The Coast Guard described the ship as being in such fragile condition that it may not withstand being moved to other moorage and might have to be scrapped. In July 2012 Steve Rodrigues sued the state of Washington claiming that the state had failed in its "duty" to help preserve the ferry. Rodrigues' suit asked that the state be prevented from forcing "Kalakala" to be moved, confiscated, or sunk and sought to force the state to pay approximately $50 million for restoration of the ferry under a proposal Rodrigues previously submitted, which was rejected. In November 2012, Karl Anderson, owner of the Hylebos Waterway uplands where the boat was moored, took possession of the vessel in exchange for the $4,000 he claimed Rodrigues owed him in back rent.