Back in 1641, the ship’s hold was equivalent to one-third of the national exchequer. There are reports of anywhere from 100,000-400,000 pounds sterling, and 100,000 gemstones.
Estimated Value: $500M - $2 billion
4. SS Ancona
The SS Ancona, an Italian passenger liner torpedoed by a German U-boat in 1915 off the southeastern coast of Sardinia, taking 12 barrels of gold and a shipment of silver bars with it to the bottom.
Estimated Value: $60M.
5. Undisclosed (but suspected to be the El Salvador) - According to historical records it was carrying 16 chests of silver and four of gold when it went down in the area of Cape Lookout during a 1750 hurricane.
Estimated Value: $125M
6. Undisclosed (but suspected to be the La Vierge du Bon Port) - On July 9, 1666, the ship was attacked by an English corsair and sunk off Guernsey.
Estimated Value: $100M - $400M
A silver coin wholesales for $200 - $2,000 depending on the scarcity, condition, and the “collectibility” of the coin. A gold coin wholesales for $4,000 - $100,000 depending on the scarcity, condition, and the “collectibility” of the coin. Odyssey management believes that several items of worked gold and silver will wholesale in the millions.
We value the company by first looking at the value of the 6 targets listed above and then consider the pipeline of the business beyond these 6 sites.
The mid-point of values of the 6 shipwrecks is $3.5 billion. Assuming 2 full-time recovery vessels, we estimate that it will take 3 years to recover these 6 sites. It is likely that Odyssey will add an additional recovery vessel or 2 in the near future. The sales cycle for collectible and numismatic coins can be 4 - 5 years, depending on demand. With the interest and demand that will likely be generated by the Discovery series, we have conservatively assumed a 4 year sales cycle. We assume that 40% of the wholesale revenue goes to sales, marketing and channel partners. Assuming 12% discount rate, we estimate the current value of the above listed shipwreck projects to be $17.00/sh. Again, this portion of the valuation is based just on the 6 identified and arrested sites.
Odyssey is adding 2- 4 new arrested shipwreck sites annually. It has already identified what it believes are 7 potentially high-value targets in the Channel and the North Atlantic. Additionally, there are numerous sites along the Mexican coast and in the Caribbean that have been identified. We estimate that Odyssey will be able to recover 3 wrecks per year past 2011 with an average value of $150M per wreck, producing EBITDA of $216M. The NPV of this cash stream is $22.60/sh. The combined value of the two cash flow streams generates a total value of $39.60/sh. Hence, we believe that if Odyssey continues to execute that the shares could appreciate 10x.
Recent Trading Sets Up for a Short Squeeze
The company is not covered by the sell side and there are now 6.9M shares short (15.3% of the float). An additional 1M shares were shorted in the first 15 days of July 2008. Why? From late June through July 15th, the financial stocks were breaking down very hard and it looked like the market was setting-up for a massive decline. Many of the quant funds needed to lay out new short positions with little time for deep company-specific analysis. This is what happened with Odyssey and the incremental 1M shares that were shorted during June 30 – July 15.
Given that most of the short holders are “low-conviction” shorts, they have done little fundamental work on the company. In the face of evidence that they badly misread the situation, that they will look to quickly cover. Hence, there are 6.9M shares that will have to be bought in very short order in the event that one or more of the above catalysts take place. The vast majority of OMEX’s float is held by high-conviction long institutional holders and insiders. High-conviction long institutional owners believe that we are at the beginning of a 3 – 5 year bull run for OMEX. There are very few shares available for the shorts to buy and the price will move quickly higher. Therefore, this is setting-up for a MASSIVE short squeeze.
Conclusion
There are issues that carry high uncertainty and require a significant time investment to gain conviction around. We believe that this causes the shares to trade at a steep discount to baseline value. It is likely that several of these uncertainties will be removed in the coming months and that the company will trade up significantly to better reflect intrinsic value. We feel that Odyssey Marine presents a unique investment opportunity.
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2nd Quarter Operational Updatetag:www.merchantroyalshipwreck.com,2008://1.1242008-08-11T16:03:34Z2008-08-13T15:49:52Z Odyssey Marine has issued their Quarterly Report (Form 10-Q). They announced a net loss of $5.4 Mil, or $.11/share. http://www.sec.gov/Archives/edgar/data/798528/000119312508172750/d10q.htm For the second quarter of 2008, Odyssey reported revenue of $1.1 million, compared to $1.7 million in the second...
Odyssey Marine has issued their Quarterly Report (Form 10-Q). They announced a net loss of $5.4 Mil, or $.11/share.
http://www.sec.gov/Archives/edgar/data/798528/000119312508172750/d10q.htm
For the second quarter of 2008, Odyssey reported revenue of $1.1 million, compared to $1.7 million in the second quarter 2007. The Company also reported a net loss of $5.4 million, compared to a net loss of $6.3 million in the second quarter 2007. The net loss per share for the second quarter 2008 was $.11, compared to a net loss of $.13 per share in the second quarter 2007.
"We are very pleased to report some exciting developments and progress in all key areas of our business. Our vessels have undergone extensive repairs and upgrades and we have had multiple ships hard at work so far during our “Atlas” work season. Among our new discoveries were two Colonial era cannon wrecks which resulted in admiralty arrests. Another major development this past quarter was our agreement with JWM Productions to produce an 11-episode primetime TV series for Discovery Channel which is scheduled to air worldwide in early 2009. JWM is currently following and filming our team during our shipwreck search and recovery operations. Our diversified sales programs and business development initiatives are gaining noticeable traction which we expect to see pay off in the future. Along with all these positive steps, we have also been able to see increased operating efficiency in a number of different areas. With all these elements in place, we are optimistic about our plans for the balance of the year and for many years to come,” said Greg Stemm, Odyssey Chief Executive Officer."
Unless or until they start to monetize their several shipwreck arrests the losses will continue to mount. The only interesting section of the 10Q is the following:
Operational Update:
We have numerous shipwreck projects in various stages of development around the world. In order to protect the identities of the targets of our planned search or recovery operations, in some cases, we will defer disclosing specific information relating to our projects until we have located a shipwreck or shipwrecks of interest and determined a course of action to protect our property rights.
Equipment
Our 251’ deep-ocean archaeological platform, Odyssey Explorer, recently underwent routine repairs and extensive upgrades and is now conducting operations in the “Atlas” search area (additional information below). The upgrades to the Odyssey Explorer included the installation and integration of ZEUS II, a next-generation heavy work Remotely Operated Vehicle (ROV), reconfigured for deep-ocean archaeological survey and recovery operations including inspections, photographic and video documentation and artifact recovery. An upgraded, state-of-the-art dual frequency side-scan sonar system was also installed, which allows the Odyssey Explorer to conduct both side-scan and ROV operations to maximize efficiency based on weather conditions and operational objectives. Other work in dry dock included main engine and generator strip downs, extensive steelwork repairs to the aft ballast tanks to maintain Class requirements, and four additional Class surveys that were scheduled for this year.
Our vessel the Ocean Alert has been undergoing an extensive overhaul of engines which took longer than expected. Upon completion of the repairs, expected in August, the Ocean Alert will be conducting sea trials and will resume side-scan search operations in the “Atlas” search area thereafter.
If necessary to meet operational goals, we may lease equipment and ships from third parties from time to time. Due to the Ocean Alert repairs, we entered into short-term ship charters to supplement our search operations during the period which is the most favorable weather for operations.
“Atlas” Search Project
The “Atlas” Search Project encompasses a minimum of five high value targets within a search area covering more than 5,000 square miles. We conducted operations in this search area during the 2005 and 2006 seasons, and operations resumed in this area in April 2008. Results to date in the “Atlas” search area include the discovery of three Colonial period shipwreck sites containing cannon which are the subject of Admiralty arrests filed by us. The first site was located and arrested in 2006. Admiralty arrests were filed in May 2008 on the two additional cannon sites discovered in 2008. The Company’s archaeological and conservation teams are currently developing archaeological excavation and conservation plans for these sites. For additional information refer to the “Admiralty Legal Proceedings” section.
Work in the “Atlas” area, including side-scan and ROV operations, is planned to continue as long as the weather proves favorable for operations.
During the 2008 “Atlas” season, the Odyssey crews have been accompanied by television production crews from JWM Productions, who are producing an 11-episode prime-time television series for Discovery Channel, scheduled to air worldwide in 2009. JWM has exclusive access to film Odyssey’s operations in the “Atlas” search area and certain other locations as needed for JWM to complete filming for the series. JWM also has limited use of our resources for production of the series.
Revenue generated by the production of this television series is included with the quarterly revenue discussed in the “Results of Operations” section. In addition to revenue generated from the production of the series, we anticipate we will benefit from the brand building and exposure generated by an international television series sharing the excitement of our marine explorations.
