Gambol Industries, Inc. v. M Y Hearts Desire

CourtDistrict Court, C.D. California
DecidedSeptember 9, 2022
Docket2:22-cv-03009
StatusUnknown

This text of Gambol Industries, Inc. v. M Y Hearts Desire (Gambol Industries, Inc. v. M Y Hearts Desire) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gambol Industries, Inc. v. M Y Hearts Desire, (C.D. Cal. 2022).

Opinion

Case 2:22-cv-03009-MEMF-MAA Document 49 Filed 09/09/22 Page 1 of 12 Page ID #:335

1 O

8 UNITED STATES DISTRICT COURT

9 CENTRAL DISTRICT OF CALIFORNIA

10 Case No.: 2:22-cv-03009-MEMF(MAAx) 11 GAMBOL INDUSTRIES, INC.,

12 Plaintiff, ORDER GRANTING CLAIMANT KATHLEEN BARROW’S MOTION TO SET 13 v. ASIDE DEFAULT JUDGMENT [ECF NO. 37] 14

15 M/Y HEART’S DESIRE, a 1985, 32-Foot Carver Motor Vessel, California Registration 16 NO. CF 0179JE, AND ALL OF HER ENGINES, TACKLE, ACCESSORIES, 17 EQUIPMENT, FURNISHINGS AND

APPURTENANCES, in rem, 18 Defendant. 19

21 Before the Court is the Motion to Set Aside Default filed by pro se Claimant Kathleen 22 Barrow on behalf of Defendant Vessel M/Y Heart’s Desire. ECF No. 37. For the reasons stated 23 herein, the Court GRANTS the Motion. 24

26 / / / 27 / / / 28 1 Case 2:22-cv-03009-MEMF-MAA Document 49 Filed 09/09/22 Page 2 of 12 Page ID #:336

1 I. Factual Background1

2 Plaintiff Gambol Industries, Inc. (“Gambol”) is a California corporation. Compl. ¶ 2. It

3 operates a boatyard located at 1825 Pier D Street, Long Beach, California 90802 (the “Boatyard”).2

4 Id. Defendant is M/Y Heart’s Desire, a 1985, 32-foot Carver motor yacht (the “Vessel”). Id. ¶ 3. Its

5 California Registration Number is CF 0179JE and its Hull Identification Number is

6 CDRN0020H485. Id. The Vessel is owned by Claimant Kathleen Barrow (“Barrow”). Id. ¶ 4; see

7 generally Motion to Set Aside Default, ECF No. 37 (“Mot.” or “Motion”); Work Order Contract,

8 ECF No. 1-1 (“Contract”).

9 A. The City of Long Beach’s seizure of the Vessel

10 On or about February 6, 2020, the Vessel was impounded by the City of Long Beach (the

11 “City”) for being unlawfully berthed at property owned by the City. See Mot. at 213; Opposition to

12 Motion to Set Aside Default, ECF No. 45 (“Opp’n”) at 1. Barrow argues that she paid the fees

13 necessary to have the Vessel released into her custody and subsequently entered into a contract with

14 Gambol to have the Vessel docked at the Boatyard. Opp’n at 1; Mot. at 2. Upon docking the Vessel

15 at the Boatyard, Barrow discovered that the Vessel had been severely damaged while in the City’s

16 custody. Mot. at 2–3. On September 1, 2020, Barrow filed a claim against the City for the damage

17 incurred to the Vessel. Id. at 23. On October 16, 2020, the claim was denied. Id.

18 B. Barrow’s contract with Gambol

19 On or about May 11, 2020, Gambol and Barrow entered into a Work Order Contract

20 (“Contract”) by which Gambol agreed to provide a number of services for the Vessel including hull

21 painting and lay day services. Id. ¶ 6. Gambol also photographed the Vessel and removed and stored 22 various items aboard the ship. Id. The Contract’s terms include lay day charges which provide that 23 Gambol 24

