The Supreme Court yesterday ordered the arrest of a dredger that capsized in the North Sea in 1994 and is now lying in Malahide harbour. In a decision with important implications for the admiralty laws, the court found that the dredger should be regarded as a "ship" within the meaning of the Arrest Convention.
The Supreme Court was ruling on an appeal taken by two towing companies against the owners and everyone claiming an interest in the Von Rocks, after the High Court ordered the release of the dredger and the setting aside of a warrant for its arrest.
Upholding the appeal, Mr Justice Keane said the case concerned the Von Rocks, a backhoe dredger that capsized in the North Sea and was seriously damaged while it was being towed from a port in Sweden to Burnt Island in Scotland on June 19th, 1994, by the tug Jerome Letzer. The insurers of the Von Rocks have begun proceedings in Sweden against Targe Towing Ltd, the operator of the Jerome Letzer, and Scheldt Towage Company NV, the charterer of the vessel. The insurers are claiming that the damage to the dredger was caused by the negligence of the Jerome Letzer's crew while towing.
The two towing companies have begun proceedings in the English High Court, seeking a declaration that under the terms of the towing agreement they are entitled to be indemnified by the owner of the Von Rocks against the insurers' claim. The companies were also seeking payment of more than £16,000 sterling for towage services.
In November 1996 the two towing companies began the current proceedings, in which they secured an order directing the admiralty marshal to arrest the vessel and keep it under safe arrest. Although it was under arrest, the Von Rocks was allowed to continue working as a dredger under a contract at Malahide estuary.
Following the arrest, the defendants asked the High Court to issue orders directing the release of the dredger and the setting aside of the arrest warrant. Mr Justice Barr granted those orders.
Although the effect of the orders was to release the Von Rocks from arrest, it remained at Malahide.
In their appeal against the High Court decision to release it, the towing companies claimed to be entitled to arrest the Von Rocks under the Jurisdiction of Courts (Maritime Convention) Act 1989 and/or the Jurisdiction of Courts and Enforcement of Judgements Act 1993. The 1989 Act gives effect in Irish law to the International Convention Relating to the Arrest of Seagoing Ships (the Arrest Convention).
At issue in the appeal was whether the Von Rocks was a "ship" within the meaning of the Arrest Convention and the 1989 Act. Mr Justice Barr, in his High Court decision, concluded it was not.
In his judgment yesterday, Mr Justice Keane said that while he differed "with reluctance" with the view of "an experienced and careful admiralty judge such as Mr Justice Barr", he was satisfied that the Von Rocks should be regarded as a ship within the meaning of the Arrest Convention.
While the Von Rocks lacked some of the characteristics one would normally associate with a ship, it was a structure designed and constructed to carry out specific activities on the water; was capable of movement across the water; and in fact spent significant periods of time moving across the seas from one contracting point to another, he said.
Mr Justice Barrington and Mr Justice Lynch agreed with Mr Justice Keane's view. The court allowed the appeal and issued an order for the arrest of the Von Rocks until further order of the High Court.