Kanaway Seafoods, Inc. v. Pacific Predator, AK Registration No. AK3565AN

District Court, D. Alaska·Decided May 30, 2023·No. 3:22-cv-00027·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ALASKA

KANAWAY SEAFOODS, INC., d/b/a Alaska General Seafoods, a Delaware corporation; and LIBERTY PACKING, Case No. 3:22-cv-00027-JMK-KFR LLC, a Washington limited liability company, ORDER ADOPTING IN PART AND Plaintiffs, DECLINING TO ADOPT IN PART REPORT AND vs. RECOMMENDATION

PACIFIC PREDATOR, AK Registration No. AK3565AN, its engines, machinery, appurtenances, etc., in rem; BRYAN HOWEY, in personam; DANA HOWEY, in personam; and ALASKA WILD EXPORTS, LLC, in personam,

Defendants.

Before the Court are Defendants’ (1) Motion to Dismiss for Lack of Jurisdiction in Admiralty Re: “Advances” for Temporary Limited Entry Permits at Docket 66 and (2) Motion to Dismiss for Lack of Jurisdiction Re: Rule D “Petitory Action” and Under Preferred Ship Mortgage Act at Docket 76 (together, the “Motions”). Plaintiffs responded in opposition at Dockets 77 and 82. Defendants replied at Dockets 80 and 84. The Motions were referred to the Honorable Magistrate Judge Kyle F. Reardon. At Docket 87, the Magistrate Judge issued his Report and Recommendation, in which he recommended that the Motions be denied. Defendants objected to the Report and

Recommendation at Docket 88, to which Plaintiffs replied at Docket 95. The matter is now before this Court pursuant to 28 U.S.C. § 636(b)(1). That statute provides that a district court “may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate judge.”1 A court is to “make a de novo determination of those portions of the [magistrate judge’s] report or specified proposed findings or recommendations to which objection is made.”2 But as to those topics

on which no objections are filed, “[n]either the Constitution nor [28 U.S.C. § 636(b)(1)(C)] requires a district judge to review, de novo, findings and recommendations that the parties themselves accept as correct.”3 The Court has considered de novo Defendants’ objections and finds as follows:

Objection #1 relates to the Magistrate Judge’s finding that Defendants’ arguments concerning state laws governing the possession and transfer of limited entry permits are irrelevant to subject matter jurisdiction. 4 Defendants assert that Alaska has “exclusive jurisdiction over all legal issues related to limited entry permits,” and therefore

1 28 U.S.C. § 636(b)(1)(C). 2 Id. 3 United States v. Reyna-Tapia, 328 F.3d 1114, 1121 (9th Cir. 2003); see also Thomas v. Arn, 474 U.S. 140, 150 (1985) (“It does not appear that Congress intended to require district court review of a magistrate’s factual or legal conclusions, under a de novo or any other standard, when neither party objects to those findings.”). 4 Docket 88 at 2; Docket 87 at 14. “Alaska individual limited entry permits fall outside federal maritime law.”5 Defendants’ objection is overruled. Federal jurisdiction over AGS’s lien claim hinges on whether the

funds loaned by AGS to the Howeys were used for “necessaries” under 46 U.S.C. § 31342, such that a maritime lien exists against the PACIFIC PREDATOR.6 The Magistrate Judge concluded, and this Court agrees, that maritime jurisdiction is proper over AGS’s claims because AGS’s funds were advanced and used for “necessaries” for the PACIFIC PREDATOR, including the limited entry permits. Defendants do not take issue with this finding in Objection #1; instead, they object to the Magistrate Judge’s reasoning that

Alaska laws governing limited entry permits do not alter this Court’s maritime jurisdiction.7 That finding is plainly correct. This case does not involve a conflict between Alaska law and federal maritime law—AGS’s maritime lien is asserted against the Vessel, not the limited entry permits themselves—therefore, Alaska laws imposing restrictions on the possession and transfer of limited entry permits are inconsequential to the Court’s

jurisdictional analysis.8 Because the Amended Complaint adequately asserts that AGS has a maritime lien under § 31342, jurisdiction is proper over AGS’s lien claim, and state laws relating to limited entry permits do not alter this result. Objections #2 and #3 are related to the Court’s jurisdiction over Plaintiff Liberty Packing LLC’s (“Liberty”) lien claim and the Court considers them together.

5 Docket 88 at 2. 6 46 U.S.C. § 31342 (“[A] person providing necessaries to a vessel . . . has a maritime lien on the vessel . . . [and] may being a civil action in rem to enforce the lien . . . .”). 7 Docket 87 at 14. 8 Docket 64 at 9. Objection #2 concerns whether “Plaintiffs need only assert the right to possess the Vessel” to establish jurisdiction under Supplementary Admiralty Rule D.9 Objection #3 relates to

the Magistrate Judge’s declination to consider Defendants’ Motion to Dismiss under the Preferred Ship Mortgage Act.10 Defendants argue that the Court must consider this basis for jurisdiction “[i]f the other bases for asserting maritime jurisdiction are dismissed.”11 These objections are sustained in part and overruled in part. The Amended Complaint seeks “petitory relief under Supplemental Admiralty Rule D.”12 Plaintiffs argue that, despite the language in the Amended Complaint

they bring a possessory, rather than a petitory, action under Rule D.13 “[A]dmiralty has jurisdiction in a possessory suit by the legal owner of a vessel who has been wrongfully deprived of possession.”14 “A possessory action ‘is brought to reinstate an owner of a vessel who alleges wrongful deprivation of property. This statement indicates that the action is one to recover possession rather than to obtain original possession.’”15 The

9 Docket 88 at 3–5; Docket 87 at 19. 10 Docket 88 at 5; Docket 87 at 21. 11 Docket 88 at 5. 12 Docket 64 at 2. 13 Docket 82 at 7 n.6, 8. 14 Gallagher v. Unenrolled Motor Vessel River Queen, 475 F.2d 117, 119 (5th Cir. 1973); see also Schatek v. Tsui, No. 2:10-cv-1562-GEB-JFM (PS), 2010 WL 5169006, at *1 (E.D. Cal. Dec. 14, 2010) (“It is well settled that the admiralty jurisdiction of federal courts extends to petitory and possessory suits concerning vessels.”); N. Ins. Co. of New York v. 1996 Searay Model 370DA Yacht, 453 F. Supp. 2d 905, 911 (D.S.C. 2006) (“A suit to try title to or possession of a vessel wrongfully taken has long been considered within the jurisdiction of admiralty courts.”). 15 Turner v. One 2019 76 Foot Sunseeker Sport Yacht, No. 19-62670-CIV-ALTONAGA, 2020 WL 13647721, at *4 (S.D. Fla. Feb. 13, 2020) (quoting Silver v. Sloop Silver Cloud, 259 F. Supp. 187, 191 (S.D.N.Y. 1966)); see also Schatek, 2010 WL 5169006, at *1 (quoting Privilege Yachting, Inc. v. Teed, 849 F. Supp. 298, 301 (D. Del. 1994) (“A possessory action permits a party to adjudicate the right to possession of property that has been wrongfully taken.”); Tietjen & Lang Magistrate Judge erred by finding that jurisdiction was proper under Rule D when Plaintiff Liberty asserted the right to possess the Vessel without averring prior possession.16

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Kanaway Seafoods, Inc. v. Pacific Predator, AK Registration No. AK3565AN, (D. Alaska 2023).

Kanaway Seafoods, Inc. v. Pacific Predator, AK Registration No. AK3565AN (Kanaway Seafoods, Inc. v. Pacific Predator, AK Registration No. AK3565AN) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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