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Section: Page No.
Introduction 3
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cont’d…
Section: Page No.
Whilst care has been taken in the preparation of this guide, the matters referred to herein are subject to change and
no liability or responsibility is accepted by anyone for any errors or omissions which may exist in it.
The contents of this booklet are descriptive only and should not be used as a substitute for legal advice.
Contents
…cont’d
Whilst care has been taken in the preparation of this guide, the matters referred to herein are subject to change and
no liability or responsibility is accepted by anyone for any errors or omissions which may exist in it. The contents of
this booklet are descriptive only and should not be used as a substitute for legal advice.
Maritime Liens
Introduction
Maritime liens are important. They are unusual in that they give rights against a vessel which survive a
sale of the ship and which enjoy priority ahead of registered mortgages, even though they need not be
registered themselves. They may give rights against a vessel even if the lien is created by a charterer
or manager of the vessel. The classification of certain claims as maritime liens varies around the world.
International Conventions have attempted, most recently in 1993, to impose a degree of uniformity.
Under English law by virtue of the decision of the Privy Council in the Halcyon Isle [1980] 1 Lloyd’s Rep.
325, and under some other laws such as those of Cyprus and South Africa, whether a claim is a maritime
lien is dictated by the law of the place of arrest. It is irrelevant whether the claimant has a maritime lien
under their local law. In the US and Canada the position is different and the law of the place of creation of
the lien can be significant.
The Conventions of 1926, 1967, and 1993 also deal with mortgages. However, the relevant provisions relating
to the international regulation of the creation, registration and deletion of registered mortgages is outside
the scope of this guide.
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1926 Lien 1967 Lien 1993 Lien
English Law
Convention Convention Convention
1. Are Maritime Liens Yes. Scope of the law is, Yes. Yes. Yes.
conferring priority however, not completely
identified? certain.
2. Lien for master’s and Yes. Extends to cover sick Yes. “Claims arising out of Yes. “Sums due… in respect Yes. Art 4(1)(a).
crew wages? pay and paid leave and the contract of engagement of their employment on the
applies even if wages are of the master, crew..”. vessel”. Art 4(1)(i).
partly paid to a third party at Art 2(2).
the crew member’s request.
For master’s wages “see
section 41 Merchant Shipping
Act 1995 and The “Ever
Success” [1999] 1 Lloyd’s Rep
824” and for crew’s wages
see The “Turiddu” [1999] 2
Lloyd’s Rep 401.
8. Lien for vessel’s GA Not unless salvage claim. Yes. Art 4(1)(v).
contribution? However, at common law Yes. Art 2(3). No.
a shipowner has a possessory
lien over the cargo for cargo
owners’ proportion of GA
which is enforceable against
the consignee of the cargo
even though the consignee is
(cont’d…) under no personal liability to
4
Maritime Liens
9. Lien for port dues? No. Yes. Art 2(1). Yes. Art 4(1)(ii).
Port, canal, and other
waterway dues. Art4(1)(d).
10. Lien for pilotage Although the question was Yes. Art 2(1). Yes. Art 4(1)(ii).
dues? left open in The “Ambetelios” Yes. Art4(1)(d).
and The “Cephalonia” [1923]
P. 68, it is likely that if the
matter were to be decided
today the court would decide
that no maritime lien existed,
the position of the pilot being
similar to that of a supplier
of necessaries or a person
performing towage services”.
See Meeson “Admiralty
Jurisdiction and Practice”
(2nd Ed) 2-097.
11. Lien for death Probable that damage lien Yes. Art 2(4). Yes. “Whether on land or on
and personal (see 12 below) extends water, in direct connection Yes. “Whether on land or on
injury claims? to cover personal injury with the operation of the water, in direct connection
providing the test under 12 vessel”. Art 4(1)(iii). with the operation of the
below is satisfied claims but vessel”. Art 4(1)(c).
may not cover all loss of life
claims. See The “Vera Cruz”
No 2 (1884) 9 P.D 96 which
concerned a claim by the
deceased executors for injury
done to the family.
