Admiralty I. Admiralty Jurisdiction 1. In rem- enforce a lien by suing the property itself, the vessel.

Can only be brought in FEDERAL court in admiralty. Can only collect the value of the ship at sale. 2. Quasi-in rem- attach the property to get to the object of the suit 3. In personam- get jurisdiction over the person. Can collect the whole amount 1. Service on the individual person. 2. Service on agent if registered with the secretary of state. b. Federal courts are courts of limited jurisdiction c. Consequences of jurisdiction- a reverse ERIE rule, there IS federal common law in admiralty d. The Constitution of the United States and its resulting enabling statutory grant of admiralty jurisdiction to federal courts: 28 U.S.C. §1333 e. Navigable waterways of the United States 1. Genesee Chief- ebb and flow of tides 2. NOW- public navigable waters on which COMMERCE is carried between different states and nations 1. Presently or presently CAPABLE or being used for interstate trade- Daniel Ball 2. Natural and artificial obstructions can eliminate navigability 3. Seasonal flow does not impact status f. Admiralty Extension Act1. Extends maritime jurisdiction to all cases of damage or injury caused by vessel on navigable water, notwithstanding such damage or injury be done or consumed on land. g. Tort Jurisdiction- locality and the rise of the nexus to traditional maritime activity requirement- Executive Jet h. Contract Jurisdiction- the SUBJECT MATTER of the contract controls 1. Nature and Subject of contract control 1. Service/supply of vessel 2. Charter parties 3. Wharfage agreements 4. Vessel storage Ks 5. Carriage of goods by sea 6. Stevedoring 7. Passanger transport 8. Marine employment 9. Piloting 10. Salvage 11. Towage 12. Ship mortgages a. NOT CONSTRUCTION 2. ORAL K’s are enforceable under maritime law- Kossik

3. Mixed K’s- maritime §s will be governed by maritime law 1. If non-maritime portion is INCIDENTAL, admiralty controls 2. If non-maritime elements are inseparable, admiralty loses II. Procedure, Saving to Suitors, Parties, and Choice of Law a. Subject matter jurisdiction over the claim 1. Admiralty- 1333 2. Diversity 3. SMJ- Federal Question b. The Savings to Suitors Clause 1. Concurrent jurisdiction between state and federal courts. One cannot bring an in rem action or a limitation action in STATE court. Apply FEDERAL SUBSTANTIVE LAW and STATE PROCEDURAL LAW in state court. c. Removal of maritime claims from state to federal court 1. BAD IDEA- won’t work! 1. Deprives P of his right under Savings to Suitors Clause d. Third Party Practice- rule 14-c and the joinder of parties e. 9h 1. In personam options for P 1. Fed ct- admiralty juris 2. Fed Ct- diversity 3. State court 2. Make claim in alternative to preserve federal juris. 1. SEE RULES BELOW f. Jury trials in admiralty- they do not exist g. Choice of law 1. Jensen Test: Applicability of State Law in Admiralty 1. If it contravenes the essential purpose of Congressional act 2. Works material prejudice 3. Interferes with proper harmony and uniformity of law that impact interstate/international relations h. LAURITZEN-RHODITIS- 8 Factors 1. Factors that determine substantive law 1. Place of accident 2. Place of contract 3. Law of flag 4. Law of forum 5. Inaccessibility of foreign forum 6. Domicile of plaintiff 7. Domicile of defendant 8. Base of operation i. Belgenland1. 2 vessels, open water, different flags collide- law of forum applies 2. 2 vessels- same flag- law of registry applies 3. 2 vessels- territorial waters- law of territory applies j. The role of state law 1. Case must be in personam (still concurrent with Fed juris), not in rem

k. Venue 1. In personam- where D is served with summons/notice 2. In rem- where D’s property is or could be attached 3. Must be some connection to the venue, not just forum shopping l. Forum Non Conveniens – dismissal – CANADA MALTING- inconvenient to parties, witnesses to try case in certain area 1. Conditional dismissal- court dismisses, subject to certain conditions to be fulfilled by D- (waiver of some rights, etc, to ensure a fair trial) 2. Accident occurring in U.S. waters is not sufficient for juris. 3. Uniform application is required for harmony of decisions. 4. Procedural, not substantive in state courts! III. Arrest and Attachment- ADD RULES a. Arrest- Rules C & E 1. C- Vessel must be within court’s jurisdiction now or at time of trial b. Attachment- Rules B & E 1. Unrelated property can be used c. Attachment- based on PERSONAL liability of the owner- cannot be used if owner or agent is within jurisdiction of vessel/claim 1. Petitioner must show reasonable efforts to find owner or agent, and cannot find either in order to attach 2. Provisional relief 3. Marshal takes custody of vessel for the court, secures the property pending the final determination of the court 4. Electronic fund transfers are subject to attachment! 5. Direct relationship to the claim is not needed- quasi in rem! d. Arrest- IN REM 1. Must be granted by a judge or clerk of court 1. Hearing can be skipped in response to exigent circumstances 2. Hearing can happen soon thereafter- arrestor must show cause 3. Serious penalties for false arrest! 2. Must related directly to the claim itself 3. Lien required 1. Liens- “Last In Time, First In Line!” a. Custodia Legis- marshal’s expenses b. Wages c. SALVAGE i. If more than one salvor, latest is honored first d. Torts e. Necessaries (bunkers, provisions, equipment) f. Mortgages (only NON-SECRET lien) 4. Letter of credit can release ship back into commerce 5. Sale of property eliminates all liens on property 6. Mechanics of Admiralty Arrest 1. Marshal takes control of the property 2. Can be released if bond is given (usually a letter of credit from the insurance co.)

From receipt of goods until proper delivery i.heavily regulated. Document of title a.usually prepaid 4. Discharge on a fit wharf 2. faults or errors in navigation ii.owner of vessel 1. he is exonerated for: i. Carrier. §1. Formal receipt 2. Consignee has reasonable opportunity to take possession 3. Shipper. Cargo a. acts of God 3. For common carriers. EXCULPATION a. Common. errors in management of the vessel iii. Harter 1.payment for carriage. losses arising from: 1. care or delivery of the cargo. Inland US-US ports under a BoL.Carrier on hook for misdelievery b. acts of public enemies . courts would not let carriers K out of responsibilities d. NOT foreign-US travel 2. may NOT K out of responsibility c. Makes accessible to consignee 4. Proper delivery 1. §2-carrier CANNOT protect against not using DUE DILIGENCE in properly equipping and providing a SEAWORTHY vessel c. K for service 3.carrier CANNOT exculpate himself in a clause of the BoL relating to regulation. IV. Segregates cargo per BoL 3. Majors players and terms 1. Pre-Statutory Law. §3-IF carrier shows due diligence and properly manned/equipped the vessel. perils of the sea 2. can make any K it likes 3. Private. big companies 2. Applies OUTSIDE of tackle-to-tackle period a.3.S.U.owner of goods sending them somewhere 2. Vessel is the bailee of the bailment cargo b. Custom terms will apply over generic terms of BoL 4. Non-negotiable. b. custody. stowage. Negotiable. Freight. COGSA and Harter Act (Do not apply to PRIVATE carriage) 1.only named party can take delivery – BoL must say “Non-Neg” or straight 2. Construed AGAINST the draftsman 3. The Bill of Lading 1.

