In December 2013 a Swedish company (Overseas Association Foundation) sold the ship Karl to a US company (Reliable Cargo Shipping). However, the seller did not deliver the ship to the buyer, and re-offered it for sale in September 2014. The buyer, under the authority of a court, arrested the ship Karl. Overseas Association Foundation applied for the release of the ship, because disputes concerning contracts for the sale of ships are not listed in the International Convention for the Unification of Certain Rules relating to Arrest of Sea-Going Ships 1952 (the Arrest Convention 1952).
The Arrest Convention 1952 does not define maritime claims, but gives a closed list of them. Among the 17 claims on this list, disputes about sales of ships are not considered. But the Arrest Convention 1952, in art 1.1.o, considers as maritime claims ‘disputes as to the title to or ownership of any ship’.
Held: The Cour de cassation confirmed the validity of the arrest. The sale between Overseas Association Foundation and Reliable Cargo Shipping was perfected. Thus, the buyer was the owner of the ship Karl. The court decided the issue related to the ownership of the ship. So, the arrest of the ship Karl was possible.