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Lloyd's Maritime and Commercial Law Quarterly

MARITIME SECURITIES AND THE CONFLICT OF LAWS—SOME PROBLEMS

A. M. Tettenborn

Pembroke College, Cambridge.

This article attempts to investigate two simple but vital conflict of laws problems in respect of ships arrested in England. Firstly, when will the English courts recognise an alleged maritime lien arising out of a transaction taking place abroad ? Secondly (and this is a related question), what law governs the validity of a mortgage abroad of a foreign ship?1 The importance of the second question is obvious: the formalities and other requirements needed to mortgage a ship must, almost of necessity, vary the world over. The significance of the first question, on the other hand, lies in the fact that, despite efforts to unify the law, there are material differences in the situations which will give rise to a maritime lien in English and foreign law, English law being somewhat less generous than other systems in granting such liens. To take just one example, the United States and most European countries allow the necessaries-man a maritime lien : the U.S. does the same to a cargo claimant: English (and Scots) law limit both to a claim in rem under s. 1(1) of the Administration of Justice Act 1956.2 Since English law without question gives priority over a mortgage to anyone who can show a valid maritime lien, it is obviously a matter of crucial importance to, say, an American necessaries-man to be able to persuade an English court to accept his interest as amounting to a lien.

A. Recognition of maritime liens

Questions of recognition by English courts of maritime liens created abroad depend on the difference between substantive and procedural rights. By English private international law, while questions of substantive right may depend on foreign law, questions of procedural rights, i.e. of remedies, are always governed by English law,3 as are questions of priorities. Hitherto, English courts have always regarded maritime liens as purely remedial and thus applied English law to decide whether they would be recognised. In The Milford,4 for instance, the master of an American ship arrested the ship in England and claimed a maritime lien over her for his wages. By American law he had then no such lien:5 by English law he had. The court gave him his lien, characterising the question as procedural and applying English law. Similarly in The Tagus 6 the master of an Argentine ship obtained a lien in England for all the

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