ADL - Admiralty Practice Overview

Determining who is liable for cargo damage during transport.

Differentiating liability between a ship's owner and those who charter it.

Liability in cargo damage cases depends on ownership at two points: (1) the time of the damage, and (2) the time the action is taken.

The right to file a lawsuit targeting a specific ship for cargo damage.

At the time of filing the lawsuit, determining who owns the ship that is being targeted is a priority.

Ownership of a ship may change between the time of cargo damage and the legal action.

Determining liability in cargo damage cases can be complex and frequently leads to legal disputes.

A summarized set of steps for determining something.

Ensuring a judgment won't be unpaid.

The strongest claim you can reasonably make.

The amount of security you are legally allowed to demand.

Clearly detailing your claim's worth so the court knows what to expect.

The maximum security amount you can get; the worth of the ship.

Only one arrest claim allowed per situation.

The ship or vessel that is specifically being targeted in a court claim.

Usually done through official correspondence.

A formal request by the claimant (the person making the claim) for financial security from the defendant (the person being sued), often in the form of a bank guarantee or letter of credit, to ensure payment if the defendant loses the case.

A guarantee of payment or compensation, usually financial; provided by the defendant to the claimant to ensure the defendant will honor their end of the deal or the outcome of the legal case.

A written agreement from a bank to another, guaranteeing the performance or payment of a legal contract or commitment.

A letter issued by a group (club) of financial institutions providing a guarantee to cover a claim, frequently used in shipping.

The illegal action of keeping or holding onto something, like a ship, that is not lawfully in the possession of the party.

The party bringing the legal action (or making the claim) against another party.

The party being sued or brought into a legal action.

Official written communications between parties in a legal dispute.

Claims filed by parties who had cargo damaged during transportation or shipping.

Seizure of a ship by a court or other authority to secure payment related to a claim against it.

A type of maritime contract where a ship's owner leases the entire vessel to another party, who then assumes all operational and financial responsibilities.

A legal claim filed for damages or losses to goods transported on a ship.

Financial guarantees or assets provided by a ship owner to compensate for potential losses or damage to cargo.

In a cargo claim, the ownership of the ship at the time the legal action is taken is crucial for determining liability.

Bank guarantee from a first-class Singapore bank, a letter of undertaking from a reputable P&I club or hull and machinery underwriter, or payment into court are acceptable forms of security.

If a plaintiff unreasonably rejects a bank guarantee from a reputable Singapore bank, the defendant can demand release of the ship and sue for damages from wrongful arrest/detention.

An institution whose reliability and standing are unquestionable.

A financial guarantee provided by a substantial, Singapore-based entity to secure a release. Rarely used.

Under certain circumstances (small claims, reputable law firm), a letter of promise from a solicitor might be acceptable.

Disagreements often arise regarding the wording and sufficiency of the guarantor's agreement. Less common, but happens.

Defendants can reserve their rights to later reduce security amounts if the initial demand seems excessively high.

Security demands can sometimes have unreasonable wording. Courts can modify these according to their judgment

A claim when a ship's detention is considered unlawful.

Provision of security under protest is when the defendant feels the amount demanded is excessive.