12. Lien for damage Yes providing: Yes. Damage to vessels, Yes. “Claims against the Yes. Tort claims other than
claims/damage 1. the damage is caused by shore installations, owner, based on tort, and those for damage to cargo
done by ship something done by “indemnities for loss of not capable of being based etc. carried on vessel. Art
(collisions etc)? those engaged in the or damage to cargo or on contract” for loss or 4(1)(e).
navigation or baggage”. Art 2(4). damage to property. Art
management of the 4 (1)(iv).
ship in a physical sense,
2. the ship is the actual or
noxious instrument by
which the damage is
done and
3. the damage is sustained
by a person or property
external to the ship. See
The “Rama” [1996] 2
Lloyd’s Rep 281 at 293.”
Damage done by a ship
does not include a claim
for personal injuries
after falling into the
hold of a ship (The
“Theta” [1894] P. 280)
or a claim for damage
to cargo on board the
carrying ship (The
“Victorea” (1887) 12
P.D 105)”.
Damage to other vessels,
shore installations, or even
cargo external to the ship
(The Rama [1996] 2 Lloyd’s
Rep. 281).
5
1926 Lien 1967 Lien 1993 Lien
English Law
Convention Convention Convention
13. Lien for oil The damage lien extends No. May be covered by No. May be covered by Specifically excluded
pollution? to any claim in respect damage lien depending on damage lien depending on if damage covered by
of liability incurred under local court’s interpretation. local court’s interpretation. international Convention
chapter III of Part VI of or national law providing
the Merchant Shipping for strict liability and
Act 1995 and any liability compulsory insurance or
falling on the International other means of securing
Oil Pollution Compensation claims. Art 4(2)(a).
Fund or International Oil
Compensation Fund 1984
under Chapter IV of part IV
of the Merchant Shipping
Act 1995.
14. Lien for bottomry Yes but redundant. No. No. No.
and respondentia?
15. Lien for No (The Heinrich Bjorn (1886) Yes. Art 2(5). See 6 above. No. No.
“necessaries”? 11 App. Cas. 270).
16. Maritime Lien for No (Halcyon Isle [1980] 2 No. No. No.
ship repairers? Lloyd’s Rep. 325) cf
(see 30 below) e.g. US law.
17. Other liens? Class may be more extensive. Law costs due to the state Wreck removal. Art 4(1) (v). Only those permitted by
It has been suggested that and expenses incurred national law. See 29 below.
additional maritime liens in preserving the vessel.
arise by implication out of Harbour dues and public
statutory provisions, namely taxes. Art 2(1), tonnage dues
i) fees and expenses of the and the costs of watching
receiver of a wreck (see s249 and preservation from the
MSA 1995) and ii) damage time of the entry of the
sustained by the owner or vessel into the last port.
occupier of lands by means of
which assistance is tendered
to a wreck (see s234(5) and
234(6) MSA 1995. These
provisions essentially provide
that these amounts shall
be recoverable in the same
manner as salvage.
See also s250(3) MSA
1995 which provides for the
remuneration of officers
or men of the coastguard
service in watching or
protecting shipwrecked
property.
19. Lien for claims Yes. Yes. Art 13. Except in cases Yes. Art 4 (1) and Art 7 (1). Yes. Claims against “owner,
against Demise/ where owner has been demise charterer, manager
bareboat disposed by illegal act or or operator”. Art 4.
charterers not bona fide claimant.
20. Lien for claims Possible where charterers Yes. Art 13. Except in cases Yes. Art 4 (1) and Art 7 (1). Not unless “manager or
against time/voyage create lien. where owner has been operator”.
charterers? disposed by illegal act or
not bona fide claimant.
6
Maritime Liens
21. Lien for claims Not unless interested Yes. Art 13. Except in cases Yes. Art 4 (1) and Art 7 (1). Yes.
against managers? in vessel. where owner has been
disposed by illegal act or
not bona fide claimant.
22. Can maritime lien be A maritime lienee who No specific provision. No specific provision. No specific provision.
enforced against a utilises alternative sister ship
sister ship? proceedings enjoys no higher
right or priority that enjoyed
by a statutory lienee (See The
“Leoborg” (No 2) [1964] 1
Lloyd’s Rep 380.)