HMS Sussex Project
HMS Sussex was a large 80-gun English warship lost in a severe storm in 1694 off the coast of Gibraltar. Based on documentary research conducted by contract researchers and our in-house research team in libraries and historical archives in the UK, France and other countries, we believe there is a high probability the ship was carrying a cargo of coins with a substantial value.
Based on the results of offshore operations conducted in 1998, 1999, 2000, and 2001 we believe there is a high probability we may have located the remains of HMS Sussex. In September 2002, we entered into a partnering agreement with the owner of HMS Sussex, the Government of the United Kingdom of Great Britain and Northern Ireland, which we refer to as Her Majesty’s Government (HMG). An overview of the agreement is available at www.shipwreck.net/pam.
In accordance with that agreement, and the approved HMS Sussex archaeological project plan (public version available at www.shipwreck.net/sussexpp.html), we have completed to the satisfaction of HMG all work detailed in Phase 1A and portions of Phase 1B of the plan. Due to interference by various Spanish entities we have postponed further work on the project to allow diplomatic issues to be resolved.
In July 2008, we delivered to HMG an Archaeological Report detailing the pioneering deep-ocean archaeological work done on the site during Phase 1A and portions of 1B conducted in late 2005 and early 2006. The report includes the results of environmental and biological sampling, which were submitted for extensive post-fieldwork analysis. Coring samples and other evidence indicate that the wreck site may be at least twice as large as is visible on the sea floor, and could potentially include areas displaced some distance from the visible wreck mound. Only further trenching and site exploration can confirm or discount the presence of considerably more wreck material than is either evident or exposed in the limited trial trenching conducted.
Although the work completed to date does not conclusively identify the site as that of the Sussex, the evidence gathered suggests a vessel of the approximate time and provenance of HMS Sussex.
“Black Swan” Project
The “Black Swan” is a Colonial period site we discovered during 2007 in the Atlantic Ocean. The Company recovered over 500,000 silver coins weighing more than 17 tons, hundreds of gold coins, worked gold and other artifacts from this site.
We have taken great care to archaeologically document this site and to carefully conserve and record all artifacts to the highest professional standards. The site which is primarily comprised of cargo spread over a large area does not contain an actual vessel or shipwreck. There are no signs of human remains at the site; however, the site is being treated with the utmost respect. We believe it is important to keep the location of the site confidential to protect the integrity of the site.
We have indicated that no actual ship or vessel has been found at the site. One working hypothesis put forth by us is that a vessel related to the cargo found at this deep-water site may be the Nuestra Señora de las Mercedes (the “Mercedes”), sunk in 1804 while carrying mostly private merchant cargo. The Kingdom of Spain, which has filed a claim in this case, stated in court documents their belief that the site in question is definitely the Mercedes.
The recovered cargo and artifacts were brought to the United States under an Admiralty arrest action and we have been appointed Substitute Custodian by the US District Court. For additional information refer to the “Admiralty Legal Proceedings” section below.
Admiralty Legal Proceedings
An Admiralty arrest is a legal process in which Odyssey seeks recognition from the Court of Odyssey’s salvor in possession status for a specific shipwreck, site or cargo. It is the first legal step in establishing Odyssey’s rights to ownership or to a salvage award. Odyssey currently has six pending Admiralty arrest cases; three in the “Atlas” search area, the “Black Swan,” the “Firefly” and a 20th Century passenger liner in the Mediterranean.
Additional information regarding the admiralty legal proceedings for these arrests may be found in our Annual Report on Form 10K for the year ended December 31, 2007, and our Quarterly Report on Form 10Q for the quarter ended March 31, 2008. Only arrests with status updates since these reports were filed will be discussed below.
We will continue to pursue prompt resolutions of all claims. If we are able to confirm that any entity has a potential legitimate legal claim to any of the materials recovered from these sites, we intend to provide legal notice to any and all potential claimants. Even if another entity is able to prove that it has an ownership interest in the shipwreck and/or cargo and that they had not legally abandoned the shipwreck, Odyssey would seek a salvage award from the Admiralty Court. In cases such as this, salvors are typically awarded up to 90% of the recovery.
“Black Swan” Arrest
In April 2007, we filed an Admiralty arrest on a site in the Atlantic Ocean approximately 1,100 meters deep, beyond the territorial waters or contiguous zone of any sovereign nation and we were appointed substitute custodian for all artifacts recovered from the site (Case number 8:07-cv-00614). In May 2007, the Kingdom of Spain filed a notice in this case stating that the Spanish government did not intend to give up rights on any Spanish property which might be on the site.
The initial phase of discovery began on January 24 and 25, 2008, when legal counsel for Spain and Spain’s representative appeared at Odyssey’s offices and were given the requested documentation and shown photographs, video tape and a sampling of recovered cargo from the “Black Swan” site. On March 5, 2008 the parties again appeared in court to discuss issues related to discovery including confidentiality and the format of documentation produced. On March 6, 2008, the Court denied Spain’s motion to dismiss Odyssey’s claims for possession and ownership of three arrested sites and for salvage awards. The Court also dismissed certain counts of Odyssey’s Complaint which related to Spain’s illegal actions against Odyssey. The dismissal of these counts was based on the Court’s finding of a lack of jurisdiction, not on the merits of the claims. The most significant aspect of the ruling was the Court’s declaration that Odyssey’s pleadings and its disclosures have met all requirements of the Federal Rules of Civil Procedure.
On March 12, 2008, the Court issued orders in this case, the 2006 Atlas case and the Mediterranean case confirming that Odyssey had complied with all discovery orders thus far and instructing Odyssey to respond within thirty days to interrogatories regarding its theory as to the identities of any vessels related to the sites.
On April 11, 2008, Odyssey filed its responses to the Court’s interrogatories and identified the Nuestra Señora de las Mercedes (the Mercedes), a vessel assigned to transport mail, private passengers, consignments of merchant goods and other cargoes, as one vessel potentially related to the “Black Swan” site, although there is evidence which may contradict this hypothesis. Odyssey reiterated that no vessel has been found at the site, and stated that other hypotheses are also being explored. Spain then filed its answers to the Court’s interrogatories indicating that it had concluded that the vessel related to the “Black Swan” site was, in fact, the Mercedes. The court has ordered Spain to file its Motion to Dismiss based upon the Foreign Sovereign Immunities Act (alleging that the U.S. Federal Court lacks jurisdiction) on or before September 22, 2008. Odyssey’s response is due November 17, 2008.
“Atlas” Arrests
In May 2008, we filed Admiralty arrests on two separate Colonial period shipwreck sites in the “Atlas” search area (Case numbers 8:08-cv-01044 and 8:08-cv-01045). Both sites contain cannon and other artifacts. On June 20, 2008, U.S. District Court for the Middle District of Florida appointed Odyssey as Substitute Custodian of both sites and the artifacts recovered therefrom. These two arrests are in addition to the site located and arrested in September 2006 in the “Atlas” area (Case number 8:06-cv-01685). The remainder of the information in this section refers only to the September 2006 arrest.
In May 2007, the Kingdom of Spain filed a notice in this case stating that the Spanish government did not intend to give up rights on any Spanish property which might be on the sites. On December 20, 2007, Keith Bray filed an Intervening Complaint in this case involving the site arrested in September 2006. His claim includes counts for Fraud, Rescission and Mutual Mistake and seeks to have the Court rescind his contract with Odyssey which specifically provided that Bray was entitled to nothing other than the cash payment paid to him for historical research work. On January 9, 2008, Odyssey filed its Answer and Affirmative Defenses to the Intervening Complaint denying Bray’s allegations and attaching a copy of the Research Agreement which Odyssey had with Bray.
On March 12, 2008, the Court issued orders in this case confirming that Odyssey had complied with all discovery orders thus far and instructing Odyssey to respond within thirty days to interrogatories regarding its theory as to the identities of any vessels related to the sites. On April 11, 2008, Odyssey filed in this case its responses to the Court’s interrogatories. Odyssey stated that it had not confirmed the identity of any vessel related to this site, but named the Merchant Royall, a British merchant vessel lost in 1641, as a possible vessel related to the site, although there is some evidence being examined that may contradict this theory. Spain filed its answers to the Court’s interrogatories indicating that it believed the vessel related to this arrested site was the Merchant Royall.
After initial discovery and several pre-trial hearings, the parties appeared again in Court on June 9, 2008. Considering Spain’s admission that it had no claim to anything that had been brought before the Court in this case, at the status hearing, the Court urged Spain and Odyssey to reach a settlement. Odyssey has proposed a voluntary dismissal without prejudice and awaits a response from Spain. The discovery process for this case continues and the Court issued a case management and scheduling order on June 11, 2008 that sets completion of discovery for all parties by October 23, 2008 with a non-jury trial set for the January 5, 2009.
