Toolkit · Maritime

The Lien Priority Chart, Verified Complaint, and Release Bond Toolkit

46 U.S.C. § 31301

Type
Toolkit
Jurisdiction
National
Date
2024-10-08
Topic
Maritime

This toolkit supplies the documents a vessel arrest matter runs on, each keyed to the authority it implements. Pre-arrest materials include a lien verification worksheet, a priority chart computed against vessel value, and a custodia legis budget that determines whether an arrest is economically rational. Execution materials include a verified complaint outline drafted for the particularity requirement, an affidavit of presence, and a substitute custodian engagement that controls the largest recurring cost. Release materials include a letter of undertaking with the terms worth negotiating and a security comparison. Attachment materials include the diligent inquiry affidavit on which most attachments fail. Sale materials include a motion for sale, a notice protocol, and a claim filing form capturing the attachment dates the inverse order rule depends on. Buyer and limitation materials complete the set.

The Lien Priority Chart, Verified Complaint, and Release Bond Toolkit

Maritime > Maritime Liens, Vessel Arrest, and Attachment | Published 8 October 2024 - Updated 28 March 2026 | UpLaw - uplaw.us

Authority reference card

Question Authority
What are the lien definitions? 46 U.S.C. § 31301
What related provisions apply? 46 U.S.C. § 31305
How are instruments filed? 46 U.S.C. § 31321
What is a preferred mortgage? 46 U.S.C. § 31322
How is a preferred mortgage lien enforced? 46 U.S.C. § 31325
What is the effect of a court sale? 46 U.S.C. § 31326
Who is presumed to have authority? 46 U.S.C. § 31341
What creates a necessaries lien? 46 U.S.C. § 31342
How is a notice of claim of lien recorded? 46 U.S.C. § 31343
What governs vessel documentation? 46 U.S.C. § 12101, 46 U.S.C. § 12105
What is the Jones Act claim? 46 U.S.C. § 30104
What permits limitation of liability? 46 U.S.C. § 30501, 46 U.S.C. § 30503, 46 U.S.C. § 30505, 46 U.S.C. § 30506, 46 U.S.C. § 30511
Where is admiralty jurisdiction? 28 U.S.C. § 1333
What interlocutory appeals are available? 28 U.S.C. § 1292
What is the bankruptcy stay? 11 U.S.C. § 362
What is estate property? 11 U.S.C. § 541
What is bankruptcy priority? 11 U.S.C. § 507

Case anchors. Vessel status: Stewart v. Dutra Construction Co., Lozman v. City of Riviera Beach. Jurisdiction: Exxon Corp. v. Central Gulf Lines, Inc., Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co., Sisson v. Ruby, Foremost Insurance v. Richardson, Executive Jet Aviation, Inc. v. City of Cleveland. Limitation: Lewis v. Lewis & Clark Marine, Inc.. Economic loss: East River Steamship Corp. v. Transamerica Delaval Inc., Saratoga Fishing Co. v. J. M. Martinac & Co.. Crew claims: Chandris, Inc. v. Latsis, Miles v. Apex Marine Corp., The Dutra Group v. Batterton, Norfolk Shipbuilding & Drydock Corp. v. Garris, Exxon Shipping Co. v. Baker. Forum: The Bremen v. Zapata Off-Shore Co., Atlantic Marine Constr. Co. v. United States Dist. Court for Western Dist. of Tex., American Dredging Co. v. Miller.

Tool 1: Lien verification worksheet

Vessel: ___ Official number / flag: ___ Owner of record: ___ Date: ___

# Question Answer Evidence
1 Used or capable of being used as a means of transportation on water? physical characteristics, use
2 Self-propulsion, rudder, capacity to carry people or things? survey, photographs
3 Goods or services provided contract, work order
4 Are they necessaries under 46 U.S.C. § 31301?
5 Date(s) provided delivery records
6 Amount unpaid invoices, statement
7 Who ordered them purchase order, correspondence
8 That person's role owner / master / manager at port / agent of owner, charterer, owner pro hac vice, or agreed buyer
9 Presumed authority under 46 U.S.C. § 31341?
10 Delivery receipt signed aboard? receipt
11 Direct contact with the vessel or its agents? correspondence
12 Charter party obtained?
13 Prohibition-of-lien clause present? charter clause
14 Claimant's actual knowledge of it? posted notices, prior dealings
15 Paid, waived, or barred by laches? account, timeline
16 Recorded mortgage under 46 U.S.C. § 31322? search under 46 U.S.C. § 31321
17 Recorded notice of claim of lien? search under 46 U.S.C. § 31343

