Shipping Lawyer Maritime Liens and Ship Arrests 1 — Questions and Answers
Question 1: Which of the following gives rise to a maritime lien under US federal law?
- Seamen's wages (Correct answer)
- Office lease payments
- Shoreside employment contracts
- Cargo insurance premiums
Correct answer: Seamen's wages
Seamen's wages are a privileged maritime lien under 46 U.S.C. § 31301 and rank high in priority.
Question 2: Under the Federal Maritime Lien Act, which party may bring an in rem action against a vessel?
- Any party holding a maritime lien (Correct answer)
- Only the vessel owner
- Only the US government
- Only cargo shippers
Correct answer: Any party holding a maritime lien
Any party holding a valid maritime lien may arrest the vessel and proceed in rem under the Federal Maritime Lien Act.
Question 3: What is the correct court to file an in rem vessel arrest action in the United States?
- Federal district court with admiralty jurisdiction (Correct answer)
- State superior court
- US Tax Court
- US Court of International Trade
Correct answer: Federal district court with admiralty jurisdiction
In rem admiralty actions, including vessel arrests, must be filed in a federal district court exercising admiralty jurisdiction.
Question 4: Which maritime lien has the highest priority in a US vessel arrest proceeding?
- Preferred ship mortgage
- Seamen's wages (Correct answer)
- Tort claims
- Contract claims
Correct answer: Seamen's wages
Seamen's wages rank above preferred ship mortgages and most other liens in US maritime law.
Question 5: A vessel can be released from arrest by posting what type of security?
- A bond or letter of undertaking (Correct answer)
- A property deed
- A personal guarantee only
- An insurance certificate only
Correct answer: A bond or letter of undertaking
A vessel is released from arrest upon posting of a bond, letter of undertaking, or other approved security in the amount of the claim.
Question 6: Which doctrine prevents a maritime lien from being extinguished when a vessel is sold to a bona fide purchaser?
- The lien 'follows the ship' doctrine (Correct answer)
- The clean hands doctrine
- The parol evidence rule
- The collateral source rule
Correct answer: The lien 'follows the ship' doctrine
Under the 'follows the ship' doctrine, maritime liens attach to the vessel itself and survive sale, binding subsequent owners.
Shipping Lawyer Maritime Liens and Ship Arrests 1
Which of the following gives rise to a maritime lien under US federal law?