prima facie evidence of receipt of goods by carrier e. All K’s of carriage to or from U. BoL must exist AS A K! d. Pro-Carrier statute a. Good. will trump any BoL clauses 3. until final delivery) 1.C. COGSA does not apply e. When the goods hit the end of the vessel’s chute ii. or vices of the goods 5. carriage and preservation of goods b. Make vessel fit for receipt.ANY clauses exonerating the carrier from negligence. carrier cannot be compelled to do this if he has reasonable suspicion of inaccuracy of data or has no reasonable means of checking d. ports in foreign trade b. Cargo. insufficiency of packaging 6. Leading marks needed for ID of goods ii. BoL. when over the hull c. keep. US to US is HARTER juris f. § 1. Properly MAN/Equip vessel iii.anything other than live animals 2. quality. handle. c.S. fault.4. BoL. If BoL is just a receipt. Tackle-toTackle.46 U. APPARENT order and condition of goods.Unseaworthiness . carry. §1304. On gangplank. any act or omission of the shipper or owner 8. DUE DILIGENCE at INCEPTION of voyage to: i.ONE YEAR statute of limitations f.issued by carrier upon shipper’s request showing: i.S. K of Carriage.when pipes connect with phalange iii. etc.Responsibilities/Liabilities of Carrier/Ship a. not absolutely ii. seizure under the legal process 7. COGSA can be K’d into by both parties.vessel. or duties shall be VOID 4. BoL. saving or attempting to save goods at sea 2. and discharge the goods. § 1300 – applies over multi-modal transport (vessel to RR. BoL. § 1303.applies only to particular shipment under BoL c. care. COGSA. inherent defect.received by carrier until ultimate delivery i. Application a. Liquids. Number/quantity/or weight of packages/goods iii. Carrier. owner. Make vessel SEAWORTHY.Rights and Immunities of Carrier/Ship a.CONTINUOUS DUTY to properly load. or charter b.applies at inception/sailing.

Harter. P does not need to show fault/negligence to explain how cargo was damaged 2.not liable for: i. not liable for losses arising from unseaworthiness unless brought about by lack of due diligence 1.does not apply to goods stored on deck or live animals e. Harter. § 2. burden of carrier to prove! ii. Perils of the SEA iv. FIRE. Good Order. $500 per package or non-package customary freight unit ii. COGSA. Inherent defect or vice of the goods x. Or . not to decrease…may charge more for increased liability 5. legal seizure. Arrests. May K to increase liability. Acts of God v. Acts of war vi.carrier could not have detected/remedied statute of limitations ii. P must show goods were damaged while in carrier’s custody 3. quarantine viii.i. HARTER v. Latent defects not discoverable by due diligence xi.Bad Order. UNLESS the value could have been declared by the shipper (and thus a higher $hipping rate) iii.Uncontrollable limitation of liability iii.Liability (§ 1305) i. COGSA shall not effect the Fire Statute 6. Rights and Liabilities under other provisions a. COGSA a. Transitory seaworthiness. Differences: i. Any other causes without privity of carrier.BoL’s for US-US voyages c. bad when delivered a. acts of negligence in the nav/mgt of vessel ii.good cargo at start. unless caused by actual fault or privity of carrier iii. restraint of exoneration for errors in nav/mgt b.after ship leaves port b. Harter. Burden of Proof is met: 1. Harter.burden on carrier to prove c. The Shipper’s Prima Facie Case 1. § 3. Latent defects. Acts of public enemies vii. Act or omission by shipper ix.

Misdelivery. Immunities of the Carrier. Error in Mgt a. Knott approach. Due diligence to make ship seaworthy. b. Clean/Claused BoL 1. conditions making storm damage likely (hatch covers loose) e.see COGSA 1. Cannot be contracted out for a COMMON carrier 2.was the risk primarily to the cargo? Was the act a threat to the cargo or to the vessel? Was the vessel . Proper care of cargo v.can show evidence. detectable at time of voyage ii. No liability if due diligence exercised a. aids f. Factors. Error i. Duties at inception and beginning of voyage: a. 3. Clean. After voyage commenced c. improper loading/stowage d. improper cleaning of tanks/input lines 3. Ship made wrong turn.causal connection between fault and damage needed.RARE 5. Claused. Due diligence b. COGSA.carrier is on the hook if cargo given to wrong person f. a.states goods are already damage. P can show damage could ONLY have been caused while under care of carrier 6. Unseaworthyi. error in nav. Lack of due diligence must be proven. Due Diligence in handling of cargo 1. Latent conditions 2. Defense. N/A when carrier has no way to inspect cargo! 2.see COGSA above 1. cargo. faulty maps/charts or other navig. Errors in Navigation 1. Unseaworthy v. Harter. Even if damage is not detectable by carrier at receipt. collides. Responsibilities of the Carrier. Acts liability for owner 2. Continuing duty of carrier and its agents 2. Loss from Unseaworthiness despite Due Diligence How/when damaged. error by master for the nature of the voyage! 1. Private carrier can set any terms both parties will agree to 2. owner did not diligently provide a competent crew b. such as seawater damage 4. due diligence must be established by the carrier before other defenses. stowage 2.carrier acknowledges condition at receipt time a. Fault in construction of vessel b.latent defect g.any breach of duty imputes liability.

Legitimate government interferes with vessel.actual cause must be shown to shift burden back to shipper. Proof that damage was caused by something other than carrier’s negligence (must sometimes prove actual cause. 6. Due diligence must be exercised 5. 3. Tendency of fishmeal to create heat 2.seaworthy. Extraordinary 3. or lose) 7. Susceptibility is not sufficient. Look to BoL for package numbers c. Tendency of metal or rust c. 5th Circ. COGSA Multimodal. Insect eggs b.carrier needs to show internal vice and burden then shifts back to carrier b. threat to cargo. Generally deemed to be packages b. Inherent Vice 1. Unless caused by actual fault or privity of carrier is except. Perils of the Sea 1. Proof of Due Diligence b. Damages and Limitation of Liability 1. since it is inescapable and remedial action is very limited. Shipper.Carrier must show vice was inherent. Must be unique to the sea 2. 2nd Circ. 2. b. Improper stowage is not an error in nav.not protected 3. Look at general physical nature of the item . Carrier usually wins fire cases. Restraint of Princes 1. should be aware of internal characteristics or goods and should be responsible for them a. Carrier must show no privity of self or agents to shift burden to shipper 3. Burden of Proof a. Q-Clause 1. protected. Fully enclosed goods a. not carrier. carrier is off the hook. OMNIBUS clause a. FIRE! 1. 5. If threat to vessel. Not foreseeable 4.applies if K’d for! c. Carrier: a. h. Better all around if carrier can prove DD. “any other causes arising without the fault of the carrier or his agents” 2. Carrier must establish peril of sea…if 50/50. Non-Containerized Cargo 1. carrier loses 4.

carrying on deck. Reasonableness Test: does deviation expose cargo to danger that is foreseeable and avoidable??? a. Read strictly against party seeking protection 3. Excused: deviation to alternate port due to strike. Policy. a. THE LOOK TO CUSTOMARY FREIGHT UNIT 2. in order to pay less freight. Say whom is to be protected. per-package unless value is declared on BoL b. Unexcused: deviation to load/unload cargo or passengers.fundamental breaches of K of C that are not geographic. Generally defined in BoL i. Containers are generally not packages unless indicated as such by the BoL e. Deviation 1.who is captain going to K with? 3. IF NOT A PACKAGE.d. remedy a pre-existing unseaworthy condition. Quasi-deviation. $500 limitation a.deviation for purpose of unloading cargo or passengers. Reasonable/excusable. COGSA Carriers1. Unreasonable/inexcusable. to purchase . Non-Deliveryb. Charter 3. An intentional departure by the vessel from the geographical route specific in the contract of carriage 2. On-Deck carriage. Includes conduct exposing cargo to risk. etc. Himalaya Clause 1. quarantine.when done for a reasonable purpose or in attempt to save life or property at sea 2. risk to cargo b.quasi-deviation occurs when carrier disregards terms of K and fails to store goods below deck. Partially enclosed a.Deviations put cargo at risk beyond terms of K of carriage 3. Generally: 1. Ex. or in pursuit of inexpensive bunkers 3. not a blanket immunity clause j. Must clearly and expressly extend protection 4. If shipper opts not to. COGSA Deviation 1. 3-Party situation 2.pallets 3. Shipowner issuing a BoL 2. Ask. despite provision calling for such 2. Shipper must have opportunity to declare a higher value i. delay. Non-carrier agent seeks protections under BoL 2. Application 1. he assumes the risk of only getting $500 back i.

