Admiralty jurisdiction: By virtue of Sections 19(a) and 29(2)(a) of the Courts of Justice Law of 1960 (Law 14/60), the Cyprus Admiralty jurisdiction is exercised by the Supreme Court of the Republic of Cyprus.
Ship arrest in Cyprus is governed by section 29 of Courts of Justice Law (14/1960) and by the Administration of Justice Act 1956 of the United Kingdom, which was enacted so as to bring into force the Ship Arrest Convention 1952
.
According to section 1(1) of the Administration of Justice Act 1956, the main claims that would allow the Supreme
Court admiralty jurisdiction are the following:
- any claim to possession or ownership of a vessel or to ownership of any share therein;
- any question arising between the co-owners of a vessel as to possession, employment, or earnings of that vessel;
- any claim in respect of a mortgage of or charge on a vessel or any share thereof;
- any claim for damage done by a vessel;
- any claim for damage received by a vessel;
- any claim for loss of life or personal injury sustained in consequence of defect in a vessel or in her apparel/ equipment, or of a wrongful act, neglect, or default of owners, charterers, or persons in possession or control of a vessel or of master or crew thereof or of any other person for whose wrongful acts, neglects, or defaults owners, charterers, or persons in possession or control of a vessel are responsible, being an act, neglect or default in navigation or management of the vessel, in loading, carriage, or discharge of goods or in embarkation, carriage, or disembarkation of person;
- any claim for loss or damage to goods carried in a vessel;
- any claim arising out of any agreement relating to carriage of goods in a vessel or to use/charter;
- any claim in nature of salvage;
- any claim in nature of towage in respect of a vessel;
- any claim in nature of pilotage in respect of a vessel;
- in respect of goods or materials supplied to a vessel for her operation or maintenance;
- any claim in respect of construction, repair, equipment of a vessel, dock charges/ dues;
- any claim by a master or crew for wages and claim by or in respect of a master or crew for any money or property, which under any provisions of the Merchant Shipping Acts 1894-1954 is recoverable as wages at Court or in the manner in which wages may be recovered;
- any claim by a master, shipper, charterer, or agent in respect of disbursements made a vessel’s account;
- any claim arising out of a general average act;
- any claim arising out of bottomry; and
- any claim for the forfeiture or condemnation of a vessel or of goods.
Arrest Proceedings
The arrest of a ship is only possible in the case of an action in rem which is an action against the vessel herself (the res) and the writ of summons must be served on the vessel.
An application for the arrest of a vessel may be filed by a debtor and the Supreme Court in its admiralty jurisdiction has an absolute right for the issue of an order for the arrest of a vessel, in line with Rule 50 of the Cypriot Admiralty Jurisdiction Order 1893.
Rule 50 provides that the admiralty court has the right for the arrest of property where: there are issues which must be tried between the parties, it suffices if it is found that the plaintiff has a right to have those issues tried, it is abundantly clear that the plaintiff has a right to have the issues raised by the oral evidence tried and the plaintiff was entitled to have the vessel arrested.
The Plaintiff who wishes to arrest the Defendant ship must file an application which must be supported by an affidavit. At this stage it is not necessary for the Court to go into the merits of the action and decide whether the Plaintiff’s factual or legal contentions are right or wrong. An affidavit must also be filed in support of the application for the arrest of the vessel, presenting background information of the case to be tried and stating that the assistance of the court is required. The affidavit must provide all data needed to satisfy the provisions of the rules, as well as the pre-conditions for the issuance of an arrest order.
In the event that the application for the arrest of a vessel is successful, the Admiralty Court will require the following from the claimant:
- Lodgement of a deposit for the expenses which may be incurred by the Admiralty Marshal in connection with the custody and supervision of the vessel whilst under arrest;
- Lodgement of any other amount of money required by the Registrar for the expenses of the arrest;
- Posting a security bond by way of a Cyprus bank guarantee. Failure to comply with the above requirements will automatically result in the release of the vessel.
Sale of a Ship under Arrest
Regarding the sale of a vessel under arrest, under Rule 74 the Court has the power, either before (pendente lite) or after final judgement, by its order to appoint the marshal of the Court or any other person to appraise the ship under arrest and to sell the ship with or without appraisal.
Typical grounds for a sale pendente lite are that the ship is costing a disproportionate amount in daily expenses, or that she is deteriorating owing to being under arrest for a long period, or that the cargo is perishable
Release of a Ship under Arrest.
Any party may apply to the Court for the release of any property arrested and the Court or Judge may, by order, direct the release of such property upon such terms as to security or as payment of any costs of appraisement or removal or inspection or otherwise as the Court shall see fit.
Rule 60 of the Cypriot Admiralty Jurisdiction Order sets out that any person may file an application for releasing a vessel under arrest and that the court may order the release of such vessel upon such conditions, after lodging a security or payment of any estimated costs with regard to the removal or inspection of the vessel. Thus, any application for the release of a ship should be conducted through the submission of an autonomous action for such release.
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