In 1997, Sea Hunt, Inc., a commercial salvage company based in Manchester, New Hampshire, obtained a permit from the Virginia Department of Marine Resources , to conduct salvage operations on two historic shipwrecks located within the authorized boundary of Assateague Island National Seashore. Commercial salvage is an authorized activity under the Abandoned Shipwreck Act of 1987, and is regulated by the individual states which own the submerged lands in which the wrecks are embedded, provided that the wrecks are not subject to sovereign immunity. In early 1998, the United States Department of State met with the Spanish Naval Attache who asserted their sovereign immunity over the wrecks and requested that the National Park Service take appropriate measures for their preservation.

In response, Sea Hunt, Inc. petitioned the United States District Court for the Eastern District of Virginia for "arrest" of the two historic shipwrecks. The petition was granted, giving potential claimants (Spain) 60 days to file a claim of ownership or possession. The United States, on behalf of Spain, asserted Spain's ownership. On September 25, the court ruled that the United States may not act as counsel for another power and that it should have asserted its interest through an amicus brief and therefore has no interest to assert. The court then gave Spain 90 days to secure counsel or to make an appearance on their own behalf. Soon after, the Court reasserted the National Park Service's right to regulate waters off of Assateague Island.