Maritime lien

 

Lien is the right of one person to retain the possession of goods, property or security of another person until a liability is satisfied.

A maritime lien is a claim laid against maritime property, most often a vessel, but may also be brought against other personal property involved in maritime transactions such as cargo. Possession is not necessary and it is not affected by the change of ownership. The holder of a maritime lien has a higher priority than other creditors if the ship has to be sold and assets distributed. The lien must be imposed by court order.  

A claim needs to be maritime in nature to give rise to a lien. This brings us back to the section on jurisdiction, i.e. what types of structures are deemed vessels, which contracts are maritime, which torts are maritime. Once again, it must be stated that it is not possible to provide an exhaustive list. A tentative rank of liens, however, can be the following: 

1)      Seamen's and master’s claims for wages.

2)      Salvage;

3)      Tort. This includes both collision and personal injury claims;

4)      General Average. The lien can be in favor of the vessel against cargo or the other way around;

5)      The preferred ship mortgage. As we have seen, lien status is given by statute;

6)      Supplies and repairs;

7)      Towage, wharfage, pilotage, stevedoring and related services;

8)      Cargo damage caused by improper loading, stowage and custody;

9)      Ship's claims against cargo for unpaid freight;

10)  Charter party breach either by the owner or the charterer;

11)  Claims for marine pollution.

 

 There are two types of maritime liens:

  1. Damage lien

  2. Contractual lien

 

  1. Damage lien: Arises from collision damage. It is done by the ship itself. The lien arises of it is proven that the cause is due to the negligence of owner. It may be exercised only within two years from the date of the damage suffered unless the court extends the period.

 

  1. Contractual lien: Arises from several situations. Of these, at first salvage claims and next in order other claims are solved.

 

 

Updated: September 17, 2007