Alan C. Kay, Sr. United States District Judge.
For the reasons discussed below, the Court finds that the trailer on which the M/V Tehani has been secured is an appurtenance of the vessel to which Plaintiff Barnes's maritime lien attaches.
For purposes of this Order, the Court will not recount this case's lengthy procedural history beginning in 2013. The Court only discusses those facts of specific relevance to the issue that this Order addresses.
On August 1, 2018, the Court issued an Order Authorizing Issuance of Warrant for Maritime Arrest of the Tehani. ECF No. 388. However, on August 6, 2018, the United States Marshal Service notified the Court that the marshals did not have the ability to take custody of the vessel.
Plaintiff Barnes's proposed substitute custodian has agreed to serve in this capacity only if the Tehani is arrested along with the trailer upon which it has been secured, which will allow the proposed substitute custodian to easily transport the vessel if doing so becomes necessary in the course of the substitute custodian's duties. Thus, this Court must determine whether the trailer is an appurtenance of the Tehani.
On September 28, 2018, the Court held a Hearing on Defendant Aloha Ocean Excursion, LLC's ("Defendant AOE") Motion to Alter or Amend the Judgment.
The Court then asked counsel for Defendant AOE whether it would stipulate that the trailer constitutes an appurtenance. Counsel for Defendant AOE declined to so stipulate, but suggested that maybe the issue should be briefed. After further discussion, the Court stated that it was not going to rule on the issue at that time. The Court then asked counsel for Plaintiff Barnes whether he had attempted to rent a trailer on the Island of Hawai'i, or on Maui or O'ahu. Counsel for Plaintiff Barnes stated that his efforts to rent a trailer on the Island of Hawai'i were unsuccessful, but that he would endeavor to find a rental from the other islands. The Court stated that if counsel for Plaintiff Barnes's efforts to rent a trailer from the other islands were similarly unavailing, then as a last resort he should file a motion asking this Court to determine whether the trailer is an appurtenance of the vessel.
Notwithstanding the foregoing, on October 2, 2018, Plaintiff Barnes filed a Fourth Motion to Supplement Petition for Writ of Mandamus before the Ninth Circuit. Case No. 18-72203, Dkt. No. 12. In the supplemented Petition for Writ of Mandamus, Plaintiff Barnes states that this Court had determined the trailer is not an appurtenance.
On October 22, 2018, the Court entered another Minute Order, ECF No. 453, where it directed Defendant AOE and Plaintiff Barnes to brief the issue of whether the trailer on which the Tehani has been secured is an appurtenance of the vessel. The Court required the parties to file their briefs by noon on November 2, 2018. Defendant AOE timely filed its brief on November 2, 2018. ECF No. 457. Just before noon on November 2, 2018 Plaintiff Barnes filed a Motion to Extend Time to file his brief, which requested a twelve-hour extension in which to file his brief and further stated that Plaintiff Barnes's counsel would be away on business in the Marshall Islands for the next several weeks. ECF No. 458. In a Minute Order entered that same day, the Court granted Plaintiff Barnes a twelve-hour extension in which to file his brief. ECF No. 459. Plaintiff Barnes filed his brief later that day. ECF No. 460. On November 5, 2018, Plaintiff Barnes filed a Supplement to his brief. ECF No. 462. On November 8, 2018, the Court of Appeals for the Ninth Circuit filed an order that stayed proceedings in Plaintiff Barnes's Petition for Writ of Mandamus
On November 29, 2018, the Court held a Hearing on the appurtenance issue. At the Hearing, the Court directed the parties to file Supplemental Briefs describing in detail the manner in which the trailer is used on a daily basis, both at the time of the incident and currently. Defendant AOE and Plaintiff Barnes filed their respective briefs on December 5, 2018, ECF Nos. 478, 477.
The only question before the Court at this time is whether the trailer upon which the vessel Tehani has been secured is an appurtenance of the vessel to which Plaintiff Barnes's maritime lien attaches. The parties have presented no cases where courts found that a trailer is appurtenant to a vessel, and the Court, through its research, has discovered none. Accordingly, it appears that this is a question of first impression; however, because the appurtenance determination is made on a case-by-case basis, the Court confines its analysis and holding to the unique facts of this case.
