(a) Intangible Property. The summons issued pursuant to Rule C(3)(c) shall
direct the person having control of intangible property to show cause no later
than fourteen (14) days after service as to why the intangible property should
not be delivered to the Court to abide the judgment. A Judicial Officer for good
cause shown may lengthen or shorten the time. Service of the summons has the
effect of an arrest of the intangible property and brings it within the control of
the Court. Service of the summons to show cause requires a garnishee wishing
to retain possession of the property to establish grounds for doing so, including
specification of the measures taken to segregate and safeguard the intangible
property arrested. The person who is served may deliver or pay over to the
Marshal the intangible property proceeded against to the extent sufficient to
satisfy the Plaintiff’s claim. If such delivery or payment is made, the person
served is excused from the duty to show cause. A person who asserts a right of
possession or ownership may show cause as provided in Rule C(6)(a) as to why
the property should not be delivered to the Court.
(b) Publication of Notice of Action and Arrest. The notice required by
Rule C(4) shall be published in a newspaper of general circulation in the
District once a week for three (3) consecutive weeks, said notice to begin not
later than twenty-one (21) days following seizure, and Plaintiff’s attorney shall
file with the Clerk a copy of the notice as it was published. The notice shall
contain:
(1) The Court, title, and number of the action;
(2) The date of the arrest;
(3) The identity of the property arrested;
(4) The name, address, and telephone number of the attorney for Plaintiff;
(5) A statement that the claim of a person who is entitled to possession or
who claims an interest pursuant to Rule C(6)(a) must be filed with the Clerk
and served on the attorney for Plaintiff within fourteen (14) days after final
publication;
(6) A statement that an answer to the complaint must be filed and served
within twenty-one (21) days after filing the statement of interest or right and
that, otherwise, default may be entered and condemnation ordered;
(7) A statement that applications for intervention under Rule 24 by persons
claiming maritime liens or other interests shall be filed within the time fixed
by the Court; and
(8) The name, address, and telephone number of the Marshal, keeper, or
substitute custodian.
(c) Default in Actions In Rem.
(1) Notice Required. A party seeking a default judgment in an action in
rem must satisfy the Court that notice of the action and arrest of the property
has been given:
(A) By publication as required in Local Admiralty Rule 102(b);
(B) By service upon the Marshal, keeper, substitute custodian, master, or
other person having custody of the property; and
(C) By mailing notice to every other person who has not appeared in the
action and is known to have an interest in the property.
(2) Persons with Recorded Interests.
(A) If the Defendant property is a vessel documented under the laws of the
United States, Plaintiff must attempt to notify all persons named in the
United States Coast Guard certificate of ownership.
(B) If the Defendant property is a vessel numbered as provided in the
Federal Boat Safety Act, Plaintiff must attempt to notify the persons
named in the records of the issuing authority.
(C) If the Defendant property is of such character that there exists a
governmental registry of property interests and/or security interests, the
Plaintiff must attempt to notify all persons named in the records of each
such registry.
(d) Entry of Default and Default Judgment. After the time for filing an
answer has expired, the Plaintiff may move for entry of default under Rule
55(a). The Court will enter default upon showing that:
(1) Notice has been given as required by Local Admiralty Rule 102(c)(1);
(2) Notice has been attempted as required by Local Admiralty Rule 102(c)(2),
where appropriate;
(3) The time to answer by claimants of ownership to or possession of the
property has expired; and
(4) No answer has been filed, or no one has appeared, to defend on behalf of
the property.
The Plaintiff may move for judgment under Rule 55(b) at any time after
default has been entered.
(e) Procedure for Giving Actual Notice to Mortgagee or Lien Claimant
under 46 U.S.C. 31325(d)(1)(B) or (C). In those instances where actual
notice is required to be given to a mortgagee or lien claimant under 46 U.S.C.
31325 (d)(1)(B) or (C), or any amendments thereto with respect to the
enforcement of preferred ship mortgages and maritime liens, the said notice
shall be given by certified mail, return receipt requested, at the address stated
in the mortgage or notice of claim of lien, as the case may be, or such other
address deemed by counsel in good faith to be better calculated to provide notice
to said party.
