We review for abuse of discretion the district court's denial of permission to file late claims in an exoneration action. See Lloyd's Leasing Ltd.v.Bates, 902 F.2d 368, 371 (5th Cir. 1990); Tex. Gulf Sulphur Co.v.Blue Stack Towing Co., 313 F.2d 359, 363 (5th Cir. 1963). To prevail, the appellant must meet the "heavy burden" of showing an abuse of discretion.
We review for abuse of discretion the district court's denial of permission to file late claims in an exoneration action. See Lloyd's Leasing Ltd. v. Bates, 902 F.2d 368, 371 (5th Cir. 1990); Tex. Gulf Sulphur Co. v. Blue Stack Towing Co., 313 F.2d 359, 363 (5th Cir. 1963). To prevail, the appellant must meet the "heavy burden" of showing an abuse of discretion.
A. Standard of Review The decision to deny claimants the opportunity to file and serve untimely answers in a limitation action is reviewed for an abuse of discretion. Lloyd's Leasing Ltd. v. Bates, 902 F.2d 368, 371 (5th Cir. 1990). "[I]nstances in which we can declare that the action is so lacking in reason as to constitute an abuse of discretion" are rare. Texas Gulf Sulphur Co. v. Blue Stack Towing Co., 313 F.2d 359, 363 (5th Cir. 1963) (citations omitted).
"The reason normally given for not timely filing is lack of actual notice." In re Lloyd's Leasing LTD., 902 F.2d 368, 371 (5th Cir. 1990). However,
Supplemental Rule A for Certain Admiralty and Maritime Claims states that the general Federal Rules of Civil Procedure are applicable in admiralty proceedings, " except to the extent that they are inconsistent with these Supplemental Rules." In Lloyd's Leasing Limited v. Bates, 902 F.2d 368, 370 (5th Cir.1990), the Fifth Circuit held that a class action may not be instituted in a limitation of liability proceeding, finding that Rule 23 and Supplemental Admiralty and Maritime Claims Rule F are incompatible due to three inconsistencies: (1) the class action interferes with the concursus contemplated by the limitation of liability proceeding; (2) the notice requirements of the limitation proceeding are more restrictive than those of the class action; and (3) " the entire thrust of Supplemental Rule F is that each claimant must appear individually and this is obviously inconsistent with the class action." Id.
"Courts have held that it was an abuse of discretion to deny permission to late file [sic] claims when the claimant did not speak the language in which the notice was published." Lloyd's Leasing Ltd. v. Bates, 902 F.2d 368, 371 (5th Cir. 1990). The motions for late filing asserted by Mai Ngoc Huynh, Ngu Van Vo, Tha Van Nguyen, and Cam Ngoc Tran are granted. Tai Hu Lai, however, spoke English and lived in the area where the notice was published.
Willis argues the overall delay here supports a denial of the motion, citing a Fifth Circuit Limitation Act decision denying leave to file a claim “four years after the commencement of the case.” See Lloyd's Leasing, Ltd. v. Bates, 902 F.2d 368, 371 (5th Cir. 1990); Opp'n at 20. But Lloyd's Leasing, Ltd. is not directly analogous to the case at hand
The precedent of the United States Court of Appeals for the Fifth Circuit "clearly requires that late filers demonstrate their reasons with evidence." In re River City Towing Servs., Inc. , 420 F.3d 385, 388 (5th Cir. 2005) (citing Lloyd's Leasing Ltd. v. Bates , 902 F.2d 368, 371 (5th Cir. 1990) ). "Relief from a tardy claim is not a matter of right[,]" but rather is a remedy that requires and depends upon " ‘an equitable showing.’ " Golnoy Barge Co. v. M/T SHINOUSSA , 980 F.2d 349, 351 (5th Cir. 1993).
The Fifth Circuit has held that " a class action may not be instituted in a limitation proceeding." Lloyd's Leasing Ltd. v. Bates, 902 F.2d 368, 370 (5th Cir.1990). Lloyd's Leasing involves a factual scenario strikingly similar to that in Slaven.
Here, notice was published in a newspaper serving a county just over seventy miles from New Orleans where Cruz lived. These facts are closer to those in Lloyd's Leasing Ltd. v. Bates, 902 F.2d 368, 369 (5th Cir. 1990), where we found no abuse of discretion when notice was published in the Galveston Daily News and the late claimants lived in Port Arthur and around Sabine Pass. There, like here, the distance between the late-claimant and the coverage area of the publication was less than one-hundred miles and-more relevant to the question of "remoteness"-the two were in adjacent metropolitan regions. We see no abuse of discretion in the district court's analysis of this factor.