Conclusion. Lien exists / does not exist / contested on [issue].

Tool 2: Priority chart

Rank Class Claimant Amount Date of attachment Documented?
1 Custodia legis (post-arrest) — running
2 Seamen's wages; maintenance and cure
3 Salvage; general average
4 Maritime torts (injury, collision)
5 Preferred mortgage (46 U.S.C. § 31322) filing date 46 U.S.C. § 31321 search
6a Necessaries — most recent inverse order
6b Necessaries — next
6c Necessaries — earliest
7 State-created and non-maritime
8 Owner's equity —

Economics

Line Amount
Vessel value (appraisal)
Less ranks 1–5
Less projected custodia legis to sale
Available to this claimant's rank
This claim
Recovery ratio

Decision rule. If the available amount is below the projected custodia legis contribution, do not arrest. Attach other property or proceed in personam instead.

Tool 3: Custodia legis budget

Item Rate Daily 30 days 90 days
Marshal's fee and commission
Substitute custodian
Crew wages
Crew provisions
Repatriation reserve
Hull insurance
Liability insurance
Moorage and port charges
Bunkers for onboard systems
Security and watchkeeping
Class and statutory maintenance
Total

Cost control checklist

  • [ ] Substitute custodian engaged before arrest, at a negotiated rate
  • [ ] Crew reduced to safe minimum where flag and class permit
  • [ ] Permission sought to shift to a lower-cost berth
  • [ ] Cost sharing agreed with co-claimants who intervene
  • [ ] Interim sale motion prepared if costs will consume the res

Tool 4: Verified complaint outline

VERIFIED COMPLAINT IN REM

1. Jurisdiction. This is an admiralty and maritime claim within the meaning of Rule 9(h), and jurisdiction exists under 28 U.S.C. § 1333.

2. The vessel. The [VESSEL NAME], official number [], flag [], her engines, tackle, apparel, furniture, and appurtenances, in rem. The vessel is now within, or will during the pendency of this action be within, this district.

3. Plaintiff. [Identity, place of business, and role — supplier, repairer, crew member, mortgagee.]

4. The necessaries. Between [dates], plaintiff provided to the vessel the following necessaries within the meaning of 46 U.S.C. § 31301: [describe specifically — quantity, type, place, and date of each delivery].

5. The order. The necessaries were provided on the order of [name], who was [the owner / the master / a person entrusted with management of the vessel at the port of supply / an officer or agent appointed by the owner, a charterer, an owner pro hac vice, or an agreed buyer in possession], and who is therefore presumed to have authority to procure necessaries under 46 U.S.C. § 31341.

6. Delivery. The necessaries were delivered to the vessel and were accepted [aboard / by the master / by the chief engineer], as evidenced by [delivery receipts attached as Exhibit __].

7. Nonpayment. The agreed and reasonable value is $[], of which $[] remains unpaid, together with interest and costs.

8. The lien. By reason of the foregoing, plaintiff has a maritime lien on the vessel under 46 U.S.C. § 31342, and is not required to allege or prove that credit was given to the vessel.

WHEREFORE plaintiff prays that process in due form of law issue against the vessel; that the vessel be arrested and held; that all persons claiming an interest be cited to appear; that judgment be entered in rem; that the vessel be condemned and sold under 46 U.S.C. § 31325 and 46 U.S.C. § 31326; and for such other relief as is just.

VERIFICATION — sworn by [name, title], a person with knowledge of the facts.

