Clark and Others v. Hine and Others [1908] ScotLR 879 (16 July 1908)

Clark and Others v. Hine and Others [1908] ScotLR 879 (16 July 1908)

The Court held that the existence of a maritime lien on a British ship sold in Scotland is governed by Scots law, not American law. Bowring & Company, having advanced funds at the request of the owners and on their personal credit, did not acquire a maritime lien under Scots law for either repairs, necessaries, or seamen's wages, regardless of American law or the absence of formal assignation. The payments were not made in reliance on the credit of the ship, so no lien arose.

Citation
[1908] ScotLR 879
Parties
Pursuer: Robert Clark; Pursuer: William Brown; Defender: Wilfrid Hine; Defender: Hine Brothers; Defender: William Edward Mounsey; Defender: Ardan Steamship Company, Limited; Defender: Scottish Investment Company, Limited; Defender/claimant/reclaimer: Bowring & Company
Jurisdiction
Scotland
Judgment Date
16 July 1908
Procedural Posture
Judicial Sale and Ranking of Claims / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; Lord Ordinary's interlocutor adhered to; Bowring & Company's claim repelled.
Legal Topics
Maritime Lien, Seamen's Wages, Lex Loci Contractus, Lex Fori, Judicial Sale of Ship, Assignment of Lien, Ranking of Claims
International Law Maritime Law Maritime Lien Seamen's Wages Lex Loci Contractus Lex Fori Judicial Sale of Ship Assignment of Lien +1 more

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Parties

Robert Clark

Pursuer

William Brown

Pursuer

Wilfrid Hine

Defender

Hine Brothers

Defender

William Edward Mounsey

Defender

Ardan Steamship Company, Limited

Defender

Scottish Investment Company, Limited

Defender

Bowring & Company

Defender/claimant/reclaimer

Procedural Posture

Judicial Sale and Ranking of Claims / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether American law or Scots law governs the existence of a maritime lien on a British ship sold in Scotland for disbursements made in a foreign port
  2. 2 Whether a third party paying seamen's wages acquires a maritime lien without formal assignation
  3. 3 Whether advances by shipbrokers in reliance on owners' credit confer a maritime lien

Ratio Decidendi

The Court held that the existence of a maritime lien on a British ship sold in Scotland is governed by Scots law, not American law. Bowring & Company, having advanced funds at the request of the owners and on their personal credit, did not acquire a maritime lien under Scots law for either repairs, necessaries, or seamen's wages, regardless of American law or the absence of formal assignation. The payments were not made in reliance on the credit of the ship, so no lien arose.

Court Disposition

Appeal dismissed; Lord Ordinary's interlocutor adhered to; Bowring & Company's claim repelled.

Orders

  • Bowring & Company's claim for preferential ranking is repelled.
  • Other claimants ranked according to Scots law.