Chapter III Preservation of Maritime Claims

Section I General Provisions

Article 12 Preservation of maritime claims means the compulsory measures taken by a maritime court on the application of a maritime claimant against the property of the person against whom a claim is made, for the purpose of ensuring fulfillment of the claim of the maritime claimant.

Article 13 Any party who wishes to apply for preservation of a maritime claim before instituting an action shall file an application with the maritime court of the place where the property subject to preservation is located.

Article 14 Preservation of a maritime claim shall not be bound by the jurisdiction agreement or arbitration agreement reached between the parties to an action in respect of the maritime claim.

Article 15 A maritime claimant who wishes to apply for preservation of a maritime claim shall file an application in writing with a maritime court. In the application the particulars of the maritime claim, reasons for the application, subject-matter to be preserved and the amount of security required shall be specified with relevant evidence attached.

Article 16 The maritime court, having entertained an application for preservation of a maritime claim, may enjoin the maritime claimant to provide security. If the maritime claimant fails to do so, the court shall reject the application.

Article 17 The maritime court, having accepted an application, shall make an order within 48 hours. Where the order involves adoption of measures for preservation of the maritime claim, it shall be executed forthwith; where the conditions for the preservation of the maritime claim are not met, it shall make an order to reject the application.

Any party who is dissatisfied with such an order may, within 5 days after receipt thereof, apply for review not more than once. The maritime court shall give the result of the review within 5 days after receipt of the application therefor. Execution of the order shall not be suspended during the period of review.

Where preservation of a maritime claim is objected by an interested person, the maritime court, having examined the objection and considering the reasons justified, shall discharge preservation against his property.

Article 18 Where a person against whom a claim is made provides security or a party applies for discharge of preservation of the maritime claim on justified grounds, the maritime court shall discharge the preservation promptly.

If within the time limit prescribed by this Law a maritime claimant fails to bring an action or apply for arbitration in accordance with an arbitration agreement, the maritime court shall discharge the preservation or return the security promptly.

Article 19 Where legal proceedings or arbitral proceedings are not commenced in respect of a maritime dispute after execution of the preservation of a maritime claim, any party may bring an action in respect of the maritime claim in the maritime court that adopts measures for preservation of the maritime claim or another maritime court that has jurisdiction, unless a jurisdiction agreement or arbitration agreement has been reached between the parties.

Article 20 A maritime claimant who has wrongly applied for preservation of a maritime claim shall indemnify the person against whom the claim is made or the interested person for the losses thus incurred.

Section II Arrest and Auction of Ships

Article 21 With respect to the following maritime claims, an application may be made for the arrest of a ship:

(1) loss of or damage to property caused by ship operation;

(2) loss of life or personal injury in direct connection with ship operation;

(3) salvage at sea;

(4) damage or threat of damage caused by ship to environment, coast or relevant interested persons; measures adopted to prevent, diminish or eliminate such damage; compensation paid for such damage; expenses for reasonable measures actually adopted or to be adopted to restore environment; losses caused by such damage to or likely to a third party; and damage, expenses or losses of a similar nature as those specified in this subparagraph;

(5) expenses related to re-floating, removal, reclamation or destroying of a sunken ship, wreck, aground ship, abandoned ship or to making them harmless, including the expenses related to re-floating, removal, reclamation or destroying of the things which have or no longer remained on board the ship or to making them harmless and expenses related to maintaining of an abandoned ship and her crew;

(6) agreement in respect of employment or charting of a ship;

(7) agreement in respect of carriage of goods or passengers;

(8) cargo (including luggage) carried by a ship or loss or damage relating thereto;

(9) general average;

(10) towage;

(11) pilotage;

(12) providing of supplies or rendering of services in respect of ship operation, management, maintenance or repair;

(13) construction, re-construction, repair, refurbishment or equipment of a ship;

(14) dues or expenses for ports, canals, docks, harbours or other waterways;

(15) crew's wages and other moneys, including repatriation expenses and social insurance premium payable for the crew;

(16) expenses paid for a ship or a ship-owner;

(17) insurance premium for a ship (including protection and indemnity calls) payable by or paid for a ship-owner or bareboat charterer;

(18) commission, brokage or agency fee related to ships payable by or paid for a ship-owner or bareboat charterer;

(19) a dispute over ownership or possession of a ship;

(20) a dispute between joint owners of a ship over the employment or earnings of the ship;

(21) ship mortgage or rights of a similar nature; and

(22) a dispute arising out of a ship sale contract.