As is explained below, the Court holds that the trailer is an appurtenance of the Tehani to which Plaintiff Barnes's maritime lien attaches on the basis of several findings. First, the trailer is part of the vessel's usual equipment; second, the trailer is essential to the operation and mission of the vessel; third, the trailer is a necessary which provides towage by drawing the Tehani to and from the water; and fourth the Bankruptcy Court both leased and subsequently sold to Defendant AOE the Tehani together with its trailer.
Prior to making its findings, the Court first sets forth the applicable law.
Under maritime law, a maritime lien arises against a vessel for various liabilities, including claims for maritime torts. Thomas J. Schoenbaum,
A vessel is defined as the "hull and engines, tackle, apparel, and furniture of all kinds."
Courts are guided in their inquiry by longstanding precedent. In
When a ship is arrested, courts should compare "the character of the property for which a sale exemption is sought against the nature and mission of the subject vessel" when determining whether certain property is an appurtenance.
Ultimately, the outcome-determinative issue appears to be whether the property in question is "essential" or "necessary for the mission" of the vessel.
With this framework in mind, the Court begins its analysis.
A maritime lien arises not only against the vessel, but also against its "usual equipment."
The Court first notes that Plaintiff Barnes names as the in rem defendant in his initial Complaint, First Amended Complaint, and Second Amended Complaint, the "M/V TEHANI HA-1629-CP, and her...
In Plaintiff Barnes's Supplemental Brief regarding the use of the trailer, he notes that at the time of the accident the trailer was used at least twice a day in order to transport the Tehani from Defendant Kris Henry's ("Defendant Henry") house to the Honohokohau Harbor, and later from the
Defendant Henry's Declaration, ECF No. 476-1, notes that the trailer that is currently used with the Tehani is not the same trailer that was used at the time of the accident;
In addition, it appears that because of the Tehani's physical dimensions and hull structure, the trailer that is used in conjunction with the operation of the Tehani is quite unique. Plaintiff Barnes's Decl. ¶ 9. The trailer is apparently so unique, that it is difficult to acquire in the state of Hawai'i. Plaintiff Barnes's Decl. ¶ 10. Indeed, counsel for Plaintiff Barnes described the difficulties that he and Plaintiff Barnes have faced in renting or purchasing a substitute trailer at the Hearing on September 28, 2018 and at the Hearing on November 29, 2018. The trailer is also used solely in connection with the operation of the Tehani, and is not used to tow, store, or secure any other vessels. Plaintiff Barnes's Decl. ¶ 9.
Based upon the foregoing review of the ways in which the trailer is used on a daily basis, as well as the unique relationship between the Tehani and its trailer, it is abundantly clear that the trailer is part of the Tehani's usual equipment. Indeed, the trailer is used on a daily basis to transport the Tehani to and from the harbor; to place the Tehani into the water at the start of voyages and to remove the vessel from the water when the voyages are over; to store the Tehani at all times when it is not in the water; and for regular maintenance of the Tehani, including the fueling and cleaning that occurs after each voyage. The Tehani and trailer essentially function as a single unit. Accordingly, the Court finds that the trailer is a piece of the Tehani's usual equipment to which Plaintiff Barnes's maritime lien attaches.
The Court next considers whether the Tehani's trailer is subject to Plaintiff Barnes's maritime lien on the basis of whether or not it is "essential to the ship's
Defendant AOE argues that a trailer should not be considered an appurtenance because it is not used during the Tehani's operation on the water. Defendant AOE's Memorandum at 5. The Court finds Defendant AOE's argument unavailing.
Although the trailer is not used aboard the Tehani while it is operating on the water, it is well established that property "need not be aboard the vessel in order to be an appurtenance of the vessel."
Defendant AOE's argument also lacks merit because it appears that the trailer is momentarily used in the water while the Tehani is on the water. Specifically, Plaintiff Barnes's declaration states that, in order to launch the Tehani, the trailer was reversed
Furthermore, the trailer is undoubtedly essential to the operation of the Tehani. In order to operate safely, the Tehani must be maintained and supplied with gasoline and rinsed of seawater after each trip. The Tehani is secured upon the trailer while the crew accomplishes these basic maintenance tasks. The trailer is also essential to the operation of the Tehani because the vessel needs to be stored in a safe place when it is not in the water—a function that the trailer serves.