Mediterranean Arrest
In April 2007, Odyssey filed an Admiralty arrest on a shipwreck in the Mediterranean believed to be the Ancona, a 20th century passenger liner believed to be carrying valuable cargo, and was appointed substitute custodian of the artifacts recovered (Case number 8:07-cv-00616). In May 2007, the Kingdom of Spain filed a notice in this case stating that the Spanish government did not intend to give up rights on any Spanish property which might be on the site. On March 12, 2008, the Court issued orders in this case confirming that Odyssey had complied with all discovery orders thus far. On April 1, 2008, Spain voluntarily dismissed its claim in this Admiralty case.
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Odyssey Marine To Survey the Lusitaniatag:www.merchantroyalshipwreck.com,2008://1.1232008-07-22T01:11:33Z2008-08-11T16:18:35Z It's the doldrums. Not much news. Odyssey has several sites arrested but is not offering any information concerning them. Of course, the Spanish has the Black Swan mired in court and a conclusion is at least a year away....
It's the doldrums. Not much news. Odyssey has several sites arrested but is not offering any information concerning them. Of course, the Spanish has the Black Swan mired in court and a conclusion is at least a year away. There is the future Discovery Channel series which should thrust OME into the limelight and perhaps make it a household name. Everyone loves a treasure hunt.
There is a new bit of news. Gregg Bemis, the owner of the wreck of the Lusitania, has contracted Odyssey Marine Exploration (OME) to conduct the survey. Bemis will join the crew on board the Odyssey Explorer, the survey vessel, as they collect photographic and video data and assess the condition of the wreck.
The Department of the Environment’s Underwater Archaeology Unit will join the team on the survey to ensure that the research is carried out in a non-invasive manner. The survey team will employ Zeus II, a remotely operated vehicle equipped with the latest high-definition video cameras and underwater lighting. The Lusitania is 300ft below sea level and Zeus can reach 8,200ft.
John Gormley, the minister for the environment, said it is hoped that the survey will lead to a greater understanding of the events leading to the sinking of “one of the most fascinating and tragic vessels in Irish and first world war terms”.
It's not going to help OME's bottom line much but at least it's good PR.
Full Story: http://www.timesonline.co.uk/tol/news/world/ireland/article4364701.ece
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Land's End Site Case Management and Scheduling Ordertag:www.merchantroyalshipwreck.com,2008://1.1222008-06-24T12:51:24Z2008-07-22T01:30:31Z It would appear that the Land's End Case [Merchant Royal ??] is moving faster than the Black Swan. The reason is that Spain has a claim on only a PORTION of the cargo that Odyssey HAS YET TO RECOVER....
It would appear that the Land's End Case [Merchant Royal ??] is moving faster than the Black Swan. The reason is that Spain has a claim on only a PORTION of the cargo that Odyssey HAS YET TO RECOVER. Judge Pizzo has issued the following Court Order:
http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2006cv01685/186117/118/CASE MANAGEMENT AND SCHEDULING ORDER:
This Court has managed this case concomitantly with another in rem action, case number 8:07-cv-614-T-23MAP, as both involve shipwrecks discovered by Odyssey with the Kingdom of Spain as a claimant. In answers to the Court’s interrogatories directed to the parties in both cases, Spain has invoked the Foreign Sovereign Immunities Act. For case number 8:07-cv-614-T-23MAP [Black Swan], Spain asserts the wreck is one of its naval vessels which warrants protection from suit under the Act. In the instant action, which the parties currently suspect concerns an English merchant ship, Spain’s claim of immunity relates only to a portion of cargo that this vessel may have been carrying but which Odyssey has yet to recover. In light of this uncertainty, as discussed at the Rule 16 conference held on June 9, the Court declines to defer discovery as it has in 8:07-cv-614-T-23MAP [Black Swan].
The Court has considered the positions of the parties as set forth in their Case Management Reports and as discussed at the Rule 16 hearing, and hereby enters the following scheduling and case management requirements whose provisions are very precise and shall be strictly adhered to. Accordingly, it is ORDERED:
1. Parties are directed to meet the agreed upon terms and time limits set forth in their Case Management Report, except as noted below:
(a) Deadlines relating to the dispute between Odyssey and Spain:
Rule 26 disclosures August 1, 2008
Odyssey's disclosure of expert testimony August 1, 2008
Odyssey's supplementation under R. 26(e) September 2, 2008
Odyssey's completion of discovery October 23, 2008
Spain's disclosure of expert testimony August 29, 2008
Spain's supplementation under R. 26(e) September 29, 2008
Spain's completion of discovery October 23, 2008
Third party/joinder/dispositive motions November 3, 2008
(b) Deadlines relating to the dispute between Odyssey and Keith Bray:
Rule 26 disclosures August 1, 2008
Mr. Bray's disclosure of expert testimony August 1, 2008
Mr. Bray's supplementation under R. 26(e) September 2, 2008
Mr. Bray's completion of discovery October 23, 2008
Odyssey's disclosure of expert testimony August 29, 2008
Odyssey's supplementation under R. 26(e) September 29, 2008
Odyssey's completion of discovery October 23, 2008
Third party/joinder/dispositive motions November 3, 2008
2. Parties are further directed to meet the pretrial disclosure requirements and deadlines in Fed.R.Civ.P. 26(a)(3) and to adhere timely to all requirements in Local Rule 3.06 concerning Final Pretrial Procedures, as supplemented herein at ¶ 6.
3. Parties shall take heed that motions to amend any pleading or a motion for continuance of any pretrial conference, hearing, or trial filed after issuance of this Case Management and Scheduling Order are disfavored. See Local Rules 3.05(c)(2)(E) and 3.05(c)(3)(D).
4. A Pretrial Conference will be held before Magistrate Judge Mark A. Pizzo in Courtroom 11B, United States Courthouse, 801 North Florida Avenue, Tampa, on December 1, 2008, at 10 a.m.
THE COURT WILL NOT ADDRESS DISCOVERY DISPUTES OF ANY KIND AT TRIAL. ANY DISCOVERY DISPUTE FOR WHICH THE PARTIES SEEK JUDICIAL RESOLUTION MUST BE ADDRESSED AT OR BEFORE THE PRETRIAL CONFERENCE. THE PARTIES MAY AGREE ON ANY MATTER REGARDING DISCOVERY, BUT EACH PARTY ASSUMES THE RISK OF NON-COMPLIANCE BY THE OTHER UNLESS THE ISSUE HAS BEEN ADDRESSED BY THE COURT AT THE PRETRIAL CONFERENCE.5. This case is set for a non-jury trial in Courtroom 15A, United States Courthouse, 801 N. Florida Avenue, Tampa, during the January 5, 2009, trial term before the Honorable Steven D. Merryday. Cases set before Judge Merryday are subject to being tried by a visiting judge. A separate trial calendar will be forthcoming in December 2008.
6. Not later than five (5) days prior to the date on which the trial term is set to commence, see ¶ 5, the parties shall file with the Clerk of Court the following (and, as to each of the following, provide directly to Chambers, by mail or hand-delivery a "Judge's Courtesy Copy," so marked):
(a) Each side shall file a Trial Brief, with citations of authorities and arguments specifically addressing all disputed issues of law likely to arise at trial; and either (b) or (c) below, as appropriate.
(b) If case is a jury trial, the following:
(1) A concise (one paragraph preferably) joint or stipulated statement of the nature of the action to be used in providing a basic explanation of the case to the jury venire;
(2) A complete set of all written Proposed Jury Instructions (which shall bear a cover sheet with the complete style of the case and appropriate heading designating the submitting party; there shall be no more than one instruction per page and contain, at the end of each such instruction, citation of authorities, if any); they shall be sequentially numbered and party-identified (e.g., Plaintiff's Requested Instruction No. 1);
(3) Proposed Voir Dire (the Court will conduct the voir dire and, in addition to the usual more general questions, will without initiation by counsel ask more particular questions suggested by the nature of the case; counsel should, therefore, be selective in the jury questions submitted to the Court for consideration); and
(4) Proposed Verdict Form.
(c) If case is a non-jury trial, Proposed Findings of Fact and Conclusions of Law (each shall be separately stated in numbered paragraphs; Findings of Fact shall contain a detailed listing of the relevant material facts the party intends to prove, in a simple, narrative form; Conclusions of Law shall contain a full exposition of the legal theories relied upon by counsel).
7. The Pretrial Conference [Dec 1, 2008] shall be attended by counsel who will act as lead trial counsel in the case and who is vested with full authority to make and solicit disclosures and agreements touching all matters pertaining to the trial.
