Provisions
(a) Itemized Demand for Judgment. The demand for judgment in every
complaint filed under Rule B or Rule C shall allege the dollar amount of the
debt or damages for which the action was commenced. The demand for
judgment shall also allege the nature of other items of damage. The amount of
the special bond posted under Rule E(5)(a) may be based upon these allegations.
(b) Salvage Action Complaints. In an action for a salvage reward, the
complaint shall allege the dollar value of the vessel, cargo, freight, and other
property salved, and the dollar amount of the reward claimed.
(c) Verification of Pleadings. Every complaint in Rule B, C, and D actions
shall be verified upon oath or solemn affirmation, or in the form provided by 28
U.S.C. § 1746, by a party or by an authorized officer of a corporate party. If no
party or authorized corporate officer is present within the District, verification
of a complaint may be made by an agent, attorney in fact, or attorney of record,
who shall state the sources of the knowledge, information, and belief contained
in the complaint; declare that the document verified is true to the best of his or
her knowledge, information, and belief; state why verification is not made by
the party or an authorized corporate officer; and state that the affiant is
authorized so to verify. A verification not made by a party or authorized
corporate officer will be deemed to have been made by the party as if verified
personally. If the verification was not made by a party or authorized corporate
officer, any interested party may move, with or without requesting a stay, for
the personal oath of a party or an authorized corporate officer, which shall be
procured by commission or as otherwise ordered.
(d) Review by Judicial Officer. Unless otherwise required by the Judicial
Officer, the review of complaints and papers called for by Rules B(1) and C(3)
does not require the affiant party or attorney to be present. The applicant for
review shall include a form of order to the Clerk which, upon signature by the
Judicial Officer, will direct the arrest, attachment, or garnishment sought by
the applicant. In exigent circumstances, the certification of the Plaintiff, or
his/her attorney, under Rules B and C shall consist of an affidavit or a
declaration pursuant to 28 U.S.C. § 1746 describing in detail the facts that
establish the exigent circumstances.
(e) Return of Service. The party who requests a warrant of arrest or process
of attachment or garnishment shall provide instructions to the Marshal. A
person specially appointed by the Court under Rule B or C, who has served
process of maritime attachment and garnishment or a warrant of arrest that
seized property, shall promptly file a verified return showing the name of the
individual on whom the process or warrant was served, the identity of the
person or entity on whom service was made, the documents served, the manner
in which service was completed (e.g., personal delivery), and the address, date,
and time of service.
(f) Property in Possession of United States Officer. When the property
to be attached or arrested is in the custody of an employee or officer of the
United States, the Marshal shall deliver a copy of the complaint and warrant of
arrest or summons and process of attachment or garnishment to that officer or
employee, if present, and, otherwise, to the custodian of the property. The
Marshal will instruct the officer or employee or custodian to retain custody of
the property until ordered to do otherwise by a Judicial Officer.
(g) Security for Costs. In an action under the Supplemental Rules, a party
may move, upon notice to all parties, for an order to compel an adverse party to
post security for costs with the Clerk pursuant to Rule E(2)(b). Unless
otherwise ordered, the amount of security shall be $500.00. The party so
ordered shall post the security within seven (7) days after the order is entered.
A party who fails to post security when due may not participate further in the
proceedings except by order of Court. A party may move for an order increasing
the amount of security for costs.
(h) Adversary Hearing. The adversary hearing following arrest or
attachment or garnishment that is called for in Rule E(4)(f) shall be conducted
by a Judicial Officer promptly. The person(s) requesting the hearing shall
notify all persons known to have an interest in the property of the time and
place of the hearing.
(i) Appraisal. An order for appraisal of property so that security may be
given or altered may be entered upon motion. If the parties do not agree in
writing upon an appraiser, a Judicial Officer will appoint the appraiser. The
appraiser shall be sworn to the faithful and impartial discharge of the
appraiser’s duties before any federal or state officer authorized by law to
administer oaths. The appraiser shall give one (1) business day’s notice of the
time and place of making the appraisal to counsel of record. The appraiser shall
promptly file the appraisal with the Clerk and serve it upon counsel of record.
The moving party normally will pay the appraiser’s fee, but it is a taxable cost
of the action.
