What is a maritime lien?

A maritime lien is a legal right which allows a person to claim a portion of a vessel’s value as compensation for expenses or services rendered. In other words, a lien is a form of security interest which secures a creditor’s right to payment. Maritime liens come into force when a vessel owner takes on a debt or other obligation, such as repairing a vessel or providing services. When a maritime lien is established, the vessel can be held until the lien is satisfied. This means that the vessel in question cannot move until the lien is paid in full. In Washington, a maritime lien is created by filing a complaint in Federal District Court and must be renewed within one year of its creation. A lien also remains in place for subsequent owners of the vessel, meaning that a lien is a “follow the vessel” type of claim, meaning that the lien transfers to any new owner of the vessel. Maritime liens are beneficial for creditors because they provide assurance that the vessel can be seized in the event the debt is not paid. For example, if a vessel owner fails to pay back a debt related to repair costs, the creditor can look to the vessel as recompense without having to sue the owner. Additionally, maritime liens provide better protection to creditors than common law liens because they are not subject to any state limitations or laws on attachment of property. Overall, maritime liens are an essential part of maritime law and are highly beneficial to creditors when the debtors default on their obligations.

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What is a maritime lien?

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