Australia permits arrest of vessel on foreign maritime lien claim

TIN news:          In a decision delivered on 11 September 2015, the Federal Court of Australia has upheld the arrest of the "Sam Hawk" in respect of a claim for a foreign maritime lien arising from the supply of bunkers to the vessel, law firm Holding Redlich has reported.
 
This decision is significant because it reverses the prior law in Australia and paves the way for the recognition and enforcement in Australia of foreign maritime liens, even where such liens do not exist independently under Australian law.
 
The practical effect of this decision is that the claims in respect of which vessels can be arrested in Australia has now expanded significantly, meaning that Australia is an even more arrest and enforcement-friendly jurisdiction.
 
Regardless of the final outcome, this decision means that Australian courts will uphold the arrest of a vessel in Australia in respect of an arguable claim based on a foreign maritime lien. Whilst the ultimate success of any such claim will depend on the particular circumstances in each case, this decision means that the circumstances in which bunker suppliers can arrest vessels in Australia, at least in order to obtain security for an arguable claim, have now been significantly increased.
 
As a result, bunker suppliers should consider Australia an even more friendly jurisdiction in which to seek security and enforce claims and Owners should be prepared to face an increase in such actions.