Local Rule Rule C (Admiralty): Actions in Rem - Special Provisions
N.D.N.Y. — Civil rule
Rule C Actions in Rem – Special Provisions
(c) 1. Intangible Property The summons to show cause why property should not be deposited in the Court issued pursuant to Supplemental Rule C(3) shall direct the person having control of intangible property to show cause no later than fourteen (14) days after service why the intangible property should not be delivered to the Court to abide the judgment. The Court for good cause shown may lengthen or shorten the time. Service of the warrant has the effect of arresting the intangible property and bringing it within the Court's control. Service of the summons to show cause requires a garnishee wishing to retain possession of the property to establish grounds for doing so, including specification of the measures taken to segregate and safeguard the intangible property arrested. The person who is served may, upon order of the Court, deliver or pay over to the person on whose behalf the warrant was served or to the clerk the intangible property 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. The person asserting any ownership interest in the property or a right of possession may show cause as provided in Supplemental Rule C(6) why the property should not be delivered to the Court.
(c) 2. Publication of Notice of Action and Arrest The notice that Supplemental Rule C(4) requires shall be published at least once in a newspaper named in LAR(g)2, and the 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 or the plaintiff;
(e) A statement that a person asserting any ownership interest in the property or a right of possession pursuant to Supplemental Rule C(6) must file a statement of such interest with the Clerk and serve it on the plaintiff's attorney within fourteen (14) days after publication;
(f) A statement that an answer to the complaint must be filed and served within thirty (30) calendar days after publication and that, otherwise, default may be entered and condemnation ordered;
(g) A statement that applications for intervention under Fed. R. Civ. P. 24 by persons asserting maritime liens or other interests shall be filed within the time fixed by the Court; and
(h) The name, address, and telephone number of the Marshal, keeper, or substitute custodian.
(c) 3. Default In Action In Rem
(a) Notice Required. A party seeking a default judgment in an action in rem must satisfy the Court that due notice of the action and arrest of property has been given,
(1) by publication as required in LAR(c)(2); and (2) by service upon the Marshal and keeper, substitute custodian, master, or other person having custody of the property, and (3) by mailing such notice to 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, the plaintiff must attempt to notify all persons named in the United States Coast Guard Certificate of ownership.
(2) If the defendant property is a vessel numbered as provided in the Federal Boat Safety Act, the plaintiff must attempt to notify the persons named in the records of the issuing authority.
(3) If the defendant property is of such character that there exists a governmental registry of recorded property interests and/or security interests in the property, the plaintiff must attempt to notify all persons named in the records of each such registry.
(c) 4. 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). Default will be entered upon showing that:
(a) Notice has been given as LAR (c)(3)(a) requires; and
(b) Notice has been attempted as LAR (c)(3)(b) requires, where appropriate; and
(c) The time for claimants of ownership to or possession of the property to answer has expired; and
(d) No answer has been filed or no one has appeared to defend on behalf of the property. The plaintiff may move for judgment under Fed. R. Civ. P. Rule 55(b) at any time after default has been entered.