Ship Lawyer Admiralty Court Procedures 2 — Questions and Answers
Question 1: What is the 'interlocutory sale' of an arrested vessel, and when is it ordered?
- A court-ordered sale before final judgment when the vessel is deteriorating or costs are accruing (Correct answer)
- A sale ordered at the end of the case
- A voluntary sale by the shipowner
- A sale to pay crew wages only
Correct answer: A court-ordered sale before final judgment when the vessel is deteriorating or costs are accruing
An interlocutory sale is a court-ordered sale of an arrested vessel before the case is fully resolved, typically when the vessel is deteriorating, expensive to maintain, or the owner cannot post security.
Question 2: In admiralty practice, what does 'security for costs' typically require?
- A plaintiff may be required to post a bond to cover potential costs if the case is lost (Correct answer)
- The defendant posts bond for all litigation costs
- Only foreign plaintiffs must post security
- Security is posted with the admiralty clerk
Correct answer: A plaintiff may be required to post a bond to cover potential costs if the case is lost
In admiralty proceedings, courts may require a plaintiff — especially a foreign party — to post security for costs to protect the defendant against potential cost awards.
Question 3: How does a maritime claimant release an arrested vessel from custody?
- By posting a bond or other security equal to the claim amount, plus costs and interest (Correct answer)
- By paying the full claim amount into court
- By filing a motion to dismiss the arrest
- By obtaining a consent order from the plaintiff
Correct answer: By posting a bond or other security equal to the claim amount, plus costs and interest
An arrested vessel is released when the vessel owner posts a bond (security) in an amount sufficient to cover the claim, interest, and costs, substituting the security for the vessel.
Question 4: What is a 'maritime attachment and garnishment' under Supplemental Rule B used to accomplish?
- Attach a defendant's property located in the district to obtain jurisdiction and secure potential judgment (Correct answer)
- Garnish a seaman's wages for debt collection
- Attach cargo during a dispute
- Freeze a vessel's bank accounts
Correct answer: Attach a defendant's property located in the district to obtain jurisdiction and secure potential judgment
Rule B attachment is used to seize property of an absent defendant to obtain quasi in rem jurisdiction and provide security for a potential judgment on the maritime claim.
Question 5: In what circumstance may a state court hear a maritime case instead of a federal admiralty court?
- When the plaintiff invokes the Saving to Suitors clause and pursues a common law remedy (Correct answer)
- When the defendant is a state entity
- When the injury occurred in state territorial waters
- When the claim is under $75,000
Correct answer: When the plaintiff invokes the Saving to Suitors clause and pursues a common law remedy
The Saving to Suitors clause in 28 U.S.C. § 1333 preserves the right to pursue maritime claims in state courts when the plaintiff seeks a common law remedy.
Question 6: What is the role of a 'maritime referee' or special master in complex admiralty cases?
- To hear evidence and recommend findings on complex factual issues such as damages or lien priority (Correct answer)
- To negotiate settlements between parties
- To inspect vessels on behalf of the court
- To issue preliminary injunctions
Correct answer: To hear evidence and recommend findings on complex factual issues such as damages or lien priority
In complex admiralty matters, courts may appoint a special master or maritime referee to hear evidence and make recommendations on intricate issues such as damages calculations or competing lien priorities.
Ship Lawyer Admiralty Court Procedures 2
What is the 'interlocutory sale' of an arrested vessel, and when is it ordered?