Maritime Lien

Maritime Lien

The right of a particular individual to compel the sale of a ship because he or she has not been paid a debt owed to him or her on account of such vessel.

A maritime lien is designed to furnish security to a creditor and to enable a person to obtain repairs and supplies even in the event that the ship is a distance away from its owners and no significant amount of money is on board to pay for the goods and services that are provided.

Maritime liens are distinguishable from a majority of other types of liens since the creditor need not retain possession of the boat before asserting a claim. They can exist only on movable objects that bear some relationship to navigation or commerce on Navigable Waters: for example, every part of a vessel, such as the hull, engine and tackle; as well as flatboats, lighters, scows, and dredges used to deepen harbors and channels. Controversy exists concerning whether a maritime lien can attach to a raft; however, courts have not recognized maritime liens for repairs done on a seaplane while it is in a hangar on dry land or for bridges, dry docks, wharves, or floating structures permanently moored to shore, such as barges that are used for restaurants.

The amount of a maritime lien equals the reasonable value of services that are performed in maintaining the ship, coupled with supplies that are furnished plus interest, less any set-off for claims the ship has against the lienholders. The amount ordinarily arises out of a contract; however, a maritime lien can also be created for damages that are attributable to injuries that are caused by the ship.

An individual who is entitled to a maritime lien may forfeit his or her right if he or she delays in enforcing it or does something inconsistent with the lien. Allowing the ship to depart does not affect the lien; however, the complete destruction of a vessel extinguishes it.

A lienholder must sue in federal court in order to enforce a maritime lien, and anyone holding a lien against the ship can intervene in the action. The court may order a sale of the ship and its cargo and distribute the proceeds to those who establish a valid claim against the ship. Where there are insufficient funds to satisfy every claim, the court determines which liens have priority, and the percentage of recovery that each claimant is entitled to collect.


Intervention; Admiralty and Maritime Law.

References in periodicals archive ?
Moreover, no maritime lien gives Iran any authority to detain the crew.
Barry added that a maritime lien can only be based on a service provided to a vessel, such as a ship.
8) It is also supported by a substantial logic that when maritime property is not in the actual possession of a foreign sovereign, it is likely being employed for commercial and private (9) purposes and thus amenable to the adjudication of a maritime lien.
Hathi states that 'assuming the vessel King arrived Alang with name change and flag change to be sold or already sold, the vessel was arrested first by an order of Tanzania Court, accordingly was 'custodia legis' and could not be validly or legally sold to and any sale is illegal, null and void and 'non-est' this is followed by an order of arrest of the vessel King by the Bombay High Court and a maritime claim/ statutory claim constitutes a maritime lien in law and survives change of ownership even in the hands of a bonafide purchaser for value without notice'
To substantiate his conclusion that a vessel may be an in rem defendant for the purpose of enforcing a maritime lien, (20) he would refer to the time before "the Elizabethan era," (21) and to support his conclusion that a compulsory pilot should be classified as a seaman for Jones Act purposes, (22) he would refer to Roman law and the Laws of Oleron.
128) The concept of a maritime lien was not fully articulated until the decision of the Privy Council in The "Bold Buccleugh", (129) a case that arose out of a collision of that ship with another on an English river.
M/V Ocean Wave,[36] the Ninth Circuit relied on Alvez in allowing a maritime lien on a vessel to ensure recovery for loss of consortium of a longshoreman's wife.
Part 2 focuses on maritime law, with chapters on many topics, including maritime liens and mortgages, master and crew, the bill of lading, piloting, salvage and assistance, general average and particular average, collisions, pollution, and arrest of ships.
Starer, Burnett and Anduiza have a diverse practice that includes casualty, pollution and salvage; energy, LNG/LPG and cables; intermodal and terminals; maritime and logistics contracts; regulatory issues and government and maritime security; vessel financings; maritime bankruptcies and workouts, including maritime liens.
The government has ratified the International Convention of 1993 on Maritime Liens and Mortgage on Ships as a follow up of the government policy to empower the country shipping industry, Communications Minister Hatta Rajasa said.
Professor D Rhidian Thomas is author of Maritime Liens (British Shipping Law Series), published by Stevens and Sons; The Law and Practice Relating to Appeals from Arbitration Awards, Default Powers of Arbitrators, and Volume 1 (1996) and Volume 2 (2002) Modern Law of Marine Insurance, all published by LLP.
The largest section of the book is devoted to maritime law; coverage encompasses the vessel, maritime liens and mortgages, liability, transport under bill of lading, salvage and assistance, pilotage, collisions, marine pollution, the arrest of ships, and carriage of passengers.

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