Partners Argue Substitute Security Funds and Maritime Liens

  • Partners Alan Van Praag and Edward Floyd, with corresponding counsel in Louisiana, successfully argued that funds which had been deposited into a court’s registry as substitute security for the seizure (by attachment) of one vessel were subject to a maritime lien against sub-hire owed for the use of a second vessel. The United States District Court for the Eastern District of Louisiana rejected opposing arguments raised by multiple adverse parties and found in favor of our position. The court therefore authorized use of Supplemental Rule C to arrest the funds which had been deposited with the court. Accordingly, the substitute security which had been provided in connection with a quasi in rem attachment proceeding became the subject of an in rem arrest proceeding. Ravenna Tankers Pte., SRL v. Omni Ships Pte. Ltd., CIV.A. 13-127, 2013 WL 2153544 (EDLa May 15, 2013)