Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_06-cv-01024/USCOURTS-casd-3_06-cv-01024-2/pdf.json

Nature of Suit Code: 120
Nature of Suit: Marine Contract Actions
Cause of Action: 28:1331 Fed. Question

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W02-WEST:5AN\400128097.1 ORDER FOR INTERLOCUTORY SALE

CHARLES S. DONOVAN, Cal. Bar No. 103667

AMY B. NORRIS, Cal. Bar No. 201147

NATHAN D. THOMAS Cal. Bar. No. 234931

SHEPPARD MULLIN RICHTER & HAMPTON LLP

A Limited Liability Partnership

Including Professional Corporations

Four Embarcadero Center, 17th Floor

San Francisco, California 94111-4106

Telephone: 415-434-9100

Facsimile: 415-434-3947

Email: cdonovan@sheppardmullin.com

Attorneys for Plaintiff CitiCapital Commercial Corporation 

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

CITICAPITAL COMMERCIAL

CORPORATION,

Plaintiff,

v.

Vessel OCEAN EXPRESS, Official No.

1038282, her engines, tackle, apparel,

etc., in rem, Dive Connections, Inc.,

Ocean Express, Inc., Barry Punshon, in

personam,

Defendants.

Case No. 06 CV 1024 BEN JMA

AMENDED ORDER FOR

INTERLOCUTORY SALE OF

OCEAN EXPRESS

Date: October 31, 2006

Judge: Hon. Jan M. Adler

Courtroom: D

No oral argument heard.

Plaintiff Citicapital Commercial Corporation moved this Court for an order

authorizing the interlocutory sale of the defendant vessel OCEAN EXPRESS (the

"Vessel"). None of the defendants has opposed such an order. 

Pursuant to Rule E(9)(b) of the Supplemental Rules for Certain

Admiralty and Maritime Claims of the Federal Rule of Civil Procedure, this Court

finds that the right for interlocutory sale exists on the grounds that: there is no

Case 3:06-cv-01024-BEN-JMA Document 33 Filed 11/28/06 Page 1 of 5
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W02-WEST:5AN\400128097.1 ORDER FOR INTERLOCUTORY SALE

reasonable prospect of securing a release of the Vessel; there has been unreasonable

delay in securing the Vessel; the Vessel is liable to deterioration, decay and injury

by being detained in custody pending final determination in the underlying action;

and the Vessel is subject to mounting expenses which are, or will become, excessive

or disproportionate. 

IT IS HEREBY ORDERED that pursuant to Rule E(9)(b) of the

Supplemental Rules for Certain Admiralty and Maritime Claims of the Federal Rule

of Civil Procedure, the vessel OCEAN EXPRESS her engines, tackle, apparel,

equipment and all other appurtenances shall be sold at public auction, "as is, where

is, free and clear of any claims, liens, rights of redemption or encumbrances

whatsoever," on the 6th day of December, 2006, at 10:00 a.m. by the United States

Marshal under the following terms:

1. Notice of the sale of the Vessel shall be published for six days prior to

the sale in San Diego Commerce, as required by Civil Local Rule E.1(e)(1);

2. During reasonable business hours, the Marshal or substitute custodian,

if any, shall allow prospective purchasers or their representatives at their own risk

reasonable inspection of the Vessel; 

3. Citicapital Commercial Corporation is authorized to bid up to the total

amount of the secured indebtedness, $169,970.84, without the necessity of putting

up cash for the purchase of the Vessel;

4. The Marshal shall conduct the sale at the Vessel's mooring at Driscoll

Boat Works 2500 Shelter Island Drive, San Diego, CA 92106.

