Priority for Unpaid Crew

The Ruta (QBD Admlty Ct TLR 21 March)

The Ruta collided with and damaged three yachts and was subsequently sold. The owners of the Ruta became insolvent, the only fund available for the satisfaction of any claim being the sum that remained from the sale of the vessel. The crew claimed priority for their wages over the claims arising out of the damage to the three yachts. A contrast between the voluntary nature of the wages lien and the involuntary nature of the damage lien might afford some justification for giving priority to the damage lien, but the contrast would, on the face of it, be more significant in resolving the ranking between a damage lien and an earlier salvage lien. Once engaged, the seaman had no option but to continue his voluntary services. The decisive factor in resolving the present issue was the fact that the wages claimants had no alternative forms of redress. Considerations of public policy justified giving them a very high level of priority, justifying a higher level of priority than the damage lienors.