Yew Huoi, How & Associates | Leading Malaysia Law Firm

ADMIRALTY – SHIP ARREST – SHERIFF’S EXPENSES

What is Sheriff’s expenses when a vessel is arrested in an Admiralty In Rem Proceeding?
When a ship is arrested by court in an admiralty in rem proceeding, she will be placed under the custody of the Sheriff. The Sheriff is usually the Registrar of the High Court. When the ship is arrested, the Sheriff will incur costs and expenses to effect and maintain the arrest i.e. the ship. These expenses include payment of port dues, cost of engaging a sheriff’s agent, payment of food and supplies etc.

Are you saying the Registrar of the Court will pay for the Sheriff’s expenses?
No. Sheriff expenses will usually be advanced by the arresting party (i.e. the plaintiff) pursuant to an undertaking given to the court under O.70 r.9(3) of the Rules of Court 2021 (“ROC 2012”). The Sheriff’s expenses advanced by the arresting party may be claimed as the 2nd charge (after statutory claimants) from the proceeds of sale of the ship.

Sheriff’s expenses are ranked as one of the highest claims on the proceed of the sale of the ship. As such, arresting party (usually the plaintiff) and the owner (usually the defendant) must be mindful that prolonged arrest of a ship by the court would result in diminution of value of the ship by reason of mounting sheriff’s expenses. Owner should as soon as it is reasonably practicable post bail bonds to secure release of the vessel under arrest. If owner does not do that, the arresting party should quickly apply to court to have the vessel sold by the sheriff by way of judicial sale pendente lite.

The parties must be mindful that ship arrest is a very expensive process. It will be continuing until a sale pendente lite is ordered by the court or when there is a final disposal of the matter by the court.

There are many circumstances where the escalating Sheriff’s expenses have eroded the value of the ship. So much so that there is nothing left for the arresting party. It defeats the purpose of the arrest i.e. to arrest the ship as security for payment of the arresting party’s claim. It is advisable that valuation of the ship should be carried out before an arrest is made. The arresting party must also be mindful of the number of months a ship can be arrested before Sheriff’s expenses erode the value of the vessel so much that there is nothing left for the plaintiff’s claim. The Plaintiff must also be conscious that there could be other interveners’ claims which could be ranked higher than the Plaintiff’s claim. Consult a shipping expert before an arrest is made.

Recent Post

FAMILY LAW – CHILDREN’S CUSTODY – CUSTODY DISPUTES IN MALAYSIA: ESSENTIAL INSIGHTS ON CHILD WELFARE AND PARENTAL ROLES

In a recent custody dispute, the court emphasized the importance of child welfare, reaffirming the maternal custody presumption for young children unless strong evidence suggests otherwise. In high-conflict situations, the court favored sole custody over joint arrangements to minimize stress on the children. This case underscores that Malaysian parents should provide credible evidence for their claims and focus on practical, child-centered solutions.

Read More »

BREACH OF CONTRACT – DAMAGES – FORESEEABILITY AND FAIRNESS IN FREIGHT LIABILITY CLAIMS

In JSD Corporation v Tri-Line Express [2024] 1 Lloyd’s Rep. 285, the court set a clear precedent on damages for property claims, ruling that only foreseeable and proportionate losses are recoverable. Applying principles akin to Hadley v Baxendale, the court allowed for repair costs if intent to remedy was evident but rejected double recovery, underscoring that damages must reflect actual loss without overcompensation. This decision serves as a guide for Malaysian courts, emphasizing fair and balanced recovery in line with foreseeable damages.

Read More »

ADMIRALTY IN REM – SHIPPING — FUEL OR FREIGHT? COURT CLEARS THE AIR ON GLOBAL FALCON BUNKER DISPUTE

In a decisive ruling on the Global Falcon bunker dispute, the court dismissed Meck Petroleum’s admiralty claim for unpaid high-sulphur fuel, finding that the fuel was supplied not for operational purposes but as cargo. With the vessel lacking necessary equipment to use high-sulphur fuel and evidence pointing to its transfer to another vessel, the court determined that Meck’s claim fell outside admiralty jurisdiction, leading to the release of the vessel and potential damages for wrongful arrest.

Read More »

COLLISION COURSE – COURT WEIGHS ANCHOR DRAGGING AND LIABILITY AT SEA

In a collision that underscores the high stakes of maritime vigilance, the court ruled that Belpareil bore the brunt of the blame for failing to control its dragging anchor and delaying critical warnings. Yet, Kiran Australia wasn’t off the hook entirely—apportioned 30% fault for its limited evasive action, the case serves as a stark reminder: in maritime law, all vessels share responsibility in averting disaster, even when one party’s errors loom large.

Read More »

GENERAL AVERAGE – PIRATE RANSOM DISPUTE: SUPREME COURT RULES CARGO OWNERS LIABLE IN THE POLAR CASE

In the landmark case Herculito Maritime Ltd v Gunvor International BV (The Polar) [2024] 1 Lloyd’s Rep. 85, the English Supreme Court upheld the shipowner’s right to recover a USD 7.7 million ransom paid to Somali pirates under general average. The Court ruled that cargo interests, despite their arguments regarding charterparty terms and insurance obligations, were liable to contribute to the ransom payment. This decision reinforces the importance of clear contractual provisions when seeking to limit or exclude liability in maritime contracts particularly matter relating to general average.

Read More »
en_USEN
× Contact Us