Actions against sister-ships under Maltese admiralty law

Abstract

This dissertation addresses a number of issues that arise during the enforcement of a creditor's maritime claim from its inception, not on the "particular ship" but on an "alternative ship". A number of issues remain unresolved, and still need to be addressed by local legislation. Keeping in mind that Malta embraces the largest ship registry in Europe the need to address these issues becomes more important. This dissertation limits itself to examining maritime and admiralty issues and does not in any way attempt to address other issues which crop up and which merit an examination themselves in a separate study. The author adopts a practical approach rather than a completely theoretical one in writing this thesis, aided by a number of interviews and meetings with leading local practitioners. During the writing of this dissertation, the author has always kept in mind the necessity of finding the right balance between giving the creditor his rights to an effective remedy while ensuring that shipowners and their business operate in a secure business-friendly environment. The thesis commences by giving a historical overview of admiralty actions, particularly the action in rem. It continues by an examination of the "sister-ship" rule and the mode of its application locally. An examination of the "relevant person" when proceeding against a sister vessel then follows, including the issues of beneficial ownership and piercing the corporate veil. A chapter is then dedicated to an overview of comparative law, examining under which jurisdiction might the creditor be granted with the most effective remedies and the influence of European Law in these issues. The dissertation concludes with an examination of alternative and interim remedies while giving a number of proposals relating to debatable issues which crop up along the way and which merit examination by local legislators in order to attempt to prevent a situation where the courts could face dilemmas and have to deal with these issues themselves without having any guidance whatsoever.