Recently, a Hong Kong-flagged vessel was seized by a U.S. Marshal in Long Beach, California. A lawsuit was also filed against the vessel.

Negotiations were conducted with the Protection and Indemnity (P &I) club to get a Letter of Undertaking requiring the vessel to post a $5 million bond in order to regain control of the vessel. Like many other vessels, if the bond is not posted it will be left to the court's care and the plaintiff will be left with the responsibility of selling or disposing of the vessel.

Arrest or Seizure of a Vessel

Generally, vessels are arrested due to unsettled leins or other financial neglect by the vessel or its owner. In most cases a vessel, itself is responsible for payment of leins, mortgages, and other financial responsibilities.

Seizure of a vessel is the physical overtaking of a vessel by a U.S. Marshal. The Marshal goes aboard the vessel and posts a Notice of Arrest on the vessel itself. Copies of the notice are also given to the person in charge of the vessel and the owner of the vessel. Notice of the seizure is also posted in authorized newspapers and given to any lein holder that may have interest in the vessel.

When in the custody of the court, the owner has no control over the vessel. However, if they are able to post a bond, much like one would post bail for someone in jail, control of the vessel is returned to the owner and litigation continues with the bond money as the subject of the suit.

If a bond is not posted for the release of the vessel it is put up for auction, but cannot be sold for 4 months and until the sale is confirmed by the court. The court, custodial services, and Marshal's fees are all paid with the proceeds of the sale. The remainder of the proceeds go to the plaintiff and any remaining balance goes to the owner.