Shipping Lawyer Maritime Liens and Ship Arrests 2 — Questions and Answers
Question 1: What is a 'necessaries' lien under the Federal Maritime Lien Act?
- A lien for goods and services furnished to a vessel to allow it to operate (Correct answer)
- A lien for cargo lost overboard
- A lien for unpaid port duties
- A lien arising from a collision
Correct answer: A lien for goods and services furnished to a vessel to allow it to operate
Necessaries include repairs, supplies, towage, and other items furnished to a vessel by order of the owner or authorized person.
Question 2: Under US law, who is presumed to have authority to bind a vessel for necessaries?
- The master, owner, or managing agent (Correct answer)
- Only the registered owner
- Only the bareboat charterer
- Any crew member
Correct answer: The master, owner, or managing agent
The master, owner, owner's agent, or managing agent are presumed by statute to have authority to procure necessaries on the vessel's credit.
Question 3: What effect does a 'no-lien' clause in a charter party have on a supplier's maritime lien?
- It can defeat the lien if the supplier had actual notice of the clause (Correct answer)
- It has no effect whatsoever on the lien
- It automatically extinguishes all liens
- It only applies to government-contracted vessels
Correct answer: It can defeat the lien if the supplier had actual notice of the clause
If a supplier had actual notice of the no-lien clause in the charter, courts may find the lien was not created despite the FMLA presumption.
Question 4: How long does a claimant generally have to enforce a maritime lien for cargo damage under the Carriage of Goods by Sea Act?
- One year from delivery (Correct answer)
- Two years from delivery
- Three years from the voyage
- Six months from the bill of lading date
Correct answer: One year from delivery
COGSA provides a one-year statute of limitations for cargo damage claims running from delivery of the goods.
Question 5: Which action suspends the COGSA one-year limitations period for cargo claims?
- Filing a timely suit in federal court (Correct answer)
- Sending a letter of protest to the carrier
- Noting a claim on the delivery receipt
- Notifying the vessel's P&I club
Correct answer: Filing a timely suit in federal court
Only filing a lawsuit in the appropriate court suspends the COGSA one-year period; notices and protests alone do not toll limitations.
Question 6: What does 'preferred ship mortgage' mean under the Ship Mortgage Act?
- A recorded mortgage on a US-flagged vessel that qualifies for priority over most other liens except seamen's wages and salvage (Correct answer)
- Any mortgage on any vessel regardless of registration
- A mortgage that takes priority over all other claims
- A government lien for unpaid taxes
Correct answer: A recorded mortgage on a US-flagged vessel that qualifies for priority over most other liens except seamen's wages and salvage
A preferred ship mortgage is a properly recorded mortgage on a US-documented vessel that has priority over all maritime liens except wages, salvage, and certain tort liens.
Shipping Lawyer Maritime Liens and Ship Arrests 2
What is a 'necessaries' lien under the Federal Maritime Lien Act?