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Jeanine Kathleen News

13 Sep 2002

Maritime Lien Without a Maritime Contract

The U.S. Court of Appeals for the Ninth Circuit ruled that a party may have a maritime lien under the Federal Maritime Lien Act without having a maritime contract. In the instant case, plaintiff fish processor contracted with various fishing vessel owners to land and process their squid catch. Plaintiff brought suit against the vessels in rem when the vessel owners did not fully pay the contracted amounts. The trial court granted the owners' motion to dismiss the complaint, finding that plaintiff did not have a maritime lien against the vessels because the contract was not maritime in nature. The appellate court reversed, ruling that…

15 Aug 2005

Bond Substitutes for Res

The U.S. Court of Appeals for the Ninth Circuit ruled that as long as there is a valid seizure of the res at the initiation of an in rem proceeding, jurisdiction is not lost by substitution of a bond followed by return of the bond under court order. In the instant case, plaintiff brought an in rem admiralty action against three fishing vessels to execute a necessaries lien and the vessels were arrested. The owners made a restricted appearance and posted a bond to obtain release of the vessels. The trial court then granted defendants’ motion for summary judgment and ordered the bond to be returned. The appellate court reversed the summary judgment decision and remanded the case. The trial court then held that it lacked jurisdiction because the bond had been returned.