A bench trial started today in a breach of contract case involving treasure recovered off the coast of the Bahamas. The parties are asking Chief U.S. District Judge Reed O’Connor to decide how to split the treasure.
Treasure hunters knew of the location of the sunken Spanish galleon, so Carl Allen and Texas-based Allen Exploration hired Daniel Porter and Maritime Research & Recovery to help locate and recover parts of the ship. The treasure was found, and now the parties are fighting over how it is divided.
The companies agreed that Maritime Research & Recovery would get a percentage of whatever was recovered, but in its lawsuit, Maritime claims Allen Exploration refused to pay.
Porter and Maritime Research & Recovery filed claims for breach of written contract, breach of implied-in-fact contract, breach of fiduciary duty, defamation, civil conspiracy and unjust enrichment. Porter and Maritime Research & Recovery are seeking the treasure, not the money it claims it was owed. Judge O’Connor will decide if Porter was defamed by Allen after his termination.
In 2019, Porter met Allen in the Bahamas, where the two discussed Allen’s desire to find the sunken Spanish galleon Nuestra Senora de las Maravillas. The Maravillas sank off the coast of the Bahamas in January 1656. According to records, the registered value of the gold and silver aboard the Maravillas was approximately $5 billion dollars in today’s value.
According to the lawsuit, Allen Exploration was to give 30 percent of any treasure or artifacts that Maritime Research recovered and reimburse its expenses in connection with the exploration and recovery. Allen and Allen Exploration also agreed to give the Bahamian government 25 percent of the treasure and artifacts recovered by Maritime Research & Recovery.
Allen requested that they modify their agreement to reduce Maritime Research & Recovery’s share to 25 percent. The other terms, including the conveyance of artifacts and expenses reimbursed, remained the same.
Maritime Research & Recovery recovered gold, silver and gemstones and was given about $400,000 for its cut in August 2021, according to the lawsuit.
Judge O’Connor heard opening statements from counsel Monday morning in Fort Worth.
Porter’s counsel, Miami-based Guy Rubin of The Rubin Firm, told Judge O’Connor in his opening statement that the one question for him to answer is whether the working relationship really ended in 2021. He explained that the “joint venture” continued for three more years.
“Most files will show it never ended,” Rubin said.
Rubin said that 2021 was the most productive year for the project.
News about the success of the project reached E. Lee Spence, who used to work with Porter. Spence informed Porter that it was Spence who had sole rights to the search area and accused Porter of breaching a prior agreement. Porter relayed that message to Allen
Porter notified Allen of Spence’s claims. Spence told Allen that he didn’t intend to sue and rather asked for a job, Rubin explained to Judge O’Connor.
Allen’s counsel, David Concannon of Concannon & Charles, got involved. He told the parties that Spence’s claims were dubious and that the best way to avoid them would be to engage in a “paper” termination of the written agreement between Allen Exploration and Maritime Research & Recovery in favor of an implied agreement under the same financial terms and conditions of the parties’ contract until such time as Porter and the members of Maritime Research & Recovery could form a new entity with which to enter into a new written agreement with Allen Exploration.
Allen Exploration sent notice to Maritime Research & Recovery that its service agreement and modification were terminated. Porter claims Allen agreed to continue their contractual relationship under the same terms and conditions of the April 2021 modified agreement.
“Both parties agreed the written termination was a legal fiction,” Porter alleged in his second amended complaint.
Several years later, in 2024, Allen and Allen Exploration refused to pay Porter any of the division of artifacts and stated they would pay only 60 percent of the 25 percent due. Porter refused to agree, Rubin said.
He alleged that Allen Exploration’s president and chief investment officer, Preston Paine, met with Porter, who urged him to continue the venture and said that Allen’s position would change when more treasure was recovered.
Rubin said Allen gave Porter an ultimatum. In exchange for Maritime Research & Recovery’s vessels, he would give him the lesser amount of the division. Porter declined and was fired from the project.
“They chose to break the contract,” Rubin said, claiming that the termination wasn’t lawful.
Since then, Allen has accused Porter of theft and wrongdoing.
“If they couldn’t make Mr. Porter disappear, then they would destroy him,” Rubin said.
Rubin noted to the court that Allen’s net worth is $200 million, but he only wanted to give Porter 60 percent of what he was owed and wanted his vessels.
“That’s the hubris of wealth,” Rubin said.
Rubin told Judge O’Connor to hold Allen to the agreement and make Porter and Maritime Research & Recovery whole.
During his opening statement, Concannon told Judge O’Connor that he is only hearing lies from the plaintiffs that have “kernels of truth.”
“Mr. Porter is a dishonest person,” Concannon said. “He gaslights and he projects.”
He said the Spence story was a deflection.
Concannon also said Porter was fired for not disclosing his prior contract with Spence.
In response to Rubin calling it a “joint venture,” Concannon said, “It was not a joint venture by any stretch of the imagination.”
Concannon alleged that Porter did not disclose his criminal history with money laundering and cocaine trafficking to Allen.
“This case is about the credibility of Mr. Porter,” Concannon said.
Porter immediately took the witness stand after opening statements. Before the lunch break, he went through his history of recovering artifacts in the Bahamas.
The trial is expected to last until Friday.
Todd Norbraten of The Rubin Firm, Jason Wander of Wander Law, James Jacks of Law Office of James T. Jacks, and Richard Kibbey of the Law Office of Richard Kibbey are also representing Porter and Maritime Research & Recovery.
Brian Gillett, Eric Halpern and Robert Sayles of Bradley Arant Boult Cummings and Christopher Lanza are also representing Allen and Allen Exploration.
The case number is 3:25-CV-0744.