Defendant AOE argues that this Court should not find that the trailer is an appurtenance because to do so would create a "slippery slope" regarding what constitutes an appurtenance. Defendant AOE's Memorandum at 3. Specifically, Defendant AOE posits that if the trailer is an appurtenance, then "the truck which tows the trailer is also an appurtenance, because the trailer cannot be used without the truck."
First, contrary to Defendant AOE's assertion, the trailer is often used without the truck. As discussed, the trailer serves
Second, unlike the trailer, the use of the truck is not specific to the Tehani. Indeed, the truck can be used in connection with any trailer or vessel and serves many non-maritime functions. This trailer, on the other hand, is used solely in connection with the operation of the Tehani because the design of the trailer is uniquely suited to the Tehani's dimensions and hull structure. It does not appear that the truck and the Tehani enjoy a similarly unique relationship because unlike the trailer, any vehicle with a tow rig could be used in connection with the operation of the Tehani.
Finally, while Defendant AOE's "slippery slope" concern is a legitimate one, the Court reiterates that appurtenance inquiries are conducted on a case-by-case basis, and that the Court's analysis is confined to the unique facts of this case. For these reasons, the Court rejects Defendant AOE's argument.
Defendant AOE correctly notes that the definition of appurtenance is not so broad as to include any object that has some logical connection to the use of the vessel. Defendant AOE's Memorandum at 5. Here, however, the trailer that is used in conjunction with the Tehani has more than simply a logical connection. The trailer is essential to the Tehani's operation, because without the trailer, the Tehani literally cannot operate on the water. By definition, therefore, the trailer is "essential to the vessel's ... operation...."
For the foregoing reasons, the Court finds that the trailer is essential to the operation of the Tehani and, therefore, is an appurtenance of the vessel to which Plaintiff Barnes's maritime lien attaches.
Defendant AOE also argues that the trailer is not essential to the Tehani's mission of "serv[ing] passengers on the water." Defendant AOE's Memorandum at 5. The Court rejects this argument for substantially the same reasons it rejected Defendant AOE's argument that the trailer was not essential to the operation of the Tehani.
In his Supplemental Brief, Plaintiff Barnes more fully characterizes the nature of the Tehani's mission. Plaintiff Barnes states that the mission of the Tehani is to take "customers out to sea for swimming, snorkeling and other recreational activities." Plaintiff Barnes's Supplemental Brief at 3.
The parties appear to agree that the Tehani's mission is to take passengers out on the water for recreational tours. The trailer is essential to the Tehani's mission because the trailer is used to place the Tehani into the water in order to embark on these tours, and to draw the Tehani out of the water after when the tours end. The other functions that the trailer serves, such as storage when the vessel is not in the water and securing the vessel during regular maintenance, are also critical to the mission of the vessel. Without the trailer the Tehani could not fulfill its mission of providing passengers with safe recreational tours.
Accordingly, the Court finds that the trailer is essential to the Tehani's mission and, therefore, the trailer is an appurtenance
Plaintiff Barnes argues that the trailer is essential to the navigation of the vessel and, therefore, is also an appurtenance on that basis of the analysis. Specifically, Plaintiff Barnes argues that the trailer momentarily aids the Tehani in its navigation as it carries the vessel down the ramp into the water, at which point the Tehani floats off of the trailer. Plaintiff Barnes's Supplemental Brief at 5.
The Court finds that this argument is unpersuasive. Instrumentalities which are essential to a vessel's navigation include things like propellers, tail shafts, and engines.
Unlike an engine or a propeller, which aid a vessel in navigation across the water, the Tehani's trailer does not aid in the vessel's navigation. Nevertheless, the analysis courts use to determine whether something is an appurtenance of a vessel is disjunctive. The object need only be essential to the vessel's navigation, operation, or mission. Accordingly, because the Court has already determined that the trailer is essential to both the Tehani's operation and mission, as well as part of the vessel's equipment, the fact that Court finds the trailer is not essential to the Tehani's navigation has no bearing on the Court's conclusion that the trailer is an appurtenance of the Tehani.
