Local Rule 550: CUSTODY OF PROPERTY

RULE 550 CUSTODY OF PROPERTY

(a) Safekeeping of Property When Seized. When a vessel, cargo, or other property is seized, the Marshal shall take custody and arrange for adequate and necessary security for its safekeeping which may include, in the Marshal's discretion, the placing of keepers on or near the vessel. The Court may order the appointment of a facility or person as substitute custodian of the property in lieu of the Marshal on motion of any party or on its own motion. See L.R. 550(c).

(b) Cargo Handling, Repairs and Movement of the Vessel. Upon arrest or attachment of the vessel, no cargo handling, repairs, or movement of the vessel may be made without a court order. The applicant for such an order shall give notice to the Marshal and to all parties who have appeared before the application for such order, and the certificate of service of such notice shall be filed before application is made to the Court. For good cause shown, and upon proof of adequate insurance coverage to indemnify for any liability, the Court may direct the Marshal to allow the conduct of cargo handling, repairs, movement of the vessel, or other operations on a vessel under arrest or attachment. Neither the United States nor the Marshal shall be liable for the consequence of the undertaking or continuation of any such activities during the arrest or attachment.

(c) Motion for Change in Arrangements. After a vessel, cargo, or other property has been taken into custody by the Marshal, any party then appearing may move the Court to dispense with keepers or to remove or place the vessel, cargo, or other property at a specified facility, to designate a substitute custodian, or for similar relief. The applicant for such an order shall obtain a hearing date from the courtroom deputy clerk for the assigned Judge or Magistrate Judge and thereupon give notice of the motion to the Marshal and to all parties who have appeared. The moving papers shall establish the suitability of the substitute custodian and the existence of adequate insurance. At the hearing of the motion, the Court will determine whether such a facility or substitute custodian is capable of and will safely keep the vessel, cargo, or other property. No hearing date need be obtained for an order to be made concurrently with the order authorizing the Marshal to take the vessel, cargo, or other property into custody if the moving papers for that authority and for the substitute custodian are filed concurrently, satisfy the requirements stated herein and expressly declare in the caption that no hearing is requested.

(d) Insurance. The Marshal may order insurance to protect the Marshal, any deputy Marshal, keepers and substitute custodians from liability assumed in arresting and holding the vessel, cargo, or other property and performing whatever services are undertaken to protect the vessel, cargo, or other property and maintain the Court's custody. The party applying for arrest of the vessel, cargo, or other property shall reimburse the Marshal for premiums paid for the insurance and shall be an additional insured on the policy. The party applying for removal of the vessel, cargo, or other property to another location, for designation of a substitute custodian or for other relief that will require an additional premium shall reimburse the Marshal therefor. The premiums charged for the liability insurance are taxable as administrative costs while the vessel, cargo, or other property is in the custody of the Court.

(e) Claims by Suppliers for Payment of Charges. A person who furnishes services or supplies to a vessel, cargo, or other property in custody who has not been paid and claims the right to payment as an expense of administration shall submit an invoice to the Court for approval in the form of a verified claim at any time before the vessel, cargo, or other property is released or sold. The supplier must serve copies of the claim on the Marshal, substitute custodian if one has been appointed, and all parties appearing in the action. The Court may consider the claims individually or schedule a single hearing for all claims against the property.