5. At the beginning of the sale, the Marshal shall inform prospective

bidders that no warranties, express or implied, are given in any form, including but

not limited to warranties for particular purpose, merchantability, and condition of

seaworthiness;

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W02-WEST:5AN\400128097.1 ORDER FOR INTERLOCUTORY SALE

6. In accordance with Civil Local Rule E.1(e)(2), the Vessel shall be sold

to the highest bidder at the sale and the Marshal shall require that bidder deposit a

minimum in cash, certified check or cashier's check of the full purchase price that

not to exceed $500.00, and otherwise $500.00 or 10% of the bid, whichever is

greater. Provided, however that as stated in Paragraph (3) above, Citicapital

Commercial Corporation shall not be required to make a deposit, except to the

extent its bid exceeds the total amount of the secured indebtedness. The balance, if

any, of the purchase price shall be paid in cash, certified check or cashier's check

before confirmation of the sale or within three days of the dismissal of any

opposition which may have been filed, exclusive of Saturdays, Sundays and legal

holidays;

7. In accordance with Civil Local Rule E.1(e)(2), at the conclusion of the

sale, the Marshal shall forthwith file a written report to the Court of the fact of sale,

the price obtained and the name and address of the buyer. The Clerk of the Court

shall endorse upon such report the time and date of its filing. If within 3 days,

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 the Court and the Clerk upon request shall so state to the Marshal

in writing; except that no sale shall stand confirmed until the buyer has complied

fully with the terms of the purchase. If no opposition to the sale is filed, the

expenses of keeping the property pending confirmation of sale shall be charged

against the party bearing expenses before the sale (subject to taxation as costs),

except that if confirmation is delayed by the purchaser's failure to pay any balance

which is due on the price, the cost of keeping the property subsequent to the 3-day

period specified above shall be borne by the purchaser;

8. A successful bidder who fails to pay the balance of the bid within the

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W02-WEST:5AN\400128097.1 ORDER FOR INTERLOCUTORY SALE

time allowed under Civil Local Rule E.1(e)(2), or a different time specified by the

Court shall also pay the Marshal the costs of keeping the property from the date

payment of the balance was due to the date the bidder pays the balance and takes

delivery of the property. Unless otherwise ordered by the Court, the Marshal shall

refuse to release the Vessel until this additional charge is paid;

9. A successful bidder who fails to pay the balance of the bid within the

time allowed by Civil Local Rule E.1(e)(2) or a different time specified by the

Court, is in default and the Court may at any time thereafter order a sale to the

second highest bidder or order a new sale as appropriate. Any sum deposited by the

bidder in default shall be applied to pay any additional costs incurred by the Marshal

by reason of the default including costs incident to resale. The balance of the

deposit, if any, shall be retained in the registry subject to further order of the Court,

and the Court shall be given written notice of its existence whenever the registry

deposits are reviewed;

10. In accordance with Civil Local Rule E.1 (e)(2), a party filing an

opposition to the sale, whether seeking the reception of a higher bid or a new public

sale by the Marshal, shall give prompt notice to all other parties and to the

purchaser. Such party shall also, prior to filing an opposition, secure the Marshal's

endorsement upon it acknowledging deposit with the Marshal of the necessary

expense of keeping the property for at least 5 days. Pending the Court's

determination of the opposition, such party shall also advance any further expense at

such times and in such amounts as the Marshal shall request, or as the Court orders

upon application of the Marshal or the opposing party. Such expense may later be

subject to taxation as costs. In the event of failure to make such advance, the

opposition shall fail without necessity for affirmative action thereon by the Court. If

the opposition fails, the expense of keeping the property during its pendency shall

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W02-WEST:5AN\400128097.1 ORDER FOR INTERLOCUTORY SALE

be borne by the party filing the opposition;

11. All reasonable expenses of maintenance, keepers, custodians and

watchman's fees, port risk and other insurance, newspaper advertising as set forth

above and other expenses necessarily incurred by plaintiff or its agent for

maintenance, preservation of sale of the Vessel, and any other expenses necessarily

incurred by the Marshal for the safekeeping and the preservation of the Vessel, shall

be deemed expenses;

12. Upon confirmation of the sale pursuant to this order, the Marshal shall

deliver a bill of sale of the Vessel to the confirmed purchaser and the Vessel shall be

conveyed “as is, where is, free and clear of any and all claims, liens and

encumbrances of any type whatsoever;” and 

13. The proceeds of this sale shall be deposited by the Marshal into the

registry of the Court, after deduction of the Marshal's commission in accordance

with 28 U.S.C. § 1921(c)(1), and shall be promptly deposited into an interest

bearing account, pending further order of this Court authorizing distribution.

 IT IS SO ORDERED.

DATED: November 28, 2006

Jan M. Adler

U.S. Magistrate Judge

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