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ARTICLE · 28 OCTOBER 2024

Establishing The Limits Of Shipowner Standing In In Rem Actions Against Vessels Under Bareboat Charters

In three nearly identical judgements delivered on 3 October 2024, the Maltese Court of Appeal (the "Court of Appeal"), presided over by Chief Justice Mark Chetcuti, Judge Christian Falzon Scerri and Judge Josette Demicoli, addressed the extent of a shipowner's standing in in rem proceedings against a vessel subject to bareboat charterparty agreement.

MaltaLitigation, Mediation & Arbitration

In three nearly identical judgements delivered on 3 October 2024, the Maltese Court of Appeal (the "Court of Appeal"), presided over by Chief Justice Mark Chetcuti, Judge Christian Falzon Scerri and Judge Josette Demicoli, addressed the extent of a shipowner's standing in in rem proceedings against a vessel subject to bareboat charterparty agreement. The cases involved claims by Marlow Navigation Co. Ltd. ("Marlow") and North by Northwest GmbH ("North by Northwest") (together the "Claimants"), which sought to recover debts related to seafarer wages, crewing services, and bunkers supplied to the vessels MSC Bilbao and MSC Valencia. The Court of Appeal affirmed the principle that the charterer within a bareboat charterparty is granted full control and possession of the vessel, leaving the shipowner without locus standi to file an appeal on behalf of such vessel during the period of the charterparty.

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