IN BRIEF: FOLLOWING A VESSEL ARREST, THIS CASE EXAMINED
WHETHER THE DEMAND FOR SECURITY SOUGHT FOR THE VESSEL'S RELEASE
WAS EXCESSIVE, UNREASONABLE AND WITHOUT GOOD CAUSE.
In a recent decision of Justice McKerracher in the Federal Court
of Australia in
Delaware North Marine Experience Pty Ltd v The Ship "Eye
Spy" [2017] FCA 708, delivered on 23 June 2017,
consideration was given to the principles surrounding demands for
security for claims following a vessel arrest and the obligations
on the arresting party.
While the lengthy judgment dealt in detail with factual and
legal issues in dispute regarding damage to a chartered passenger
ferry, including issues regarding vessel seaworthiness, latent
defect and redelivery obligations under the charter, the underlying
dispute was largely irrelevant to the issue of whether security
sought for the vessel's release from arrest was excessive,
unreasonable and without good cause.
