SHM LMC, LLC v. M/Y TRIUMPHANT LADY

CourtDistrict Court, S.D. Florida
DecidedSeptember 4, 2024
Docket0:23-cv-61259
StatusUnknown

This text of SHM LMC, LLC v. M/Y TRIUMPHANT LADY (SHM LMC, LLC v. M/Y TRIUMPHANT LADY) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SHM LMC, LLC v. M/Y TRIUMPHANT LADY, (S.D. Fla. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

IN ADMIRALTY

CASE NO. 0:23-61259-CIV-SCOLA/SANCHEZ

SHM LMC, LLC d/b/a LAUDERDALE MARINE CENTER,

Plaintiff,

v.

M/Y TRIUMPHANT LADY, a 1984 model 46.97- meter motor yacht built by Sterling Yachts marked with Hull Identification Number 701, her engines, tackle, furniture, furnishings, personal watercraft, tenders, and appurtenances, in rem,

Defendant. _______________________________________/

REPORT AND RECOMMENDATION ON PLAINTIFF’S MOTION FOR DEFAULT FINAL JUDGMENT

This matter is before the Court on the Motion for Default Final Judgment against Defendant M/Y Triumphant Lady with Supporting Memorandum of Law filed by the Plaintiff, SHM LMC, LLC d/b/a “Lauderdale Marine Center.” ECF No. 21. The Honorable Robert N. Scola, United States District Judge, referred Plaintiff’s motion to the undersigned for a report and recommendation. ECF No. 23. No response to the Plaintiff’s Amended Complaint, ECF No. 17, or to Plaintiff’s Motion for Default Final Judgment has been filed, and the deadlines to do so have passed. After careful consideration of the record, the Plaintiff’s Motion and supporting declaration, and the relevant authority, the undersigned RESPECTFULLY RECOMMENDS that Plaintiff’s Motion for Default Final Judgment, ECF No. 21, be GRANTED IN PART AND DENIED IN PART. I. BACKGROUND1 This is an action to foreclose a maritime lien against Defendant M/Y Triumphant Lady, a 1984 model 46.97-meter motor yacht built by Sterling Yachts, marked with Hull Identification Number 701, her engines, tackle, furniture, furnishings, personal watercraft, tenders, and appurtenances (the “Vessel”). ECF No. 17 at ¶¶ 11-12.

According to the Amended Complaint, on or about May 21, 2018, an authorized representative for the Vessel’s owner and Plaintiff entered into a “Boat Handling, Dockage & Storage Agreement” to procure “dockage, utilities, and boat handling services,” or necessaries, for the Vessel. Id. at ¶ 16. The Agreement is attached to the Amended Complaint as Exhibit 1. ECF No. 17-1. The Plaintiff provided statements and invoices to the Vessel owner’s agent/attorney, who indicated the Plaintiff would be paid. ECF No. 17 at ¶ 18. When the fees were not paid, the Plaintiff initiated this action, initially seeking to recover $324,155.97 in necessaries. Id. at ¶ 19. By September, the amount owed to the Plaintiff had grown to $409,502.63. Id. at ¶ 22. On September 7, 2023, the Vessel was seized by the U.S. Marshals Service, which subsequently turned the Vessel over to the Plaintiff, who was designated as the substitute custodian

pursuant to the Court’s Order Appointing Substitute Custodian, ECF No. 12. ECF No. 17 at ¶ 23. The Plaintiff gave proper notice of the in rem action and the seizure to the Vessel’s owner and by publication in the local Daily Business Review, as required by Supplemental and Local Admiralty Rule C(4). ECF No. 21 at ¶¶ 3-4; ECF Nos. 14, 18. The Plaintiff confirmed with the Vessel owner’s agent/attorney that actual notice of both the action and the arrest had been received. ECF No. 17 at ¶ 27. Asserting that the time for other entities to appear and file a claim or responsive