23. Maritime lien For salvage claims. No. But effective against No. No.
against cargo? GA contributions due to
owner. Art4(2).
24. Maritime lien Yes where freight earned at Yes. On freight in owner’s No. No.
against freight? date lien created. possession, for the voyage
during which claim giving
rise to lien arises or any
voyage made during the
subsistence of the same
contract of engagement for
crew wages claims.
Arts 10, 2 and 4.
25. Priority of Liens (NB the rules below apply 1. costs of preserving 1. immediately arising 1. immediately arising
(ranking in order unless there is any special vessel and sale costs. salvage and GA claims. salvage claims.
of priority) reason why a maritime 2. immediately arising 2. crew wages etc. 2. crew wages etc.
lien claimant should be salvage and GA claims. 3. port etc. dues. 3. death and personal
subordinated, see The “Ruta” 3. masters and crew wages. 4. death and personal injury claims.
[2000] 1 Lloyd’s Rep 359.) 4. salvage and GA claims. injury claims. 4. other salvage claims.
5. damage and personal 5. tort/collision claims. 5. port etc. dues
1. Salvage injury claims. 6. other salvage claims. 6. tort/collision claims.
2. Damage 6. master’s disbursements 7. shiprepairer’s lien 7. registered mortgages.
3. Crew wages and or necessaries. (see below). 8. national maritime liens
Master’s wages 7. registered mortgages. 8. registered mortgages. (see 15 below). Art 5(2),
4. Master disbursements 8. other claims. 9. national maritime liens. Art 6.
5. Bottomry 10. other claims.
(now obsolete) (N.B. Apart from 2. claims Art 5(2), Art 6(1),(2). (N.B. 7 is not a maritime
6. Mortgages arising in last voyage rank lien).
7. Statutory liens ahead of earlier voyage (N.B. 8 and 10 are not
(6 and 7 are not claims. Arts 5 and 6. maritime liens).
maritime liens) N.B. II, 7 and 8 are not
maritime liens).
However there are a
number of more detailed
rules regarding their inter-
relationships:
i) The damage lien stands
superior to all rival
voluntary liens except
a voluntary lien of a
later date which has
preserved the res. This
will inevitably be the
case in relation to a
later salvage lien and
will sometimes be the
case in relation to a
later wage lien.
ii) The salvage lien
therefore has priority
over all prior liens
including damage but
(cont’d…)
7
1926 Lien 1967 Lien 1993 Lien
English Law
Convention Convention Convention
(…cont’d) is subordinate to a
later damage lien,
another later salvage
lien or a later wages
lien if that lien has
preserved the res.
iii) Crew wages no longer
have priority over
master’s wages. They
rank pari passu, see
The Royal Wells [1985]
QB 86 and The “Ever
Success” [1999] 1
Lloyd’s Rep 824 at 828.
iv) A bottomry lien is
wholly subordinate to
both prior and later
wages liens and damage
liens and subordinate
to later salvage liens,
all subject to limited
exceptions.
v) The possessory lien is
subordinate to all
maritime liens which
attach prior to the
assumption of
possession, but takes
priority over all such
liens which accrue
subsequent to
the assumption of
possession.
26. Do Liens rank ahead Yes. Yes. See 25 above. Art 3. Yes. See 25 above. Art 5(1). Yes. See 25 above. Art 5(2).
of mortgages?
27. Ranking of liens in Usually pari passu except Pari passu. Art 5. Except Apart from salvage and GA, Apart from certain salvage
same category. Pari salvage liens. The last salvage salvage and claims resulting claims rank pari passu. claims, rank pari passu.
passu, or priority lien in time prevails over from contracts or acts of Art 5(3). Art 5(3).
based on date earlier salvage liens (see The master (i.e. disbursments/
of creation? “Veritas” [1901] P. 304). necessaries).
28. Special ranking for Last salvage lien has priority Last salvage lien has Yes. Most recent salvage or Yes. Most recent salvage
salvage claims? over earlier liens. May be priority over earlier liens. GA claims rank first. Art 5(4). claims rank first. Art 5(4).
subject to later damage claim
or later wages claim if this has
preserved the res.
