Spain, an allied territory for P&I Clubs to collect unpaid premiums.

In a previous note we advised on the entry into force in Spain next 14 of September of the 1999 Geneva Arrest Convention following Albania’s signature.

It was good news but we had to be cautious as Spain had made a reservation and the 1999 Geneva Convention might not apply to other ships than those flying a State Convention flag, a very limited scope.

However, following some concerned and notices among maritime lawyers, the situation has changed drastically in the last weeks for a much better scenario. Last 26 of August the Spanish Government issued the 12/2011 Royal Decree aimed to provide certainty in respect to the law of arrest of ships in Spain. The 12/2011 Royal Decree introduces a new section into the Spanish Procedural Law Act, which in practice emptied the reservation made by Spain when the 1999 Convention was signed.

The Royal Decree states, inter alia; all the arrest of ships in Spain will be dealt with by the Courts of Justice under the terms of the 1999 Geneva Convention irrespectively of whether the ship flies a Convention State's flag; The mere allegation of a maritime claim will be sufficient to arrest a ship in Spain; The Court will request the arrestor countersecurity to cover damages and costs; The arrest might only be contested on the basis the infringement of the 1999 Convention.

As a result certainty has been gained as to the applicability of the 1999 Convention in Spain, which at some point became controversial. Moreover, one of the most attractive features of the 1999 Convention is the possibility to arrest ships in Spain for a wider scope of maritime claims than its predecessor, the 1952 Convention. For instance, P&I Clubs, which had pursued their claims under the 1952 Arrest Convention with different outcomes in Spain and abroad, have now a permanent allied territory in the many Spanish ports to secure their claims against those members failing to pay their debts. Suppliers of containers will be also the beneficiaries of the new regime.

We will keep you posted, Arizon Abogados S.L.P.

For further information on how to arrest a ship in Spain clic here.