K for use of vessel for period of time 2. pays for fuels. Indemnifies owner against damages from charterer’s negligence or fault 3.K of carriage 2. Terms of vessel’s use b. Anything that is not normal wear and tear b. etc. Charterer. owner pays for crew/supplies 1. Charterer is liable for damages and losses a.charter selects destinations/schedule. Condition of vessel for insurance appraisal d.crew. owner covers the rest 1.charterer pays for everything. 3 Major Types: 1. 1. Possession = demise/bareboat charter . provisions. TEST: is owner giving service of vessel. Charter Parties a. master. Exoneration Clauses.a maritime contract for the lease of a vessel or a portion thereof 1. Charter Party. Charterer provides everything. Owner need only provide a seaworthy vessel as per charter party at INCEPTION of charter 4.retains management and control a. Charterer bears expenses of each voyage. Taxi ride. Choice of Forum and Law 1. Governed by freedom of K. Usually on the back side of the bill of lading 2. Time Charter. Private K 2. Carrier. Parties can allocate risks as they please 2. Fee c. Voyage Charter. Pays charter hire 2.provide cargo and pay freight 4. May lease entire vessel or just space aboard the vessel 3. a. and crew at disposal of charterer 5. terms usually in years. master. Strictly construed AGAINST the drafter 3. Owner. Generally enforceable V. Demise/Bareboat Charter. charterer is owner pro-hoc-vice 1.unenforceable under COGSA BoLs l. on-deck storage in violation of KoC 4. pays hire to the carrier for the time used 3. Causal connection between loss and deviation needed to eliminate COGSA and BoL protections of carrier! k. Expenses of running vessel 2.agrees to transport cargo in return for freight (inclusive fee) 3. Duration e. Nearly universal arbitration clauses to decrease litigation b.provide vessel. or possession (not title) a.charterer is buying space on the vessel.inexpensive bunkers. Owner.

no K until details are settled 3. Main agreement 2.the formation of the K 1. Deadweight. OFF-HIRE 1. Generally.charterer is free to cancel (as per cancellation clause) if vessel is not ready on due date e.. England. If breached. Failure of Vessel to comply with Charter Party: 1.doing so implies a warranty 2.S. only a substantial infringement upon the commercial purpose will warrant repudiation f. Deficiency of crew or stores 3. Typical instances: 1. Consequences of Breach 1. even if word is not used a. Charterer’s knowledge of unseaworthiness does not deny him the right to rely on the owner’s warranty 5. Breach allows for repudiation and damages if promise was made to induce chartering of vessel 4. Fuel and oil 2. Speed/consumption 4. Once accepted.c. Details 2. Volume. Charter Party Fixtures. warranty of fitness period. Promises from Owner 1. Not a continuing duty of O. Drydocking 2. Speed/Fuel Consumption 1. Only payment of hire is suspended. charter does not have to pay. U. Usually made through brokers 1. Late Delivery. other accident 3. Warranty of Seaworthiness 1. Unless EXPLICITLY and conspicuously agreed (by waiver) otherwise. if charterer is not at fault for off-hire . even big ones. owner not liable for loss of use 2. Repudiation if breach of promise substantially impacts the commercial purpose of the Charter party 3. Diesel oil 3. charterer not liable for damage to vessel 4.k exists when main agreement to charter is reached…details. C does not have to accept unseaworthy vessel from O. Not due diligence. Mechanical breakdown 4.“about” amount of cargo able to carry 2. unless agreed to in CP 7. Owner’s promise = guarantee= warrantee. can come later – the Junior K d. C can repudiate charter party 6. Damage to grain capacity b. Carrying capacity a. owner has duty to furnish a seaworthy vessel.

it is on owner’s time and not off-hire 5.Knutsford case 6. Preventing the working of the vessel. Presumption of charterer negligence if owner can show: a. j.if owner takes actions inconsistent with withdrawal. CP is presumed to continue/renewed Safe Port.g. Owner’s remedies: 1. Damaged on return 3. Charterer is liable to owner for lost time due to necessary repairs from charterer’s fault DEMURRAGE 1. Time and Voyage charters require “safely lie. Charterer is responsible for damages beyond the normal wearing down of the vessel 2. Any loss of time. If time lost is to fix a defect of the vessel.owners have been known to withdraw HOURS after a missed payment. Poor weather does not mean unsafe 2. h. Off-hire time – net overall time lost to charterer 1. Uses of Safe Port Doctrine 1. regardless of later developments Redelivery 1.“safe” refers to state of port at time of breach 3. Owner is entitled to charter hire until vessel is returned in good condition 4. Laytime. Charter party controls terms of when vessel is off-hire due to nonfault Remedies: Damage/Withdrawal 1. Good drop-off b. event 4. Reasonable care must be used. demurrage rate is paid for overtime/dealy 2. Owner will only allow charterer to select “safe” ports 1. LUCKENBACH. safely afloat” 2. Withdrawal. forcing a rechartering at a higher market rate 3. Sport of the shipping market. mid-voyage notice is not effective 2. Safe Berth 1.period of time allowed for loading and unloading. Owner may sue for damages if port proves dangerous 2. charterer warrants that a particular port is safe 3. After laytime has expired. i.charterer must load/unload as quickly as . Wear and tare 1. Customary Despatch. Unless otherwise K’d for.will only happen when market rate is greater than K rate a. Must happen at END of voyage.Woods Hole 1. Master may refuse to enter a port he feels is unsafe. Charter Party Laytime 1.

O option given to the charterer to add together the time allowed for loading and discharging 4.major acts/events beyond control of charterer stop laytime clock. Vessel has arrived at port when it is as close as it can safely get 11. the clock starts ticking! 3.whether in berth or nota. Weather Delays. usually post-demurrage period when vessel is STILL late 7. Port Congestion 1. If event is beyond control of the charterer.reasonably possibly (charterer gets $ if he finishes early. Notice of Readiness.liquidated damages. berth 3. hence no demurrage 6. Berth arrival. Turns a berth CP into a port CP. owner can look to lien on cargo and consignee for balance of freight. WIBON.on owner’s time until in berth 9.waiting is done on charterer’s time. Periods of Voyage: a. even if there is no berth open 8. Reversible.notice that vessel has arrived and is ready to load/unload 2.may give notice WIBON…shifts risk of waiting time from owner to charterer 10. Port arrival. Carrying voyage. Notice must be given to charterer 5. Charterer liable for dead weight. Loading voyage.penalty imposed on a charterer for a wrongful or unnecessary delay. Cancels CP and releases both parties from obligations l. Vessel must be clean and ready to load 4. Discharge. Loading.C 5.will stop laytime clock and extend it 8. usually half of demurrage rate) 3.Charterer time c. Distinguish with “Detention”. Laytime ceases if delay occurs through fault of owner or agent 6. can mean arrival at: port.increased rate of hire to compensate for delay caused by charterer 5.when commercial purpose of the charter party becomes impossible 1. Vessel Arrival 1. Demurrage. Mutual Exceptions . Starts clock on laytime 2. demurrage does not kick in 4. “On Demurrage”.less cargo loaded than K’d for 7. dock. Once notice of readiness is given.laytime has expired 6. Vis Majeur. Frustration. Cessar Clause – if charterer pays part of freight in advance. Depending upon charter party terms.Owner time b.K’d for by C for reduced freight rate k.