25 1 Unless otherwise indicated, the following factual background is derived from the Complaint. ECF No. 1. 26 (“Compl.”). 27 2 Counsel for Gambol advised at the hearing that it is no longer operating this boatyard. 3 As the Motion lacks traditional page numbers, the Court’s citations refer to the page numbers generated by 28 the CM/ECF system. 2 Case 2:22-cv-03009-MEMF-MAA Document 49 Filed 09/09/22 Page 3 of 12 Page ID #:337

shall not invoice Owner for lay day charges, so long as “Minimum Daily Labor Limit” 1 is satisfied. Minimum Daily Labor Limits shall be regarded as having been satisfied only if labor charges for a day equal or exceed a sum equal to $15.00 per foot multiplied 2 by the length of the Vessel at her maximum dimension (to include any bow spirit, boarding step or other extensions) with a factor of 1.5 for multi-hulled vessels with a 3 beam greater than 25 feet ($15.00 x 1.5 = $4.50). If for any reason the “Minimum Daily Labor Limit” is not met, lay day charges shall accrue at the rate of $7.50 per foot per 4 day if the Vessel is located on land, $9.50 per foot per day if the Vessel is in the water, and $15.00 per foot per day if the Vessel is on the Drydock. 5 Contract at 5. 6 The final charges for the agreed upon services totaled $18,982.82. Id. ¶ 8. At the time of contracting, 7 Barrow paid a deposit in the amount of $5,000, leaving an outstanding balance of $13,982.82. Id. 8 Although Gambol met its requirements under the Contract, as of the time of this Order, Barrow has 9 yet to pay the accrued balance. See id. ¶¶ 9–13. 10 Gambol—by and through its counsel—sent Barrow three letters regarding her failure to pay. 11 See id. ¶¶ 9–11. The first, sent in early March 2021, informed Barrow that the total cost of its 12 services had increased to $33,369 as the Vessel had been lying idle at the Boatyard “for months . . ., 13 with lay day charges accruing each day.” Id. ¶ 9. The letter provided Bar row with two options: either 14 (1) remove the Vessel from the Boatyard within ten calendar days or (2) “tender free and clear 15 ownership of the Vessel to [Gambol] within [ten] calendar days.” Id. Barrow did not accept the 16 offer. See id. ¶ 11. 17 Roughly a month later, Gambol sent a second letter reiterating the same terms as those 18 expressed in the first. Id. ¶ 10; April 12, 2021 Letter, Declaration of Philip E. Weiss (“Weiss Decl.”), 19 Ex. B, ECF No. 45-2 (“Apr. 12 Ltr.”). The letter further advised Barrow that Gambol was willing to 20 “forgive all sums due and not pursue recovery of the arrea rages provided you remove your vessel 21 from the boatyard within 30 days.” Id. Gambol also offered to “load [the Vessel] onto a trailer 22 without charge, so she can be transported for storage on land” or “launch [the Vessel] (again at no 23 cost to you)” to allow it to be towed “to another location for in water storage.” Id. Barrow again 24 failed to respond. See id. ¶ 11. 25 Finally, on April 6, 2022, Gambol sent a third letter reiterating the offers made in the second 26 letter and advising Barrow that as the Boatyard is set to permanently close at the end of the month, 27 the area must be fully emptied and “left completely clean and free of debris.” Id.; April 6, 2022 28 3 Case 2:22-cv-03009-MEMF-MAA Document 49 Filed 09/09/22 Page 4 of 12 Page ID #:338

1 Letter, Weiss Decl., Ex. C, ECF No. 45-2 (“Apr. 6 Ltr.”). In a further attempt to reach Barrow, the

2 letter was also sent via email to attorney Matthew Sean Harrison who, upon information and belief,

3 represented Barrow in connection with an earlier claim she asserted against the City based on

4 damage that had occurred to the Vessel while it had been impounded.4 Id. ¶ 11. Barrow failed to

5 respond, and the Vessel remains abandoned. Id.

6 As of April 15, 2022, Barrow has incurred $82,689.90 as a result of the Vessel’s prolonged

7 stay at the Boatyard. Id. ¶ 12. At the September 8, 2022 oral argument (“September 8 Hearing”),

8 counsel for Gambol reiterated the offer to waive the outstanding balance and assist with having the

9 Vessel towed to a location of Barrow’s choice free of charge. However, Barrow stated that she

10 prefers to not accept this offer as she plans to continue to pursue her claim against the City and

11 ultimately have the City pay her debt to Gambol.

12 II. Procedural Background

13 On May 4, 2022, Gambol filed a complaint against the Vessel and all of her engines, tackle,

14 accessories, equipment, furnishings and appurtenances, in rem for vessel arrest, interlocutory sale,

15 and for money damages for breach of maritime contract, vessel trespass, breach of implied covenant

16 of good faith and fair dealing, negligent misrepresentation, and quantum meruit. See generally

17 Compl. On May 6, 2022, upon appropriate application by Gambol, see ECF Nos. 6 (Ex Parte

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