Another argument supporting the proposition that the trailer is an appurtenance is that it provides towage for the Tehani. Although there are numerous situations in which maritime liens arise under the general maritime law, maritime liens are also a creature of statute. Specifically, 46 U.S.C. § 31342 provides that persons providing "necessaries to a vessel on the order of the owner or a person authorized by the owner" have maritime liens on the vessel.
Here, the trailer provides a "necessary" under 46 U.S.C. § 31301 in the
Defendant AOE argues that the trailer should not be considered an appurtenance of the vessel because it is the property of Defendant AOE, and not the property of Defendant SHR.
Moreover, Defendant AOE's argument regarding the judgment now appears to be moot given the fact that the Bankruptcy Court avoided the sale of the Tehani. Regardless, Defendant AOE's argument is misguided because Plaintiff Barnes's is seeking to execute his maritime lien on the Tehani; Plaintiff Barnes is not seeking to execute his judgment against Defendant SHR.
Furthermore, the fact that the Bankruptcy Court first leased and then sold the Tehani together with its trailer undercuts Defendant AOE's argument that the trailer is not essential to the Tehani's operation and mission. As the Court has discussed at length above, without the trailer Defendant AOE could not operate the Tehani in connection with its recreational tour business. The Bankruptcy Court leased and then sold the Tehani and its trailer as a unit, which strengthens the argument that the trailer is an appurtenance of the vessel.
A final issue related to the Bankruptcy Court's lease and subsequent sale of the Tehani concerns a factual question that arose after the Court requested supplemental briefing on the appurtenance issue. In his Declaration, Defendant Henry
Although the current trailer was not involved in the accident, the Court finds that distinction makes no difference as to whether Plaintiff Barnes's maritime lien attaches to the trailer. As the Court has determined, the trailer is both part of the Tehani's usual equipment and appurtenant to the vessel. Because Plaintiff Barnes's maritime lien attaches to the vessel, its usual equipment, and appurtenances, the fact that this particular trailer was not in use at the time of the accident in no way makes it less a part of the Tehani's usual equipment or an appurtenance to which Plaintiff Barnes's maritime lien attaches.
Case law supports the Court's position.
Accordingly, the Court finds that the fact that the Tehani's current trailer was purchased after the accident took place in no way affects its conclusion that the trailer is an appurtenance of the Tehani to which Plaintiff Barnes's maritime lien attaches.
For the foregoing reasons, the Court finds that the trailer on which the Tehani is secured is a piece of the Tehani's usual equipment and an appurtenance of the vessel to which Plaintiff Barnes's maritime lien attaches. Thus, the trailer is subject to arrest by the United States Marshals on the basis of this Court's Amended Order Authorizing Issuance of Warrant for Maritime Arrest dated September 27, 2018. ECF No. 441.
In order to proceed with the arrest of the vessel, Plaintiff Barnes would need to file amended proposed substitute custodian documents in accordance with the instructions set forth in the Court's Minute Order dated September 26, 2018, including reference to the trailer. ECF No. 440.
IT IS SO ORDERED.
In the Amended Findings and Conclusions, the Court stated that Plaintiff Barnes was entitled to recover the Amended Judgment entered in his favor from Defendants SHR and the Tehani and her appurtenances. Amended Findings and Conclusions at 45. Notwithstanding the foregoing, counsel for Plaintiff Barnes stated in a Mediation Questionnaire filed with the Ninth Circuit on November 15, 2018, which was filed in connection with Barnes's appeal of the Amended Judgment, and also stated at the appurtenance Hearing held on November 29, 2018, that this Court failed to state which defendants were on trial and which defendants judgment was entered against.
As the Court explained in footnote 3 on page 2 of the Amended Findings and Conclusions, Kris K. Henry was the sole owner and manager of Defendant SHR. Defendant Henry was not a defendant for purposes of the trial because he filed for Chapter 13 bankruptcy protection in 2014,
As the Court explained in footnote 6 on page 17 of the Amended Findings and Conclusions, AOE was joined as a party defendant since the Tehani was sold to Defendant AOE by the Bankruptcy Court. However, the Ninth Circuit held in