International Ship Repair & Marine Services Inc. v. Caribe Sun Shipping, Inc. et al

Filing 34

ORDER: International Ship Repair & Marine Services, Inc.'s Motion to Allow Sale of The M/V Caribe Sun to the Second Highest Bidder 33 is GRANTED. The Court directs the U.S. Marshal to sell The M/V Caribe Sun, her boats, engines, tackle, appar el, furniture, equipment, appurtenances, and all other necessaries thereunto appertaining and belonging to the vessel, to the second highest bidder at the auction conducted on February 14, 2013. Any proceeds of the sale conducted by the U.S. Marshal shall be paid into the registry of the Court so that the Court may dispose of the proceeds according to the law. Signed by Judge Virginia M. Hernandez Covington on 2/21/2013. (MEB)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
IN ADMIRALTY
INTERNATIONAL SHIP REPAIR &
MARINE SERVICES, INC.,
Plaintiff,
v.

Case No.

8:12-cv-1651-T-33TGW

CARIBE SUN SHIPPING, INC.,
In personam; ATLANTIC CARIBBEAN
LINE, INC., In personam; THE
M/V CARIBE SUN, her boats, engines,
tackle, apparel, furniture, equipment,
appurtenances, and all other
necessaries thereunto appertaining
and belonging to the vessel, In rem;
Defendants.
/

ORDER
This cause is before the Court pursuant to Plaintiff
International Ship Repair & Marine Services, Inc.'s Motion
to Allow Sale of The M/V Caribe Sun to the Second Highest
Bidder (Doc. # 33), which was filed on February 18, 2013.
For the reasons that follow, the Court grants the Motion.
Discussion
On July 24, 2012, International Ship filed a Verified
Complaint In Rem based on the failure of Defendant Atlantic
Caribbean Line, Inc. to pay for ship repairs and services

that International Ship provided to The M/V Caribe Sun (the
"Vessel")

pursuant

to

an

agreement

between

International

Ship and Atlantic Caribbean. (Doc. # 1). International Ship
alleged that an amount of $807,440.26 was due and owing for
repairs and services performed by International Ship to the
Vessel. (Id. at 10).
The arrest of the Vessel, her boats, engines, tackle,
apparel, furniture, equipment, appurtenances, and all other
necessaries
Vessel,

thereunto

occurred

on

appertaining
July

27,

and

2012.

belonging

(Doc.

##

to

8-10).

the
No

verified statement of right or interest in the Vessel was
filed within fourteen days of the August 15, 2012, public
notice of this case and of the arrest of the Vessel. See
Supplemental Rule C(6), Fed. R. Civ. Pro.

(Doc. ## 10,

13). Despite being served with the summons and Verified
Complaint In Rem on August 13, 2012, Atlantic Caribbean
failed to plead or otherwise defend this action. (Doc. #
15).
Consequently, on September 11, 2012, the Clerk entered
defaults against Atlantic Caribbean and the Vessel. (Doc.
##

17,

18).

On

November

20,

2012,

the

Court

granted

International Ship's motion for default judgment (Doc. #
20), and default judgment was entered on November 21, 2012,

2

against

Atlantic

Caribbean

and

the

Vessel

in

favor

of

International Ship in the amount of $807,440.26 (Doc. #
21).
On December 3, 2012, International Ship filed a Motion
for Sale and for Permission to Bid, requesting that the
Court enter an order directing the U.S. Marshal to conduct
a

sale

of

the

Supplemental

Vessel,

Rules

for

pursuant
Admiralty

to
or

Rule

E(9)

Maritime

of

the

Claims

and

Asset Forfeiture Actions and Local Admiralty Rule 7.05(q)(r). (Doc. # 23).

The Court granted the Motion for Sale

on January 2, 2013. (Doc. # 31).
The U.S. Marshal conducted an auction of the Vessel on
February 14, 2013. (Doc. # 33 at 1).

Ed Taylor of Taylor

COD was the highest bidder at the auction with a winning
bid of $630,000.00. (Id.).

Pursuant to Local Admiralty

Rule 7.05(r)(1)(B), the winning bidder at an auction for
sale

of

Marshal
greater.

a

vessel

$500.00,

or

“shall
10%

immediately
of

the

bid,

deposit

with

whichever

the

sum

is

Thereafter the bidder shall pay the remaining

purchase price within three (3) working days.”

However,

Mr. Taylor failed to pay the required 10% deposit on the
day of the sale or thereafter.
Taylor’s

failure

to

pay

the

3

(Doc. # 33 at 2).

deposit

is

confirmed

Mr.
by

a

process receipt form executed by the U.S. Marshal and filed
on the record. (Doc. # 33-1).
Pursuant

to

Local

Admiralty

Rule

7.05(r)(4),

“The

person who fails to pay the balance of the bid within the
time allowed shall be deemed to be in default. Thereafter a
judicial officer may order that the sale be awarded to the
second

highest

appropriate.”

bidder,

or

may

Accordingly,

order

on

a

new

February

sale

18,

as

2013,

International Ship filed the instant Motion to Allow Sale
of The M/V Caribe Sun to the Second Highest Bidder.
second

highest

bidder

in

$620,000.00 at the auction.

this

case

entered

a

bid

The
of

(Doc. # 33 at 1).

International Ship does not request at this time for
the Court to deem Mr. Taylor to be in default pursuant to
L.R. 7.05(r)(4) or to enter any other relief against Mr.
Taylor, but requests only that the Court enter an order
directing

the

highest bidder.
to

the

second

Marshal

to

sell

the

Vessel

to

the

second

The Court finds that a sale of the Vessel
highest

bidder

is

appropriate

under

the

circumstances of this case, given that the difference in
the highest and second highest bids is only $10,000, and
will avoid the Vessel continuing to diminish in value, the

4

accrual of further custodia legis expenses, and the costs
of administering a new auction.
Thus, pursuant to Local Admiralty Rule 7.05(r)(4), the
Court grants International Ship’s Motion and directs the
U.S.

Marshal

to

sell

The

M/V

Caribe

Sun

to

the

second

highest bidder of the auction that took place on February
14, 2013.
Accordingly, it is hereby:
ORDERED, ADJUDGED and DECREED:
(1)

International

Ship

Repair

&

Marine

Services,

Inc.'s

Motion to Allow Sale of The M/V Caribe Sun to the
Second Highest Bidder (Doc. # 33) is GRANTED.
(2)

The Court directs the U.S. Marshal to sell The M/V
Caribe

Sun,

her

boats,

furniture,

equipment,

necessaries

thereunto

the

vessel,

to

the

engines,

tackle,

appurtenances,
appertaining
second

and

and

highest

apparel,
all

other

belonging

bidder

at

to
the

auction conducted on February 14, 2013.
(3)

Any proceeds of the sale conducted by the U.S. Marshal
shall be paid into the registry of the Court so that
the Court may dispose of the proceeds according to the
law.

5

DONE and ORDERED in Chambers, in Tampa, Florida, this
21st day of February, 2013.

Copies:

All Parties and Counsel of Record

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