Maritime Law: When Does Admiralty Jurisdiction Apply?

Admiralty law, also known as maritime law, is a body of laws, conventions, and treaties that govern private maritime business and other nautical matters, such as shipping or offenses occurring on open water. This law is applied when there is an injury on a navigable body of water, and it also handles disputes involving maritime contracts and federal maritime statutes.

Maritime law is independent of national laws and is governed by the International Maritime Organization (IMO), a specialized agency of the United Nations. It covers both natural and man-made navigable waters, such as rivers and canals, and regulates shipping, navigation, commerce, towage, recreational boating, and piracy.

In the United States, admiralty law evolved from British admiralty courts present in the American colonies, and federal courts have jurisdiction over admiralty and maritime matters. However, most maritime cases can be heard in either state or federal courts.

Shipping and navigation

Shipping is a broad topic within admiralty and maritime law, encompassing the transportation of goods, safety measures, collision protocols, and salvage operations. The law also addresses issues related to marine insurance, pollution prevention, customs regulations, and port regulations.

In the context of navigation, admiralty and maritime law govern the rules and procedures related to seafaring activities. This includes establishing navigational rights, ensuring safety, and resolving disputes. The law also covers the licensing, registration, and inspection of ships, as well as shipping contracts.

It is worth noting that admiralty and maritime law apply to both domestic and international waters. The jurisdiction of a ship is determined by the flag it flies, and the law of that flag's country will apply. However, the ship must have a legitimate connection to the flag's country for this to be valid.

Admiralty and maritime law have a long history, with early records dating back to ancient civilisations in the Mediterranean. Over time, the law has evolved to meet the changing needs of maritime commerce and navigation, with international organisations like the International Maritime Organization (IMO) playing a crucial role in developing and updating conventions.

Maritime contracts

There are several types of contracts of affreightment:

• Voyage charter: This usually involves the hire of a vessel's entire cargo space for one or more specific voyages.
• Space charter: If the charterer does not require the use of an entire ship, the agreement will specify what portion of the cargo is used.
• Time charter: Similar to a voyage charter, the charterer may direct the movements and cargoes carried during an agreed period.
• Demise of the ship or bareboat charter: The charterer contracts the use of an entire ship, taking possession and control for an agreed-upon period.

To be considered a maritime contract, the contract must have reference to maritime service or transactions. Examples include ship charters, shipment of goods by sea, ship repair, ship insurance, and ship provisions contracts.

Mixed contracts, which deal with both maritime and non-maritime matters, are generally not considered maritime contracts. Courts will only allow maritime jurisdiction over mixed contracts if the contract is primarily maritime or if the maritime liabilities can be tried separately from the non-maritime ones.

Admiralty jurisdiction

• Those involving acts committed on the high seas or other navigable waters, such as torts, injuries, and crimes. In these cases, jurisdiction is determined by the locality of the act.
• Those involving contracts and transactions connected with shipping employed on the seas or navigable waters. In these cases, the subject matter is the primary factor in determining jurisdiction.

It's important to note that admiralty courts are courts of limited jurisdiction, and their authority does not extend to non-maritime matters. However, the "Savings to Suitors Clause" allows for concurrent state jurisdiction, providing access to non-admiralty remedies. Additionally, state courts may have jurisdiction in cases that are primarily local in nature.

Maritime insurance

The history of maritime insurance can be traced back to ancient times, with the earliest known maritime laws recorded on the island of Rhodes, Greece, around 1000 to 800 BC. These laws, known as the Lex Rhodia or Rhodian Sea Laws, established the general average principle of marine insurance. Over the centuries, maritime insurance evolved with the development of separate insurance contracts in Italian cities during the 14th century and the establishment of Lloyd's Coffee House in London as the first marine insurance market.

Today, maritime insurance is a specialised field with agencies competing to offer coverage for diverse risks. The scope of maritime insurance includes hull and machinery insurance, which protects commercial marine vessels, and cargo insurance, which covers the true value of shipments. Additionally, there are policies tailored for specific industries, such as yacht insurance and war risk insurance. The Nordic region, China, and Lloyd's of London are among the top providers of marine hull insurance globally.

In the event of a claim, maritime insurance policies typically include deductibles, where the policyholder bears a portion of the loss. The insurance is written on an occurrence basis, covering claims arising from incidents during the policy period, regardless of when they are made. The Marine Insurance Act, enacted in 1906, provides a comprehensive framework for marine insurance, and its principles have been applied to all non-life insurance policies.

Maritime liens

To enforce a maritime lien, the ship must be arrested or seized. In the United States, an action to enforce a lien against a US ship must be brought in federal court and cannot be done in state court, except under specific circumstances.

Frequently asked questions