California v. Deep Sea Research, Inc.

Background

Deep Sea Research, Inc. (DSR) located the wreck of the S. S. Brother Jonathan off the coast of California and sued in federal court under admiralty rules to claim the ship and its cargo. California intervened and said it owned the wreck under the federal Abandoned Shipwreck Act (ASA) and a California statute, §6313. The District Court found California had not shown a “colorable claim” and issued a warrant arresting the wreck and appointed DSR custodian; the Ninth Circuit mostly affirmed, and the case went to the Supreme Court.

Reasoning

The key question was whether the Eleventh Amendment (the constitutional rule that protects states from being sued in federal court) bars a federal in rem admiralty action when the disputed property is not actually in the State’s possession. The Court said it does not. Relying on old admiralty practice and earlier cases, the Court distinguished situations where a State physically holds the property from this one where the State does not, and concluded federal courts may adjudicate competing claims to a res not held by the State. The Court left unresolved whether the Brother Jonathan is “abandoned” under the ASA, sent that issue back to the lower courts, and instructed that “abandoned” should follow admiralty law.

Real world impact

The decision lets federal admiralty courts hear salvage and ownership disputes over shipwrecks that a State does not physically control, affecting salvors, states, and insurers. Because the Court remanded the abandonment and pre‑emption questions, final ownership and any state title remain for further proceedings.

Dissents or concurrances

Justice Stevens concurred, saying a State may be bound by an in rem admiralty adjudication and reconsidered prior cases; Justice Kennedy (joined by Justices Ginsburg and Breyer) also concurred, noting some Treasure Salvors issues remain open for future review.