Shipping Litigation: Limits To US Federal Rule B Enforcement Proceedings

• Published date: 31 March 2024
• Subject Matter: Litigation, Mediation & Arbitration, Transport, Marine/ Shipping, Arbitration & Dispute Resolution
• Law Firm: ParrisWhittaker
• Author: Parris Whittaker

As experienced shipping lawyers we're regularly involved in complex legal disputes involving ship owners, charterers, lenders, port authorities and others. We have a high success rate and, while it's one thing for a case to succeed in court, it's sometimes another to secure or enforce the judgment. The way judgments are enforced varies widely from country to country. Options for a successful litigant will also depend on the terms of any contract and the nature of the judgment itself. Rules about enforcement of maritime judgments in particular may also be relevant.

Our comprehensive maritime litigation service includes planning ahead for the possibility that a judgment you secure might be difficult to enforce. Our specialist shipping and maritime work regularly involves other jurisdictions, notably the US. Here we look at a very specific set of US rules applicable to admiralty or maritime enforcement proceedings. 'Rule B' of the Supplemental Federal Rules of Civil Procedure for Admiralty and Maritime Claims provides those bringing maritime claims with a valuable tool to secure their monetary claim - before they actually succeed in obtaining a judgment. This guards against the all too common scenario of a defendant hiding or dissipating assets to frustrate the plaintiff's claim. As we'll see below however, while the Rule B procedure is a useful and effective remedy it applies only in limited circumstances.

You can get in touch with our maritime team directly on 1-242-352-6110 and 1-242-352-6112. Alternatively, you can always contact us online.

What is Rule B?

Rule B of the US Federal Rules of Civil Procedure enables a court to attach or earmark a defendant's property up to the value of a claim made against it before the case has been decided definitively. Note that:

• The claim must be a maritime claim such as a claim for collision damages or breach of a contract like a charterparty or bill of lading
• The procedure is supplementary to the remedy of arresting a vessel under Federal Rules C
• The plaintiff can enforce its claim even if the defendant is not present in the US
• The property to be attached need not be maritime in nature and it need not have any connection to the claim

The plaintiff doesn't need to give the defendant notice of starting the Rule B procedure so there is an element of surprise in a successful application: often the defendant will only become aware of the plaintiff's action when the assets have already become the subject of the attachment...