Outsider’s Liens 1.The Jumna a. moving vessel is presumptively at fault unless i. OLD RULE. Presumption of fault of moving party. causation.m.RELIABLE TRANSFER1.The Louisiana Rulea. Charter Parties and Bills of Lading 1. Suppliers of necessities have a lien against a vessel UNLESS they have knowledge of a “prohibition of lien” clause in the charter party. Each party is liable only for damages caused by their portion of negligence 2. Gulf Oil Trading v. BoL covers cargo. When a moving vessel strikes a stationary one. Inscrutable fault. Owner’s Lien on subfreights 1.neither vessel can be shown to be at fault. Easy to establish fault ii. Amitie Shipping. o. Liability 1. Statutory Fault . Vessel claiming EiE must show it did not cause peril b.when held by charterer. Not preventable by exercise of due care. Rainbow Line v. Caribe Mar a. Fault. placed another ship in a position of extreme danger. Maritime Casualites a.divided damages. Tequila. the other ship will not be held to blame if she has done something wrong and not maneuvered with perfect skill and presence of mind 2. Impugn fault 3. by wrong maneuvering. Charterer’s Lien on Vessel 1. Accident inevitable or ii. especially after Pennsylvania rule c. Where one ship has. Charter-related Liens 1. Other damages issues n. Vis major 2.very unfair.Modern Rule 1. Finora v. serve as a receipt only VI. Error in Extremis 1.each party paid equal share.the C has a lien on the vessel based on a breach by O 2. and nautical skill 2. accident is deemed inevitable. Knowledge defeats the negligence can be imputed to either vessel. regardless of actual fault. Charter covers owner/charterer relations 2. Proportional Fault. Rarely found i.O has a lien on the cargo and subfreights based on a breach by the C 3. Inevitable accident 1.

Causation in law.superseding and sole proximate cause 1. violator must show fault was and could not have been the cause g. Detention (lost earnings…calculable) iii. Proximate cause AND . If vessel must be laid up for repair. physical damage. Too speculative! b.average the daily earnings of the vessel’s previous three voyages to measure detention rates 3. D argues that proper measure is post-collision value c.” 1. Owner’s Time a. Once P shows violation of statute. Cost of repairs or diminution of value ii. salvage wreck removal. Compensable harms and damage amounts 1. M/V TESTBANK. Non Total Loss i. P must have a proprietary interest in the property damaged. Pennsylvania Rule: if a vessel is guilt of a statutory violation. Vessels 1.piloting. Superseding causes.d. No double can only recover if you have suffered actual. Foreseeability iii. owner can conduct other. Applies to ALL tort cases 2. salvage costs 2. A single. Frequently litigated b. Total Lossi. superseding cause can wipe out other proximate causes and make on party 100% liable f. 6. non-related repairs b.either O or C can recover to loss of use… governed by charter party 5. ROBBINS DRY-DOCK. Pollution cleanup. 3-VOYAGE-RULE. the defaulting vessel must show “not merely that her fault was not a cause of the accident.Wisdom’s Particular Damage Approach: a. Markert value of the vessel at the time of the loss PLUS pending freight ii. and other incidental costs proximate to the casualty iii. Lost Time a. How fare the chain of damages will reach i. Nothing in RELIABLE says one party cannot be 100% liable e. Generally: a. Other incidentals. but that it could not have been a cause of the accident. Loss of earnings and detention are NOT RECOVERABLE 1. Owner gets windfall! 4. Proportional fault does not mean causal questions are immaterial recovery 1. Negligence ii.

Sound signals 1.Rules of the Road 1.Rules of the Road. Steering and sailing rules 1. Choice of Law issues i. who can then sue carrier for his share of the loss 2. ***Crossing a. Meeting. Steering Rules. Other ship is the “give way” ship 4.VIOLATION TRIGGERS PENNSYLVANIA RULE 1.iv. Usually turn to PORT to fully avoid other vessel w/o crossing paths 4. Stern.right of way. Jurisdiction and Practice 1. Jurisdictional Issues 2. Bells and whistles. International Waters: COLREGS. Rivers: .have them! 5. Masthead lights used to denote operation of vessel 2. Port. Lights and shapes 1. Vessel with other vessel on its port side is privileged (can see green running light on other vessel) ii. Look-out and Radar. Vessels crossing courses i. Privileged Vessel.“port to port passage” 2. Sound and light signals 2. bow to bow a.white 4. Inland Waters and Rules 1. Stern to bow i. Good Seamanship and special circumstances j. required to maneuver to avoid collision 2. Vice versa 3. Situations: white light on masthead a.cargo can sue non-carrier. Starboard. Cargo 1. Ship which is being overtaken must remain constant ii. Both to Blame Clauses.OBLIGATED to maintain course and speed 2. Overtaking a. Both vessels turn be used in fog or when stationary in poor visibility 3.give way. If community damage leaves private citizen without remedy 3. Burdened vessel. Every 50m of length.void! h. Both to Blame Collision.

charges for carrying cargo OR value of contract for a service vessel (non cargo. Pending Freight. If fault is proven. BENEFITS when not used a defense: 1. owner’s limitation entitlement. liable owners are limited to their share of ownership and share of voyage 8.S. Only when owner lacks privity and knowledge can he claim a limitation 2. and Federal Rules of Civil Procedure Rule F 1. Value of Vessel is determined at the CONCLUSION OF THE VOYAGE and ANY PENDING FREIGHT. The Limitation of Shipowner’s Liability Act. Burdens of Proof. 1. Must be filed by an owner 13. LINSEED KING. Available to foreign owners in U. regardless of total loss of vessel (MORO CASTLE AMENDMENT) e. PERSONAL INJURY EXCEPTION FOR LIMITATION FUNDvalue for fund is value AT TIME OF INJURY. amount of just claims. like a drilling ship) 1. Wage disputes are not subject to limitation 9.S. 46 U. ergo. Up-down vessel must hold as needed to permit safe passage Limitations of Liability a. Benefits of Limitation 1. Keep as far starboard as possible within the shipping lane of a narrow channel 2. Privity or Knowledge 1. Terminology b.limitation fund 7. et seq.VII.C.manager of factory acted as owner’s agent.manager knew.fees. Applies to both in rem and in personam liabilities of the owner 2.limitation denied as a result. Must be filed within six months of written notice of claim 12. Down-bound vessel has right of way 3. allowed vessel to sail in ice. . If limitation fund is insufficient. NOT END OF VOYAGE. uninvolved owners are not liable. § 30501. In multiple owner situations. The Limitation of Shipowner’s Liability Act 1. OWNER must prove he did not know or have privity (50% + 1) 3. division of limitation funs among claimants c. Any knowledge of master at inception of voyage is imputed to the owner in cases of personal injury or death 11. courts 5. up to $420 per ton is to be ordered by court 10.CLAIMANT must prove OWNER was at fault 1. ALL CLAIMS MAY BE COMBINED INTO SINGLE FORUM 2.. Parties entitled to limitation i. ONLY available in admiralty 6. LIMITATION OF LIABILITY d. Establishes a SINGLE FORUM for liability of owner/vessel. Victim is the “claimant” 4. Tortfeasor is the “limitation plaintiff” 3.

