A ship arrest in Estonia by Sorinen Law Offices
Sorainen
Parnu mnt. 15
10141 Tallinn
Estonia
Tel: +372 6400 900
Fax: +372 6400 901
email: sorainen@sorainen.ee
web: www.sorainen.com
Background. Estonia’s main sea port is Tallinn and since 1990 it has experienced considerable growth of transit of cargo. Estonia has ratified the 1999 Convention On Ship Arrests and it has also incorporated the principles of the Convention into the national legislation regulating arrest of the ships. Such legislation is mainly Law of Property of Ships and Code of Civil Proceedings.
Jurisdiction. The presence of a ship in Estonian territorial sea is sufficient to found jurisdiction in Estonia. A claim on ship arrest, as a tool to secure the claim, should be presented, as a general rule, to the same court, which according to jurisdiction rules will decide over the principal claim.
General possibility of arrest. The Law Of Property of Ships determines the meaning of maritime claim and provides that a ship may be arrested to secure a maritime claim only. Maritime claim in Estonian legislation has wider meaning than in the above-mentioned arrest conventions.
Time available to submit the Statement of Claim. If the Court applies the arrest of ship, as a provisional security measure, before a principal claim is submitted to the Court then the principal claim shall be submitted in 30 days. In case of failure to submit the principal claim to the Court within the specified term by the Court, the interim security measure shall be repealed.
Security. The Court while deciding over a claim on arrest of ship may require that a plaintiff submits security (cash deposit) for covering losses of defendant, which might arise in relation to the arrest of ship. After ruling of the Court entered into force based on which the principal claim was declined a defendant has the right to claim damages incurred because of unjustified arrest of ship.
The Court?s arrest order. Court issues a ruling over a claim on arrest of ship not later than the next day as of the day of receiving the claim from the plaintiff. The Court issues a ruling without informing a defendant and other interested persons. An appeal may be submitted against a ruling of the Court, however the appeal does not suspend the enforcement of the Court’s ruling.
Enforcement of the Court’s arrest order. The Court’s ruling to arrest of ship has to be enforced under accelerated procedure. The Bailiff’s office having received Court’s ruling to arrest the ship has to start its enforcement proceedings immediately. The Court’s ruling to arrest of ship does not apply to cargo of the ship. Arrest of ships registered in Estonia is enforced by entering respective notes in the Ship Register and appointing a person responsible for maintenance of the ship. Arrest of the foreign ships is different in a way that in practise an Act of Arrest is presented to port authorities.
Release of the ship from the arrest. Upon application of the defendant the Court may decide but is not obliged to replace the arrest of the ship with suitable security (deposit or bank guarantee). No release from the arrest may occur if plaintiff is claiming ownership over the ship or the dispute is between owners of the ship over the use of the ship. In case parties to the dispute do not agree upon the security, it may be determined by the court.
Practicalities of the arrest. Any document of foreign origin submitted to the court should be translated and in some cases apostilled or legalized. The document shall be in a form of original or certified copy. However, in urgent cases it is possible to submit documents in required form after submitting initially copies only. By the end of 2001 Estonian courts and bailiffs have acquired remarkable experience in arresting the ships. Estonia is a party to Hague Convention on abolishment of legalisation of the documents.
