In Re Complaint and Petition of Brian Mackey

District Court, S.D. California·Decided December 20, 2024·No. 3:23-cv-00337·Unknown

Opinion

IN RE: COMPLAINT AND PETITION Case No.: 3:23-cv-00337-JAH-MSB OF BRIAN MACKEY AS OWNER OF A CERTAIN 1990 TRIUMPH BOATS ORDER: 150, 18 FOR EXONERATION OR LIMITATION OF LIABILITY (1) GRANTING VANESSA CARRENO’S MOTION FOR RECONSIDERATION, (ECF No. 15);

(2) DENYING VERONICA CARRENO’S MOTION FOR RECONSIDERATION, (ECF No. 16);

(3) DENYING JAYCOB NUNGARAY’S MOTION FOR RECONSIDERATION, (ECF No. 17); (4) DENYING JUAN DAVID NUNGARAY’S MOTION FOR RECONSIDERATION, (ECF No. 18). On July 19, 2024, Vanessa Carreno, Veronica Carreno, Jaycob Nungaray, and Juan David Nungaray (collectively, “Movants”) filed respective Motions for Reconsideration (ECF Nos. 15, 16, 17, 18, collectively, “Motions”) seeking relief from the Court’s Order Granting Petitioner’s Motion for Permanent Injunction, which barred all future claims pertaining to a maritime collision under the Limitation of Shipowner’s Liability Act, (ECF No. 11), and from the subsequent Entry of Default, (ECF No. 12). A Joint Motion for Extension of Time to file a response and reply was granted on September 3, 2024. ECF No. 21. Plaintiff-in-Limitation Brian Mackey (“Mackey” or “Petitioner” or “Plaintiff-in- Limitation”) filed an omnibus Response in Opposition to the aforementioned Motions on September 13, 2024. ECF No. 22 (“Opp’n”). Movants subsequently filed a consolidated Reply. ECF No. 23 (“Reply”). On February 21, 2023, Mackey, as owner of a 1990 TRIUMPH BOATS 150, 18 (“Vessel”), commenced this action pursuant to the Limitation of Shipowners’ Liability Act, 46 U.S.C. 30501, et seq., (“LOLA”) and Rule F of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions of the Federal Rules of Civil Procedure (“Supplemental Admiralty Rule F”). ECF No. 1 (“Compl.”). Mackey sought exoneration from, or limitation of liability for, all claims arising out of a collision that occurred on or about May 21, 2022, on navigable waters of the United States on the Colorado River north of the I-10 freeway. Id. H.N. (“Decedent”)1 was the sole occupant and operator of a jet ski that collided with Mackey’s vessel, resulting in Decedent’s death. Opp’n at 6.2 On March 28, 2023, pursuant to Supplemental Admiralty Rule F(4), the Court ordered notice, or monition, be published in a local newspaper of general circulation (the Palo Verde Times) published in the City of Blythe for four consecutive weeks. ECF No. 7 at 3. The Court also ordered that notice be mailed to every person known to have made any claim against the Vessel or Mackey arising out of the collision, and that notice be 1 On information and belief Decedent was a minor at the time of her death, her name has been redacted as required by law. 2 Unless otherwise stated, page numbers referenced herein refer to page numbers generated mailed to Decedent’s last known address and anyone known to have made a claim on account of such death. Id. Pursuant to the Court’s order, Mackey published notice in the Palo Verde Times on April 5, 12, 19, and 26 of 2023. ECF No. 10-1 (“Application”) at 2. Mackey also sent notice by Certified Mail to the Omega Law Group, which Mackey described as “counsel for potential respondents.” Id. Additionally, notice was sent to Decedent’s last known address, but USPS confirmed “the mail was not accepted.” Id. at 3. Mackey waited until June 30 to move for a permanent injunction, well-after the May 5 deadline the Court had set for potential claimants to respond, and still there was no claim. Id. On July 11, 2023, pursuant to LOLA and Supplemental Admiralty Rule F(5), the Court granted Mackey’s Application for a permanent injunction. See ECF No. 11. Shortly thereafter, the Clerk of Court filed an Entry of Default on July 19, 2023. See ECF No. 12. Exactly one year later, on July 19, 2024, Movants filed their Motions asking the Court to reconsider its Order Granting Permanent Injunction and to set aside the Entry of Default. From the Movants’ briefing, the Court learned Decedent’s mother, Veronica Carreno (hereinafter, “Veronica”), hired the Omega Law Group on June 22, 2022, to represent her in bringing a claim for the wrongful death of her daughter. ECF No. 16-1 (“Veronica Decl.”) ¶ 2. At some point during the representation, Mackey’s insurer of the Vessel presented a $300,000 policy limit to resolve Veronica’s claim, along with any claims from her other family members. Id. ¶ 3. Prior to executing a release of liability, Mackey filed the instant action. Id. ¶ 4. However, Omega Law Group never provided Veronica with a copy of the notice, nor informed or counseled her about the limitation action. Id. ¶¶ 5-9. More than six months after the Court granted Mackey’s Application and the Entry of Default was made, the Omega Law Group sent Veronica a disengagement letter on February 6, 2024. Id. ¶ 11. It was not until a later phone call with Mackey’s insurance adjuster that Veronica learned of the limitation action. Id. ¶ 16. Vanessa Carreno (hereinafter, “Vanessa”) is the mother of Decedent’s minor cousin, M.A.3 ECF No. 15-1 (“Veronica Decl.”) ¶ 1. M.A. was riding a jet ski in close proximity to her cousin when she witnessed the collision that resulted in her cousin’s death. Id. ¶¶ 1-3. Similarly, Decedent’s brother, Jaycob Nungaray (hereinafter, “Jaycob”), was also riding a jet ski near the collision. ECF No. 17-1 (“Jaycob Decl.”) ¶¶ 1-3. Juan David Nungaray (hereinafter, “Juan David”) is Decedent’s father. ECF No. 18-1 (“Juan David Decl.”) ¶¶ 1-4. Vanessa, Jaycob, and Juan David all claim they did not receive notice of the limitation action. See Vanessa Decl. ¶¶ 5-7; Jaycob Decl. ¶¶ 5-7; Juan David Decl. ¶¶ 2-7. After learning of the action and the Court’s Order of Permanent Injunction barring future prosecution against Mackey for this incident, Movants filed their respective Motions, challenging the Injunction and the Entry of Default. As a threshold issue, Mackey asserts Movants lack standing to file their Motions because they are not “parties” to the case. Opp’n at 9. Mackey argues the relief available under Rule 60(b) is reserved for “parties” because its plain language instructs: “the court may relieve a party or its legal representative from a final judgment, order, or proceeding[.]” FED.R.CIV.P. 60(b) (emphasis added). In support, Mackey highlights the Ninth Circuit’s holding from In re Lovitt that the plain language of Rule 60(b) provides its mechanism for relief is only available to “parties.” 757 F.2d 1035, 1040 (9th Cir. 1985) (explaining “[b]ecause appellees were not parties to the ex parte proceedings … Fed.R.Civ.P. 60(b) does not govern their motion to vacate the … court’s order”). However, In re Lovitt deals with a creditor filing a motion for reconsideration of an order vacating the sale of certain assets to the creditor in a bankruptcy proceeding; it does not consider Rule 60(b)’s application to potential claimants in a LOLA limitation action, who would otherwise have no recourse. Id. at 1037-38.

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In Re Complaint and Petition of Brian Mackey, (S.D. Cal. 2024).

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