A ship arrest in Lithuania, by Sorainen Law Offices
Sorainen Law Offices
Odminiu g. 8,
LT-2001 Vilnius
Lithuania
Tel: +370 2 685 040
Fax: +370 2 685 041
Background. Lithuania s main sea port is Klaipeda. From all the Baltic States the Lithuania is the most difficult country where to enforce the ship arrest. Lithuania is not a party to Brussels Arrest Convention of 1952, however it may ratify it soon. Therefore, the ship arrest in Lithuania is regulated mainly by the Code on Civil Proceedings.
Jurisdiction. The presence of a ship in Lithuanian territorial sea is sufficient to found jurisdiction in Lithuania. A claim on ship arrest, as a tool to secure the claim, should be presented to the same court, which according to jurisdiction rules will decide over the principal claim. If the value of the principal claim exceeds 100 000 Litas (about $ 25000), the Klaipeda District Court has the jurisdiction over the principal claim and a claim on security measure (e.g. arrest of ship).
General possibility of arrest. The Code On Civil Proceedings establishes that the arrest of assets belonging to and in possession of the defendant or other persons, e.g. arrest of ship, is one of the measures securing the principal claim (in addition to ban on defendant to perform certain acts, ban for other persons to transfer to defendant property or perform obligations to him, etc).
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, the Court should specify term for submitting a principal claim, which may not exceed 14 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submit the principal claim to the Court within the specified term by the Court, the interim security measure shall be repealed. Difficulties may arise when the dispute between the parties is subject to foreign law and/or court or arbitration
Requirements for the successful arrest. The plaintiff submitting a claim to the Court on arrest of ship has an obligation to prove that in the absence of the arrest of the ship an enforcement of the Court judgement may be burdened or become impossible. Provided a plaintiff submits the statement of claim on the arrest of ship, as a provisional security measure, to the Court, the plaintiff must present evidences certifying certain threats to its interests. In addition, the plaintiff shall indicate to the Court reasons why the principal claim was not submitted together with the provisional security measure.
Security (deposit). The Court while deciding over a claim on arrest of ship may require that a plaintiff submits security for covering costs 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 it from the plaintiff. The Court issues a ruling without informing a defendant and other interested persons. An appeal does not suspend the enforcement of the Court s ruling.
Enforcement of the Court s arrest order. The Bailiff s office having received Court s ruling to arrest the ship has to start its enforcement proceedings immediately. In addition, bailiff must also take measures to find debtor s other property.
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 security deposit. The security deposit shall be paid in local currency into the Bailiff s account and the deposit remains interest free until the case is resolved.
Practicalities of the arrest. There are certain procedural difficulties, such as: power of attorney has to be legalized if issued foreign country. Lithuania is a party to the Hague Convention concerning legalization of documents. In addition, procedural difficulties might arise in delivering court notifications to the foreign claimant and/or defendant. Formally it has to be done through the Ministry of Justice of Lithuania. The court practice on the arrest of the ships in inconsistent and therefore unpredictable.