Marshal's Manual

Chapter 7: Application to determine priorities

[7.1] Who may apply for determination of priorities

Subrule 73(1) provides that:

If a ship or other property has been arrested in a proceeding, a person who has obtained a judgment in a court (including a judgment in a court of a foreign country) against the ship or property, being a judgment that is enforceable in a court of Australia, may apply to the court for determination of the order of priority of claims against the ship or property.

[7.2] Notice of application

The Court may order the Marshal to publish a notice of the application in domestic and international publications. The prescribed form of notice is Form 28, Notice of application to determine priorities. Always obtain proofs of the advertisement and the costs for each advertisement before it is published and formally notify approval to the publishers. The Marshal will also require a 'cutting' of each advertisement showing the date, page number and the name of the publication or the printed page containing the advertisement. Advertisements for the Lloyds List are published in the London edition. Some advertisers will only accept credit cards and card details are required at the time of placing the advertisement.

[7.3] Affidavit of publication

The Marshal should prepare an affidavit stating he/she caused the notices to be published in accordance with Form 28 of the Admiralty Rules. A copy of each advertisement should be annexed to the affidavit, together with a schedule of the costs incurred and a copy of all accounts payable for advertising.

If the Marshal has not complied with the Court order this should be addressed in the affidavit. Any affidavits sworn and filed by the Marshal should be served on all the parties.

[7.4] Paying monies out of the proceeds of sale

To comply with accounting and audit requirements, the Marshal should only pay money out of the proceeds of sale in accordance with an order that payment be made to a particular claimant for an amount as stated. This is the case even if a general order has previously been made that the expenses of arrest or sale are to be paid out of the proceeds of the sale. The Marshal will need to provide the Order and direction to pay out to Principal Finance.

[7.5] Protecting the proceeds of sale

The Marshal has a responsibility to maintain and protect the proceeds of sale. As a general policy, unless otherwise ordered, the proceeds should be preserved in the same currency as the ship was sold.