Independent Bank of Texas v. M/V JANICE RUTH II, Official Number 1118444 et al

Filing 47

Report and Recommendation

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ALASKA

INDEPENDENT BANK OF TEXAS,

3:11-cv-00128-TMB-JDR

Plaintiff,
vs.
M/V JANICE RUTH II, Official
Number 1116444, her engines, gear,
tackle, and appurtenances, In Rem,
and THE MARTHA REYNOLDS
TRUST, In Personam,

RECOMMENDATION
REGARDING
MOTION FOR DEFAULT
JUDGMENT IN REM AND
IN PERSONAM
(Docket No. 40)

Defendants.

The Plaintiff filed its Motion for Default Judgment In Rem and Order of
Sale (Docket 40) on November 17, 2011, in order to foreclose on a preferred ship
mortgage. The Plaintiff filed a Verified Complaint setting forth the terms and
conditions of the Promissory Note and the Preferred Ship Mortgage, which provides

security for the Note.1 This Court previously made an Entry of Default In Rem at
Docket 39 and default was entered against The Martha Reynolds Trust at Docket 29.
The Court has reviewed the Motion and Memorandum filed at Docket 40 and the
affidavits of S. Richard Shook, Steven J. Shamburek and Randyl Meigs, filed at
Dockets 41, 42 and 44, respectively.
The Magistrate Judge is satisfied that the Plaintiff has met its notice
requirements for service under Local Rule (c)-3. The Plaintiff published notice of the
arrest of the Vessel in the Anchorage Daily News on September 14, 2011 and
published the same in The Valdez Star on September 21, 2011.2 Additionally, the
Plaintiff has filed proof that the Trustee for the In Personam Defendant, The Martha
Reynolds Trust, was served with the Summons and Complaint.3
The Plaintiff is seeking a Judgment which includes the principal sum
owed, totaling $748,542.00, accrued interest totaling $101.668.74 (through October
21, 2011), continued interest accruing at a rate of $374.27 per day (after October 21,
2011), late fees totaling $1,120.05, costs in the amount of $14,772.08, in custodia
legis expenses of the U.S. Marshal totaling $3,508.00, and Plaintiff’s attorneys’ fees

1

See Promissory Note, Docket 1-1; Preferred Ship Mortgage, Docket 1-2.

2

See Affidavit in Support of Entry of Default, Docket 38; Publication of
Notice of Arrest, Docket 32.
3

See Affidavit in Support of Entry of Default, Docket 28.

11-cv-128-TMB-JDR @ 40 RR Re Motion for Default Judgment.wpd

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in the amount of $37,107.50. These sums, interest, costs and fees are due in
accordance with the terms of the Promissory Note and Mortgage.4
The Magistrate Judge HEREBY RECOMMENDS the Court find the In
Rem Defendant liable for the amounts outlined above and grant Plaintiff’s Request
for entry of Judgment In Rem. The request for Judgment In Personam should be
deferred, subject to renewal, as it may be renewed when a request for a deficiency
judgment, if any, is determined after the sale of the Vessel. In the interest of justice,
and in order to expedite the business of the court, this Recommendations shall be
deemed a Final Recommendation.
DATED this

21st

day of November, 2011, at Anchorage, Alaska.

/s/ John D. Roberts
JOHN D. ROBERTS
United States Magistrate Judge

4

See Docket 1-1; 1-2.

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