DONE and ORDERED at Tampa, Florida on June 11, 2008.
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Spain’s Assertion of Sovereign Immunity is a Challenge to the Court’s Jurisdiction,tag:www.merchantroyalshipwreck.com,2008://1.1212008-06-12T11:41:45Z2008-06-24T13:02:58Z In the Preliminary Pretrial Conference on June 9th Spain and Odyssey updated the Court on the current status of discovery. For the most part they argued about the timing and sequencing of discovery. Evidently, Judge Pizzo saw a potential...
In the Preliminary Pretrial Conference on June 9th Spain and Odyssey updated the Court on the current status of discovery. For the most part they argued about the timing and sequencing of discovery. Evidently, Judge Pizzo saw a potential problem in the proceedings in that Spain is playing the Sovereign Immunity card.
http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2007cv00614/197978/114/
"The Kingdom of Spain contends that the vessel which is the subject of this case is the Spanish Royal Navy Frigate Nuestra Señora de las Mercedes (“Mercedes”), and states its intention to file a dispositive motion asserting that the Mercedes is immune from any claims or arrest in the United States under, inter alia, the Foreign Sovereign Immunities Act."
"The parties have not yet briefed the issue, and the Court has not determined whether immunity under any of these authorities applies. Nonetheless, because Spain’s assertion of sovereign immunity is a challenge to this Court’s jurisdiction, the Court is duty-bound to determine this issue at the earliest possible stage in the case."
"Although it is not yet clear whether FSIA applies in this context, the Court finds that the approach courts take in FSIA cases – ordering discovery “circumspectly and only to verify allegations of specific facts crucial to an immunity determination” – is likewise appropriate here."
"Accordingly, the Court will defer setting discovery deadlines for sixty days to allow Spain to file a dispositive motion asserting sovereign immunity. Odyssey then will have sixty days to respond. If, in framing its response, Odyssey determines discovery is warranted relating to particular issues Spain raises in its motion, Odyssey may make a specific request for leave from the Court to conduct discovery on those issues."
"Although it is not yet clear whether FSIA applies in this context, the Court finds that the approach courts take in FSIA cases – ordering discovery “circumspectly and only to verify allegations of specific facts crucial to an immunity determination” – is likewise appropriate here."
("[S]overeign immunity is an immunity from the burdens of becoming involved in any part of the litigation process, from pretrial wrangling to trial itself. . . . The Court . . . must balance ‘between permitting discovery to substantiate exceptions to statutory foreign sovereign immunity and protecting a sovereign's or sovereign agency's legitimate claim to immunity from discovery.'").
"Accordingly, the Court will defer setting discovery deadlines for sixty days to allow Spain to file a dispositive motion asserting sovereign immunity. Odyssey then will have sixty days to respond. If, in framing its response, Odyssey determines discovery is warranted relating to particular issues Spain raises in its motion, Odyssey may make a specific request for leave from the Court to conduct discovery on those issues."
"Accordingly, it is hereby ORDERED:
1. Counsel for Spain is directed to file a motion asserting immunity on or before August 11, 2008.
2. Counsel for Odyssey is directed to file a response on or before October 10, 2008.
DONE AND ORDERED in Tampa, Florida on June 11, 2008."
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Odyssey Marine Files Admiralty Arrests on Two New Shipwreck Sitestag:www.merchantroyalshipwreck.com,2008://1.1202008-05-29T17:42:20Z2008-06-12T12:01:16Z http://shipwreck.net/pr168.html Tampa, FL - May 29, 2008 - Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX), the world leader in the field of deep-ocean shipwreck exploration, today filed Admiralty Arrest Complaints in the U.S. District Court for the Middle District of...http://shipwreck.net/pr168.html
Tampa, FL - May 29, 2008 - Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX), the world leader in the field of deep-ocean shipwreck exploration, today filed Admiralty Arrest Complaints in the U.S. District Court for the Middle District of Florida on two separate shipwreck sites recently discovered by the Company.
Both sites lie within the general area of the English Channel but are outside the territorial waters or contiguous zone of any sovereign nation. The sites both contain cannon and other artifacts which are believed to date from the Colonial period. Odyssey has conducted preliminary surveys but has not yet been able to confirm the identity of either site. The Company's archaeological and conservation teams are currently developing archaeological excavation and conservation plans for both sites.
***************************************************************************************************************************************************************
We've noted here before that Odyssey's ship, the Odyssey Explorer, had spent a month this spring trolling a tight area west of Guernsey in the English Channel. Our guess is that one of the new shipwreck sites is that of La Vierge Du Bon Port. The other site is a mystery for now.
From: http://www.treasurelore.com/florida/treasure_ships.htmLa Vierge du Bon Port
This East Indiaman is probably one of the richest French vessel ever lost at sea and never found. The La Vierge du Bon Port was bought in Saint Malo in 1664, armed with 30 cannons and 300 tons of cargo space. Her captain, Truchot de la Chesnaie, from Saint Malo also, was commanding this vessel on a special order from the Minister Colbert, a dedicated Minister for the Marine Affairs, appointed by Louis XIV, the Sun King.
At this time, France was far from the main European military power on land and sea. This mission was the first expedition to Madagascar for the creation of a strong colony on the island, under the privileged of the newly created French East India Company. For this purpose, four ships were being prepared in Le Havre, La Rochelle and Saint Malo and gathered together at Brest for a cost to the Company of more than 500,000 Livres.
With 230 elite crew and 288 passengers (soldiers, high rank civil servants, etc.), the little squadron left Brest on 7 of March 1665, and reach Madagascar on the 10th of July, for the "Le Saint Paul" and at the end of August, "Le Taureau" and "La Vierge du Bon Port" also reach their destination. The goals for this first expedition, were principally to send to France, in the shortest times, a ship fully loaded with a large variety of samples which could be found in Madagascar and the islands in its vicinity. It was vital to show to everybody a first good result for the future expeditions.
On the 20th of February 1666, the ship "La Vierge du Bon Port", full of goods and merchandise, was ready to sails on a voyage back to Le Havre, in France. Unfortunately, several month later, on the 9th of July, her voyage almost completed, she was attacked by an English corsair and sunk off Guernsey, with her 120 crew, the remaining survivors taken as prisoners and brought to England. With this event, perished all hopes for a rich colony to be raised and the commercial loss resulting from this expedition was immense, as all her treasures were lost forever. She sank fast, and thirty six English crewmen drowned while trying to save the treasure.
Although the initial report valued her cargo and contents at £1,500,000, a Channel Islander stated that this was a gross underestimate, since one chest alone of precious stones known to be aboard was valued at £40,000, and ambergris and other things were equal to a further £400,000. No record exists of any salvage on the wreck, so her remains probably lie on the seabed near the Channel Isles, awaiting discovery by some future generation of treasure seekers or salvage divers.
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Odyssey Marine to Become World Premiere Series on Discovery Channeltag:www.merchantroyalshipwreck.com,2008://1.1192008-05-27T20:32:04Z2008-05-30T13:51:57Z Emmy® Award-winning JWM Productions to Produce Prime Time 11-Part Series http://shipwreck.net/pr167.html Tampa, FL - May 27, 2008 - Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX), the world leader in deep ocean shipwreck exploration, has granted Primetime Emmy® Award-winning JWM Productions...
Emmy® Award-winning JWM Productions to Produce Prime Time 11-Part Serieshttp://shipwreck.net/pr167.html
Tampa, FL - May 27, 2008 - Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX), the world leader in deep ocean shipwreck exploration, has granted Primetime Emmy® Award-winning JWM Productions exclusive access to film Odyssey's 2008 Atlas Search expeditions to produce a shipwreck exploration television series. Discovery Channel expects to premiere the 11-part High Definition (HD) series to worldwide audiences in 2009. Production is slated to begin immediately.
"We have the most experienced team of shipwreck explorers in the world manning our ships, and on a regular basis they make amazing discoveries in the deep ocean - things that have never before been seen by human eyes. We're proud of the exploration and archaeological work our team accomplishes in the challenging offshore environment, and for a long time we've been looking for the right format to share the excitement of our expeditions with viewers around the world," stated Greg Stemm, Odyssey's Chief Executive Officer. "JWM has a proven track record of producing smart, compelling television and Discovery Channel is the #1 media and television brand in overall quality for the eighth straight year. We're sure that Discovery's viewers will enjoy 'being there' during our shipwreck search and exploration expeditions," Stemm continued. "Odyssey is recovering not only treasures, but fascinating shipwreck stories from the bottom of the world's oceans. And our job is to deliver these stories, discoveries and adventures to Discovery's viewers in a way that brings them right into the action," explained Jason Williams, President and Co-founder of JWM Productions. "We're looking forward to an exciting season with unparalleled coverage of Odyssey's operations."
