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Local Rules of Admiralty Procedure - 2017

LR 1035 - Custody of Property

LR 1035-1 Safekeeping of Property When Seized

When a vessel, cargo, or other property is seized, the marshal will take custody and arrange for adequate and necessary security for the safekeeping of the vessel, cargo, or other property which may include, in the marshal's discretion, the placing of keepers on or near the vessel, or the appointment of a facility or person as custodian of the vessel for the marshal.

LR 1035-2 Cargo Handling, Repairs, and Movement of Vessel

After the arrest or attachment of a vessel, no cargo handling, repairs, or movement of the vessel, may be made without a Court order and notice to the marshal. The required notice will be given to the marshal prior to the application for such an order.

LR 1035-3 Petition for Change of Arrangements

After a vessel, cargo or other property has been taken into custody by the marshal, any party then appearing may petition the Court to dispense with keepers; to remove to or place the vessel, cargo or other property at a specified facility; to designate a substitute custodian for the vessel or cargo; or other appropriate relief.

Notice of the petition will be given to the marshal and to counsel for all parties who have appeared. The petition may be brought on for hearing at which time a judge will determine whether such a facility or substitute custodian is capable of and will safely keep the vessel, cargo or other property.

LR 1035-4 Insurance

The marshal may order insurance to protect the marshal, his deputies, keepers and substitute custodians from liability assumed in arresting a vessel, cargo or other property and while performing whatever services are undertaken to protect the vessel, cargo or other property while such items are maintained in the Court's custody. The party applying for arrest of the vessel, cargo or other property will reimburse the marshal for premiums paid to effect the insurance.

The party applying to remove the vessel, cargo, or other property to another location; for designation of a substitute custodian; or for any other form of relief that will require an additional insurance premium, will reimburse the marshal for the additional premiums. The premiums charged for the liability insurance are taxable as administrative costs while the vessel, cargo or other property is in custodia legis.

LR 1035-5 Claim by Supplier 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, must 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.

The supplier must serve copies of the claim on the marshal (and the substitute custodian if one has been appointed) and the attorneys for all parties appearing in the action. The Court may decline to consider the claim until a hearing is conducted to decide other claims against the property.

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