This article is the second of our three-part series on Uniform Commercial Code (“UCC”) sections 9-207 and 9-610. Those model code provisions govern the duties associated with the preservation and disposition of secured collateral. In the following article we address the duty of reasonable care and preservation as it applies to lenders who have repossessed …
Maritime Law
News and Insights
Navigating the Unmarked Hazards for Marine Lenders in Non-Judicial Foreclosure of Preferred Ship Mortgages
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” William Arthur Ward Ward’s descriptions of the pessimist, the optimist and the realist apply handily to those parties involved in the foreclosure of a ship mortgage. It was, after all, the optimism of the borrower that led him …
Chapter 12 Bankruptcy – Five Things Every Fisherman Should Know
Declining sales. Dwindling vendor opportunities. Shifting consumer preferences. As more restaurants close and seafood wholesale prices continue to crater, commercial fishermen face mounting financial pressures from the novel coronavirus pandemic. Although the Secretary of Commerce has earmarked $300 million to affected fisheries under the federal CARES Act, these funds may not be enough to prop …
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The Importance of Safe Berth Clauses in Light of The Coronavirus Pandemic
The Supreme Court Opinion in Athos I On March 30, 2020 the Supreme Court of the United States issued its opinion in the case of CITGO Asphalt Refining Co. et al. v. Frescati Shipping Co., Ltd., et al.. The Supreme Court opinion clarified U.S. law on the issue of safe berth clauses in charter party …
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Benefits of Holding Commercial and Recreational Vessels in Limited Liability Companies
“Is setting up a limited liability company worth the time and expense?” “Doesn’t it seem shady, will it complicate my efforts to document my vessel with the U.S. Coast Guard?” Rest assured, creating a limited liability company to act as an ownership entity for your vessel is a great idea. It is easy to do, …
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Why Ditching the Limitation of Liability Act is a Bad Idea
In the early morning of September 2, 2019 a fire ignited in the below decks area of the dive boat Conception. Before the captain and crew, who were themselves sleeping above decks, could do anything, the fire had blocked their pathway to the below decks area and they were forced to abandon the vessel. All …
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The Effect of COVID-19 on Your Ability to Fulfill Contract Obligations: Invoking Force Majeure and Impossibility Doctrines
In an effort to slow the spread of the novel coronavirus, governments around the world have ordered their citizens to hold in place. There is no indication of when these restrictions will be lifted. Naturally, this has had a huge effect on people’s ability to conduct business around the world. Many business owners, especially in …
U.S. Customs and Border Protection Grants Temporary Duty Deferral on Imports
We have great news for importers with cash flow issues… Today the Secretary of the Treasury and the U.S. Customs and Border Protection (CBP), under 19 U.S.C. 1318(a), authorized importers to temporarily postpone certain estimated duties, taxes, and fees associated with their imports. This temporary postponement is for 90 days and for duties owed. Under …
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CARES Act grants $300M to help the fishery and seafood industry recover from COVID-19 pandemic
The United States House of Representatives is planning to convene today (Friday, March 27, 2020) and vote on the Coronavirus Aid, Relief, and Economic Security Act (AKA the “CARES Act”). The legislative intent of the CARES Act is to provide emergency assistance and health care response for individuals, families, and businesses affected by the COVID-19 …
What to Expect from a Chapter 15 Proceeding
As many readers are aware, one of South Korea’s largest shipping companies, Hanjin Ship-ping Co. Ltd. (“Hanjin”), has filed for bankruptcy. The insolvency of Hanjin, which is the world’s seventh largest container line, will have a significant impact on the global transportation and retail sector. Shippers, charterers, freight forwarders, motor carriers, terminal operators, and commercial …