"This series will give our viewers a front row seat as Odyssey's archaeological and forensics teams search for sunken treasures and unravel the mysteries of long-lost shipwrecks," said John Ford, president and general manager of Discovery Channel. "This compelling 11-part series will show viewers the intense drama of underwater detective work and we are excited to have JWM creating this series for our audiences around the globe."
In this immersive series, viewers will join the Odyssey Marine Exploration team as they brave high seas, heavy weather, political red tape and courtroom clashes to keep their research vessels and deep ocean equipment operational on the hunt for underwater archaeological sites and shipwrecks that each have unique stories to tell. Episodes will include forensic analysis with stunning computer graphics as well as experts in cutting-edge laboratories laboring to analyze and conserve fragile artifacts recovered from the watery depths. Each episode, viewers will be involved in solving dramatic maritime mysteries and treated to spectacular underwater HD video of shipwreck discoveries through the cameras of Odyssey's Remotely Operated Vehicles (ROVs), as well as the real life battle to keep the treasures they discover.
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Spain Answers the Interrogatoriestag:www.merchantroyalshipwreck.com,2008://1.1182008-05-08T19:25:05Z2008-05-30T13:52:17Z http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2007cv00614/197978/107/ Spain has filed their answers to the court's interrogatories. There was no surprise that they claim "without a doubt" that the Black Swan site is that of the Mercedes. In their press conference they have also accused Odyssey...http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2007cv00614/197978/107/
Spain has filed their answers to the court's interrogatories. There was no surprise that they claim "without a doubt" that the Black Swan site is that of the Mercedes. In their press conference they have also accused Odyssey of being grave robbers. Nice touch that; no doubt to stir up public resentment.
http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2006cv01685/186117/114/
With regards to the Land's End site, Spain has filed a feeble response that looks like it was gathered from the Internet. They claim that the Merchant Royal "was engaged by agents of the King of Spain to transport funds of the Monarchy to Flanders. The also cite the "Foreign Sovereign Immunities Act" that their funds are "immune from attachment". We shall see.
Odyssey Marine issued an immediate response to Spain's statements and accusations:
http://shipwreck.net/pressreleases.htmlOdyssey Marine Exploration Responds To Recent Media Reports Following the Spanish Government's "Black Swan" Press Conference
Tampa, FL - May 8, 2008 - Following a significant amount of international media coverage based on a press conference held by the Spanish Ministry of Culture in Madrid on May 8, 2008, Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX) wishes to publicly address the most frequently asked questions by media and the public.
To clarify, Odyssey was not in attendance at the press conference, which was presided over by representatives of the Spanish government as well as Spain's legal counsel. Our statements are therefore based on media reports of the actual event and Spain's Responses to the Court's Interrogatories that Spain filed in U.S. District Court for the Middle District of Florida on May 8, 2008.
What is Odyssey's point of view regarding Spain's definitive statement that the site code-named "Black Swan" is that of the "Nuestra Señora de las Mercedes y las Animas"?
Although Odyssey has identified the Nuestra Señora de las Mercedes y las Animas (the "Mercedes") as a working hypothesis as to a vessel that could be related to the "Black Swan" site, the Company does not believe there is sufficient evidence to conclusively prove that the site is indeed related to the Mercedes or any other ship, and as we have previously mentioned, there is no hull of a shipwreck at this site. What we have found to date is apparently a cargo from a shipwreck as opposed to an actual vessel. It is surprising to us that the Spanish representatives who have viewed the photomosaics are not aware of this if they have any experience with shipwreck sites.
It is also surprising that the Kingdom of Spain has asserted conclusively ("without a doubt") that the "Black Swan" treasure is from the Mercedes after viewing site photomosaics and video that show no hull, ballast pile, keel or vessel, and only a statistically insignificant sample of the coins from the site. We believe that the scientific process, archaeological integrity, and historical accuracy are not served by jumping to conclusions and confirming the identity without conclusive proof.
Does Odyssey have a claim to the treasure if the "Black Swan" is indeed the "Mercedes"?
If the "Black Swan" coins are determined to be from the Mercedes, based on our extensive archival historical research, archaeological assessments and thorough legal analysis the Company is confident in its legal position. Of course, it is up to the U.S. District Court to determine the final disposition of the "Black Swan" treasure.
Can you address Spain's accusations of Odyssey "disturbing war graves"?
Odyssey deeply respects the maritime heritage of all nations and the final resting place of any sailors or passengers that may have perished in a shipwreck. However, in the case of the "Black Swan", no vessel and no human remains have been located, a fact that the Spanish experts are well aware of. If indeed it is confirmed that this site is related to the Mercedes, the ship was lost over 200 years ago and if the hull is ever actually located, it is unlikely that any human remains will be found at the site. Nevertheless, Odyssey agrees that all sites should be treated with respect and proper archaeological protocols, which have been carefully observed in the case of the "Black Swan" site.
Is Odyssey willing to settle the "Black Swan" case with Spain?
Odyssey has previously proposed to the Spanish Government on numerous occasions that Spanish archaeologists be allowed to participate in any expeditions that seek to explore shipwrecks which may be of Spanish historical interest.
As with our previous projects, including the SS Republic and HMS Sussex, Odyssey is diligent about notifying potential claimants when the ship's identity is determined. When, and if, Spain is determined to have a claim or cultural interest in any shipwreck, Odyssey would propose to enter a relationship just as it has on previous projects.
There have been some individuals that have been working hard to vilify Odyssey rather than acknowledging our company's repeated attempts to cooperate with Spain in any finds that may involve Spanish heritage. Odyssey has been and continues to be a steward of history. We bring stories of great cultural and historical significance to life, and we have always conducted our operations with archaeological integrity and technology that surpasses the capacities of many academic and governmental institutions.
Odyssey will continue to offer cooperation with Spain and any other government or potential owners of shipwrecks or cargo - and we hope that those who are concerned about underwater cultural heritage will see past the false representations about us by some who have a vested interest in seeing that Spain and Odyssey do not work together.
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La Vierge Du Bon Porttag:www.merchantroyalshipwreck.com,2008://1.1172008-04-28T16:13:21Z2008-05-09T12:57:32Z It's been quiet......too quiet. The annual meeting is May 7th 2008. The court interrogatory answers from Spain are due on or before May 9th. The share price is drifting down below $5.00/share. Time to pull another rabbit out of...
It's been quiet......too quiet. The annual meeting is May 7th 2008. The court interrogatory answers from Spain are due on or before May 9th. The share price is drifting down below $5.00/share. Time to pull another rabbit out of Odyssey's hat?
We shall see.
Last year the Black Swan recovery was announced just in time for the annual shareholder's meeting. This year the Odyssey Explorer has spent the last month trolling a tight area west of Guernsey in the English Channel. There has been some speculation as to what shipwreck they may be looking for; an interesting candidate is the La Vierge Du Bon Port.
From: http://www.treasurelore.com/florida/treasure_ships.htm
This East Indiaman is probably one of the richest French vessel ever lost at sea and never found. The La Vierge du Bon Port was bought in Saint Malo in 1664, armed with 30 cannons and 300 tons of cargo space. Her captain, Truchot de la Chesnaie, from Saint Malo also, was commanding this vessel on a special order from the Minister Colbert, a dedicated Minister for the Marine Affairs, appointed by Louis XIV, the Sun King.
At this time, France was far from the main European military power on land and sea. This mission was the first expedition to Madagascar for the creation of a strong colony on the island, under the privileged of the newly created French East India Company. For this purpose, four ships were being prepared in Le Havre, La Rochelle and Saint Malo and gathered together at Brest for a cost to the Company of more than 500,000 Livres.
With 230 elite crew and 288 passengers (soldiers, high rank civil servants, etc.), the little squadron left Brest on 7 of March 1665, and reach Madagascar on the 10th of July, for the "Le Saint Paul" and at the end of August, "Le Taureau" and "La Vierge du Bon Port" also reach their destination. The goals for this first expedition, were principally to send to France, in the shortest times, a ship fully loaded with a large variety of samples which could be found in Madagascar and the islands in its vicinity. It was vital to show to everybody a first good result for the future expeditions.
On the 20th of February 1666, the ship "La Vierge du Bon Port", full of goods and merchandise, was ready to sails on a voyage back to Le Havre, in France. Unfortunately, several month later, on the 9th of July, her voyage almost completed, she was attacked by an English corsair and sunk off Guernsey, with her 120 crew, the remaining survivors taken as prisoners and brought to England. With this event, perished all hopes for a rich colony to be raised and the commercial loss resulting from this expedition was immense, as all her treasures were lost forever. She sank fast, and thirty six English crewmen drowned while trying to save the treasure.