covers any damage to property. he can stand in place of the assured in a court action 1. Place v. in case the interest is not obvious 9. Inherently a maritime K.P/I club or underwriter 6. The Flotilla Rule. “All Risk” policies. NEITHER P/I NOR HULL ARE “ALL RISK” 4. The Limitation Fund 1. UNLESS it is a contract action g. ABSOLUTE PREREQUISITE FOR A POLICY a.only the active vessel and agent are included in the limitation fund.some legal or equitable relationship to the voyage for the insured property – no exhaustive definition 1. sometimes insures a % of the risk 11. COURT HAS DISCRETION TO FASHION A JUST REMEDY. Limitation fund exceeds value of all claims b. Provisions usually show the insurable interest of the policy holder a.just an insurer. limitation action in federal courts to foreign plaintiffs in limitation and the applicability of foreign law to those actions Marine Insurance. Insurance = K between Insurer and insured 2. Basic Terms and Concepts 1. Availability of U. “Named Perils” Policies. Limitation as an Answer. Usually to show interest is routine. INVOKING LIMITATION OPENS UP IN REM AND IN PERSONAM JURIS. Insurable Interest. Without one. puts insurer and assured in contact 10.identifies needs. Insurer agrees to INDEMNIFY the insured 3. whatever the cause. Underwriter. Norwich 1. as long as it is not an excluded cause.S.once an insurer pays out on a policy.owners should have known 4. District court can adjudicate owner’s limitation action regardless of P’s other award i. the policy is just a wager and VOID 2. . f. Broker. hence admiralty jurisdiction b. Insurer issues the policy.insurer agrees to not subrogate claim…usually in instances of parent/subsidiary companies VIII. Insurance proceeds are NOT part of the limitation fund 2.filing of limitation action acts as an answer to the claim against the owner h.only covers damage from enumerated causes 5. Premium.usually “brokered” by a third party who puts client in contact with insurer a. Exceptions to federal limitations (court MUST allow state actions) a. There is only a single claimant IF: i. 1. WAIVER OF SUBROGATION. Newton v.price that the insured pays to the insurer to supply policy 8. Limitation of Liability versus Savings to Suitors 1. SUBROGATION. Insured/Assured receives the policy 7. Shipman1.

Covered Perils .mutual clubs of insurers payments in P&I cannot exceed what shipowner’s duty to pay c. Private individuals 15.insured agrees to operate vessel within a certain geographic area 1.12. Property. the breach is not a defense to justify rejection of the claim e. Lloyd’s of London. P&I Clubs. Marine insurance is governed by STATE LAW/REGULATION 3. reasonable person standard. GOVERNED BY STATE LAW. Materiality is an objective. with one major exception. 1. Reserves. The duty of Utmost Good Faith. insured MUST disclosed EVERY material circumstance to the insurer when deciding whether to accept the risk and when setting the premium for the risk. but as per state law 1. Insurers must maintain assets commensurate with policy risks.should generally be applied. The Named Assured insurer will set a reserve when presented with a claim…the insurer will decide how much it will pay for the particular claim. Crown-Zellerbach. Pacific Fisheries. Loss Payee 5.if an insured’s breach of warranty is immaterial to the cause for the claim. without the knowledge/permission of the insurer 2. Anti-Technicality provision of Texas insurance law. Insured had to have an insurable interest in the vessel 2. Warranties and Compliance. Usually comprised of owners 2. Covers damage to the insured vessel (originally covered ¾ of the value) a. Formed to cover ¼ of liability not covered under a basic hull policy 14. Material nondisclosure WILL void a policy d. Operating outside of the pre-determined area will result in forfeiture of policy 2. not owner’s liability insurance. ***UNLIMITED LIABILITY*** 2. 13. NOT CARGO 3. Waiver of subrogation 4. Owners transferred the ownership of the vessel AFTER insuring the vessel. Albany Insurance v. Cusano a. Anh Thi Kieu 1. Wilburn Boat v.also covers COLLISIONS 2. Corporations 3.Uberrimae Fidei 1. Applies CALIFORNIA insurance law 2. The Hull Policy 1. Fireman’s Fund 1.unincorporated syndicates of insurersa.

Passenger Claims 2. Coverage Provided by the P&I Policy 1. Watchman 12. and Other Liabilities to Vessels and Structures 3.1.Inchmaree Clause. Fines and Penalties 6. Repatriation and Putting-In expenses 10. Cargo Damage 5. The Additional Perils. Common peril or imminent danger b. War risks 2. Exclusions 1. Miscellaneous exclusions 5.all beneficiaries of master’s choice to jettison cargo will bear the cargo owner’s loss. Successful avoidance of danger 11. General average. Maintenance and Cure c. The Deliberate Damage. Defense costs 11. ONLY COVERS PAID COSTS 4. Collisions. Voluntary sacrifice for the common benefit c. Personal Injury and Death a. War Strikes and related EXCLUSIONS 9. An EXCLUDED cause cannot trigger an included cause and trigger coverage 2.damage caused by crew negligence 3. Collision Liability 7. Claim and Policy Limits 1. Cargo’s General Average 9. and quarantine 8. Policy Limits . Warranty of Seaworthiness 10. Payment on Claims 13. a. Must be OF the sea not just ON the sea b. Indemnity vice liability 3. General Average and Salvage 1. Protection and Indemnity Policy 1. Allisions. The Assured in the P&I Policy 2. Plague. Towage 4. Wreck Removal 4. Mutiny or Misconduct 7.Pollution Hazard Clause 6. Sue and Labor 8. The Perils a. Jones Act b. contagious diseases. Termination f. Contractual Liability 3.

Salvage that mitigates the threat of environmental damage. skill. Salvage favored over finds a. Salvage versus Find 1. Risk incurred by salvers v. If GROSS negligence. Salvors have a lien on the vessel 3. Contract Salvage 1. United States 1. or contributing to a success 2. Blackwell Factors i. Preexisting duty. but environmental hazards are mitigated or avoided 7. then no problem 2. BUT if a vessel rescues people and another vessel salves the foundering vessel. International Conventions 5. danger to which it was exposed iv.pretty much anyone that does not have a duty to salvage (Coast Guard cannot. Terms and Termination g. Negligence by the salvor 1. Degree of danger from which it was rescued 4. SUCCESS in whole or in part. Henner proceeds are NOT part of the limitation fund! IX. Pure Salvage 1. inducement to help 2. Claims 6. the vessel that saves the people is entitled to a share of the salvage award pure salvage 1. K’s. MARKET Value of the property saved vi. Three elements of Salvage: 1.award can be made if vessel is not saved.2. Compensation to those whose voluntary service have saved vessel or cargo. Life Salvage 1. MARINE PERIL 2. then salvor incurs liability b. Promptitude. it is part of their job) 3. VOLUNTARY SERVICE. Insurance Policies and Limitation Actions.REWARD. not previously required by duty/K 3. Lloyd’s Standard Form of Salvage Agreement.PRESUMPTIVELY VALID unless fraud in inception or not equitable to enforce c. Labor expended by salvers ii. and energy displayed iii. Eligible salvors. Value of salved property.LOF 6. Salvage a. Salvors may proceed in rem against the res a. Mariners are required by law to rescue people 2. The Salvage award 1. If just negligence. Owner remains owner if not abandoned .

the defendant cannot be found within the district. The clerk may issue supplemental process enforcing the court's order upon application without further court order. a. Executive Jet 3. when a verified complaint praying for attachment and the affidavit required by Rule B(1)(b) are filed. (b) The plaintiff or the plaintiff's attorney must sign and file with the complaint an affidavit stating that. enter an order so stating and authorizing process of attachment and garnishment. maritime juris applies. and Process. to the affiant's knowledge. V. you must show actual physical damage. In Personam Actions: Attachment and Garnishment (1) When Available. INC. Testbank Still to complete: practice and CP’s Rule B. . In a case with multiple tortfeasors. not just economic impact 6. GREAT LAKES DREDGE AND DOCK CO. Salvage encourages rewards and discourages competitiveness and secrecy. Judicial Authorization.If your vessel violated a rule in a collision.b. Pennsylvania Rule. 4. you must prove that your violation DID NOT AND COULD NOT have caused the casualty. Complaint. JEROME B. a verified complaint may contain a prayer for process to attach the defendant's tangible or intangible personal property . GRUBART. assumes c. The court must review the complaint and affidavit and. In an in personam action: (a) If a defendant is not found within the district. Robins Dry Dock – to get damages. Wreck of oil tanker led to international cooperation in setting up funding and responses to major oil spills and tanker casualties 5. if the conditions of this Rule B appear to exist. if one of the principle tortfeasors was engaged in a traditional maritime activity. Torrey Canyon a.up to the amount sued for . or on information and the hands of garnishees named in the process. 2. Law of finds is less encouraging of compensation Big Cases to Know: 1. Affidavit.