(j) Security Deposit for Seizure of Vessels. The first party who seeks
arrest or attachment of a vessel or property aboard a vessel shall deposit with
the Marshal such sums as may be required by the Marshal to cover the
expenses of the Marshal including, but not limited to, dockage, keepers,
maintenance, and insurance. The Marshal is not required to execute process
until the deposit is made. The party shall advance additional sums from time to
time, at the Marshal’s request, to cover estimated expenses. A party who fails
to advance such additional sums may not participate further in the proceedings
except by order of the Court. The Marshal may, upon notice to all parties,
petition the Court for an order to release the vessel if additional sums are not
advanced within seven (7) days after the request.
(k) Intervenors’ Claims.
(1) Presentation of Claim. When a vessel or other property has been
arrested, attached, or garnished, and is in the hands of the Marshal or
substitute custodian, anyone having a claim against the vessel or property is
required to present the claim by filing an intervening complaint and obtain a
warrant of arrest, and not by filing an original complaint, unless otherwise
ordered by a Judicial Officer. No formal motion is required. The intervening
party shall serve a copy of the intervening complaint and warrant of arrest
upon all parties to the action and shall forthwith deliver a conformed copy of
the complaint and warrant of arrest to the Marshal, who shall deliver the
copies to the vessel or custodian of the property. Intervenors shall thereafter
be subject to the rights and obligations of parties, and the vessel or property
shall stand arrested, attached, or garnished by the intervenor. An intervenor
shall not be required to advance a security deposit to the Marshal for seizure
of a vessel as required by Local Admiralty Rule 104(j).
(2) Sharing Marshal’s Fees and Expenses. An intervenor shall owe a
debt to any party who has previously advanced funds to cover the expenses of
the Marshal, enforceable on motion, consisting of the intervenor’s share of the
Marshal’s fees and expenses in the proportion that the intervenor’s claim
bears to the sum of all the claims. If a party Plaintiff permits the vacation of
an arrest, attachment, or garnishment, the remaining Plaintiffs will share the
responsibility to the Marshal for fees and expenses in proportion to the
remaining claims and for the duration of the Marshal’s custody because of
each claim.
(l) Custody of Property.
(1) Safekeeping of Property. When a vessel or other property is brought
into the Marshal’s custody by arrest or attachment, the Marshal shall arrange
for adequate safekeeping, which may include the placing of keepers on or near
the vessel. A substitute custodian, in place of the Marshal, may be appointed
by order of the Court. Any application for appointment of a substitute
custodian must show the name of the proposed custodian, the location of the
vessel during the period of custody, and the proposed insurance coverage.
Notice of the application to appoint a substitute custodian, if made concurrent
with the application for arrest or attachment, need only be given to the
Marshal.
(2) Insurance. The Marshal may procure insurance to protect the Marshal,
keepers, and substitute custodians from liabilities assumed in arresting and
holding the vessel, cargo, or other property, in performing protective services,
and in maintaining the Court’s custody. The party who applies for arrest or
attachment shall reimburse the Marshal for premiums paid for the insurance
and shall be an added insured on the policy. The party who applies for
removal of the vessel, cargo, or other property to another location, for
designation of a substitute custodian, or for other relief that will require an
additional premium, shall reimburse the Marshal therefor. The premiums
charged for the liability insurance are taxable as administrative costs while
the vessel, cargo, or other property is in the custody of the Court.
(3) Cargo Handling, Repairs, and Movement of the Vessel.
(A) Following arrest or attachment of a vessel, cargo handling shall be
permitted to commence or continue unless otherwise ordered by the Court.
No repairs to or movement of the vessel shall take place without order of
the Court. The applicant for an order shall give notice to the Marshal and
to all parties of record.
(B) If an applicant shows adequate insurance to indemnify the Marshal for
liability, the Court may order the Marshal to permit repairs or movement
of the vessel, cargo, or other property. The costs and expenses of such
activities shall be borne as ordered by the Court. Any party of record may
move for an order to dispense with keepers or to remove or place the vessel,
cargo, or other property at a specified facility, to designate a substitute
custodian, or for similar relief. Notice of the motion shall be given to the
Marshal, keeper, or substitute custodian, and to all parties of record. The
Judicial Officer will require that adequate insurance on the property will
be maintained by the successor to the Marshal, before issuing the order to
change arrangements.