Although the initial report valued her cargo and contents at £1,500,000, a Channel Islander stated that this was a gross underestimate, since one chest alone of precious stones known to be aboard was valued at £40,000, and ambergris and other things were equal to a further £400,000. No record exists of any salvage on the wreck, so her remains probably lie on the seabed near the Channel Isles, awaiting discovery by some future generation of treasure seekers or salvage divers.
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Odyssey Believes It Found the Mercedes and Merchant Royaltag:www.merchantroyalshipwreck.com,2008://1.1152008-04-17T20:08:19Z2008-04-28T16:22:32Z Court Order: http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2007cv00614/197978/104/ On April 11th 2008, Odyssey files a Motion for Protective Order concerning the two remaining shipwrecks contested by Spain. There has long been speculation that the Black Swan is the Nuestra Senora de las Mercedes and...Court Order:http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2007cv00614/197978/104/
On April 11th 2008, Odyssey files a Motion for Protective Order concerning the two remaining shipwrecks contested by Spain. There has long been speculation that the Black Swan is the Nuestra Senora de las Mercedes and the Land's End site is that of the Merchant Royal.
Judge Pizzo today denied Odyssey's motion and in doing so ordered that Odyssey's answers to the courts interrogatories be made public. Within his order, Judge Pizzo revealed that Odyssey believes the Black Swan could be the Nuestra Senora de las Mercedes and the Land's End arrest could be that of the Merchant Royal.
From today's order:
"In 8:06-cv-1685-T-23MAP, Odyssey’s interrogatory response states that “certain characteristics of the site . . . appear to correspond positively with the loss of the Merchant Royall (British Merchant vessel Captained by John Limbrey and lost in 1641).”
"Likewise, Odyssey has already released to the media the vessel name it provides in response to the “working hypothesis” interrogatory in 8:07-cv-614-T-23MAP. Odyssey states in its interrogatory response that “one vessel Odyssey has considered which may be related to the site is the ‘Nuestra Senora de las Mercedes y las Animas’ . . ., a Spanish vessel which had been assigned to transport mail, private passengers and consignments of merchant goods and other cargoes at the time of its sinking in 1804.”
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K. Russell LaMotte of Beveridge & Diamond Joins Odyssey's Legal Teamtag:www.merchantroyalshipwreck.com,2008://1.1142008-04-15T23:11:37Z2008-04-17T20:20:51Z Full Bio: http://www.bdlaw.com/attorneys-93.html About Beveridge & Diamond P.C. : http://www.bdlaw.com/firm.html A 1993 magna cum laude graduate of Harvard Law School, Mr. LaMotte advises and represents clients in matters relating to international environmental and oceans-related regulatory regimes. He also serves...Full Bio:http://www.bdlaw.com/attorneys-93.htmlAbout Beveridge & Diamond P.C. :http://www.bdlaw.com/firm.html
A 1993 magna cum laude graduate of Harvard Law School, Mr. LaMotte advises and represents clients in matters relating to international environmental and oceans-related regulatory regimes. He also serves as co-chair of the firm's Climate Change practice group, where he advises clients on both the emerging U.S. climate change regimes and the evolving international climate change framework.
Mr. LaMotte was recently appointed by the President of the American Bar Association to the ABA Standing Committee on Environmental Law. The 11-member group examines and analyzes emerging environmental law and policy issues; assists in the development of ABA policies in the field; and communicates about the myriad environmental law activities taking place throughout the Association.
He brings over ten years of experience as an international lawyer at the U.S. Department of State, where he served most recently as Deputy Assistant Legal Adviser. As an attorney in the Legal Adviser’s Office of International Environmental, Oceans and Scientific Affairs, Mr. LaMotte represented the U.S. Government in designing, negotiating or implementing most of the major environmental and oceans agreements and initiatives.
On oceans law and marine pollution issues, Mr. LaMotte has extensive prior experience with deep seabed mining issues at the International Seabed Authority under the UN Convention on the Law of the Sea; negotiation of new marine pollution agreements at the International Maritime Organization; and negotiation of the UNESCO Convention on Protection of Underwater Cultural Heritage. Representative oceans law matters include counseling a company pursuing ocean iron fertilization as a tool for long-term carbon sequestration, and counseling a company engaged in archaeologically sensitive exploration and recovery of deep-water shipwrecks.
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Spain Drops Claim Against SS Anconatag:www.merchantroyalshipwreck.com,2008://1.1132008-04-02T19:54:32Z2008-04-15T23:23:39Z http://shipwreck.net/pr162.html Spain's Claim To One Of Odyssey's Shipwreck Cases Dismissed "Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX), the world leader in the field of deep-ocean shipwreck exploration, announced today that Spain's claim in Admiralty case number 8:07-CV-00616 has been dismissed...http://shipwreck.net/pr162.html
Spain's Claim To One Of Odyssey's Shipwreck Cases Dismissed
"Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX), the world leader in the field of deep-ocean shipwreck exploration, announced today that Spain's claim in Admiralty case number 8:07-CV-00616 has been dismissed pursuant to a motion filed on behalf of the Government of Spain. The shipwreck in this case is believed to be a 20th century passenger liner reported to be carrying valuable cargo.
Following Odyssey's May 2007 announcement of the recovery of 17 tons of silver and gold coins from the "Black Swan" site, Spain filed claims with the U.S. District Court's Tampa Division in three of the Company's pending admiralty arrests. Odyssey made it clear that the Company was unaware of evidence suggesting any potential Spanish interest in the site, yet Spain pursued its claim without providing any information as to the basis for that claim.
"We are very pleased that Spain has acknowledged that its claim to this particular shipwreck is unfounded, and we are now looking forward to moving ahead in resolving all issues expeditiously with the other two cases," said Greg Stemm, Odyssey's Chief Executive Officer.
"Technically, Spain's dismissal of its claim in this case has no bearing on the other two arrests, but this shows that just because Spain files a claim against a particular wreck site does not mean it has a valid basis, or as in this case, any evidence whatsoever to support that claim," commented Melinda MacConnel, General Counsel for Odyssey."
http://docs.justia.com/cases/federal/district-courts/florida/flmdce/8:2007cv00616/197307/94/Notice of Voluntary Dismissal Without Prejudice
"Pursuant to Federal Rule of Civil Procedure 41(a), Claimant Kingdom of Spain gives notice of voluntary dismissal of its Verified Claim in this case (Dkt. 14), based on examination of evidence disclosed by plaintiff pursuant to Orders of the Court indicating that the res in this case is the Italian vessel Ancona. Claimant reserves the right to refile a Verified Claim, without waiver of its sovereign immunity and other jurisdictional defenses and immunities, in the event that any future information indicates an interest of Claimant in the vessel or its contents.
Respectfully submitted on April 2, 2008"
The Ancona
The Ancona was a passenger ship that was sunk in 1915 by a German u-boat in the Mediterranean. Supposedly the ship's manifest stated that the Anconda was carrying "12 barrels of gold and a shipment of silver bars". It's hard to determine just how much gold this is but a conservative guess is that the melt value is no less than $25Mil in today's value.
Of course, the numismatic value could be far greater that that.
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Spain Presses Odyssey Marine for Shipwreck Identitytag:www.merchantroyalshipwreck.com,2008://1.1122008-03-25T13:24:47Z2008-04-02T20:08:00Z John Amrhein Jr. with a model of La Galga In 2000 Spain was awarded ownership of two shipwrecks off the coast of Virginia believed to be the remains of La Galga and Juno. The importance of this case was...John Amrhein Jr. with a model of La Galga
In 2000 Spain was awarded ownership of two shipwrecks off the coast of Virginia believed to be the remains of La Galga and Juno. The importance of this case was the precedent that gave Spain ownership rights of all sovereign Spanish shipwrecks in U.S. waters. Until then historic shipwrecks on our shores were deemed to belong to the individual states in which they lie by passage of the Abandoned Shipwreck Act of 1987. Spain has since expanded this precedent as proof of their sovereign ownership rights in international waters with the three current court cases against Odyssey Marine.
In a new book The Hidden Galleon: The true story of a lost Spanish ship and the legendary wild horses of Assateague Island author John Amrhein Jr. makes a strong case that the 2000 award of the La Galga and Juno to Spain should never have occurred. The author has a unique perspective - since 1978 he has personally searched for the existence of these vessels in archives as well as along the shores of Maryland and Virginia. Exhaustively researched and full of interesting anecdotes (e.g., the ponies of Assateague) "The Hidden Galleon" is the definitive work on the history of La Glaga and Juno.
http://www.nps.gov/history/archeology/sites/npSites/assateague.htmAbove: From the National Park Service website concerning the La Galga and Juno.Below: John Amrhein Jr. commenting on the controversy:
"From the beginning, in the ongoing battle between Spain and Odyssey Marine Exploration in the federal court in Tampa, Florida, Spain has demanded that Odyssey disclose the name of the shipwreck they have code named “Black Swan.” Spain needs the name. Without it, their case is tenuous. Without a Spanish shipwreck they will be asked to leave.
