Opinion
1:22-cv-00006-JMK
07-03-2024
PLATYPUS MARINE, INC., a Washington corporation, Plaintiff, v. GLACIER GUIDES, INC., an Alaska corporation, in personam, ALASKA LEGACY, LLC, in personam, M/Y ALASKAN GRANDEUR, O.N. 1121333, her engines, tackles, hull, machinery, and gear, in rem, Defendant.
ORDER GRANTING MOTION TO COMPEL DEPOSIT OF COUNTERSECURITY
JOSHUA M. KINDRED, UNITED STATES DISTRICT JUDGE
At Docket 83, Defendants Glacier Guides, Inc., Alaska Legacy, LLC, and M/Y ALASKAN GRANDEUR, O.N. 1121333 (collectively, “Glacier Guides” or “Defendants”) move for an order compelling Plaintiff Platypus Marine, Inc. (“Platypus Marine”) to deposit a countersecurity in the amount of $224,810.00. Platypus Marine responded in opposition at Docket 91.
For the following reasons, Defendants' Motion to Compel Deposit of Countersecurity is GRANTED.
I. BACKGROUND
Platypus Marine brings this action against Defendants Glacier Guides, Inc. and Alaska Legacy, LLC in personam and defendant M/Y ALASKAN GRANDEUR, O.N. 1121333 in rem.Platypus Marine alleges that Alaska Legacy, the owner of the M/Y ALASKAN GRANDEUR contracted with Platypus Marine to haul out and repair the vessel its Port Angeles, Washington, shipyard. Platypus Marine duly hauled out the M/Y ALASKAN GRANDEUR and repaired the vessel as agreed.Platypus Marine relaunched the vessel on March 31, 2022 and issued an invoice for the cost of repairs. Glacier Guides, the operator of the M/Y ALASKAN GRANDEUR, requested to pay the invoice in two checks.However, Glacier Guides later stopped payment on a check for $168,011.18 of the total repairs.Platypus Marine then commenced this action with a verified complaint, asserting causes of action for a maritime lien against the vessel, enforcement of the dishonored check, breach of contract, and arrest of the vessel.
Docket 18.
Docket 18 at 2.
Docket 18 at 2.
Docket 18 at 2.
Docket 18 at 3.
Docket 18 at 3.
Docket 1; Docket 18 at 3-5.
Early in these proceedings, the parties entered into a stipulation for the substitution of security for the M/Y ALASKAN GRANDEUR.In a June 14, 2022 order, the Court approved the parties' stipulation, directed Alaska Legacy, LLC to deposit $178,091.85 as security, and ordered that the defendant vessel was to be released upon deposit of the agreed security.Defendants deposited the agreed security shortly thereafter.At Docket 43, Defendants moved that the Court order Platypus Marine to deposit a countersecurity.
Docket 10.
Docket 13.
Docket 15; Docket 22.
At Docket 51, this Court granted the motion at Docket 43 and ordered Platypus Marine to deposit a countersecurity in the amount of $224,810.00 with the clerk of court in the form of a cash undertaking or a bond supported by corporate sureties.Defendants now move to enforce the Court's order requiring a countersecurity, noting that they did not do so earlier because the parties were engaged in active settlement efforts.
Docket 51 at 4.
Docket 83.
II. DISCUSSION
Defendants move for an order compelling Platypus Marine to deposit a countersecurity within seven days.Platypus Marine responds that it “has decided to not post counter security and proceed solely in personam against Glacier Guides, Inc. and Alaska Legacy, LLC.”It indicates that it proposed a stipulation to release Defendants' security but that Defendants did not agree.
Docket 83.
Docket 91 at 1.
In their Reply, Defendants indicate that their preference is that the Court enforce its order at Docket 51 and compel the deposit of a countersecurity.However, in the alternative, they request that, if the Court releases their security, it also dismiss Plaintiff's in rem claims with prejudice.
Docket 92 at 3.
Docket 92 at 2.
In admiralty or maritime proceedings in rem, Federal Rule of Civil Procedure Supplemental Rule E(2)(b) provides that “the court may, on the filing of the complaint or on the appearance of any defendant, claimant, or any other party, or at any later time, require the plaintiff, defendant, claimant, or other party to give security, or additional security, in such sum as the court shall direct to pay all costs and expenses that shall be awarded against the party by any interlocutory order or by the final judgment, or on appeal by any appellate court.” Supplemental Rule E(7)(a) further provides that “[w]hen a person who has given security for damages in the original action asserts a counterclaim that arises from the transaction or occurrence that is the subject of the original action, a plaintiff for whose benefit the security has been given must give security for damages demanded in the counterclaim unless the court, for cause shown, directs otherwise.” Supplemental Rule E(7)(a) mandates deposit of a countersecurity when, as here, a party who has given security for damages, asserts a counterclaim, unless there is cause not to do so.
Platypus Marine indicates it wishes to proceed solely on its in personam claims against Glacier Guides, Inc. and Alaska Legacy, LLC, vitiating the need for a security.However, it has not voluntarily dismissed its in rem claims or otherwise relinquished them. Therefore, these claims remain live. Furthermore, Platypus Marine has not made a showing of cause that warrants relief from Supplemental Rule E(7)(a).
Docket 83 at 1; see also Fed.R.Civ.P. Supp. Adm. & Mar. Cl. R. E(1) (specifying that Rule E applies to actions in rem).
Accordingly, Platypus Marine is ordered to deposit a countersecurity in the amount of $224,810.00 with the clerk of court in the form of a cash undertaking or a bond supported by corporate sureties as required by the Court's order at Docket 51 within 14 days of this order.
IV. CONCLUSION
For the foregoing reasons, the Motion to Compel Deposit of Countersecurity is GRANTED.
IT IS SO ORDERED