No default judgment may be entered except upon proof . (D) in an action brought by the United States. The garnishee shall serve an answer. credits. If the garnishee refuses or neglects to answer on oath as to the debts. within 20 days after service of process upon the garnishee. (2) Notice to Defendant. and any supplemental process must be delivered to a person or organization authorized to serve it. or. the summons. credits. together with answers to any interrogatories served with the complaint. (ii) If the property is other tangible or intangible property. using any form of mail requiring a return receipt.which may be by affidavit . (a) By Garnishee. summons. who may be (A) a marshal.(c) If the plaintiff or the plaintiff's attorney certifies that exigent circumstances make court review impracticable. Interrogatories to the garnishee may be served with the complaint without leave of court. The plaintiff has the burden in any postattachment under Rule E(4)(f) to show that exigent circumstances existed. summons. (C) someone specially appointed by the court for that purpose. (B) someone under contract with the United States. any officer or employee of the United States. and effects that may . or (c) the plaintiff or the garnishee has tried diligently to give notice of the action to the defendant but could not do so. and any supplemental process must be delivered to the marshal for service. and process of attachment or garnishment have been served on the defendant in a manner authorized by Rule 4. (3) Answer. the summons. process. (b) the plaintiff or the garnishee has mailed to the defendant the complaint. or any interrogatories concerning such debts. process. (e) The plaintiff may invoke state-law remedies under Rule 64 for seizure of person or property for the purpose of securing satisfaction of the judgment.that: (a) the complaint. (d) (i) If the property is a vessel or tangible property on board a vessel. or effects of the defendant in the garnishee's hands. and process of attachment or garnishment. the clerk must issue the summons and process of attachment and garnishment.

Except as otherwise provided by law a party who may proceed in rem may also. If the garnishee admits any debts. and shall be held in either case subject to the further order of the court. proceed in personam against any person who may be liable. Statutory provisions exempting vessels or other property owned or possessed by or operated by or for the United States from arrest or seizure are not affected by this rule. (b) Whenever a statute of the United States provides for a maritime action in rem or a proceeding analogous propounded by the plaintiff. When a statute so provides. Rule C. they shall be held in the garnishee's hands or paid into the registry of the court. or effects. (b) By Defendant. and (c) state that the property is within the district or will be within the district while the action is pending. or in the alternative. the court may award compulsory process against the garnishee. (2) Complaint. .Actions in Rem: Special Provisions (1) When Available. (b) describe with reasonable particularity the property that is the subject of the action. The defendant shall serve an answer within 30 days after process has been executed. whether by attachment of property or service on the garnishee. (b) By Defendant. whether by attachment of property or service on the garnishee. In an action in rem the complaint must: (a) be verified. (3) Judicial Authorization and Process. The defendant shall serve an answer within 30 days after process has been executed. credits. An action in rem may be brought: (a) To enforce any maritime lien. . an action against the United States or an instrumentality thereof may proceed on in rem principles.

(D) in an action brought by the United States. tangible or addition to the warrant .a summons directing any person controlling the property to show cause why it should not be deposited in court to abide the judgment.or within the time that the court allows . If the property that is the subject of the action consists in whole or in part of freight.(a) Arrest Warrant.give public notice of the action and arrest in a newspaper designated by court order and having general circulation in the district. the clerk must promptly issue a summons and a warrant for the arrest of the vessel or other property that is the subject of the action. or other intangible property. the plaintiff must promptly . (c) Deposit in Court. the court must issue an order directing the clerk to issue a warrant for the arrest of the vessel or other property that is the subject of the action. or. If the conditions for an in rem action appear to exist. (i) The court must review the complaint and any supporting papers. (C) someone specially appointed by the court for that purpose. The clerk may upon application issue supplemental process to enforce the court's order without further court order. (4) Notice. but publication may be terminated if the property is released before . (b) Service. the warrant and any supplemental process must be delivered to the marshal for service. the proceeds of property sold. (i) If the property that is the subject of the action is a vessel or tangible property on board a vessel. (B) someone under contract with the United States. (ii) If the property that is the subject of the action is other property. who may be: (A) a marshal. The plaintiff has the burden in any post-arrest hearing under Rule E(4)(f) to show that exigent circumstances existed. the warrant and any supplemental process must be delivered to a person or organization authorized to enforce it. the clerk must issue . (ii) If the plaintiff or the plaintiff’s attorney certifies that exigent circumstances make court review impracticable. If the property is not released within 10 days after execution. (d) Supplemental Process. No notice other than execution of process is required when the property that is the subject of the action has been released under Rule E(5). any officer or employee of the United States.

publication is completed. on motion. Interrogatories may be served with the complaint in an in rem action without leave of court.. Answers to the interrogatories must be served with the answer to the complaint. . bailee. and (iv) a person who asserts a right of possession or any ownership interest must serve an answer within 20 days after filing the statement of interest or right. In any action in rem in which process has been served as provided by this rule. after hearing.C. the court may enter such judgment as law and justice may require. Rule E. if any part of the property that is the subject of the action has not been brought within the control of the court because it has been removed or sold. and. 31301 et seq. This rule does not affect the notice requirements in an action to foreclose a preferred ship mortgage under 46 U.Actions in Rem and Quasi in Rem: General Provisions . or (B) within the time that the court allows. as amended. The notice must specify the time under Rule C(6) to file a statement of interest in or right against the seized property and to answer. (6) Responsive Pleading. (iii) an agent. or attorney must state the authority to file a statement of right or interest on behalf of another. the court may. or paid into court to abide the judgment. (a) Maritime Arrests and Other Proceedings.S. (b) Interrogatories. (ii) the statement of right or interest must describe the interest in the property that supports the person's demand for its restitution or right to defend the action. (5) Ancillary Process. Interrogatories. or because it is intangible property in the hands of a person who has not been served with process. (i) a person who asserts a right of possession or any ownership interest in the property that is the subject of the action must file a verified statement of right or interest: (A) within 10 days after the execution of process. order any person having possession or control of such property or its proceeds to show cause why it should not be delivered into the custody of the marshal or other person or organization having a warrant for the arrest of the property.

possessory. or of maritime attachment and garnishment. (3) Process. in the case of summons with process of attachment and garnishment. the court may. (2) Complaint. or on appeal by any appellate court.(1) Applicability. and partition actions. the marshal or other person or organization having a warrant shall forthwith execute the process in accordance with this . or other party to give security. and petitory. Upon issuance and delivery of the process. Issuance and delivery of process in rem. without moving for a more definite statement. to commence an investigation of the facts and to frame a responsive pleading. (b) Security for Costs. claimant. (a) Complaint. in such sum as the court shall direct to pay all costs and expenses that shall be awarded against the party by any interlocutory order or by the final judgment. (a) In admiralty and maritime proceedings process in rem or of maritime attachment and garnishment may be served only within the district. Subject to the provisions of Rule 54(d) and of relevant statutes. Procedures for Release. C. or any other party. defendant. Custody of Property. and D. (a) In General. on the filing of the complaint or on the appearance of any defendant. Marshal's Return. In actions to which this rule is applicable the complaint shall state the circumstances from which the claim arises with such particularity that the defendant or claimant will be able. or. actions in rem. when it appears that the defendant cannot be found within the district. or at any later time. Security. require the plaintiff. shall be held in abeyance if the plaintiff so requests. (b) Issuance and Delivery. supplementing Rules B. claimant. this rule applies to actions in personam with process of maritime attachment and garnishment. Except as otherwise provided. or additional security. (4) Execution of Process.