The nature of this admiralty claim is actually a suit against the shipwreck. It is called an action in rem where anyone who believes that they have a right to the property is invited to step forward and state their basis for such a claim. In the Black Swan case there are 500,000 coins at stake believed to be Spanish. Spain wants them.
In the court record, you will find Spain is complaining that Odyssey should not be allowed to proceed without first identifying the property and where they believed it came from. They say without an identity there can be no admiralty claim. To support that argument they have cited the Sea Hunt case as the leading precedent on point."
The Sea Hunt Case
"What one reads in newspapers (and Internet forums) contrasts quite sharply with the court record of the Sea Hunt case. Sea Hunt filed in rem admiralty actions on March 11, 1998 for two shipwrecks. They brought in three artifacts to perfect their claim, but said at the time that they may or may not have come from La Galga wrecked in 1750 or Juno sunk in 1802. They only believed that they were. These beliefs were based on wishful thinking rather than any historical research. This wishful thinking was fueled by the desire to find Spanish treasure.
On July 21, 2000, the Fourth Circuit Court of Appeals affirmed the award of two unidentified shipwrecks that rightfully belonged to the Commonwealth of Virginia to the Kingdom of Spain. Keep in mind that to make such a ruling in rem there must be Spanish ships and artifacts recovered from them to give the court the authority to make such a ruling. The appellate court ruling was made without any reservation as to the identity and discovery of these two shipwrecks. The lower court was replete with such reservations."
From the record:
“The record is clear that the parties and the Court relied on supposition, conjecture, and speculation when referring to unidentified vessels as the Juno and La Galga”―Sea Hunt
“We are not in a position to confirm for in rem purposes that the ships are in fact those of the Juno or La Galga” ―Sea Hunt
“We want to have control of our underwater land when we get through with this, except for the area in which LA GALGA and the JUNO lie. But the weakness of that exception is, nobody knows where that is.” ―Commonwealth of Virginia
“We are not interested in the physical artifacts. We are interested in the story and the history they represent…The problem with the two vessels, we don’t know where they are. We have some locations which may or may not be the vessels…Spain would be entitled to the Juno and La Galga if they were ever found.” ―Commonwealth of Virginia
“My first answer to you is if Sea Hunt with its resources has not been able to identify them, I don’t think sending down one U.S. Diver is going to either.” ―United States
Justice Department after being questioned by Judge Clarke why don’t they do their own verification.
"And in the end Spain demanded, “We believe that the court can rule, affirm Spain's ownership of the Juno regardless of which place it happens to be..."
Spain won. To illustrate the legality of the proceedings; if this was criminal court, the court convicted the wrong man with irrelevant evidence."
The Juno
"The Juno’s last reported location before she sank with all hands was nearly 200 miles from the shores of Assateague Island. In the 1980s, some local fisherman retrieved an anchor just off the beach of Assateague with a pewter plate stuck to it with what appeared to be the letter “J.” Sea Hunt heard of some Spanish coins being found on the beach opposite the anchor discovery. Since they predated 1802 they sought to connect them with a ship lost 200 miles away. They did not know about the numerous wrecks from this time period lost in this area, one of them sunk in 1817 was also called the Juno. They did not know that Spanish coins were legal tender in the United States until 1857 and could be found on any wreck prior to this date. So it was only wishful thinking that bridged the 200 mile distance to where Juno most likely lies. Sea Hunt offered no historical account that put the Juno just off the southern end of Assateague Island, Virginia. At the Historic Preservation Office in Richmond, Virginia, there is an inventory of underwater cultural resources. On the site form DHR ID# 44AC0402 for the Juno it says that for the wreck believed to be the Juno, there is no evidence that it is the Juno."
La Galga
"La Galga ran ashore on Assateague Island on September 5, 1750 after enduring hurricane and gale force winds for twelve days. When she beached, she remained upright and her lower tier was covered with two feet of water. She was close enough to shore that they were able to swim a line to the beach and tie onto another wreck. They then ferried themselves in on make-shift rafts and Indian canoes. They were told that they were in Virginia on the border between Maryland and Virginia. An argument ensued over this boundary and the location of the ship resulted in a survey that established that La Galga was within two ship lengths of the border on the Maryland side.
Captain Don Daniel Huony wrote a letter to the Governor of Maryland about this survey and location of his ship. This letter is found in the Archives of Maryland and has been public information since its printing in 1913. La Galga’s location has been published in numerous local histories and tourist literature. The boundary line pointing to the wreck has changed over the centuries. But the extremes of its location are only two miles. Since the wreck was sitting in shallow water close to shore it lies in a narrow corridor two miles long. With a good magnetometer she could be located in a day. Sea Hunt was not the first to search for La Galga, only the last.
In 1980, this author, armed with Spanish documents and evidence of the boundary line changes, sought to find the wreck. To make a long story short, it eluded him. There was evidence of a wreck just south of the present boundary but this author satisfied himself it was not La Galga. A treasure hunter named Alan Riebe went to this site and thought it could be La Galga. He applied for a permit from Virginia and was turned down. Virginia sent a team to the site and determined in was not La Galga..
In 1983, this author found a plat in the Accomack County Courthouse that not only documented changes in the boundary line but in the beach itself. Assateague had grown out in this location. That same year, he met a man from Chincoteague whose ancestry went back centuries. His grandfather had told him that the legendary Spanish ship that was responsible for the wild horses of Assateague had wrecked in this area. This legend was made world famous when Marguerite Henry published Misty of Chincoteague in 1947. In 1961, it was made into a movie.
Not told in the book, but remembered by some of the oldest inhabitants of Chincoteague, was that the Spanish ship had been lost in a forgotten inlet. The wreck caused it to close and sand in within two weeks time. Ignored, but not forgotten, is the statement by Captain Huony found in the Maryland Archives that “the owner of the land owns the ship.” With this new information and a portable magnetometer this author located the site that year buried beneath the Chincoteague National Wildlife Refuge. A research report was prepared and submitted to numerous authorities including the federal government. They did nothing and even declined this author’s offer to demonstrate his discovery.
In 1998, Sea hunt claimed that the same wreck site rejected by this author and the Commonwealth of Virginia was La Galga but offered no evidence as to why or any analysis of the boundary line controversy. They did so even though they had read this author’s documentation on the boundary line changes which contradicted their location. They ignored the legend.
This author began research for his book The Hidden Galleon in 2001. Many more Spanish documents were discovered, including the captain’s and officer’s reports. These documents say that the Spaniards were at Assateague for three days before departing for the mainland. Within that time, they described the wreck as being “covered with sand.”
The federal court hearing the Sea Hunt case saw none of this evidence. If it had, it would have certainly ruled that no admiralty court can have jurisdiction over a ship that has not seen navigable waters for 250 years.
Today, at the Historic Preservation Office in Richmond, you will find no site form for La Galga and after eight years of having acquired “title” to these two wrecks, Spain has yet to pay them a visit.
Thus the Sea Hunt case, the precedent, “the leading decision on point,” that will guide the federal court in rendering a potential decision against Odyssey Marine Exploration." For more, visit http://www.thehiddengalleon.com
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Judge Pizzo Advances Odyssey's Shipwreck Casestag:www.merchantroyalshipwreck.com,2008://1.1112008-03-13T12:55:59Z2008-04-02T20:07:27Z http://shipwreck.net/pr157.html Odyssey Marine and Spain are at odds over three shipwreck sites that Odyssey had arrested in 2007. The Black Swan which was announced last May with a potential valuation of over $500Mil; The Land's End site, which may...http://shipwreck.net/pr157.html
Odyssey Marine and Spain are at odds over three shipwreck sites that Odyssey had arrested in 2007. The Black Swan which was announced last May with a potential valuation of over $500Mil; The Land's End site, which may be the Merchant Royal, another fabulously rich shipwreck; and the Ancona, an Italian passenger ship which was torpedoed in 1915 and has gold and silver listed on it's manifest. Spain is certain that they have a claim on some if not all of these sites (lately it is looking like they will drop their claim on the Ancona).
Yesterday's court Order has advanced the court cases to the point where we should know whether or not Spain has any claims within the next 40 days.
March 12, 2008 - Odyssey Marine Exploration, Inc. today announced that United States Magistrate Judge, Mark Pizzo, has issued orders in three pending Admiralty cases that the Company believes will help to expeditiously move these cases forward. Two of the orders were in response to Spain's Motions to Compel Compliance and to Declare Certain Materials as Not Confidential.