29. Additional liens N/A. Not excluded. “Nothing.. Yes. Art 6(1). Yes. However claims will
permitted under shall be deemed to affect… cease to be liens after
national law? modes of procedure or 6 months (unless vessel
methods of execution arrested within this period),
authorized by national law”. or 60 days after a bona fide
Art 16. sale. Art 6.
30. Possessory lien Yes. No specific provision. Yes. “May” rank ahead of States have power to create
for shiprepairer registered mortgages but possessory lien. Lien lost
or shipbuilder? lost when vessel ceases to when vessel ceases to be in
be in possession of yard. possession of yard. Art 7.
Art 6.
8
Maritime Liens
31. Do maritime liens Yes, even where purchaser Yes. “Claims secured by a Yes. Art 7. Yes. Art 8.
survive sale of is a bona fide purchaser lien follow the vessel into
vessel/change of for value without notice of whatever hands it may pass’
ownership? the claim (see The “Bold Art 8, but see 33 below
Buccleugh” (1851) 7 Moo PC
257) the lien.
32. Do maritime liens Yes. Logically, yes but not Yes. Art 7. Yes. Art 8.
survive change of specifically addressed. Art 8.
flag/registration?
33. Do maritime liens No (Cerro Colorado [1993] “Sale shall extinguish a No. Art 11(3). No. Art 12. Provided vessels
survive the judicial 1 Lloyds Rep. 58). Other lien only if accompanied in jurisdiction and sale has
sale of the vessel? circumstances where by formalities of publicity been effected in accordance
a maritime lien will be laid down by national law”. with the law of the state
extinguished: Art 9. and Article 11 and 12.
34. Priority of claims (NB the rules below apply 1. costs of preserving 1. costs of arrest and sale. 1. costs of arrest and
against proceeds of unless there is any special vessel and sale costs. 2. immediately arising detention which
judicial sale reason why a maritime 2. immediately arising salvage and GA claims. includes costs for the
lien claimant should be salvage and GA claims. 3. crew wages etc. upkeep of the vessel and
subordinated, see The “Ruta” 3. master’s and crew’s 4. port etc. dues. crew as well as wages
[2000] 1 Lloyd’s Rep 359.) wages. 5. death and personal and other sums referred
4. salvage and GA claims. injury claims. to in Art 4 (1) (a)
1. Costs of detention 5. damage and personal 6. tort/collision claims. incurred from the time
2. Arresting party’s costs injury claims. 7. other salvage claims. of arrest Art 12 (2).
3. Salvage 6. master’s disbursements 8. shiprepairers lien 2. wreck removal costs
4. Damage or necessaries. (see below). (if provided for by
5. Crew wages and 7. registered mortgages. 9. registered mortgages. national law). Art 12 (3)
Master’s wages 8. other claims. 10. national maritime liens. 3. immediately arising
6. Master disbursements N.B. Apart from 2 claims 11. other claims. salvage claims.
7. Bottomry arising in last voyage rank 12. owner’s interest. 4. crew wages etc.
(now obsolete) ahead of earlier voyage Art 11(2). 5. death and personal
8. Mortgages claims. Arts 5 and 6. injury claims.
9. Statutory liens 6. other salvage claims.
10. Shipowner’s interest 7. port etc. dues.
(6 and 7 are not 8. tort/collision claims.
maritime liens) 7. mortgages.
9. national maritime liens.
However there are a 10. other claims.
number of more detailed 11. shipowner’s interest.
rules regarding their inter- Art 12.
relationships:
i) The damage lien stands
(…cont’d)
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English Law
Convention Convention Convention
35. Can maritime liens Probably not. It is certain Claims must be bona fide Yes. Provided simultaneous Yes. Mere assignment of
be assigned by that the underlying claim can but no specific provision. assignment of underlying claim or subrogation of
a claimant? be assigned. Transfer of the Not excluded. Will depend claim effected. Art 9. rights sufficient to transfer
status of a maritime lien is less on national law. lien. Art 10.
certain. “The “Wasp” (1867)
LR 1 A&E 367 is not authority
for the proposition that the
right of a maritime lien would
be assigned with a claim
giving rise to a maritime lien”
See also The “Sparti” [2000]
2 Lloyd’s Rep 618 (HK).
10
Maritime Liens
36. Can a maritime lien Yes under s79 Marine Claims must be bona fide Yes. Provided simultaneous Yes. Art 10.
pass to an insurer Insurance Act 1906. but no specific provision. subrogation of underlying
by subrogation? Not excluded. Will depend claim effected. Art 9.
on national law.
