Harbor v. M/V Selene

Background

Sausalito Yacht Harbor brought an in rem action, meaning an action directed against property, to satisfy maritime liens related to the vessel M/V Selene. The complaint alleged that the vessel’s owner, Vincent Weigel, entered into a contract for marina berthing and related services, along with an agreement allowing him to live aboard the vessel. The marina alleged that the vessel’s account fell into arrears beginning in August 2023 and that it received no payments toward the arrearages or monthly fees after April or May 2024.

The marina sued on December 22, 2024, seeking arrest and an interlocutory sale of the vessel. The court authorized the vessel’s arrest and appointed a substitute custodian. The vessel was arrested on March 6, 2025. Default was entered against the vessel on April 29, 2025. Sausalito Yacht Harbor then moved for an interlocutory sale and authorization to credit bid.

Legal standard

Under Supplemental Rule E(9)(a)(i) of the Federal Rules of Civil Procedure, a court may order an interlocutory sale of arrested property if one of three conditions is met: the property is liable to deterioration while detained; the cost of keeping it is excessive or disproportionate; or there has been an unreasonable delay in securing its release. The court stated that the moving party need show only one of these conditions. Courts generally give a defendant about four months to post security for a vessel’s release before finding an unreasonable delay.

Reasons for allowing the sale

The marina submitted a declaration from Ray Jones, a licensed yacht broker, who opined that vessels deteriorate in condition and value over time, especially when they sit idle in salt water. The court found that the declaration and the limited maintenance being performed supported a finding that the vessel was liable to deterioration, decay, or injury while detained.

The court also found that custody costs were excessive and disproportionate. The custodian’s order set storage and general custodial services at $95 per day, plus weekly interior inspections at $50 each. The marina calculated that these costs totaled at least $11,200 through June 24, 2025. Jones estimated the vessel’s fair market value at approximately $25,000. Because the custody costs amounted to about 45 percent of the estimated value, the court found this criterion satisfied.

The court additionally found an unreasonable delay in securing the vessel’s release. The record showed that no one had posted security, entered into a release agreement, or requested a hearing about whether the arrest was proper. Although the vessel had been arrested for 110 days—slightly less than the usual four-month guideline—the court concluded that this did not prevent a finding of unreasonable delay because the other criteria had been met.

Credit bid and disposition

Sausalito Yacht Harbor requested permission to credit bid the amount of its lien rather than pay the bid entirely in cash. It sought to bid $19,098.88 in alleged wharfage fees, plus custodial and other actual costs of suit, excluding attorneys’ fees. The court authorized a credit bid of $30,298.88, consisting of $19,098.88 in wharfage fees and $11,200 in custodial costs. The authorization required the marina to file and serve, at least 14 days before the sale, an affidavit establishing the total secured indebtedness.

The court granted the motion for interlocutory sale and authorized the credit bid. It also ordered Sausalito Yacht Harbor to file a status report by August 25, 2025, stating whether the sale had occurred or, if not, when the marina expected it to occur.