(4) Claims by Suppliers for Payment of Charges. A person who has
furnished supplies or services to a vessel, cargo, or other property while in
custody of the Court, who has not been paid, and who claims the right to
payment as an expense of administration, shall submit an invoice to the Clerk
in the form of a verified claim at any time before the vessel, cargo, or other
property is released or sold. The supplier must serve copies of the claim on
the Marshal, substitute custodian if one has been appointed, and all parties of
record. The Court may consider the claims individually or schedule a single
hearing for all claims.
(m) Sale of Property.
(1) Notice. Unless otherwise ordered, upon good cause shown, or as
provided by law, notice of sale of property in an action in rem shall be
published in a newspaper of general circulation in the District one (1) time a
week for two (2) consecutive weeks with the last date of publication not less
than seven (7) days immediately preceding the sale. The Marshal shall file
with the Clerk a copy of the notice as it was published. The notice of sale
shall state the last date on which claims can be filed against the vessel or
property or proceeds of sale of same, as provided in Local Admiralty Rule
104(k)(1).
(2) Payment of Bid. These provisions apply unless otherwise ordered in the
order of sale:
(A) The person whose bid is accepted shall immediately pay the Clerk the
full purchase price if the bid is $1,000.00 or less;
(B) If the bid exceeds $1,000.00, the bidder shall immediately pay the
Clerk a deposit of at least $1,000.00 or ten percent (10%) of the bid,
whichever is greater, and shall pay the balance within three (3) business
days;
(C) If an objection to the sale is filed within the period set forth in Local
Admiralty Rule 104(m)(6), the bidder is excused from paying the balance of
the purchase price until five (5) days after the sale is confirmed; and
(D) Payment shall be made in cash, by certified check, cashier’s check, or
wire transfer.
(3) Late Payment. If the successful bidder does not pay the balance of the
purchase price within the time allowed, the bidder shall pay the Marshal the
cost of keeping the property from the due date of the bid amount until the
balance is paid, and the Marshal may refuse to release the property until this
charge is paid.
(4) Default. If the successful bidder does not pay the balance of the
purchase price within the time allowed, the bidder shall be in default, upon
order of the Court entered in response to an appropriate motion, and the
Judicial Officer may accept the second highest bid or may arrange a new sale.
The defaulting bidder’s deposit shall be forfeited and applied to any additional
costs incurred by the Marshal because of the default, and the balance shall be
retained in the registry of the Court awaiting an order.
(5) Report of Sale by Marshal. At the conclusion of the sale, the Marshal
shall forthwith file a written report with the Court setting forth the notice
given; the fact of the sale; the date of the sale; the names, addresses, and bid
amounts of the bidders; the price obtained; and any other pertinent
information.
(6) Time and Procedure for Objection to Sale. An interested person may
object to the sale by filing a written objection with the Clerk within three (3)
business days following the sale, serving the objection on all parties of record,
the successful bidder, and the Marshal, and depositing a sum with the
Marshal that is sufficient to pay the expense of keeping the property for at
least seven (7) days. Payment to the Marshal of such sum shall be by certified
check or cashier’s check. The Court shall hold a hearing on the confirmation
of the sale.
(7) Confirmation of Sale. If no objection to the sale has been timely filed,
the sale shall be confirmed by order of the Court no sooner than five (5) days
after the sale and no later than seven (7) days after the sale. The Marshal
shall transfer title to the purchaser upon the order of the Court.
(8) Disposition of Deposits.
(A) If the objection is sustained, sums deposited by the successful bidder
will be returned to the bidder forthwith. The sum deposited by the objector
will be applied to pay the fees and expenses incurred by the Marshal in
keeping the property until it is resold, and any balance remaining shall be
returned to the objector. The objector will be reimbursed for the expense of
keeping the property from the proceeds of a subsequent sale.
(B) If the objection is overruled, the sum deposited by the objector will be
applied to pay the expense of keeping the property from the day the
objection was filed until the day the sale is confirmed, and any balance
remaining will be returned to the objector forthwith.
