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MEO CLASS 1 · ORAL QUESTION 3

what is maritime lien, rem and ress and how maritime lien follows with the ship

Answer

1. What is a Maritime Lien?

A Maritime Lien is a privileged, specialized claim upon maritime property (the ship, her cargo, or freight) for services rendered to it or damage caused by it.

Unlike a standard commercial lien (which requires the creditor to physically hold onto the goods), a maritime lien is non-possessory. The ship remains completely in the possession and control of the shipowner, but the legal claim attaches itself invisibly to the hull of the vessel from the exact moment the incident occurs.

Characteristics of a Maritime Lien:

Standard Recognized Maritime Liens (International Priority):

2. Understanding "Action in Rem" vs. "Action in Personam"

In maritime law, if a shipowner defaults on a debt or causes an accident, the claimant has two distinct ways to file a lawsuit in an Admiralty Court:

Action in Personam (Against the Person)

This is a standard lawsuit directed against a specific individual or legal entity (e.g., the shipowning company, the charterer, or the manager). If you win, you can target any of their corporate assets. However, if the company goes bankrupt or hides behind offshore shell companies, recovering the money is extremely difficult.

Action in Rem (Against the Thing / The Ship)

This is a unique feature of admiralty law. The lawsuit is filed directly against the ship itself as the defendant (e.g., “The Crew vs. M/V [Ship Name]”).

3. What is "Res" (The Object)?

In admiralty proceedings, "Res" is the Latin term for "the thing" or the property against which an Action in Rem is directed.

While the Primary Res is almost always the ship's hull and machinery, the legal definition of Res can also expand to include:

When an Admiralty Court arrests a ship, it takes legal custody of the Res. If the owner fails to pay the debt or provide financial security (like a P&I Club Letter of Indemnity), the court will judicially sell the Res (the ship) at an auction to clear the claims.

4. How a Maritime Lien "Follows" the Ship

The legal phrase used in maritime courts is that a maritime lien "adheres to the ship like a barnacle." It travels with the vessel across international borders, changes of flag, and changes of ownership.

[ Incident Occurs ] ──> [ Lien Automatically Attaches Invisibly to the Ship ]

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[ Ship is Sold to a New Owner ]

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[ New Owner sends ship to Port B ] ──> [ Court Arrests Ship on behalf of Old Claimant ]

The Mechanism of Transfer: