Maritime liens are claims on ships or water vessels for unpaid labor, services, or wages. They can be used to place a hold on the vessel or force its sale to recover unpaid debts. Statutes of limitations vary depending on the type of claim and regional laws. Exceptions exist for vessels stored in dry dock, barges used as restaurants, and canoes/kayaks used for tourism.
A maritime lien represents a claim on a ship or other water vessel for unpaid labour, service or wages. It provides the security to guarantee payment to any person making repairs or providing maintenance, insurance, fuel or docking space for these types of vessels, as well as those who work on the vessel. The liens come under admiralty law and also apply to any damage or injury caused by the vessel, whether or not the vessel is moored.
This type of lien differs from other property liens in that it can be used to place a hold on the property even if the vessel is at sea. A hold can be placed on any part of a vessel capable of navigating water, including engines, pumps, cargo, furniture, and accessories such as fishing supplies. A maritime lien can also be used to force the sale of a vessel or vessel in order to collect an unpaid debt. Under the admiralty law, called the “law of the sea,” each country or region defines how a maritime lien is enforced. Many international treaties have been designed to create more uniform statutes.
Courts enforce a maritime lien after a creditor files the action. After the lien has been granted, a vessel may be seized and held until the unpaid debts have been settled. If the owner of the vessel cannot or is unwilling to pay, the vessel may be sold to recover the sums owed. A public auction is the most common form of sale and vessels are often sold for much less than they are actually worth.
Maritime liens impose various statutes of limitations on maritime property, depending on the type of claim sought and regional laws. They typically range from six months for unpaid wages to three years for personal injury or compensation claims. If a sea bond is placed on cargo, it is generally only effective as long as the goods remain on the vessel. Laws governing maritime lien protect against undue delays in filing an action to protect a provisional purchaser of a vessel.
There are exceptions to the law for boats or other vessels stored in dry dock, including seaplanes housed in a hangar. Exceptions to maritime privileges also exist for barges used as restaurants operating in a permanent position and not navigating open water. Maritime privileges also do not apply to canoes or kayaks used to promote tourism.
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