The Judge ruled that the artifact summaries provided to Spain with photographs are not confidential, but that in the interest of protecting the site, other information including the preliminary site assessments, the site plans, the photographs of the sea bed and the photomosaics should remain confidential at this time.
The Court also clarified its January 10, 2008 order and indicated that Odyssey need not provide Spain with open access to Odyssey's research files at this stage of the litigation and that the information Odyssey has provided to Spain thus far is sufficient.
The Judge also issued interrogatories regarding possible theories as to the identity of any vessels which may be related to the sites. After receiving Odyssey's responses, Spain has 10 days to describe evidence that supports its claim to the vessel or artifacts.
The third order issued by Magistrate Pizzo today requires Spain to provide a basis for a claim, if any, against the shipwreck believed to be SS Ancona within 30 days.
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author John Amrhein Jr. makes a strong case that the 2000 award of the La Galga and Juno to Spain should never have occurred. The author has a unique perspective - since 1978 he has personally searched for the existence of these vessels in archives as well as along the shores of Maryland and Virginia. Exhaustively researched and full of interesting anecdotes (e.g., the ponies of Assateague) "The Hidden Galleon" is the definitive work on the history of La Glaga and Juno.
http://www.nps.gov/history/archeology/sites/npSites/assateague.htm
Above: From the National Park Service website concerning the La Galga and Juno.
Below: John Amrhein Jr. commenting on the controversy:
"From the beginning, in the ongoing battle between Spain and Odyssey Marine Exploration in the federal court in Tampa, Florida, Spain has demanded that Odyssey disclose the name of the shipwreck they have code named “Black Swan.” Spain needs the name. Without it, their case is tenuous. Without a Spanish shipwreck they will be asked to leave.
The nature of this admiralty claim is actually a suit against the shipwreck. It is called an action in rem where anyone who believes that they have a right to the property is invited to step forward and state their basis for such a claim. In the Black Swan case there are 500,000 coins at stake believed to be Spanish. Spain wants them.
In the court record, you will find Spain is complaining that Odyssey should not be allowed to proceed without first identifying the property and where they believed it came from. They say without an identity there can be no admiralty claim. To support that argument they have cited the Sea Hunt case as the leading precedent on point."
The Sea Hunt Case
"What one reads in newspapers (and Internet forums) contrasts quite sharply with the court record of the Sea Hunt case. Sea Hunt filed in rem admiralty actions on March 11, 1998 for two shipwrecks. They brought in three artifacts to perfect their claim, but said at the time that they may or may not have come from La Galga wrecked in 1750 or Juno sunk in 1802. They only believed that they were. These beliefs were based on wishful thinking rather than any historical research. This wishful thinking was fueled by the desire to find Spanish treasure.
On July 21, 2000, the Fourth Circuit Court of Appeals affirmed the award of two unidentified shipwrecks that rightfully belonged to the Commonwealth of Virginia to the Kingdom of Spain. Keep in mind that to make such a ruling in rem there must be Spanish ships and artifacts recovered from them to give the court the authority to make such a ruling. The appellate court ruling was made without any reservation as to the identity and discovery of these two shipwrecks. The lower court was replete with such reservations."
From the record:
“The record is clear that the parties and the Court relied on supposition, conjecture, and speculation when referring to unidentified vessels as the Juno and La Galga”―Sea Hunt
“We are not in a position to confirm for in rem purposes that the ships are in fact those of the Juno or La Galga” ―Sea Hunt
“We want to have control of our underwater land when we get through with this, except for the area in which LA GALGA and the JUNO lie. But the weakness of that exception is, nobody knows where that is.” ―Commonwealth of Virginia
“We are not interested in the physical artifacts. We are interested in the story and the history they represent…The problem with the two vessels, we don’t know where they are. We have some locations which may or may not be the vessels…Spain would be entitled to the Juno and La Galga if they were ever found.” ―Commonwealth of Virginia
“My first answer to you is if Sea Hunt with its resources has not been able to identify them, I don’t think sending down one U.S. Diver is going to either.” ―United States
Justice Department after being questioned by Judge Clarke why don’t they do their own verification.
"And in the end Spain demanded, “We believe that the court can rule, affirm Spain's ownership of the Juno regardless of which place it happens to be..."
Spain won. To illustrate the legality of the proceedings; if this was criminal court, the court convicted the wrong man with irrelevant evidence."
The Juno
"The Juno’s last reported location before she sank with all hands was nearly 200 miles from the shores of Assateague Island. In the 1980s, some local fisherman retrieved an anchor just off the beach of Assateague with a pewter plate stuck to it with what appeared to be the letter “J.” Sea Hunt heard of some Spanish coins being found on the beach opposite the anchor discovery. Since they predated 1802 they sought to connect them with a ship lost 200 miles away. They did not know about the numerous wrecks from this time period lost in this area, one of them sunk in 1817 was also called the Juno. They did not know that Spanish coins were legal tender in the United States until 1857 and could be found on any wreck prior to this date. So it was only wishful thinking that bridged the 200 mile distance to where Juno most likely lies. Sea Hunt offered no historical account that put the Juno just off the southern end of Assateague Island, Virginia. At the Historic Preservation Office in Richmond, Virginia, there is an inventory of underwater cultural resources. On the site form DHR ID# 44AC0402 for the Juno it says that for the wreck believed to be the Juno, there is no evidence that it is the Juno."
La Galga
"La Galga ran ashore on Assateague Island on September 5, 1750 after enduring hurricane and gale force winds for twelve days. When she beached, she remained upright and her lower tier was covered with two feet of water. She was close enough to shore that they were able to swim a line to the beach and tie onto another wreck. They then ferried themselves in on make-shift rafts and Indian canoes. They were told that they were in Virginia on the border between Maryland and Virginia. An argument ensued over this boundary and the location of the ship resulted in a survey that established that La Galga was within two ship lengths of the border on the Maryland side.
Captain Don Daniel Huony wrote a letter to the Governor of Maryland about this survey and location of his ship. This letter is found in the Archives of Maryland and has been public information since its printing in 1913. La Galga’s location has been published in numerous local histories and tourist literature. The boundary line pointing to the wreck has changed over the centuries. But the extremes of its location are only two miles. Since the wreck was sitting in shallow water close to shore it lies in a narrow corridor two miles long. With a good magnetometer she could be located in a day. Sea Hunt was not the first to search for La Galga, only the last.
In 1980, this author, armed with Spanish documents and evidence of the boundary line changes, sought to find the wreck. To make a long story short, it eluded him. There was evidence of a wreck just south of the present boundary but this author satisfied himself it was not La Galga. A treasure hunter named Alan Riebe went to this site and thought it could be La Galga. He applied for a permit from Virginia and was turned down. Virginia sent a team to the site and determined in was not La Galga..
In 1983, this author found a plat in the Accomack County Courthouse that not only documented changes in the boundary line but in the beach itself. Assateague had grown out in this location. That same year, he met a man from Chincoteague whose ancestry went back centuries. His grandfather had told him that the legendary Spanish ship that was responsible for the wild horses of Assateague had wrecked in this area. This legend was made world famous when Marguerite Henry published Misty of Chincoteague in 1947. In 1961, it was made into a movie.
Not told in the book, but remembered by some of the oldest inhabitants of Chincoteague, was that the Spanish ship had been lost in a forgotten inlet. The wreck caused it to close and sand in within two weeks time. Ignored, but not forgotten, is the statement by Captain Huony found in the Maryland Archives that “the owner of the land owns the ship.” With this new information and a portable magnetometer this author located the site that year buried beneath the Chincoteague National Wildlife Refuge. A research report was prepared and submitted to numerous authorities including the federal government. They did nothing and even declined this author’s offer to demonstrate his discovery.
In 1998, Sea hunt claimed that the same wreck site rejected by this author and the Commonwealth of Virginia was La Galga but offered no evidence as to why or any analysis of the boundary line controversy. They did so even though they had read this author’s documentation on the boundary line changes which contradicted their location. They ignored the legend.
This author began research for his book The Hidden Galleon in 2001. Many more Spanish documents were discovered, including the captain’s and officer’s reports. These documents say that the Spaniards were at Assateague for three days before departing for the mainland. Within that time, they described the wreck as being “covered with sand.”
The federal court hearing the Sea Hunt case saw none of this evidence. If it had, it would have certainly ruled that no admiralty court can have jurisdiction over a ship that has not seen navigable waters for 250 years.
Today, at the Historic Preservation Office in Richmond, you will find no site form for La Galga and after eight years of having acquired “title” to these two wrecks, Spain has yet to pay them a visit.
Thus the Sea Hunt case, the precedent, “the leading decision on point,” that will guide the federal court in rendering a potential decision against Odyssey Marine Exploration." For more, visit http://www.thehiddengalleon.com
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