Tartu mnt 7
10117 Tallinn
Estonia

Tel: + 372 6115194
Fax: + 372 6115 193
A. O. H.: + 372 5276569

Email: info@malsco.ee
Website: http://www.malsco.ee/

Contact Person 1: Indrek Nuut
Contact Person 2: Merle Vanikver

All aspects of maritime law, commercial and corporate law, civil and administrative litigation.

Jakobsoni 14
10128 Tallinn
Estonia
Tel: +(372)6009 920
Fax: +(372)6009 921
Website: http://www.phlaw.ee/
Email: phlaw@phlaw.ee

1. Overview

Pohla & Hallmägi has arrested ships starting from 1997, being one of the first law firms in the independent Estonia engaged in ship arrests.  Pohla & Hallmägi has represented both creditors and shipowners upon arrest of ships. 

Ship arrest in Estonia is normally handled speedily and by a judge who specializes in maritime matters. Normally a ship will be arrested in Estonia within 1-2 working days as of submitting an application to arrest the ship, provided that the application is well grounded and the necessary fees have been paid.

In case of urgency, it may be possible to arrest the ship even on the same day when the application was submitted. Pohla & Hallmägi has successfully arrested a ship in the morning and managed to release the ship from the arrest in the evening after the outstanding payment has been made.

2. Applicable laws

Estonia is a party to the following conventions, which regulate the arrest of ships and their possible sale:
a. International Convention on the Arrest of Ships (1999) which specifies maritime claims;
b. International Convention on Maritime Liens and Mortgages (1993) which specifies maritime liens;
c. International Convention on Civil Liability for Oil Pollution Damage (1969) and amendments;
d. Convention on Limitation of Liability for Maritime Claims (1976).

3. Claims subject to ship arrest

A ship will be arrested to secure a maritime claim or a maritime lien, irrespective of the flag of the ship and the nationality of the debtor.

Normally courts in Estonia are reluctant to arrest a ship of the debtor, if the claim arises from a contract, but is not secured by a maritime claim or a maritime lien. However, arrest of a ship to secure such claim in Estonia may not be excluded. If the ship is registered in the Estonian registry, a claim may also be secured by setting a mortgage on the ship by the court.

Maritime claims in Estonia can arise from the following:
1) loss of or damage to property caused by the operation of the ship;
2) loss of life or personal injury occurring, whether on land or on water, in direct connection with the operation of the ship;
3) salvage operations or any salvage agreement, including, special compensation relating to salvage operations in respect of a ship which by itself or its cargo threatened damage to the environment;
4) damage or threat of damage caused by the ship to the environment, coastline or related interests, also:
- costs of measures taken to prevent, minimise, or remove such damage;
- compensation for such damage;
- costs of reasonable measures of reinstatement of the environment actually undertaken or to be undertaken;
- loss incurred or likely to be incurred by third parties in connection with such damage;
- and other damage, costs, or loss of a similar nature to those identified in this clause;
5) costs or expenses relating to the raising, removal, recovery, destruction or the rendering harmless of a ship which is sunk, wrecked, stranded or abandoned, including anything that is or has been on board such ship, and costs or expenses relating to the preservation of an abandoned ship and maintenance of its crew;
6) any agreement relating to the use or hire of the ship, whether contained in the corresponding agreement or otherwise;
7) any agreement relating to the carriage of goods or passengers on board the ship, whether contained in a charter party or otherwise;
8) loss of or damage to or in connection with goods (including luggage) carried on board the ship;
9) general average;
10) towage, pilotage;
11) goods, materials, provisions, bunkers, equipment (including containers) supplied or services rendered to the ship for its operation, management, preservation or maintenance;
12) construction, reconstruction, repair, converting or equipping of the ship;
13) port, canal, dock and other waterway dues and charges;
14) wages and other sums due to the master, officers and other members of the ship’s complement in respect of their employment on the ship, including costs of repatriation and social insurance contributions payable on their behalf;
15) disbursements incurred on behalf of the ship or its owners;
16) insurance premiums (including mutual insurance claims) in respect of the ship, payable by or on behalf of the shipowner or demise charterer;
17) any commissions, brokerages or agency fees payable in respect of the ship by or on behalf of the shipowner or demise charterer;
18) any dispute as to ownership or possession of the ship;
19) any dispute between co-owners of the ship as to the use of the ship;
20) restricted real rights established on the ship;
21) any dispute arising out of a contract for the sale of the ship.

