Sale of Property in Actions Not Subject to Fed. R. Civ. P. Supp. G (a) Notice

U.S. District Court for the Northern District of California

Rule Set: Admiralty and Maritime Local Rules of the United States District Court for the Northern District of California

Rule: 9-2

Jurisdiction: NDCA

Bluebook Citation: N.D. Cal. Adm. L.R. 9-2

Notice of sale of arrested or attached property shall be published in one or more newspapers to be specified in the order for sale. Unless otherwise ordered by a judge upon a showing of urgency or impracticality or unless otherwise provided by law, such notice shall be published for at least 6 consecutive publication days before the date of sale. USDC Admiralty & Maritime Local Rules - Revised December 1, 2009 ADMIR-13 (b) Payment of Bid. Unless otherwise provided in the order, in all public auction sales by the marshal under orders of sale in admiralty and maritime claims, the marshal shall require of the last and highest bidder at the sale a minimum deposit in cash, certified check or cashier's check, of the full purchase price if it does not exceed $1,000, and otherwise $1,000 or ten percent of the bid, whichever is greater.

The balance, if any, of the purchase price shall be paid in cash, certified check or cashier's check before confirmation of the sale or within 3 court days of the dismissal of any opposition which may have been filed. Notwithstanding the above, a plaintiff or intervening plaintiff foreclosing a properly recorded preferred mortgage on, or other valid security interest in the vessel may bid, without payment of cash, certified check or cashier's check, up to the total amount of the secured indebtedness as established by affidavit filed and served by that party on all other parties no later than 14 days prior to the date of sale. (c) Report and Confirmation. At the conclusion of the sale, the marshal shall forthwith file a written report to the court of the fact of sale, the price obtained and the name and address of the buyer.

The clerk of the court shall endorse upon such report the time and date of its filing. If within 3 court days no written objection is filed, the sale shall stand confirmed as of course, without the necessity of any affirmative action thereon by the court and the clerk upon request shall so state to the marshal in writing; except that no sale shall stand confirmed until the buyer has complied fully with the terms of his purchase. If no opposition to the sale is filed, the expenses of keeping the property pending confirmation of sale shall be charged against the party bearing expenses before the sale (subject to taxation as costs), except that if confirmation is delayed by the purchaser's failure to pay any balance which is due on the price, the cost of keeping the property subsequent to the 3-day period hereinabove specified shall be borne by the purchaser. (d) Penalty for Late Payment of Balance.

A successful bidder who fails to pay the balance of the bid within the time allowed under these local rules or a different time specified by the court shall also pay the marshal the costs of keeping the property from the date payment of the balance was due to the date the bidder pays the balance and takes delivery of the property. Unless otherwise ordered by the court, the marshal shall refuse to release the property until this additional charge is paid. (e) Penalty for Default in Payment of Balance. A successful bidder who fails to pay the balance of the bid within the time allowed is in default and the court may at any time thereafter order a sale to the second highest bidder or order a new sale as appropriate.

Any sum deposited by the bidder in default shall be applied to pay any additional costs incurred by the marshal by reason of the default including costs incident to resale. The balance of the deposit, if any, shall be retained in the registry subject to further order of the court, and the court shall be given written notice of its existence whenever the registry deposits are reviewed. (f) Opposition to Sale. A party filing an opposition to the sale, whether seeking the reception of a higher bid or a new public sale by the marshal, shall give prompt notice to all other parties and to the purchaser.

Such party shall also prior to filing an opposition, secure the marshal's endorsement upon it acknowledging deposit with the marshal of the necessary expense of keeping the property for at least 7 days. Pending the court's determination of the opposition, such party shall also advance any further expense at such times and in such amounts as the marshal shall request, or as the court orders upon application of the marshal or the opposing party. Such expense may later be subject to USDC Admiralty & Maritime Local Rules - Revised December 1, 2009 ADMIR-14 taxation as costs. In the event of failure to make such advance, the opposition shall fail without necessity for affirmative action thereon by the court.

If the opposition fails, the expense of keeping the property during its pendency shall be borne by the party filing the opposition. (g) Disposition of Deposits. (1) Objection Sustained. If an objection is sustained, sums deposited by the successful bidder will be returned to the bidder forthwith.

The sum deposited by the objector will be applied to pay the fees and expenses incurred by the marshal in keeping the property until it is resold, and any balance remaining shall be returned to the objector. The objector will be reimbursed for the expense of keeping the property from the proceeds of a subsequent sale. (2) Objection Overruled. If the objection is overruled, the sum deposited by the objector will be applied to pay the expense of keeping the property from the day the objection was filed until the day the sale is confirmed, and any balance remaining will be returned to the objector forthwith.

Cross Reference See Fed. R. Civ. P. Supp. E, Fed. R. Civ. P. 6(a). USDC Admiralty & Maritime Local Rules - Revised December 1, 2009 ADMIR-15 10.

DESERTING SEAMAN CASES 10-1.

Service Upon filing a verified petition for return of wages deposited in the registry of the court by a Coast Guard official to whom the duties of shipping commissioner have been delegated pursuant to the provisions of 46 U.S.C. § 11505, a copy of the petition shall be served forthwith on the United States Attorney and a copy mailed to the Attorney General of the United States, after which a sworn return of such service and mailing shall be filed. 10-2. Time to Plead The United States has 21 days after receipt of a copy of the petition by the United States Attorney in which to file its responsive pleading and claim. USDC Admiralty & Maritime Local Rules - Revised December 1, 2009 ADMIR-16 11.

DECEASED SEAMEN 11-1.

Receipt of Money, Property or Wages When the court receives the money, property or wages of a deceased seaman, pursuant to 46 U.S.C. § 10705-10707, the clerk of the court shall receive any cash or check and perform an inventory of the money, property or wages. The next of kin of the deceased seaman may claim the money, property or wages by filing with the clerk a Kinsman’s Petition for Wages and Effects of Deceased Seaman. 11-2. Disposition of Unclaimed Money, Property or Wages If a claim for the money, property or wages of a deceased seaman has not been substantiated and allowed 6 years after receipt of the money, property or wages, or if, 6 years after its receipt it appears to the court that no claim will have to be satisfied, any property shall be sold; and the money, wages and proceeds from the sale shall be deposited by the clerk in the United States Treasury fund for unclaimed monies.

USDC Admiralty & Maritime Local Rules - Revised December 1, 2009 ADMIR-17 12.

FORFEITURE ACTIONS IN REM 12-1.

Scope Civil forfeiture actions in rem arising from a federal statute shall proceed pursuant to Fed. R. Civ. P. Supp.

G. Cross Reference See Fed. R. Civ. P. Supp.

G. USDC

Admiralty & Maritime Local Rules - Revised December 1, 2009 ADMIR-18

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