Hearing may finally end Titanic battle over artifacts

NORFOLK

The company that holds thousands of artifacts from the Titanic luxury liner returned to federal court in Norfolk on Monday seeking sole title to the property and an end to more than 15 years of legal wrangling over the treasure.

U.S. District Judge Rebecca Beach Smith opened a hearing that will determine the fate of the artifacts lifted from the depths of the North Atlantic.

Premier Exhibitions Inc., the parent company of RMS Titanic Inc., has asked the court to award it sole title to the artifacts with covenants to preserve them forever, or alternatively, a cash award of the estimated value of the pieces: $110 million.

A cash award appears unlikely because no company, museum or individual has stepped forward with an offer to pay that kind of money.

After the Titanic's discovery and subsequently the first expedition to retrieve the artifacts in 1987, ownership of the property has been a legal and corporate challenge.

The federal court here ruled 15 years ago that it has maritime authority over the wreck site and has overseen RMS Titanic's efforts to salvage and preserve the artifacts it has lifted from the bottom of the ocean during four of five expeditions.

Efforts to sell individual pieces, other than bits of coal, were stopped by the court.

Smith, who has held the reins on the case for about the past 10 years, needs to be convinced that the company has the resources and ability to preserve the artifacts for future generations.

Lawyers opened the hearing Monday morning with a company board member who outlined Premier's financial health and its optimism for the future.

Retired Army Col. Jack Jacobs, author of "If Not Now, When?: Duty and Sacrifice in America's Time of Need," joined the board in January. At the time, things were a mess, he said, calling the company "extremely poorly run."

"It was not a pretty picture, to be honest," Jacobs testified.

The company's stock price was falling, hitting 45 cents a share in March, but it has since rebounded and was at $1.29 Monday.

In that time, the board ousted former company president Arnie Geller, hired new leaders and received a $15 million capital infusion.

The company, Jacobs said, is "unequivocally committed to the preservation of the artifacts."

Lawyers for the company said they will present about 15 expert witnesses, including appraisers who estimated the worth of the artifacts. The $110 million figure, the appraisers said in a court filing, is not to be taken literally.

The historic nature of the collection "does make it irreplaceable and therefore priceless," the appraisers, Paul Zerler and Stephen H. Rogers, said.

Testimony will run through the week. The judge is not expected to rule until sometime later, perhaps months.

The company also notified the court that it has begun initial planning for another expedition to the site, tentatively scheduled for 2010.

The federal government is monitoring the proceedings but has made no objections to the company's plans.

No adversaries have stepped forward, but one British man has been making rumblings challenging Premier's claim to salvage rights.

Douglas J. Faulkner Woolley, who claims he was the first to discover the Titanic, in 1977, says in a letter to Premier's lawyers that he will auction off the salvage rights to the Titanic site next week, in Britain. Woolley's legitimacy could not be verified Monday.

The Titanic struck an iceberg and sank on its maiden voyage in April 1912, killing more than 1,500 passengers and crew.

Its wreckage is 400 miles southeast of Newfoundland, scattered at a depth of about 2-1/2 miles. Of the 2,228 passengers and crew, 705 were saved.

Tim McGlone, (757) 446-2343, tim.mcglone@pilotonline.com