"Black Swan" controversy
In May 2007, the company announced the recovery of 17 tons of mainly silver and some gold coins from a site in an undisclosed location in international waters, which the company code-named the "Black Swan". Some believed that the shipwreck could be the Spanish frigate Nuestra Señora de las Mercedes,[18] which exploded and sank in the action of 5 October 1804, but no definitive shipwreck hull or unique cargo was discovered to conclusively prove the theory.
Following the discovery, Odyssey brought the coins and artifacts recovered into the jurisdiction of the United States Federal Court by filing an admiralty arrest pursuant to admiralty law. At that time, the Spanish government claimed that they believed the site was in Spanish territorial waters.[19] The Spanish Government has since conceded that claim and sought to claim the discovered treasure based on their belief that the Nuestra Señora de las Mercedes should be afforded sovereign immunity.[20]
On July 12, 2007, the Civil Guard seized the Odyssey Marine Exploration research vessel Ocean Alert 3.5 nmi off the European coast. The Spanish Civil Guard claims to be responsible for customs control and European Union borders in this region, under the EU Schengen Agreement. This, however, is disputed by the Government of Gibraltar and the UK Government who claim that the ship was detained in international waters near Gibraltar and that Spain therefore had no legal authority to board the vessel without the express consent of the flag state of the ship—in this case, Panama. The Gibraltar Government stated that although this was a matter for the Government of Panama, they are "concerned that international shipping using Gibraltar port should be interfered with in this way in international waters."[21] The ship was ordered to sail to the Spanish port of Algeciras to undergo a search and inspection.[22] Issues include the value and cultural significance of the shipwreck and the disputed status of Gibraltar between the UK and Spain.[23] Panama is also involved because Odyssey's vessel is flagged there.[24] In 2010, Odyssey's Captain Sterling Vorus was cleared of all charges by a court in Algeciras, Spain, relating to the blockade and boarding of the Odyssey Explorer.[25] The Spanish court ruled that Spanish officials did not have proper authorization to board or search Odyssey's ship in 2007.[25]
In January 2011, Odyssey Marine claimed that the language used in recently leaked diplomatic cables showed that the US State Department had been involved with negotiations to assist the Spanish government in receiving the treasure in exchange for the return of allegedly stolen artwork to a US private citizen. The US State Department declined comment while Spain denied Odyssey Marine's claim.[26] The Department of State's Office of Inspector General subsequently investigated the charges in response to a request by Representative Kathy Castor of Florida. In March 2011, it determined that it could find no evidence of a connection between the Black Swan case and the negotiations for the return of the artwork in question (a Pissarro painting).[27]
A U.S. federal judge awarded the treasure to Spain in December 2009, on the ground that the ship remained the property of Spain, but Odyssey appealed the ruling. Finally, after a five-year legal battle, in February 2012 the U.S. Supreme Court ordered Odyssey Marine to relinquish the treasure to Spanish authorities. Spain's culture minister indicated the treasure would be divided among several national museums.[28] In September 2013, a U.S. district judge further ruled that Odyssey had acted in "bad faith" and engaged in "abusive litigation", should have recognized Spain's right, and should thus reimburse $1 million in Spain's attorneys fees.[29] Odyssey then issued a statement recognizing that this case was unusual since it was the first time a court has made an order without accepting jurisdiction but that the court ruling has clarified the applicable law, which Odyssey is committed to respecting.