In furtherance of the marshal's custody of any vessel the marshal is authorized to make a written request to the collector of customs not to grant clearance to such vessel until notified by the marshal or deputy marshal or by the clerk that the vessel has been released in accordance with these rules.C.S. If the character or situation of the property is such that the taking of actual possession is impracticable. in which event the garnishee or other obligor shall not be required to answer unless alias process shall be served. the marshal or other person executing the process shall affix a copy thereof to the property in a conspicuous place and leave a copy of the complaint and process with the person having possession or the person's agent.subdivision (4). U. and shall give notice of such application to any or all of the parties as the court may direct. (d) Directions With Respect to Property in Custody. (e) Expenses of Seizing and Keeping Property. This subdivision shall have no application to suits for seamen's wages when process is issued upon a certification of sufficient cause filed pursuant to Title 46. (f) Procedure for Release From Arrest or Attachment. the marshal or other person or organization having the warrant shall take it into the marshal's possession for safe custody. (c) Intangible Property. If tangible property is to be attached or arrested. §§ 603 and 604 or to actions by the . The marshal or other person or organization having the warrant may at any time apply to the court for directions with respect to property that has been attached or arrested..S. U. (b) Tangible Property. § 1921.C. If intangible property is to be attached or arrested the marshal or other person or organization having the warrant shall execute the process by leaving with the garnishee or other obligor a copy of the complaint and process requiring the garnishee or other obligor to answer as provided in Rules B(3)(a) and C(6). relative to the expenses of seizing and keeping property attached or arrested and to the requirement of deposits to cover such expenses. any person claiming an interest in it shall be entitled to a prompt hearing at which the plaintiff shall be required to show why the arrest or attachment should not be vacated or other relief granted consistent with these rules. Whenever property is arrested or attached. or the marshal may accept for payment into the registry of the court the amount owed to the extent of the amount claimed by the plaintiff with interest and costs. Deposit. as amended. making due and prompt return. These rules do not alter the provisions of Title 28.

Thereupon the execution of all such process against such vessel shall be stayed so long as the amount secured by such bond or stipulation is at least double the aggregate amount claimed by plaintiffs in all actions begun and pending in which such vessel has been attached or arrested. Any vessel. cargo. bond. particularly as to the giving of proper notice of any action against or attachment of a vessel for which a general bond has been filed. conditioned to answer the judgment of the court or of any appellate court. Such bond or stipulation shall be indorsed by the clerk with a minute of the actions wherein process is so stayed. The parties may stipulate the amount and nature of such security.United States for forfeitures for violation of any statute of the United States. Costs. to be approved by the court. Order of Court or Clerk. whichever is smaller. the liability on the general bond or stipulation shall cease as to that case. or by stipulation of the parties. or other security. The district court may make necessary orders to carry this rule into effect. if all costs and charges of the . Judgments and remedies may be had on such bond or stipulation as if a special bond or stipulation had been filed in each of such actions. on the giving of security. but the principal sum shall in no event exceed (i) twice the amount of the plaintiff’s claim or (ii) the value of the property on due appraisement. conditioned to answer the judgment of such court in all or any actions that may be brought thereafter in such court in which the vessel is attached or arrested. (b) General Bond. (5) Release of Property. to be approved by the court or clerk. The owner of any vessel may file a general bond or stipulation. signed by the party on whose behalf the property is detained or the party's attorney and expressly authorizing such release. or other property in the custody of the marshal or other person or organization having the warrant may be released forthwith upon the marshal's acceptance and approval of a stipulation. Further security may be required by the court at any time. If a special bond or stipulation is given in a particular case. In the event of the inability or refusal of the parties so to stipulate the court shall fix the principal sum of the bond or stipulation at an amount sufficient to cover the amount of the plaintiff’s claim fairly stated with accrued interest and costs. The bond or stipulation shall be conditioned for the payment of the principal sum and interest thereon at 6 per cent per annum. or the property released. (a) Special Bond. Whenever process of maritime attachment and garnishment or process in rem is issued the execution of such process shall be stayed. (c) Release by Consent or Stipulation. with sufficient surety.

(6) Reduction or Impairment of Security. Whenever security is taken the court may. or process of attachment and garnishment. but such order may be entered as of course by the clerk. directs otherwise. possessory. . but the marshal or other person or organization having the warrant shall not deliver any property so released until the costs and charges of the officers of the court shall first have been paid. a plaintiff for whose benefit the security has been given must give security for damages demanded in the counterclaim unless the court. on such terms and conditions and on the giving of such security as the court may require. (8) Restricted Appearance. for good cause shown. and in that event is not an appearance for the purposes of any other claim with respect to which such process is not available or has not been served. and if the surety shall be or become insufficient. or upon the dismissal or discontinuance of the action. on motion and hearing. (a) When a person who has given security for damages in the original action asserts a counterclaim that arises from the transaction or occurrence that is the subject of the original action. In such cases the property arrested shall be released only by order of the court. and partition actions. upon the giving of approved security as provided by law and these rules. The foregoing provisions of this subdivision (5) do not apply to petitory.court and its officers shall have first been paid. (7) Security on Counterclaim. Petitory. or other officer of the court shall be released without an order of the court. Proceedings on the original claim must be stayed until this security is given. reduce the amount of security given. (b) The plaintiff is required to give security under Rule E(7)(a) when the United States or its corporate instrumentality counterclaims and would have been required to give security to respond in damages if a private party but is relieved by law from giving security. for cause shown. new or additional sureties may be required on motion and hearing. other person or organization having the warrant. and Partition Actions. An appearance to defend against an admiralty and maritime claim with respect to which there has issued process in rem. may be expressly restricted to the defense of such claim. Otherwise no property in the custody of the marshal. (d) Possessory. unless the court directs otherwise.

as provided in subdivision (9) of this rule. Security. may enter any order necessary to preserve the property and to prevent its removal. the court may order all or part of the property sold . the marshal. or other person having custody of the property. for limitation of liability pursuant to statute. any vessel owner may file a complaint in the appropriate district court. decay.if: (A) the attached or arrested property is perishable. or injury by being detained in custody pending the action. may order that the property. rather than being sold. All sales of property shall be made by the marshal or a deputy marshal. paid into court to await further orders of the court . Delivery. Proceeds. or (C) there is an unreasonable delay in securing release of the property. (ii) In the circumstances described in Rule E(9)(a)(i). (a) Interlocutory Sales. and the proceeds of sale shall be forthwith paid into the registry of the court to be disposed of according to law. for the benefit of claimants.(9) Disposition of Property. on a party's motion or on its own. Sales. (B) the expense of keeping the property is excessive or disproportionate. Not later than six months after receipt of a claim in writing. (i) On application of a party.Limitation of Liability (1) Time for Filing Complaint. the court. or liable to deterioration. (10) Preservation of Property. be delivered to the movant upon giving security under these rules. . the court. (c) Sales. The owner (a) shall deposit with the court. a sum equal to the amount or . on motion by a defendant or a person filing a statement of interest or right under Rule C(6). When the owner or another person remains in possession of property attached or arrested under the provisions of Rule E(4)(b) that permit execution of process without taking actual possession. or as much of them as will satisfy the judgment. or by any other person assigned by the court where the marshal or other person or organization having the warrant is a party in interest.with the sales proceeds. or by other person or organization having the warrant. Rule F.

