Coastal Barge Corporation v The M/V “Maritime Prosperity” and Anr - US District Court (MD Florida)(Kovachevich DJ) - 27 October 1994

Shipowner arrests vessel in breach of P & I Club letter of undertaking - Whether shipowner liable to pay damages for wrongful arrest

In October 1990 the vessel Lash Atlantico , owned by the plaintiff (“Coastal”) collided with the vessel Maritime Prosperity , owned by Rosario Navigation & Co Inc (“Rosario”) near Port Said. Coastal brought proceedings in the United States courts for the arrest of the Maritime Prosperity in order to enforce Coastal’s lien for damages resulting from the collision. The US court issued a warrant of arrest, which was served on the Maritime Prosperity on 25 October 1993. The vessel remained under arrest for nine days. The detention ended when the US court quashed the warrant of arrest. Rosario now sought to recover damages from Coastal on the ground that the Maritime Prosperity had been wrongfully arrested.