Karl Senner, Inc. v. M/V ACADIAN VALOR

485 F. Supp. 287
CourtDistrict Court, E.D. Louisiana
DecidedFebruary 1, 1980
DocketCiv. A. 79-2118
StatusPublished
Cited by17 cases

This text of 485 F. Supp. 287 (Karl Senner, Inc. v. M/V ACADIAN VALOR) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karl Senner, Inc. v. M/V ACADIAN VALOR, 485 F. Supp. 287 (E.D. La. 1980).

Opinion

ARCENEAUX, District Judge.

I. Introduction

This action challenges Rule C of the Supplemental Rules for Certain Admiralty and Maritime Claims, Federal Rules of Civil Procedure, 28 U.S.C.A., (“Rule C”), as viola-tive of an individual’s right to due process of law as guaranteed by the Fifth Amendment of the United States Constitution. More specifically, defendants, the M/V ACADIAN VALOR (“ACADIAN”), and Acadian Offshore Services, Inc. and/or Aca-dian Marine Services, Inc. (“Acadian Offshore”), attacked Rule C as failing to comport with the due process standard set forth by the Supreme Court in Fuentes v. Shevin, 407 U.S. 67, 92 S.Ct. 1983, 32 L.Ed.2d 556 (1972), and its progeny.

The issue, as framed by this Court, is whether admiralty is so unique that Rule C, in its application to the facts of this case, should stand despite its failure to comply with the due process standard applicable to cases involving the seizure of property established by the Supreme Court.

The cases of Fuentes, supra; North Georgia Finishing Co., Inc. v. Di-Chem, Inc., 419 U.S. 601, 95 S.Ct. 719, 42 L.Ed.2d 751 (1975), and the line of cases following those decisions, provide four basic criteria for a constitutional seizure of property under the Fifth Amendment:

1. Effective (prior) notice to property owners (or) persons having interests in property seized;

2. A meaningful and timely hearing;

3. Avoidance of conclusory allegations in the complaint; and,

4. Posting of a bond.

These exact criteria may not be appropriate in all maritime cases; however, they set forth sufficient guidelines to determine *288 whether Rule C must be found unconstitutional as it relates to the facts of this case.

While cognizant that in rem seizures in admiralty have historically been viewed as “unique,” this Court is not convinced that such proceedings should be exempt from elemental requirements of procedural due process. In fact, it has long been recognized by this Court that the Fifth Amendment provides a critical safeguard in in rem admiralty matters:

Although recent developments in the constitutional requirements of Due Process have been more concerned with criminal and civil than with admiralty matters and more concerned with state than with federal procedures, the Fifth Amendment does operate as a limitation on the power of courts of the United States in admiralty matters. Even though the requirements necessary to constitute notice requisite for Due Process in admiralty in rem proceedings are perhaps the least demanding known to the law, considering the worldwide practical effect of the judgments added, still, as in all other areas of the law, notice is required.

United States v. Steel Tank Barge H 1651, Etc., 272 F.Supp. 658, 659-660 (E.D.La.1967) (emphasis added).

In the case at bar, plaintiff Karl Senner, Inc. (“Senner”), pursuant to Rule C, directed the Marshal of the Eastern District of Louisiana to arrest and seize the M/V ACA-DIAN VALOR in order to enforce a maritime lien resulting from an alleged failure to pay for services rendered. Defendant Acadian Offshore, the owner of the vessel, was joined, in personam, in this action.

Upon seizure by the Marshal, defendants brought this motion attacking the constitutionality of Rule C as permitting deprivation of property without due process of law. Defendants claim the summary seizure violates their right to prior notice and hearing and seek to have the arrest of the vessel vacated.

II. Background

Proceedings in rem against a vessel and proceedings in personam with process of maritime attachment have long been recognized as part of the maritime law administered by the District Courts of the United States pursuant to (1) Article III, Section 2 of the Constitution; (2) various statutes; and (3) rules adopted by the Supreme Court of the United States. Rule C of the Supplemental Rules for Certain Admiralty and Maritime Claims falls within the ambit of this maritime jurisdiction.

The in rem procedures set out in the Supplemental Rules permit the seizure of a vessel pursuant to a warrant for her arrest issued by the Clerk of the District Court without affording the owner prior notice or an opportunity to be heard. 1 No pre-sei-zure hearing or judicial review is contemplated; upon filing of the complaint, the Clerk is required by Rule C(3) to issue a warrant for the arrest of the vessel. 2 The *289 party requesting the seizure is not even required to post a bond which would provide some protection to the vessel owner, should the vessel owner prevail. If the parties are unable to agree with respect to the nature or amount of the security, a hearing before a district judge is provided for by Rule E(2), (5). 3

*290 Relying upon recent Supreme Court cases holding that certain state attachment and garnishment procedures violate the due process clause of the Fourteenth Amendment, 4 defendants herein, the M/V ACADI-AN VALOR and its owner, a Louisiana corporation, contend that Rule C procedures deny those procedural safeguards found by the Supreme Court to be inherent in Fifth Amendment due process, and seek a release of the security posted and dismissal of the in rem proceeding.

III. Procedural Due Process

Due process is a flexible concept; what process is due in any situation is determined by an analysis of the particular circumstances, including the functions served and interests affected. Therefore, this Court is limited by the particular facts before it, and confines its decision to the narrow question presented by the facts of this case: whether a pre-hearing seizure of a vessel, where the Court has personal jurisdiction over the defendant/owner of the vessel, violates defendants’ right of due process before being deprived of the use of their property.

The fundamental requirements of due process are notice and a right to be heard, and both “must be granted at a meaningful time and in a meaningful manner.” Fuentes v. Shevin, 407 U.S. 67, 80, 92 S.Ct. 1983, 1994, 32 L.Ed.2d 556 (1972), quoting from Armstrong v. Manzo, 380 U.S. 545, 552, 85 S.Ct. 1187, 1191, 14 L.Ed.2d 62 (1965).

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Bluebook (online)
485 F. Supp. 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karl-senner-inc-v-mv-acadian-valor-laed-1980.