Court Enters Default on Claims in Limitation: Filing Answer Alone Does Not Amount to a Claim

In the Matter Of G&J Fisheries, Inc., 2021 U.S. Dist. LEXIS 214340 *,__ F.Supp.3d __ , 2021 WL 5165011 (D. Mass. Nov. 5, 2021).

G&J Fisheries, Inc. timely filed for limitation of liability of any losses, damages or claims as a result of a personal injury occurring on June, 15, 2017. The court required all claims to be filed in the limitation proceeding by November 18, 2020. G&J then filed for a default judgment in July, 2020 on any parties who failed to file claims by the established deadline. A claimant opposed the motion asserting that the answer filed on November 17, 2020, a day before the deadline, preserved his claim.

The court relied expressly on Supplemental Admiralty Rule F(5) which requires a claimant to file a claim and specify facts which support the claim. If the claimant wants to contest the right of the vessel owner to seek limitation of liability, then an answer shall also be filed. In order to avoid a default judgment, a claim must be filed. Filing an answer alone in the limitation proceeding does not preserve the claim or prevent a default judgment.

The claimant also asked the court for permission to file a late claim. Noting that a claimant may file a late claim if “good cause” is shown, the court in the case held that the claimant failed to show “good cause.” Excusable neglect may include “’inadvertence, mistake, or carelessness, as well as intervening circumstances beyond the party's control.’” (Citing, Nansamba v. N. Shore Med. Ctr., Inc., 727 F.3d 33, 38 [1st Cir. 2013]. In this case, no explanation was given. Furthermore, counsel’s “failure to admit to this oversight in either his initial filing or his sur-reply undermines his good faith.” (2021 U.S. Dist. LEXIS 214340 *6). The court granted the motion and entered a default judgment.