Arrest is permissible of any ship in respect of which a petition is filed with a court for securing a maritime claim if:
1) the person who owned the ship at the time when the maritime claim arose is liable for the claim and is owner of the ship when the arrest is effected;
2) the demise charterer of the ship at the time when the maritime claim arose is liable for the claim and is demise charterer or owner of the ship when the arrest is effected;
3) the claim is based on the restricted real rights established on the ship;
4) the claim relates to the ownership or possession of the ship;
5) the claim is against the owner, demise charterer, manager or operator of the ship and is secured by a maritime lien.

The following claims in Estonia are secured by a maritime lien:
1) claims for wages and other sums due to the master, officers and other members of the crew in respect of their employment on the ship, including costs of repatriation and social security contributions payable on their behalf;
2) claims in respect of loss of life or personal injury occurring, whether on land or on water, in direct connection with the operation of the ship;
3) claims for reward for the salvage of the ship;
4) claims for port, canal, and other waterway dues and pilotage dues;
5) claims which arise out of direct damage caused by the operation of the ship other than damage to cargo, containers and passengers’ effects carried on the ship.

Maritime lien transfers together with a ship upon transfer of the ship regardless of whether the acquirer of the ship knew of the encumbrance of the ship with a maritime lien; a maritime lien also transfers with a ship upon a change of location of the registration of the ship or change of the flag of the ship. A maritime lien securing a claim extinguishes after one year has passed from the creation of the claim secured by the maritime lien or if the maritime lien arises from unpaid wages, after one year has passed from the claimant leaving the ship.

Arrest is also permissible of any other ship or ships which is or are owned by the person who is owner of the ship, or bareboat charterer, time charterer or voyage charterer of the ship in respect of which the maritime claim arose, except if the claim arises from a dispute concerning the right of ownership or possession of a ship.

Cargo on board of the ship and bunkers may not be separately arrested.

4. Arrest procedure

In order to arrest a ship, a well founded application must be submitted to the court, a state duty must be paid (currently approximately 30 EUR) and a counter-security must be given of at least 5% of the value of the claim. The court may demand a higher counter-security (normally it is 15% of the sum of the monetary claim). It is possible to make an application to the court to pay the counter-security within a reasonable time after the arrest (normally the judge would grant up to 7 days). If the counter-security is not paid within the given time, the arrest would be lifted.

Pohla & Hallmägi always acts fast to arrest a vessel and would normally arrest a vessel within a few days as of first communication with the Client. In order to submit an application for the arrest, we would need a power of attorney (may initially be sent by fax), signed client agreement (may initially be sent by fax) and prepayment for our legal services and for the fees and security which may be demanded by the court.

In practice it is possible to submit documents proving the arrest of the vessel in English, but the court or the other party may require a translation of documents later on. It is possible to submit the application and all supporting documents electronically without an apostille, but the court may later require originals or apostilled documents, depending on the case.

The courts will accept jurisdiction over the substantive matter provided that the parties have not previously agreed on jurisdiction or on arbitration. If such an agreement has been made, the court would demand proof of submitting the claim to the competent court or to arbitration. However, if a vessel is in an Estonian port, it may be arrested regardless of the place of solving the dispute, even when the dispute shall be solved in arbitration court abroad.

5. Miscellaneous

After the arrest, the substantive claim must be filed within the deadline given by the court, which is up to 30 days. If the claim is not filed within the deadline given by the court, the arrest shall be lifted.

If a ship is arrested, it is possible to release the ship from the arrest by giving a sufficient security for the claim (to transfer the sum indicated in the arrest order to the account of the court or give a bank guarantee acceptable to the court).

In case of wrongful arrests the security paid and any additional damages may be demanded by the defendant in separate proceedings from the party who wrongfully applied for arrest of the ship.

Estonia does not acknowledge piercing and lifting of the corporate veil. The claim must be against the person who is owner of the ship, or bareboat charterer, time charterer or voyage charterer of the ship in respect of which the maritime claim arose.

It is possible to put a second or third arrest on the ship which has already been arrested in Estonia.

It is possible to sell the ship during the time of the proceedings. An application may be made at any time when it is evident that the defendant does not put up security. Normally the sale of the ship would take place within 6-12 months as of the arrest of the ship.

