Admiralty Sales Pendente Lite: Reserve Prices and Broker Appointments
Journal of International Maritime Law (Forthcoming)
9 Pages Posted: 22 Nov 2018
Date Written: October 30, 2018
Admiralty courts have a discretionary jurisdiction to depart from normal practice and order a judicial sale pendente lite in special circumstances; for instance, where the vessel is a wasting asset and the costs of maintaining it under arrest are disproportionate. The recent decision in The Sertão provides an interesting example of the exercise of this discretion in the context of a mortgagee’s insistence on special conditions being attached to the judicial sale; namely, a minimum reserve price and the appointment of its favoured broker. It is suggested that admiralty courts should err on the side of caution when confronted with such demands, lest the perceived or actual autonomy and impartiality of the judicial sale process be undermined.
Keywords: admiralty, ships, judicial sale, pendente lite, mortgagee, auction, broker
JEL Classification: K11, K22, K33, K41
Suggested Citation: Suggested Citation