Expertise > Shipping & Yachting > Recovery of Debts – actions in rem

Recovery of Debts – Actions in rem

In terms of Maritime Law, it is possible to file actions ‘in rem’ meaning actions against the vessel itself, whereby the vessel would be a party to the lawsuit. Actions in rem provide for a viable way to recover any debts arising against the vessel.

Although Malta is not a signatory to the international conventions on the arrest of sea vessels, Maltese law, specifically the Code of Organisation and Civil Procedure, Chapter 12 of the laws of Malta, specifically under article 742B, provides for the arrest of sea vessels on any one of the grounds listed thereunder.

Through a Warrant of Arrest, which can be both precautionary or executive, the creditors may secure their rights in respect of a debt or claim, since such debt or claim can be unsatisfied by the departure of the said vessel. A warrant of arrest, which is a warrant for the physical detention of the ship within the jurisdictional limits of the Maltese courts in security of a maritime claim, is the only type of warrant which may be issued against sea vessels.

A warrant of arrest of a sea vessel has the effect of seizing and impeding the departure of the vessel from the debtor and also to attach the same in the hands of the authority where the vessel is, and also to order that the said authority shall not release such vessel or allow the debtor to divest himself in any way from the same in whole or in part or to give or surrender to any person any rights on the same. In the case of Malta, Transport Malta is deemed by law to be the authority with the power and control to have a ship arrested as soon as it enters Maltese territorial waters.

Maltese law lists twenty-five different Maritime Claims which give rise to an action in rem and which may be listed as follows:

  1. Claims to possession / ownership / title to ship;
  2. Questions arising between co-owners;
  3. Claims in respect of mortgage / hypothec / charge on a ship;
  4. Claims arising out of a contract of sale;
  5. Claims for damages received by ship;
  6. Claims for damage caused by ship;
  7. Claims for loss of life / personal injury caused by ship;
  8. Claims for loss of life / personal injury caused by ship;
  9. Claims arising out of agreement for carriage of goods / use or hire of ship;
  10. Claims for salvage;
  11. Claims for damage to environment by ship;
  12. Claims relating to wrecks;
  13. Claims for towage;
  14. Claims for pilotage;
  15. Claims for supplies / services rendered to ship;
  16. Claims for construction / repair / conversion / equipping ship;
  17. Claims for port / dock / harbour dues;
  18. Claims by crew for wages / repatriation;
  19. Claims for disbursements made;
  20. Claims for commissions / brokerage / agency fees;
  21. Claims arising out of general average act;
  22. Claims arising out of bottomry;
  23. Claims for forfeiture of ship;
  24. Claims for insurance premia and
  25. Claims for fees due to Registrar / tonnage dues.
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