Ship Arrests In The UK – Can An Arresting Party Be Required To Give Cross-Undertakings In Damages?

The law on ship arrest in England is well-entrenched. In essence, a party's ability to arrest a ship in the UK occurs as of right. Accordingly, a shipowner will be unable to recover any compensation at all for wrongful arrest unless the arrest was obtained by mala fides (bad faith or malice) or crassa negligentia (gross negligence). This would also include whether a vessel owner is entitled to request that the arresting party provide a cross-undertaking in damages in the same form as that typically required in applications for freezing orders in the Commercial Court. The recent decision in Natwest Markets plc v. Stallion Eight Shipping Co. S.A. [2018] EWHC 2033 (Admlty) confirms the Admiralty Court's position that such undertakings are not applicable in vessel arrests.

Background

The vessel was arrested by the claimant bank, as...