ASM; DGS PAPERS January 2012 March 2014

Answered

If the master fails without reasonable cause to comply with the above he is guilty
of an offence and liable to conviction on indictment to a fine and imprisonment.
Further, in the case of failure to exchange names, ports etc liable on conviction
on indictment to a fine and on summery conviction to a fine not exceeding the
statutory maximum, and in either case if he is a certified officer, and inquiry into
his conduct may be held, and his certificate cancelled or suspended.

Q 3 (a) Differentiate between Possessory and maritime lien.

(b) Differentiate between towage and salvage.
(c) Write short notes on Fund 1992 and Supplementary Fund 2003
convention.

(a) A maritime lien is a claim against a boat for non payment of goods or services
supplied to a boat. The lien arises the moment the work is completed or the
goods are supplied. A lien becomes delinquent when the request for payment is
delayed or denied. Furthermore:

A lien is a charge against property for payment of debt. Maritime liens can
arise under general maritime law (arising from collision or personal injury)
and by statute (ship mortgages). Ordinarily, local law where arrest of a
vessel or personal property occurs, governs the validity of the lien and its
priority with respect to other liens. A maritime lien has characteristics
that distinguish it from other liens:
A maritime lien is a claim laid against maritime property, most often a
vessel, but may also be brought against other personal property involved in
maritime transactions such as cargo.
A maritime lien arises from services rendered to or injuries caused by
maritime property.
Generally a maritime lien attaches to the property and is valid whether or
not recorded. It travels with the vessel or personal property from port to
port and owner to owner until it is extinguished or discharged.
Unlike land liens, most recent maritime liens may have first priority,
subject to statutes such as those establishing mortgages.
A maritime lien is enforced by an action against the property itself, by
arrest. That suit must be brought in a court having jurisdiction over the
place where the property is located at the time of enforcement. A
maritime lien is not a possessory lien such as a mechanics lien.
 ASM; DGS PAPERS January 2012 March 2014
Answered

A maritime lien is extinguished by destruction of the vessel or property, or

laches (undue delay in enforcement), or is discharged by payment or
judicial act.

A Ship owners Lien is a possessory lien which is the major difference between it
and other maritime liens. The right to this lien can be applied only on the goods
which are delivering by the ship owner when the shipper is the contractual party.
It may entitle the ship owner to retain the cargoes as security for the payment
of a debt. The contractual ship owners lien is currently found in all contracts for
carriage of goods by sea nowadays, and may be claimed if the shippers fail to pay
the due on time. However, some authorities state that there is no difference
between ship owners lien and maritime lien.

(b) The argument that services rendered by a salvor which brings in a disabled
vessel at the end of a hawser were "simple towage" is one frequently heard.
Often, insurance companies make such arguments because while they are liable to
pay a claim for salvage, in many cases, the insurance companies are not liable for
claims for towage and payment of such claims is the owner's responsibility.
However, the admiralty courts of the United States have addressed the
difference between "simple towage" and salvage services on numerous occasions
and have made it abundantly clear that, in most such situations, the services
rendered are salvage. Indeed, one leading admiralty treatise has described the
act of rescuing a ship at sea by towing her to a place of safety as the
"prototypical" act of salvage. This does not necessarily mean, however, as will be
discussed infra, that the salvor will be entitled to a huge reward for such
services. A salvage service also implies that there was some degree of danger or
some need of extraordinary assistance to the vessel which characterizes a
salvage service. Although a marine peril to the salved property is a necessary
ingredient of a valid salvage claim, the peril required in a salvage service does not
need to be one that is necessarily imminent or an absolute danger. It is sufficient
if the property is in danger, either presently or reasonably to be apprehended.

Simple towage, on the other hand, is a service that is based on the employment of
one vessel to expedite the voyage of another when nothing more is required than
the acceleration of her progress. Simple towage is regarded as having taken place
when a tow is called for or taken by a sound vessel as a mere means of saving
time, or for considerations of convenience.
 ASM; DGS PAPERS January 2012 March 2014
Answered

(c) The purposes of the Fund Convention are:

To provide compensation for pollution damage to the extent that the

protection afforded by the 1969 Civil Liability Convention is inadequate.
To give relief to ship owners in respect of the additional financial burden
imposed on them by the 1969 Civil Liability Convention, such relief being
subject to conditions designed to ensure compliance with safety at sea and
other conventions.
To give effect to the related purposes set out in the Convention.

Under the first of its purposes, the Fund is under an obligation to pay
compensation to States and persons who suffer pollution damage, if such persons
are unable to obtain compensation from the owner of the ship from which the oil
escaped or if the compensation due from such owner is not sufficient to cover
the damage suffered. Under the Fund Convention, victims of oil pollution damage
may be compensated beyond the level of the ship owner's liability. However, the
Fund's obligations are also limited to an amount set by the Fund Convention (the
limits were raised under the 1992 Protocol).

The amendments raise the maximum amount of compensation payable from the
IOPC Fund for a single incident, including the limit established under the 2000
CLC amendments, to 203 million SDR. However, if three States contributing to
the Fund receive more than 600 million tonnes of oil per annum, the maximum
amount is raised to 300,740,000 SDR.

The aim of the established Fund is to supplement the compensation available

under the 1992 Civil Liability and Fund Conventions with an additional, third tier
of compensation. The Protocol is optional and participation is open to all States
Parties to the 1992 Fund Convention.

The total amount of compensation payable for any one incident will be limited to a
combined total of 750 million Special Drawing Rights (SDR), which includes the
amount of compensation paid under the existing CLC/Fund Convention.