Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_19-cv-01495/USCOURTS-casd-3_19-cv-01495-1/pdf.json

Nature of Suit Code: 120
Nature of Suit: Marine Contract Actions
Cause of Action: 46:31301 Federal Maritime Lien Act

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA 

PIER 32 MARINA, a California Limited 

Liability Company, dba PIER 32 MARINA, 

Plaintiff, 

v. 

S/V LORENA GRAYCE, U.S.C.G. 

Official No. 681700, AND ALL OF HER 

ENGINES, TACKLE, ACCESSORIES, 

EQUIPMENT, FURNISHINGS AND 

APPURTENANCES, in rem, 

Defendant. 

Case No.: 19cv1495-MMA (AGS)

IN ADMIRALTY 

ORDER GRANTING MOTION FOR 

INTERLOCUTORY VESSEL SALE 

AND AUTHORIZATION TO 

CREDIT BID 

[Doc. No. 14]

On November 20, 2019, Plaintiff PIER 32 MARINA, LLC, d/b/a PIER 32 

MARINA’s (“Plaintiff”) filed the instant, unopposed motion for interlocutory vessel sale 

and authorization to credit bid. See Doc. No. 14. Plaintiff argues that Defendant Vessel, 

known as S/V LORENA GRAYCE, U.S.C.G. Official No. 681700, should be sold to 

preserve its value because Defendant Vessel is liable to deterioration while in custody, 

the cost of keeping Defendant Vessel in custody is excessive, and there has been an 

unreasonable delay in securing the vessel. 

The Federal Rules of Civil Procedure provide that upon application of a party 

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having custody of the subject property, the Court may order the property sold if the 

property is liable to deterioration while in custody pending the action, “the expense of 

keeping the property is excessive or disproportionate,” or if “there is an unreasonable 

delay in securing the release of the property.” Fed. R. Civ. P. Supp. R. E(9)(a).1

 

Plaintiff submits a declaration from Ray Jones, who opines that all vessels 

inevitably deteriorate over time. See Doc. No. 14-3 (hereinafter “Jones Decl.”) ¶ 2. 

Jones declares that this is especially true when the vessel sits idle in a salt water 

environment and her engines and other equipment are not regularly operated. See id. 

Accordingly, the Court finds that Defendant Vessel is liable to deterioration while 

pending custody in this action. See Fed. R. Civ. P. Supp. R. E(9)(a). 

Plaintiff also moves for interlocutory sale of Defendant Vessel on the ground that 

the cost of keeping Defendant Vessel in custody is excessive. The authorized costs 

associated with detaining and maintaining Defendant Vessel are accruing at a rate of 

approximately $4,515.00 per month. See Doc. No. 14-2 at 8. Jones has concluded that 

the fair market value of the Defendant Vessel at public auction will likely not exceed 

$58,000. See id. at 7. Plaintiff claims that there has been no prospect that anyone will 

post a bond or other adequate security to effect the release of the Defendant Vessel. See 

id. at 8. Plaintiff argues that as a result of the vessel remaining in custody, unavoidable 

custodial expenses continue to accrue that could otherwise be used to satisfy maritime 

lien claims. “Maintenance costs of several thousand dollars per month, particularly 

where [no attempt has been made] to answer Plaintiff’s Complaint or secure the Vessel’s 

release, are excessive and disproportionate.” Vineyard Bank v. M/Y Elizabeth I, U.S.C.G. 

Official No. 1130283, No. 08CV2044 BTM WMC, 2009 WL 799304, at *2 (S.D. Cal. 

Mar. 23, 2009). Accordingly, the Court finds that the cost of keeping Defendant Vessel 

in custody is excessive. 

                                               

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 The Court notes that Plaintiff appears to cite to an outdated, but materially indistinguishable, 

version of Rule E in its Motion. See Doc. No. 14-2 at 4. 

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Plaintiff further contends that interlocutory sale is appropriate because there has 

been no attempt to secure the release of Defendant Vessel. Defendant Vessel was 

arrested in August 2019. Default was entered on November 7, 2019. See Doc. No. 13. 

There has been no attempt since that time to secure the release of Defendant Vessel. See

Fed. R. Civ. P. Supp. R. E(5) (concerning release of property). Accordingly, the Court 

finds that finds that there has been an unreasonable delay in securing the release of 

Defendant Vessel. 

CONCLUSION

Based on the foregoing, the Court GRANTS Plaintiff’s motion for interlocutory 

vessel sale as follows: 

IT IS HEREBY ORDERED that, consistent with Supplemental Admiralty Rule 

E(9) and Local Admiralty Rule E.1(e) the United States Marshal be and hereby is 

directed and empowered to sell said DEFENDANT VESSEL and her engines, tackle, 

accessories, equipment, furnishings and appurtenances, as is, where is, at public sale at 

the first available time and date, after having first caused notice of said sale to be 

published daily in a newspaper of general circulation within the City of San Diego, 

California for at least seven days immediately before the date of sale; and 

IT IS FURTHER ORDERED that such public notice specify the date, time and 

location for the sale of the DEFENDANT VESSEL; and 

IT IS FURTHER ORDERED that, consistent with Local Admiralty Rule 

E.1(e)(2), such public notice specify that the last and highest bidder at the sale will be 

required to deposit with the U.S. Marshal a certified check or a cashier’s check in the 

amount of the full purchase price not to exceed $500, and otherwise $500 or ten percent 

(10%) of the bid, whichever is greater, and that the balance, if any, of the purchase price 

shall be paid by certified check or cashier’s check before confirmation of the sale or 

within three days of dismissal of any opposition which may have been filed, exclusive of 

Saturdays, Sundays and legal holidays; and 

IT IS FURTHER ORDERED that any proceeds of said sale shall be held by it or 

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deposited by the United States Marshal in the Registry of this Court, pending further 

Order of this Court; and 

IT IS FURTHER ORDERED that Plaintiff, having a secured maritime lien 

interest in the Defendant Vessel pursuant to the Commercial Instruments and Federal 

Maritime Lien Act (46 U.S.C. section 31301, et seq.) and being the only claimant in this 

action asserting a maritime claim against her, is authorized pursuant to Local Admiralty 

Rule E.1(e)(2) to credit bid at the auction of the DEFENDANT VESSEL, without 

payment of cash, a sum equal to its secured interest in the Defendant Vessel, consisting 

of the lien amount specified in PLAINTIFF’s Verified Complaint ($124,196.40), plus its 

actual costs of suit through the date of the sale, including U.S. Marshal and other custodia 

legis expenses, with such costs and expenses to be calculated at the rates specified and 

authorized in the Order Appointing Substitute Custodian and Authorizing Movement of 

Defendant Vessel. However, as Plaintiff’s maritime necessaries lien interest in the 

DEFENDANT VESSEL does not, as a matter of law, include attorneys’ fees, such fees 

are not to be included in any credit bid Plaintiff makes; and 

IT IS FURTHER ORDERED, pursuant to Local Supplemental Admiralty Rule 

E.1(e)(2), that if within three days of the auction date, exclusive of Saturdays, Sundays, 

and legal holidays, no written objection is filed, the sale shall stand confirmed as of 

course, without the necessity of any affirmative action thereon by a judge, except that no 

sale shall stand confirmed until the buyer has complied fully with the terms of the 

purchase. 

IT IS SO ORDERED.

Dated: February 6, 2020

 _____________________________ 

 HON. MICHAEL M. ANELLO 

United States District Judge 

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