Barnes v. Sea Hawaii Rafting, LLC et al

Filing 352

SECOND DIRECTIVE TO THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF HAWAII. Excerpt of the Court's directive:"Pursuant to the decision of the Ninth Circuit in Barnes v. Sea Haw aii Rafting, LLC, 889 F.3d 517 (9th Cir. 2018), this Court directs that the bankruptcy court transfer to this Court the $35,000.00 in sale proceeds which the bankruptcy court received from Aloha Ocean Excursions, LLC ('AOE') in exchange for the M/V Tehani and its accompanying trailer."IT IS SO ORDERED. Signed by JUDGE ALAN C. KAY on 7/9/2018. (afc) Chapter 13 BK # 14-01475COURTS CERTIFICATE of Service - Non-Registered CM/ECF Participants have been served by First Class Mail to the addresses of record listed on the Notice of Electronic Filing (NEF). U.S. Bankruptcy Court for the District of Hawaii served electronically via NEF

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF HAWAII
)
)
)
Plaintiff,
)
)
v.
)
)
SEA HAWAII RAFTING, LLC, )
KRIS HENRY, M/V TEHANI, )
et al.
)
)
Defendants.
)
)
CHAD BARRY BARNES,

Civ. No. 13-00002 ACK-RLP

SECOND DIRECTIVE TO THE UNITED STATES
BANKRUPTCY COURT FOR THE DISTRICT OF HAWAII
Pursuant to the decision of the Ninth Circuit in
Barnes v. Sea Hawaii Rafting, LLC, 889 F.3d 517 (9th Cir. 2018),
this Court directs that the bankruptcy court transfer to this
Court the $35,000.00 in sale proceeds which the bankruptcy court
received from Aloha Ocean Excursions, LLC (“AOE”) in exchange
for the M/V Tehani and its accompanying trailer.
Case No. 14-01520, Dkt. No. 185.

See Bankr.

The Court understands that the

bankruptcy court has indicated that in the event Plaintiff
Barnes pursues enforcement of his maritime lien by arresting,
seizing, and selling the M/V Tehani, then it appears that the
$35,000.00 sale proceeds should be returned to AOE, and that the
bankruptcy court agrees that the $35,000.00 sale proceeds
accordingly should be returned to the United States District

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Court.

See Memorandum of Decision on Motions for Relief from

Stay and Barton Doctrine and for Sanctions, Bankr. Case No. 1401520, Dkt. No. 300 at pp. 8-10 & n.30 (“The trustee can hold
the sales proceeds until the district court directs him to
disburse some or all of the proceeds in payment of Mr. Barnes’
maritime lien (or perhaps directs him to pay the sales proceeds
into the registry of the district court).”).

The Court further

understands that the $35,000.00 in sale proceeds is currently
held by the bankruptcy trustee in bankruptcy case number 1401520 involving Sea Hawaii Rafting, LLC.
The Court finds the transfer of the $35,000.00 in sale
proceeds appropriate because the Ninth Circuit held in its
decision that the M/V Tehani had been in the constructive
control of this Court, that this Court’s jurisdiction over the
vessel was exclusive, and that the bankruptcy court lacked
jurisdiction over the vessel.

Barnes, 889 F.3d at 524, 532-35.

Plaintiff Barnes has indicated that he will pursue his
maritime lien to arrest, seize, and sell the M/V Tehani.
No. 333.

ECF

This Court will hold the $35,000.00 sale proceeds

until the sale is accomplished.

Upon the sale being

accomplished, the Court will distribute the $35,000.00 to AOE,
which had purchased the vessel for $35,000.00 from the
bankruptcy court.

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IT IS SO ORDERED.
DATED:

Honolulu, Hawaii, July 9, 2018.

________________________________
Alan C. Kay
Sr. United States District Judge

Barnes v. Sea Hawaii Rafting, LLC, Kris Henry, M/V Tehani, et al., Civ. No.
13-00002 ACK-RLP, Second Directive to the United States Bankruptcy Court for
the District of Hawaii.

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