The owners of the yacht 'Carbonnade' and Anr v The owners of the ship 'Ruta'; Malcolm Harding (as owner of the 'Lutra II') v The owners of the ship 'Ruta' - QBD (Admlty Ct)(David Steel J) - 10 February 2000

Admiralty practice - Priorities - Whether maritime lien for wages invariably ranks below maritime lien for damage - Whether damage claimant obtaining security after arresting vessel can enforce claim against proceeds of sale

On 10 October 1997 the general cargo vessel Ruta collided with three yachts, Carbonnade, Shamal II and Lutra II', while outward bound from Ipswich. The yacht owners claimed damages totalling some £69,000. In 1998 a new crew took over the Ruta. On 15 September 1998 Ruta was arrested in the Republic of Ireland by the managers of the vessel and also the mortgagees. On 25 September 1998 the owners of Lutra II took over the arrest. On 2 October 1998 the vessel was released against a letter of undertaking in the sum of £14,000 from Ruta's P&I Club. On 27 October 1998 Ruta was arrested at Sables d'Olonne, but the hull underwriters of Ruta had by now gone into liquidation, and the club refused to furnish security in their stead. Ruta was accordingly released from arrest with a view to her completing a laden voyage to England, thereby earning freight. On 2 November 1998 Ruta arrived at Immingham and was re-arrested. The vessel was eventually removed to Hull where she remained until sold.