SummitBridge Credit Investments IV LLC v. OSV Determination L L C et al

Filing 62

MEMORANDUM RULING re 58 MOTION to Confirm Sale, and for Release, of Defendant Vessel OSV Determination, and for Cancellation of Vessel Lien Inscriptions re 56 Notice (Other), 54 Order on Motion for Default Judgment filed by SummitBridge Credit Investments IV L L C. Signed by Judge Robert G James on 4/21/2017. (crt,Crawford, A)

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF LOUISIANA
LAFAYETTE DIVISION
SUMMITBRIDGE CREDIT
INVESTMENTS IV, LLC.
VERSUS
OSV DETERMINATION, L.L.C.,
ET AL.

CIVIL ACTION NO. 15-2125
JUDGE ROBERT G. JAMES
MAG JUDGE CAROL B. WHITEHURST

RULING
Pending before the Court is Plaintiff SummitBridge Credit Investments IV, LLC’s
(“SummitBridge”) “Motion To Confirm Sale, And For Release, Of Defendant Vessel OSV
Determination, And For Release Of Vessel Lien Inscriptions” [Doc. No. 58]. For the following
reasons, the motion is GRANTED.
On March 18, 2016, the Clerk of Court filed a Notice of Entry of Default Against the
Documented Vessel “and all claimants and lien holders who have not appeared and filed any
statement of right or interest or lien.” [Doc. No. 33]. On November 17, 2016, the Court issued
a Judgment [Doc. No. 54] providing that the Defendant Vessel OSV Determination
(“Defendant Vessel”) would be offered by the “United States Marshals Service, for sale as
required by law and free and clear of all liens, encumbrances and interests.”
On February 22, 2017, the Defendant Vessel was sold by the United States Marshal for
the Western District of Louisiana. SummitBridge was the highest bidder with a credit bid of
$600,000. SummitBridge seeks confirmation of the sale of the Defendant Vessel free and clear
of any and all interests, mortgages, liens, claims and encumbrances. [Doc. No. 58].
First, the Court notes that Jose Manuel Garcesto, Nestor Verdugo, Kevin Nidini, and

Jon Root (collectively “Wage Claimants’ Liens”) have liens on the Defendant Vessel. [Doc.
No. 39]. However, SummitBridge has posted a bond in the amount of $205,000 that exceeds
the Wage Claimants’ Liens. [Doc. No. 57]. Therefore, the Court will issue a Judgment
referring the Wage Claimants’ Liens to the bond posted by SummitBridge.
Additionally, Amelia Dockside Facilities, LLC (“Amelia Dockside”) has a lien in the
amount of $7,275.00 against the Defendant Vessel. Under Rule C(4) of the Supplemental Rules
for Admiralty or Maritime Claims, public notice of an action and arrest must be made if the
property is not released within 14 days after execution. Rule C(6) further provides that in an
action in rem, “(i) a person who asserts a right of possession or any ownership interest in the
property that is the subject of the action must file a verified statement of right or interest: (A)
within 14 days after the execution of process. . . .” Local Admiralty Rule 64.1 provides that
any time publication is necessary under Admiralty Rule C(4), “the time for filing . . . any
ownership interest in the property . . . is hereby extended for a period of 21 days from the date
of the publication.”
Amelia Dockside did not comply with the requirements and never sought to intervene
under Federal Rule of Civil Procedure 24. Therefore, the Court will issue a Judgment directing
the United States Coast Guard to cancel and erase Amelia Dockside’s lien against the
Defendant Vessel from its official records at the National Vessel Documentation Center.
For all of these reasons, SummitBridge’s Motion [Doc. No. 58] is GRANTED, and the
Court will enter judgment in favor of SummitBridge.

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MONROE, LOUISIANA, this 21st day of April, 2017.

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