Drafting warnings. The complaint must be verified by a person with knowledge, not merely signed by counsel — arrange foreign verification early. Paragraphs 4 and 5 must be specific; conclusory allegations that a lien exists will not support a warrant on judicial review.

Tool 5: Affidavit of presence

AFFIDAVIT IN SUPPORT OF ISSUANCE OF WARRANT OF ARREST

  1. I am [role] and have knowledge of the matters stated.
  2. The [VESSEL] [is presently berthed at __ within this district] / [is expected to arrive at __ within this district on or about __, based on __ (agent advice, port schedule, vessel tracking)].
  3. [If applicable] The vessel's expected stay is approximately [__] hours, and arrest is required promptly to preserve plaintiff's remedy.
  4. A substitute custodian, [name], has been engaged and is prepared to take charge immediately upon arrest.

For an attachment, substitute:

  1. After diligent inquiry, the defendant cannot be found within this district. My inquiry consisted of: [searches of the state corporate registry; inquiry of the vessel's agents; review of published directories; inquiry whether the defendant has appointed an agent for service; and ]. The results were: [].
  2. Property of the defendant within this district consists of: [describe — vessel, bunkers, freight, sub-freights, accounts].

Note. The "cannot be found" showing is where most attachments fail. Describe the inquiry, do not merely assert it.

Tool 6: Substitute custodian engagement

Engagement of substitute custodian — [VESSEL], [date]

  1. Appointment. Upon entry of an order appointing [Custodian] as substitute custodian, Custodian shall take and maintain custody of the vessel at [berth].

  2. Duties. Maintain a watch; preserve the vessel and its equipment; maintain onboard systems and necessary bunkers; permit no removal of equipment or stores; maintain a daily log; and report weekly.

  3. Rate. $[] per day, inclusive of [], plus documented out-of-pocket expenses approved in advance.

  4. Insurance. Custodian shall maintain [coverage] naming the court and plaintiff as additional insureds.

  5. Access. No person shall board except [marshal, class surveyor, court-approved parties], and a log of all boardings shall be kept.

  6. Costs are custodia legis. Custodian acknowledges that its fees are administrative expenses payable from the sale proceeds in first priority, and that plaintiff advances them subject to reimbursement.

  7. Termination. On release of the vessel or entry of an order discharging Custodian.

Why this is engaged before the arrest. The substitute custodian is the largest recurring cost and the one most within the arresting party's control. Negotiating the rate after the marshal has taken custody costs materially more.

Tool 7: Letter of undertaking

LETTER OF UNDERTAKING

To: [Claimant] Re: [VESSEL] — [claim description]

In consideration of [Claimant] refraining from arresting or attaching the [VESSEL] or any other vessel in the same or associated ownership or management, and releasing the vessel from arrest, the undersigned undertakes as follows:

  1. Amount. To pay any final judgment or agreed settlement, up to $[__], inclusive of / exclusive of interest and costs [specify].
  2. Claims covered. Claims arising from [describe the transaction or occurrence].
  3. Appearance. To cause the owner to appear in [forum] and to file security or otherwise submit to jurisdiction, waiving any objection based on absence of the vessel.
  4. No admission. This undertaking is given without admission of liability and without prejudice to all defenses other than the absence of arrest or attachment.
  5. Worldwide effect. [Claimant] agrees not to arrest or attach the vessel or associated vessels in any jurisdiction for the claims covered.
  6. Duration. This undertaking remains in force until final judgment or settlement, and is not affected by any change in the vessel's ownership or management.
  7. Governing law and forum. [__].

Terms worth negotiating. The amount; whether interest and costs are inside or outside it; the scope of covered claims; the forum submission; worldwide effect; whether the undertaking survives a sale of the vessel; and the issuer's identity and financial standing.

Why claimants accept these. Faster and cheaper than a bond, and a protection and indemnity club's credit is generally better than a vessel's residual value.

Tool 8: Motion for interim or judicial sale

MOTION FOR SALE OF VESSEL

Grounds (state all that apply):

  • The vessel is deteriorating, or the expense of keeping it is excessive or disproportionate;
  • The custodia legis costs are consuming the res;
  • Judgment has been entered in rem and sale is sought under 46 U.S.C. § 31325 and 46 U.S.C. § 31326.