1 The following facts are admitted as a result of the Defendant’s default. See, e.g., Amguard Ins. Co. v. Super Winn Nail Spa, Inc., No. 23-61304, 2024 WL 996444, at *1 (S.D. Fla. Mar. 5, 2024); Section II infra. pleading on behalf of the Vessel had passed following the Plaintiff’s publication of notice, the Plaintiff sought and obtained the Clerk’s entry of default. ECF No. 19, 20. Plaintiff thereafter filed the instant motion for default final judgment. ECF No. 21. On October 23, 2023, the Vessel’s owner paid $367,386.85 of the unpaid balance to the

Plaintiff, which left a remaining balance of $42,115.78. ECF No. 21 at ¶ 10; ECF No. 21-2 at ¶¶ 6- 7. Once the Vessel was seized by the Marshals and turned over to the Plaintiff as substitute custodian on September 7, 2023, the services provided by the Plaintiff to the Vessel changed from being classified as necessaries to custodia legis services, and the fees continued to accumulate. Between September 7, 2023, and February 1, 2024, the Plaintiff claims custodia legis fees in the amount of $253,859.73. ECF No. 21 at ¶ 11. Since February 2, 2024, the custodia legis fees have continued to accumulate at a rate of $1,172.14 per day. Id. at ¶ 13. Plaintiff also seeks pre- judgment interest. Id. at ¶¶ 34-37. II. LEGAL STANDARD “When a party against whom a judgment for affirmative relief is sought has failed to plead

or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.” Fed. R. Civ. P. 55(a); Mitchell v. Brown & Williamson Tobacco Corp., 294 F.3d 1309, 1316 (11th Cir. 2002). The effect of a clerk’s default is that all of the plaintiff’s well-pled allegations are deemed admitted. See Amguard Ins. Co. v. Super Winn Nail Spa, Inc., No. 23- 61304, 2024 WL 996444, at *1 (S.D. Fla. Mar. 5, 2024) (citing Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987)); see also Nishimatsu Constr. Co., Ltd. v. Houston Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975) (defaulted defendant deemed to admit well-pled allegations, but “not held to admit facts that are not well-pleaded or to admit conclusions of law”). Only the well-pled allegations are admitted because “entry of default judgment is only

warranted when there is a sufficient basis in the pleadings for the judgment entered, with the standard for ‘a sufficient basis’ for the judgment being akin to that necessary to survive a motion to dismiss for failure to state a claim.” Singleton v. Dean, 611 F. App’x 671, 671 (11th Cir. 2015) (“The complaint must contain sufficient factual matter, accepted as true, to state a claim for relief that is plausible on its face, which is met when the plaintiff pleads factual content that allows the

court to draw the reasonable inference that the defendant is liable for the misconduct alleged.”); Certain Underwriters at Lloyd’s London Subscribing to Policy BRT3A000415-02 v. A.M.A. Consulting & Constr. Servs., No. 21-cv-20979, 2022 WL 542893 (S.D. Fla. Feb. 7, 2022), report and recommendation adopted, 2022 WL 539183 (S.D. Fla. Feb. 22, 2022). Therefore, before entering a default judgment, a court must ensure that the well-pled allegations in the complaint state a substantive cause of action and provide a sufficient basis for the particular relief sought. Tyco Fire & Sec., LLC v. Alcocer, 218 F. App’x 860, 863 (11th Cir. 2007). If the admitted facts are sufficient to establish liability, then the Court must ascertain the appropriate amount of damages. Nishimatsu Constr. Co., 515 F.2d at 1206. Where all the essential evidence to determine damages is on the paper record, an evidentiary hearing on damages is not required. See SEC v.

Smyth, 420 F.3d 1225, 1232 n.13 (11th Cir. 2005). III. ANALYSIS A. Liability Under the Federal Maritime Lien Act The Federal Maritime Lien Act, 46 U.S.C. § 31341, et seq., grants a maritime lien to a party that provides necessaries to a vessel. Robbie’s of Key W. v. M/V Komedy III, 470 F. Supp. 3d 1264 (S.D. Fla. 2020) (citing 46 U.S.C.

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