What Do Caveats Have To Do With Ships?

Introduction

A caveat registered in the courts serves to prevent a ship's arrest by committing to pay a bond for any sum claimed against the ship which is equal to or less than the amount stated in the caveat. This is understandable as ships are highly valuable and must trade daily or run huge losses. It is better to pay a bond into the court and remain in business than find the ship at the mercy of the admiralty marshal and creditors.

This is particularly relevant when the payment bond does not amount to the admittance of the claim or submission to the court's jurisdiction. In short, the vessel remains in business and the bond payment remains with the ship owner.

Caveat against release