Local Rule Local Admiralty Rule (c): Actions In Rem: Special Provisions
E.D. Va. — General rule
LOCAL ADMIRALTY RULE (c)
ACTIONS IN REM: SPECIAL PROVISIONS
(1) Undertaking in Lieu of Arrest. If, before or after commencement of an action by arrest, all parties accept a written undertaking to respond on behalf of the vessel or other property in return for foregoing the arrest, or stipulating to the release of the vessel or other property, the undertaking shall be filed, shall become the party in place of the vessel or other property, and shall be deemed the subject referred to when a pleading, motion, order, or judgment in the action refers to the vessel or property.
(2) Intangible Property. The summons issued pursuant to Supplemental Rule C(3) shall direct the person having control of the specified funds or other intangible property to show cause no later than 10 days after service why the funds or other property should not be delivered to the Marshal to abide the judgment. A judicial officer for good cause shown may lengthen or shorten the time. Service of the summons has the effect of an arrest of the property and brings it within the control of the Court. The person who is served may deliver or pay over to the Marshal (or other person or organization having a warrant for the arrest of the property) the property or funds proceeded against to the extent sufficient to satisfy the plaintiff's claim. If such delivery or payment is made, the person served is excused from the duty to show cause. A claimant of the property may show cause why the property should not be delivered or should be returned by serving and filing a claim as provided in Supplemental Rule C(6) within the time allowed to show cause and by serving and filing an answer to the complaint within twenty-one (21) days thereafter. If a claim is not filed within the time stated in the summons, or an answer is not filed within the time allowed under this rule, the person who was served shall deliver or pay to the Marshal the property or funds proceeded against, or a part thereof sufficient to satisfy plaintiff's claim.
(3) Publication of Notice of Action and Arrest. The notice required by Supplemental Rule C(4) shall be published once in a newspaper of general circulation within the Division where arrest is to occur , and plaintiff's attorney shall file a copy of the notice as it was published with the Clerk. The notice shall contain:
(a) the Court, title, and number of the action;
(b) the date of the arrest;
(c) the identity of the property arrested;
(d) the name, address and telephone number of the attorney for plaintiff;
(e) (i) a statement that a person who asserts an interest in or right against the property that is the subject of the civil forfeiture must file a verified statement identifying the interest or right, in compliance with Admiralty Rule C(6)(a), within twenty-one (21) days of the earlier of (1) receiving actual notice of execution of process, or (2) publication of the notice; or
(ii) a statement that a person who asserts a right of possession or any ownership interest in the property that is the subject of the Maritime Arrest or Other Proceeding must file a verified statement of right or interest, in compliance with Admiralty Rule C(6)(b), within 10 days of the earlier of (1) execution of process, or (2) publication of the notice.
(f) a statement that a person who files a statement of interest in or right against the property subject to the civil forfeiture or a person who asserts a right of possession or any ownership interest in the property subject to Maritime Arrest and Other Proceedings must file an answer within twenty-one (21) days of filing the verified statement under LAR (c)(3)(e)(i) or (ii).
(g) a statement that applications for intervention under Federal Rule 24 by persons claiming maritime liens or other interests shall be filed within the 10 days allowed for claims for possession; and
(h) the name, address and telephone number of the Marshal or deputy Marshal.
(4) Default in Action In Rem.
(a) Notice Required. A party seeking a default judgment in an action in rem must satisfy the judicial officer that due notice of the action and arrest of the property has been given (1) by publication in a newspaper of general circulation within the Division where arrest occurred, (2) by service under Fed. R. Civ. P. 5(a) upon the master or other person having custody of the property, and (3) by service under Fed. R. Civ. P. 5(b) upon every other person who has not appeared in the action and is known to have an interest in the property.
(b) Persons With Recorded Interests.
(1) If the defendant property is a vessel documented under the laws of the United States, plaintiff must obtain a current Certificate of Ownership or General Index or Abstract of Title from the United States Coast Guard and give notice to the persons named therein claiming a current interest in or lien against the defendant vessel.
(2) If the defendant property is a vessel numbered as provided in the Federal Boat Safety Act, plaintiff must obtain information from the issuing authority and give notice to the persons named in the records of such authority.
(3) If the defendant property is of such character that there exists a registry of recorded property interests and/or security interests in the property (whether governmental or private), the party must obtain information from each such registry and give notice to the persons named in the records of each such registry.
(5) Entry of Default and Default Judgment. After the time for filing an answer has expired, the plaintiff may move for entry of default under Fed. R. Civ. P. 55(a), unless there be an understanding between the parties or counsel to the contrary. Default will be entered upon showing that:
(a) notice has been given as required in LAR (c)(4);
(b) the time for answer has expired; and
(c) no one has filed an appearance to claim the property.
The plaintiff may move for the entry of default judgment under Fed. R. Civ. P. 55(b)(2) at any time after default has been entered. Default judgment may be entered under Fed. R. Civ. P. 55(b)(1) in admiralty proceedings only after the Clerk shall have consulted with the Court.