(3) Claims Against Owner. the owner's interest in the vessel and pending freight. (2) Complaint. the value of her wreckage. and the names and addresses of the lienors. The complaint may demand exoneration from as well as limitation of liability. if any. the value of the vessel at the close of the voyage or. and in addition such sums. together with such sums. and what voyages or trips. strippings. arising on that voyage. or proceeds. Upon compliance by the owner with the requirements of subdivision (1) of this rule all claims and proceedings against the owner or the owner's property with respect to the matter in question shall cease. lost. or approved security therefor. and. . and any existing liens arising upon any such subsequent voyage or trip. and the amount of any pending freight recovered or recoverable. or abandoned. as the court may from time to time fix as necessary to carry out the provisions of the statutes as amended. so far as known to the plaintiff. so far as known. with the date and place of its termination. in case of wreck. On application of the plaintiff the court shall enjoin the further prosecution of any action or proceeding against the plaintiff or the plaintiff's property with respect to any claim subject to limitation in the action. The plaintiff shall also give security for costs and. if any. Injunction. or approved security therefor. she has made since the voyage or trip on which the claims sought to be limited arose. and whether the vessel sustained any injury upon or by reason of such subsequent voyage or trip. with the amounts and causes thereof. for the benefit of claimants. If the plaintiff elects to transfer the plaintiff's interest in the vessel to a trustee. It shall state the voyage if any. on which the demands sought to be limited arose. or approved security therefor. if any. and what actions and proceedings. or (b) at the owner's option shall transfer to a trustee to be appointed by the court. if so. whether the vessel was damaged. the complaint must further show any prior paramount liens thereon. as the court may from time to time fix as necessary to carry out the provisions of the statutes as amended. and where and in whose possession they are. (4) Notice to Claimants. if the plaintiff elects to give security. The complaint shall set forth the facts on the basis of which the right to limit liability is asserted and all facts necessary to enable the court to determine the amount to which the owner's liability shall be limited. when and where. are pending thereon.value of the owner's interest in the vessel and pending freight. the amount of all demands including all unsatisfied liens or claims of lien. for interest at the rate of 6 percent per annum from the date of the security. in contract or in tort or otherwise.

and the dates on which the same accrued. and (d) the amount thereof. If a claimant desires to contest either the right to exoneration from or the right to limitation of liability the claimant shall file and serve an answer to the complaint unless the claim has included an answer. (5) Claims and Answer. or within such time as the court thereafter may allow. the court may enlarge the time within which claims may be filed. Thereupon the court shall cause due appraisement to be made of the value of the plaintiff's interest in the vessel and pending freight. (6) Information To Be Given Claimants.. and also to any person who shall be known to have made any claim on account of such death. death. (b) the name and address of the claimant's attorney (if the claimant is known to have one). (7) Insufficiency of Fund or Security. The notice shall be published in such newspaper or newspapers as the court may direct once a week for four successive weeks prior to the date fixed for the filing of claims. the plaintiff shall mail to the attorney for each claimant (or if the claimant has no attorney to the claimant) a list setting forth (a) the name of each claimant. For cause shown. personal injury etc. i. In like manner any claimant may demand that the deposit or security be increased on the ground that it is insufficient to carry out the provisions of . Any claimant may by motion demand that the funds deposited in court or the security given by the plaintiff be increased on the ground that they are less than the value of the plaintiff's interest in the vessel and pending freight.. Claims shall be filed and served on or before the date specified in the notice provided for in subdivision (4) of this rule. In cases involving death a copy of such notice shall be mailed to the decedent at the decedent's last known address. whether property loss. and if the court finds that the deposit or security is either insufficient or excessive it shall order its increase or reduction.e. (c) the nature of the claim. property damage. The plaintiff not later than the day of second publication shall also mail a copy of the notice to every person known to have made any claim against the vessel or the plaintiff arising out of the voyage or trip on which the claims sought to be limited arose. the items thereof. The date so fixed shall not be less than 30 days after issuance of the notice. admonishing them to file their respective claims with the clerk of the court and to serve on the attorneys for the plaintiff a copy thereof on or before a date to be named in the notice. Each claim shall specify the facts upon which the claimant relies in support of the claim. Within 30 days after the date specified in the notice for filing claims.Upon the owner's compliance with subdivision (1) of this rule the court shall issue a notice to all persons asserting claims with respect to which the complaint seeks limitation.

(e) Admiralty and Maritime Claims. and suit has not been commenced against the owner. A claim cognizable only in the admiralty or maritime jurisdiction is an admiralty or maritime claim for those purposes. if it be in the interest of justice. These rules do not create a right to a jury trial on issues in a claim that is an admiralty or maritime claim under Rule 9(h). If the vessel shall have been sold. the proceeds shall represent the vessel for the purposes of these rules. the court may transfer the action to any district. then in any district in which the owner has been sued with respect to any such claim. to all parties any priority to which they may be legally entitled. (h) Admiralty or Maritime Claim. For the convenience of parties and witnesses. however. The complaint shall be filed in any district in which the vessel has been attached or arrested to answer for any claim with respect to which the plaintiff seeks to limit liability. saving. shall be divided pro rata. the pleading may designate the claim as an admiralty or maritime claim for purposes of Rules 14(c). but if the vessel is not within any district and no suit has been commenced in any district. in the interest of justice. subject to all relevant provisions of law. or the proceeds of the vessel and pending freight. When the vessel has not been attached or arrested to answer the matters aforesaid. the court may similarly order that the deposit or security be increased or reduced.the statutes relating to claims in respect of loss of life or bodily injury. (8) Objections to Claims: Distribution of Fund. (1) How Designated. . duly proved. or. if the vessel has not been attached or arrested. Any interested party may question or controvert any claim without filing an objection thereto. transfer the action to any district in which it could have been brought. the proceedings may be had in the district in which the vessel may be. Upon determination of liability the fund deposited or secured. if venue is wrongly laid the court shall dismiss or. then the complaint may be filed in any district. among the several claimants in proportion to the amounts of their respective claims. and. (9) Venue. If a claim for relief is within the admiralty or maritime jurisdiction and also within the court's subject-matter jurisdiction on some other ground. 38(e). Transfer. Trial is to the court unless any party demands trial by jury under Rule 38. after notice and hearing. and 82 and the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions.

whether or not so designated. the third-party defendant must defend under Rule 12 against the plaintiff's claim as well as the third-party plaintiff's claim. or series of transactions or occurrences. (2) Designation for Appeal. FRCP 14 (c) Admiralty or Maritime Claim. A case that includes an admiralty or maritime claim within this subdivision (h) is an admiralty case within 28 U. contribution. as a thirdparty plaintiff. (1) Scope of Impleader. and the action proceeds as if the plaintiff had sued both the third-party defendant and the third-party plaintiff.C. bring in a third-party defendant who may be wholly or partly liable — either to the plaintiff or to the third-party plaintiff — for remedy over.S. § 1292(a)(3). the defendant or a person who asserts a right under Supplemental Rule C(6)(a)(i) may. . (2) Defending Against a Demand for Judgment for the Plaintiff. The third-party plaintiff may demand judgment in the plaintiff's favor against the thirdparty defendant. occurrence. or otherwise on account of the same transaction. If a plaintiff asserts an admiralty or maritime claim under Rule 9(h). In that event.