Supporting materials:

  1. Appraisal of the vessel.
  2. Custodia legis accounting to date, with the projected daily rate.
  3. Statement of known claims and their ranks.
  4. Proposed notice and publication schedule.
  5. Proposed terms of sale, including whether a mortgagee may credit bid.

Requested relief: an order directing the marshal to sell the vessel at public auction, free and clear of all liens and claims, with such liens and claims attaching to the proceeds, and directing deposit of the proceeds into the registry pending distribution.

Notice protocol

  • [ ] Notice to all known lienholders and parties of record
  • [ ] Publication as directed
  • [ ] Notice to the mortgagee of record under 46 U.S.C. § 31321
  • [ ] Notice to any party who recorded a notice of claim of lien under 46 U.S.C. § 31343
  • [ ] Claims bar date set and communicated — claimants who do not file lose their claim against the fund

Effect to confirm in the order. That the sale extinguishes all pre-existing liens and claims and conveys clean title, with liens attaching to the proceeds. Confirm recognition of the sale in the intended flag and trading jurisdictions before relying on it.

Tool 9: Claim filing form

One per claimant. The date of attachment column is what the inverse order rule turns on.

Field Entry
Claimant
Nature of claim (wages / maintenance and cure / salvage / general average / tort / mortgage / necessaries / other)
Statutory basis
Amount of principal
Interest claimed, from what date
Costs claimed
Date the lien attached
Voyage on which it arose
Supporting documents attached
Priority rank asserted
Any subordination or intercreditor agreement

Tool 10: Buyer diligence request

Send to the seller before any private vessel purchase.

  1. Certificate of documentation and ownership history (46 U.S.C. § 12101, 46 U.S.C. § 12105).
  2. Search of recorded instruments for mortgages (46 U.S.C. § 31321, 46 U.S.C. § 31322).
  3. Search of recorded notices of claim of lien (46 U.S.C. § 31343).
  4. Full trading history and port call list for the preceding [24] months.
  5. List of all suppliers of bunkers, repairs, stores, agency, towage, and stevedoring for that period, with account status.
  6. Confirmation that crew wages, benefits, and repatriation costs are current, with payroll records.
  7. All charter parties in force or in effect during that period, with any prohibition-of-lien clauses identified.
  8. Evidence that no-lien notices were posted aboard, and to whom the clause was delivered.
  9. Details of any arrest, attachment, or claim asserted against the vessel.
  10. Class records, outstanding recommendations, and survey status.
  11. Confirmation of insurance and any outstanding premium.
  12. Details of any pending or threatened personal injury or cargo claim.

Deal terms that follow. Warranties and indemnities from a seller with assets; an escrow holdback sized to the trading history and survival long enough to surface stale claims; and — where the seller is distressed — restructuring the acquisition as a judicial sale under 46 U.S.C. § 31326, the only mechanism that reliably extinguishes secret liens.

Tool 11: Limitation petition tracker

Item Entry
Date of written notice of a claim (starts the period)
Filing deadline under 46 U.S.C. § 30501
Appraised value of the vessel
Pending freight
Fund amount
Security deposited under 46 U.S.C. § 30511
Scope of claims subject to limitation (46 U.S.C. § 30503, 46 U.S.C. § 30506)
Privity or knowledge analysis (46 U.S.C. § 30505)
— knowledge of managing or supervisory personnel?
— unseaworthy condition known or reasonably discoverable?
— prior complaints or deficiencies?
Injunction obtained; other proceedings stayed
Claims bar date set and notice given
Number of claimants
Single claimant? Stipulation offered preserving a jury per Lewis v. Lewis & Clark Marine, Inc.?
Coordination with any pending arrest
Interlocutory appeal considered under 28 U.S.C. § 1292

Owner's warning. The period runs from written notice of a claim, not from suit. Calendar it the day any written claim arrives, including a demand letter.

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