KKMI SAUSALITO, LLC v. The vessel "Self Inflicted"

District Court, N.D. California·Decided December 20, 2019·No. 4:19-cv-02850·Unknown

Opinion

KKMI SAUSALITO, LLC, Case No. 19-cv-02850-KAW

Plaintiff, ORDER GRANTING MOTION FOR v. DEFAULT JUDGMENT

THE VESSEL “SELF INFLICTED,” Re: Dkt. No. 24 Defendant.

On May 23, 2019, Plaintiff KKMI Sausalito, LLC filed this admiralty and maritime action in rem against Defendant Vessel “Self Inflicted,” Documentation No. 1064308. (Compl., Dkt. No. 1.) Plaintiff alleges that between June 29, 2017 and May 22, 2019, the Vessel incurred repairs, hull maintenance, and storage charges at Plaintiff’s boatyard in Sausalito, California. (Compl. ¶¶ 6-9.) Plaintiff now seeks to foreclose a maritime lien against the Vessel, her engines, rigging, sails, boats, tackle, apparel, and furniture pursuant to the Federal Maritime Lien Act (“FMLA”), 46 U.S.C. § 31342, and seeks a judgment condemning the Vessel and an order for its sale to pay the outstanding amount owed. On October 4, 2019, Plaintiff filed a motion for default judgment. (Mot., Dkt. No. 24.) On December 19, 2019, the Court held a hearing on Plaintiff’s motion for default judgment, at which no potential claimants appeared. For the reasons set forth below, the Court GRANTS Plaintiff’s motion for default judgment. I. BACKGROUND Defendant Vessel is a steel-hulled recreational sailing vessel, approximately 48’ in length. (Compl. ¶ 3.) On June 29, 2017, the Vessel’s owner, Daniel A. Morgan, entered into a Service Agreement with Plaintiff for repair and hull maintenance work at Plaintiff’s Sausalito boatyard. (Compl. ¶ 5.) Between June 29, 2017 and November 12, 2018, the Vessel incurred repair charges for labor and parts in the amount of $15,748.13. (Compl. ¶ 6; Kaplan Decl. ¶ 6, Dkt. No. 24-1.) Payments of $6,590.00 were made, leaving a balance due of $9,158.13 as of November 12, 2018. (Compl. ¶ 6; Kaplan Decl. ¶ 6.) No further payments were made, despite demands from Plaintiff. (Compl. ¶ 7; Kaplan Decl. ¶ 7.) Pursuant to the Service Agreement, a vessel storage charge was applied at the usual and customary daily storage rate of $3.00 per foot of boat length, or $144.00 per day. (Compl. ¶ 7; Kaplan Decl. ¶ 7.) Between November 13, 2018 and May 22, 2019 – the date the complaint was verified by Plaintiff – the Vessel incurred daily storage charges of $144.00 for 191 days, for a total unpaid storage charge of $27,504.00. (Compl. ¶ 7; Kaplan Decl. ¶ 8.) Plaintiff then filed the instant in rem action, asserting a maritime lien against the Vessel, her engines, rigging, sails, boats, tackle, apparel, and furniture pursuant to 46 U.S.C. § 31341(a)(1) and general maritime law. (Compl. ¶ 13.) On May 31, 2017, the Court approved Plaintiff’s proposed warrant of arrest, ordering that the warrant be issued for the arrest of the Vessel, which the Clerk of the Court issued. (Dkt. Nos. 11, 12.) The Court also granted Plaintiff’s Application for Appointment of a Substitute Custodian, appointing Paul Kaplan, Plaintiff’s founding partner, custodian of the Vessel and authorizing the U.S. Marshal to surrender possession of the Vessel to him. (Dkt. No. 12.) The Marshal arrested and served the Vessel on June 18, 2019 at Plaintiff’s boatyard in Sausalito, California. (Dkt. No. 15.) The Marshal filed the executed return of Arrest Warrant on July 23, 2019, and the executed return of the Summons on July 26, 2019. (Dkt. Nos. 15, 21.) Plaintiff published a Notice of Action and Arrest in The Daily Journal, in compliance with Admiralty Local Rule 4-2(a), and Plaintiff filed the Proof of Publication pursuant to Admiralty Local Rule 4-2(b). (Dkt. No. 20.) On July 24, 2019, Plaintiff requested entry of default. (Dkt. No. 18.) On July 26, 2019, the Clerk of the Court entered default. (Dkt. No. 22.) No one has appeared in this action or filed a verified statement of right of possession or ownership interest in the Vessel. Federal Rule of Civil Procedure 55(b)(2) permits a court to enter a final judgment in a case following a defendant’s default. Shanghai Automation Instrument Co. v. Kuei, 194 F. Supp. 2d 995, 999 (N.D. Cal 2001). Whether to enter a judgment lies within the court’s discretion. Id. (citing Draper v. Coombs, 792 F.2d 915, 924-925 (9th Cir. 1986)). Before assessing the merits of a default judgment, a court must confirm that it has subject matter jurisdiction over the case and personal jurisdiction over the parties, as well as ensure the adequacy of service on the defendant. See In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999). If the court finds these elements satisfied, it turns to the following factors (“the Eitel factors”) to determine whether it should grant a default judgment:

Free access — add to your briefcase to read the full text and ask questions with AI

KKMI SAUSALITO, LLC v. The vessel "Self Inflicted", (N.D. Cal. 2019).

KKMI SAUSALITO, LLC v. The vessel "Self Inflicted" (KKMI SAUSALITO, LLC v. The vessel "Self Inflicted") — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gary R. Eitel v. William D. McCool
782 F.2d 1470 (Ninth Circuit, 1986)
Robert Draper v. Davis S. Coombs
792 F.2d 915 (Ninth Circuit, 1986)
Ventura Packers, Inc. v. F/V JEANINE KATHLEEN
424 F.3d 852 (Ninth Circuit, 2005)
DirecTV, Inc. v. Hoa Huynh
503 F.3d 847 (Ninth Circuit, 2007)
Petricca v. City of Gardner
194 F. Supp. 2d 1 (D. Massachusetts, 2002)
Michael Williams v. Audrey King
875 F.3d 500 (Ninth Circuit, 2017)
Ventura Packers, Inc. v. F/V Jeanine Kathleen
305 F.3d 913 (Ninth Circuit, 2002)
Farwest Steel Corp. v. Barge Sea-Span 241
769 F.2d 620 (Ninth Circuit, 1985)