Babcock Fitzroy Ltd v The Ship "The M/V Southern Pasifika" High Ct of New Zealand (Priestley J) - 14 May 2012

Admiralty practice – Priorities – Shiprepairer with possessory lien bringing action in rem – Vessel sold by Registrar pursuant to Admiralty process - Whether lien attached to proceeds of sale - Whether shiprepairer or mortgagee had priority over proceeds of sale

The plaintiff (Babcock) and the third intervener (OLB) disputed their respective priorities in the sale proceeds of the motor vessel Southern Pasifika. Babcock carried out repair and refit work on the vessel in February-March 2011. There was no dispute that the relevant contract was between Babcock and the vessel’s owner. OLB held a mortgage over the vessel and its sale proceeds as a secured creditor. A ship’s mortgagee normally had priority.