The money received from a compulsory auction of the ship shall be distributed in the following order:
1) the expenses connected with the forced sale and seizure of the ship, and expenses which the state incurs for removal of the ship from the waterways in order to secure safe navigation;
2) claims secured by a maritime lien;
3) claims secured by a maritime mortgage;
4) other claims (including maritime claims).

If the ship is arrested by several parties and there is a dispute regarding distribution of the proceeds of the sale, it must be decided in separate proceedings. Unfortunately the proceedings to settle disputes regarding division of the proceeds from the sale have not yet been regulated in sufficient detail, but we are hopeful that this will happen within 2011.

Pärnu mnt 15, 10141
Tallinn, Estonia.

Tel: +372 6400 900
Fax: +372 6400 901
AOH: +372 5 018 498

Website: www.sorainen.com
Email: estonia@sorainen.com

Contact Person: Mr. Carri Ginter, partner.
 
Other offices: Latvia, Lithuania, Belarus.

Banking; Capital Markets; Corporate; Competition; Construction; Dispute Resolution; Distribution & Trade; Employment; Energy & Utilities; Environmental; Financial Services & Regulation; Information Technology; Infrastructure & Regulatory; Insurance; Intellectual Property; Investment Funds, Structures & Pensions; Investment Incentives; Mergers & Acquisitions; Pharmaceuticals; Private Equity; Privatisation; Project Finance & PPP; Public Procurement; Real Estate; Restructuring & Insolvency;, Tax & Customs; Telecommunications; Transport & Maritime.

Ports the firm operates in: Paldiski, Tallinn and Pärnu.

SORAINEN is a leading regional business law firm with fully integrated offices in the Baltics and Belarus. Established in 1995, today SORAINEN numbers more than 100 lawyers and tax consultants advising international and local clients on all business law issues.

SORAINEN is recognised as “Baltic Law Firm of the Year” by International Financial Law Review (2010, 2009), PLC Which lawyer? (2010, 2009) and The Financial Times & Mergermarket (2008).

SORAINEN is the first law firm in the Baltics and the only one in Belarus to implement a quality management system under ISO 9001 standards (certified by Lloyd’s Register Quality Assurance).

Hansa Law Offices

Law Firm Pohla & Hallmägi

Law firm SORAINEN

Lepik & Luhaaar Lawin, attorneys at law  

MALSCO Law Office

INFO Port of Paldiski

About Ship Arrests / Releases in Paldiski

About Ship’s management, ownership or port detentions

Jakobsoni 14
10128 Tallinn
Estonia

Tel: +(372)6009 920
Fax: +(372)6009 921

Website: www.phlaw.ee
Email: phlaw@phlaw.ee

Contact Person 1: Martin Männik
Contact Person 2: Asko Pohla

Ship arrest and related litigation; Disputes related to ship collisions and oil pollution.

Ports the firm operates in: Ports near Tallinn, Port of Muuga, Port of Pärnu and Port of Paldiski.

Viru tanav street 5,
Tallinn, 10140
Estonia

Tel: +372 6-446-227
Fax: +372 6-314-417

Email: estlaw@neti.ee
Web: http://www.hough-hubner-attorneys.ee/

Contact 1: Indrek Link
Contact 2: Igor Kostjuk

Hansa Law Offices

Law Firm Pohla & Hallmägi

Law firm SORAINEN

Lepik & Luhaaar Lawin, attorneys at law  

MALSCO Law Office

INFO Port of Pärnu

About Ship Arrests / Releases in Pärnu

About Ship’s management, ownership or port detentions

Hansa Law Offices

Law Firm Pohla & Hallmägi

Law firm SORAINEN

Lepik & Luhaaar Lawin, attorneys at law 

MALSCO Law Office

INFO Port of Tallin

About Ship Arrests / Releases in Tallinn

About Ship’s management, ownership or port detentions

DISCLAIMER: This information is not intended to constitute legal advice, for such urpose please contact Shiparrested registered law firms.

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Gonsiori 7
10117 Tallinn
Estonia

Tel: +372 5062428
Fax: +372 6603 801

Email: tallinn@hansalaw.com
Web: www.hansalaw.com

Contact: Andres Vinkel

Maritime Law, arbitration, insurance, collisions, cargo claims, civil, contract, corporate and tax law, litigation.

Other Offices: Advokatu kontora Baranauskas ir Valciukas Hansa Law Offices, Pamenkalnio g.23-2/ Auku g. 5-2, Vilnius 01113 Tel. +370 52123582 Fax. +370 52784655