38. When does the N/A. Maritime liens are If action taken in Applies to “all sea-going Sea-going vessels
Convention apply? treated under English law as contracting state provided vessels registered in a registered in contracting
being determined by the legal vessel is registered in a contracting state or a non- state and other vessels
system (lex fori) applicable contracting state, or if local contracting state”. Art 12. provided subject to states
in the place the lien is to be law applies it to other jurisdiction. Art 13.
enforced in rem (Halcyon Isle vessels. Art 14.
[1980] 2 Lloyd’s Rep 325).
39. Does the Owner Yes. Under the 1976 Limitation Acknowledged by Arts Yes. Art 14. Yes. Provided applicable
have a right to Convention (Merchant 4 and 7. limitation convention and
limit liability? Shipping Act 1979). claim covered. Art 15.
40. How long does a Subject to appropriate Subject to national law, Extinguished after one year Extinguished after 1 year
maritime lien limitation period for claim. E.g. liens cease to exist at the from the time the claim unless vessel is arrested and
survive? 2 years for collision damage expiration of one year, or 6 arises unless vessel has sold in the meantime. Time
under s190 MSA 1995, 6 months for supplies made to been arrested in meantime, runs from date claim arises,
years for claims for crew’s master. Can extend period up and the arrest leads to a or discharge of seaman for
wages and master’s wages to maximum of 3 years if judicial sale. crew claim. Art 9.
and disbursements under the vessel does not call at port Art 8.
Limitation Act 1980. in claimant’s territory inside
a year. Art 9.
41. Does a maritime lien No. See circumstances where No. Expressly excluded Not expressly prohibited. No. Art 10. “Claimants
give rights against a maritime lien is extinguished by Art 4. may not be subrogated to
the ship’s insurers above. Only rights compensation payable to the
(if e.g. vessel is enforceable would arise under owner of the vessel under
actual total loss)? Third Party (Rights Against an insurance contract”.
Insurers) Act 1930.
42. Entry into force N/A In force. In force. 6 months after 10 countries
ratify or accede
Art 19 (1).
11
Contracting parties to the
1926, 1967 and 1993 conventions
Algeria Yes
Argentina Yes
Belgium Yes
Brazil Yes
Cuba Yes
Denmark1 R2
Estonia Yes A
Finland1
France Yes
Haiti Yes
Hungary Yes
Iran Yes
Italy Yes
Lebanon Yes
Luxembourg Yes
Madagascar Yes
Monaco Yes A
Morocco A2
Norway1 R2
Poland Yes
Portugal Yes
Romania Yes
Russian Federation A
Spain Yes A
Switzerland
Sweden1 R2
12
Maritime Liens
Syria A
Turkey Yes
Tunisia R
Ukraine A
Uruguay Yes
Vanuatu A A
Zaire Yes
R – Ratified A – Acceded
1 Denmark, Finland, Norway and Sweden all denounced the 1926 Convention on 1st March 1966. All
except Finland have now ratified the 1967 Convention.
The 1967 Convention will come in to force three months after five States have deposited instruments
of ratification. Although there are currently six instruments of ratification/accession deposited, four of
these are subject to reservations. The treaty does not specifically say that it requires deposit without
reservation although this is the case for some treaties. Norway and Sweden have made reservation
stating that they intend to legislate, Denmark has made reservation in respect of applicability to the
Pharoe Islands and Morocco has stated that Article 15 of the Convention will not apply to it.
The 1993 Convention will come into force six months after ten States have expressed their consent to
be bound.
13
Notes
14
Maritime Liens
Notes
15
Notes
16
Maritime Liens
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