The SS United States, a 1,000-foot-long ship that still holds the transatlantic speed record it broke in 1952, must leave its berth in South Philadelphia of more than a decade by Sept. 12, a federal judge said Friday.
The decision by U.S. District Judge Anita B. Brody put an end to a years-long charter dispute that culminated in a two-day trial in January between the SS United States Conservancy, the ship's steward, and the owner of Pier 82, Pennsylvania. Storage.
Tensions reached a boiling point in August 2021, when Penn Warehousing doubled the daily mooring fees for what was formerly known as “Queen of the Seas” to $1,700, an increase the company refused to accept, and continued to pay its previous rate, set for 2021. 2011. Ended Penn Warehousing entered into the lease in March 2022 with written notice, then took the custodian to court, with the custodian filing a counterclaim.
During the trial, attorneys for both sides attempted to twist the ambiguity of the original mooring agreement to their advantage. Brody, who encouraged both sides to compromise rather than leaving it up to her, ultimately gave each side a partial victory in her decision.
I noticed two major omissions in the original mooring agreement. There were no provisions for any change in 'berth fees' or provisions on how to terminate the relationship for either party other than to leave the ship. Penn Warehousing's demand to increase the mooring fee with 14 days' notice “finds no support in the mooring agreement or contract law,” she wrote, and the company's failure to pay the new rate does not amount to a violation of the 2011 agreement or the right to do so. Its owner is compensated.
However, under Pennsylvania contract law, the mooring agreement is terminable at will with reasonable notice, which Penn Warehousing issued in March 2022, Brody wrote.
Susan Gibbs, president of the conservancy and granddaughter of the ship's designer, said in a statement that the conservancy “was vindicated for not being forced to pay a significant amount of back rent.” However, she lamented the ticking clock the Protectorate was now under.
“The judge’s decision gives us a very limited window to find a new home for the SS United States and gather the resources needed to move the ship and keep it safe,” she wrote.
The decision gives the reserve about 90 days to find a new home. In addition to finding a site, Gibbs said the conservancy will need money for insurance, tugs, surveys and dock preparations to move.
Penn Warehousing couldn't be happier with the victory, attorney Craig Mills said in an email statement.
“The best hope for all involved was that the Conservancy could successfully reuse the ship,” he said. “But after decades of degradation and delay, it is time to acknowledge the inevitable and return Pier 82 to productive commercial service.”
The Rise and Fall of the US SS
Christened the SS United States in 1952, it was once the hangout for A-list celebrities like Marilyn Monroe, royalty, and future presidents. She was a beacon of American engineering, doubling as a military ship that could carry thousands of soldiers.
However, recent decades have not been kind to the ship as it was bounced from US Navy control in 1969 as a reserve ship, to several private owners with failed redevelopment ambitions that ranged from creating timeshare apartments to giving the ship a second life on a cruise line. .
While generations of ambitious redevelopers found their plans too expensive or ill-timed, the ship seemed headed toward the scrap heap.
The ship was bought more time to sort out its future when philanthropist H. F. “Gerry” Lenfest — the late former owner of The Inquirer and whose Lenfest Institute now owns the newspaper — donated $5.8 million in 2010 to save the ship from destruction. The money allowed the Ship Conservancy, which was already defending the ship, to purchase it from then-owner Norwegian Cruise Lines. The donation also served as 20 months' rent.
History repeats itself
Once in control of the ship, the Protectorate similarly struggled to find a White Knight. Most recently, the organization released plans in November presented by real estate firm RXR Realty and MCR Hotels. Plans call for the ship to include a hotel, restaurant and museum, among other amenities and event spaces.
The organization asked supporters to call on Florida Governor Ron DeSantis, New York Governor Kathy Hochul and Pennsylvania Governor Josh Shapiro to step in and help the ship find a new home. In return, they will benefit from the jobs the redevelopment will create, according to the province.
The conservancy has taken its appeal all the way to the White House, explaining that if the ship is evacuated it will likely be destroyed. However, no one came forward.
Trial
Conservation attorneys argued that the mooring agreement was a “sweetheart agreement” for Penn Warehousing that provided the tenants with no services.
Penn Warehousing sought to “force” the conservancy off the dock by raising rent under various pretexts, conservancy lawyers alleged.
But attorneys for Penn Warehousing confirmed that the charterer began causing problems in 2020, when the company learned that the vessel had damaged the bulkheads it was secured to and the dock's seawall.
The shipowner said that under the mooring agreement, the conservation authority was responsible for maintaining the pillars and preventing future damage. Lawyers for Penn Warehousing said the company did not take steps to address the cause of the damage and did not announce plans to leave, forcing the company to raise the rent.
“They were every owner's nightmare,” Mills said in court.
The only thing both sides can agree on is that the ship wasn't supposed to stay in front of the IKEA store forever.
The organization said on Friday that it had launched an urgent campaign to raise funds for this step.
