Arrest of tug boats for unpaid costs of providing master and crew

In brief - Federal Court dismisses appeal in relation to three of four vessels

In the case of Ships "Hako Endeavour", "Hako Excel", "Hako Esteem" and "Hako Fortress" v Programmed Total Marine Services Pty Ltd [2013] FCAFC 21, the issues were: were the arrests of the tugs valid? Had the bareboat charter been terminated? To whom had the services been supplied? Was the claimant the creditor who was entitled to sue? Was it subrogated to the crew's maritime lien?

This was a decision of the Full Court of the Federal Court comprising Siopsis, Rares and Buchanan JJ.

Four writs each claim $1.2 million for provision of master and crew

Programmed Total Marine Services Pty Ltd (PTMS) arrested the four tugs identified in the title of the proceedings. Each had a different owner and each writ claimed approximately $1.2 million in respect of the costs of providing a master and crew pursuant to a deed between PTMS, Boskalis Australia Pty Ltd (Boskalis) and Hako Offshore Pte Limited (Hako Offshore).

PTMS asserted in the writs that, inter alia, Hako Offshore was the demise charterer of each ship and that PTMS had been subrogated to each master's and crew's maritime lien for their wages.

Primary judge refuses to set writs aside

At first instance the primary judge had refused, on the application of the owners, to set aside the writs. The arguments raised were:

in relation to the "Hako Fortress" the owner had withdrawn the vessel and terminated the demise charter with...