Update 2017
a) Indicate and provide evidences to the Court that plaintiffs have started the main legal action (Court
action or arbitration proceedings according to the provisions of the C/P or B/L) against the defendant.
The evidence should be a letter from a Court, apostilled according to Hague Convention 1961 or a letter
from the arbitrator appointed showing that arbitration has started;
b) Indicate and provide evidences to the Court that the defendant in the main proceedings is the owner of
the vessel;
c) Provide a bank letter of guarantee to the Court as a percentage of the claimed amount (the amount will be fixed by the Court but in most of the cases is 10%). In accordance with the new Civil Procedural Code which entered into force on 15th of February 2013, the amount of the guarantee should be placed in cash and is limited at 20% of the claimed amount.In cases where no written evidences concerning the relations between the creditor and the debtor are presented to the judge, the amount of the guarantee will be fixed at 50% of the claimed amount. The main purpose of such bank letter of guarantee is to compensate the losses of the defendant owner if finally the claim of the plaintiff will be found ungrounded by the Court.
In case the matter is very urgent, vessels can be provisionally arrested through the Harbor Master, paying a tax of Euro 400 (Saturdays and Sundays Euro 800).
A notice of arrest will be notified to the Harbor Master.
Harbor Master will place the order of arrest to the vessel’s file and will not interrupt in any way vessel’s operations. Notice of arrest will become effective when the vessel will finalize operations and vessel’s agent will attend Harbor Master to receive vessel’s permit to leave outside. Starting with the hour when vessel’s agent will ask for the Permit to leave, Harbor Master will count 24 hours (Saturdays and Sundays are not included within this hours anyway) and the vessel will be arrested for 24 hours. During these 24 hours, plaintiff will need to apply to the Court asking for the arrest of the vessel. Courts are judging these cases on an urgent basis and normally are issuing the decision within 24 hrs. There is no need for the time being to place the counter-security which will be requested by the Court at a later stage.
Court costs are low. Lawyer fees normally calculated on hourly basis Costs are usually recoverable from defendant.
Romania has acceded to the International Convention for the unification of rules about the arrest of vessels, signed in Brussels on May 10th 1952, on November 8th 1995. For the participant states of the 9th Diplomatic Convention of Maritime Law, it was enforced on February 24th 1956.
Article 8, paragraph 1 of the Convention provides that its provisions are applicable in any contracting state to any vessel that carries the flag of a contracting state. Paragraph 2 of the same article concedes the possibility that vessel that carries the flag of a non-contracting state may be arrested in one of the contracting states according to one of the claims listed in Article 1, or according to any other claim that permits the arrest according to the laws of that state. Romanian Courts are
applying this principle when are taking into consideration the arrest of one vessel in Romanian jurisdiction.
No.
No.
A ship can be arrested in Romania for one or more of the claims listed in article 1.1 of the 1952 Arrest Convention. Ships may be arrested in Romania also for one or more of the claims listed by the 1926 maritime liens and mortgages Convention.
Paragraph 2 of the article 8 of 1952 Arrest Convention mentions the possibility that vessels that carries the flag of a non-contracting state may be arrested in one of the contracting states according to one of the claims listed in Article 1, or according to any other claim that permits the arrest according to the laws of that state.
As already mentioned, it is compulsory to indicate and provide evidences to the Court that the defendant in the main proceedings is the owner of the vessel.
Sister ships may be arrested in Romania, following the provisions of the articles 951-952, 959-968 of Romanian Civil Procedural Code and not the provisions of the 1952 Arrest Convention. Romanian Courts are reluctant to order the arrest of sister ships, although this is possible. Ships in associated ownership cannot be arrested in Romania.
Bareboat and Time-Chartered vessels cannot be arrested in Romania for the claims against the Bareboat and/or Time-Charterer.
Court will order to provide a bank letter of guarantee to the Court as a percentage of the claimed amount (the amount will be fixed by the Court but in most of the cases is
10 % ). In accordance with the provisions of the new Civil Procedural Code the amount of the guarantee may be increased up to 20% of the claimed amount and needs to be placed in cash at the disposal of the Court. In cases where no written evidences concerning the relations between the creditor and the debtor are presented to the judge, the amount of the guarantee will be fixed at 50% of the claimed amount. According to recent jurisprudence from the Romanian Courts involving a ship arrest in Galati, the Court has set the amount of the counter-security at 1.5% from the claimed value.
Arrest of a ship for a maritime claim will be done according to the procedure established by the 1952 Arrest Convention also in case of arrest of a ship for a maritime lien mentioned by the 1926 maritime liens and mortgages Convention.
Romania recognizes maritime liens according to 1926 Maritime Liens and Mortgages Convention. Romania is not a party to the 1993 Maritime Liens and Mortgages Convention.
A notice of arrest will be notified to the Harbor Master.
Harbor Master will place the order of arrest to the vessel’s file and will not interrupt in any way vessel’s operations. Notice of arrest will be placed immediately as the file arrives to our law firm and an Engagement Letter, even by e-mail and/or fax, will be signed with the client.
Based on the Engagement Letter signed by client , law firm will provide to the Court a power of attorney in the standard format prescribed by the Lawyers statute.
There is no need to provide original documents to the Court, only copies mentioned to be true copies will be provided to the Court, on the understanding that originals will be kept by the law office. It is necessary to be provided with originals of the documents in order to translate them into Romanian and present legalised translations to the Court, taking into consideration that Public Notaries will not legalise translations without being provided with the originals of the documents. The evidence that main claim proceedings has been instituted should be a letter from a Court, apostilled according to Hague Convention 1961 or a letter from the arbitrator appointed showing that arbitration has started.
No.
Arrest cannot be requested if legal action on the merits has not yet started prior to the application to the Court. According to the new Civil Procedural Code ,it is possible that, in urgent cases, arrest of the vessel to be permitted without the need to commence substantive claim proceedings in advance. In such a case, substantive claim proceedings has to be commenced in 20 days from the date the arrest application has been admitted by the Court.
Yes. In practice, it is very difficult to prove such a claim.
No.
No.
21.What is the procedure to release a ship from arrest ?
As long as the debt have been paid or a Letter of Undertaking have been provided in order to release the ship, the debtor will request the Court to release the vessel from arrest. The Court will release the vessel from arrest on urgent basis.
22.What type of security needs to be placed for the release?
In accordance with Civil Procedural Code provisions, the security needs to be provided in cash at the disposal of the Court. Only in case the creditor agrees, the debtor may provide a bank Letter of undertaking or a P&I Letter of Undertaking at the disposal of the Court.
23.Does security need to cover interest and costs ?
Yes.
24.Are P&I LOUs accepted as sufficient to lift the arrest?
The P&I LOUs may be accepted by the Court for lifting the arrest only in case the creditor agrees to accept such undertakings.
25.How long does it take to release the ship ?
1-2 days usually;
26.Is there a procedure to contest the arrest ?
The arrest order issued by the Court may be appealed to the Court of Appeal.