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

Filing 41

ORDER: International Ship's Motion for Distribution of Proceeds from the Sale of the M/V Caribe Sun 40 is GRANTED. The Clerk is directed to make the following disbursements of the funds in the Court's registry, leaving no sum on deposit: $10,066.76 to the U.S. Marshals Service; and $609,933.24 to International Ship Repair & Marine Services, Inc. Signed by Judge Virginia M. Hernandez Covington on 3/25/2013. (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 for
Distribution of Proceeds from the Sale of the M/V Caribe Sun
(Doc. # 40), filed on March 20, 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

thereunto

appertaining

and

belonging

to

the

Vessel, occurred on July 27, 2012. (Doc. ## 8-10). 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

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Ship's motion for default judgment (Doc. # 20), and default
judgment was entered on November 21, 2012, 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 Vessel, pursuant to Rule E(9) of the Supplemental Rules
for Admiralty or Maritime Claims and Asset Forfeiture Actions
and Local Admiralty Rule 7.05(q)-(r). (Doc. # 23).

On

January 2, 2013, the Court granted the Motion for Sale (Doc.
# 31) and also granted International Ship custodia legis fees
in the amount of $162,878.00 (Doc. # 29).

On January 3, 2013,

the Court entered an amended default judgment to include prejudgment interest, costs and attorneys’ fees in favor of
International Ship in the amount of $856,987.64. (Doc. # 32).
International Ship is therefore due $1,019.865.64.
The U.S. Marshal conducted an auction of the Vessel on
February 14, 2013. (Doc. # 33 at 1).

Upon the highest

bidder’s failure to pay a 10% deposit on the day of the sale
or

thereafter

as

required

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by

Local

Admiralty

Rule

7.05(r)(1)(B), the Vessel was ultimately sold to the second
highest bidder for $620,000.00.

(Doc. # 36).

The U.S.

Marshal filed a Report of Sale on March 5, 2013, which
includes a claim for $10,066.76 by the U.S. Marshals Service.
(Doc. # 36).
International Ship moved for a confirmation of the sale
on March 11, 2013. (Doc. # 37).

No objections to the sale

were filed in the time prescribed by Local Admiralty Rule
7.05(r)(7)(A), and thus, the Clerk issued a confirmation of
sale on March 15, 2013. (Doc. # 39).
requests

the

Court

to

order

International Ship now

a distribution

of

the sale

proceeds, with $10,066.76 to be distributed to the U.S.
Marshals

Service

and

the

remaining

$609,933.24

to

be

distributed to International Ship.
The Court finds that International Ship has complied with
all

preconditions

necessary

for

the

Court

to

order

a

distribution of the sale proceeds. In the absence of a dispute
concerning disbursement of the funds, the Court directs the
Clerk to disburse such funds as noted above, leaving no sum on
deposit.
Accordingly, it is

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ORDERED, ADJUDGED and DECREED:
(1)

International Ship’s Motion for Distribution of Proceeds
from the Sale of the M/V Caribe Sun (Doc. # 40) is
GRANTED.

(2)

The Clerk is directed to make the following disbursements
of the funds in the Court’s registry, leaving no sum on
deposit:
$10,066.76

to

the

U.S.

Marshals

Service;

and

$609,933.24 to International Ship Repair & Marine
Services, Inc.
DONE and ORDERED in Chambers, in Tampa, Florida, this
25th day of March, 2013.

Copies:

All Parties and Counsel of Record
U.S. Marshals Service

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