Puget Sound Production Credit Association v. Oil Screw Johnny A, in Rem, and David Olney, Interested Party v. John Hinchman, Interested Party

Olney appeals from the district court’s refusal to confirm the sale of a vessel to him and its approval of a second sale of the vessel to another party. We affirm.

BACKGROUND

On May 30, 1985, the Oil Screw “Johnny A” (“Johnny A”) was auctioned at a public Marshal’s sale in Sitka, Alaska. Olney was the high bidder at $410,000. On June 7, 1985, Hinchman filed a timely objection to the sale and offered a bid of $451,000, a ten percent increase over Olney’s bid. In his objection, Hinchman stated that pursuant to District of Alaska Local General Rule (“LGR”) 29 and District of Alaska Local Admiralty Rule (“LAR”) 11(H)(1), his bid barred confirmation of the sale to Olney. Nevertheless, five days later, Olney moved to have the May 30 sale confirmed under LAR 11(G)(2).

In proceedings before a magistrate, Ol-ney argued that he was entitled to confirmation because there was no fraud, collusion, or gross inadequacy in price, these being the common law bases for refusal of confirmation. Olney relied on Ghezzi v. Foss Launch & Tug Co., 321 F.2d 421, 425 (9th Cir.1963). Olney also claimed that Hinchman could not use LGR 29 to avoid confirmation for two reasons. First, Olney argued that LGR…