PHILIPPINES Law and Practice Contributed by: Valeriano Del Rosario, Daphne Ruby Grasparil, Patrick Sarmiento and Maria Francesca Bautista, VeraLaw
Once issued, the Warrant of Arrest shall be valid for a period of 12 months from the date of its issuance. 5.6 Arresting Bunkers and Freight Prior to the promulgation of the Admiralty Rules, char - terer’s bunkers were successfully attached by way of a writ of preliminary attachment. This remedy is described below. However, with the promulgation of the Admiralty Rules, recourse to an attachment is no longer possible. Arresting Bunkers In theory, this should be possible, but the Admiralty Rules are relatively new and there are no precedents. Under the Admiralty Rules, Section 5 (j), Rule 1, Part I, “[a]ny agreement relating to the use of a ship, includ - ing bareboat charter, charter by demise, time charter, voyage charter or contract of affreightment, and mari - time contract of carriage, whether of goods or people, including bills of lading”, comes within the jurisdiction of the Admiralty Court. It should be possible formulate a claim for charterer’s bunkers under said section. Arresting Freight Under the Admiralty Rules, Section 5 (f), Rule 9, Part I, “[a]ny agreement relating to the use of a ship, includ - ing bareboat charter, charter by demise, time charter, voyage charter or contract of affreightment, and mari - time contract of carriage, whether of goods or people, including bills of lading”, comes within the jurisdiction of the Admiralty Court. A Warrant of Arrest for freight may be issued through an action in personam and in rem. 5.7 Sister-Ship Arrest It is possible to arrest a sister-ship provided that the sister ship is owned and registered under the same owner as the offending ship. Ships under the same management company or within the same group of companies may not be arrested. 5.8 Other Ways of Obtaining Attachment Orders Under Rule 57 of the Rules of Civil Procedure, it is possible to obtain an order of attachment against the property of the defendant as security for the satisfac - tion of any judgment. The procedure and the require - ments to obtain such an order are different from those
for a Warrant of Arrest. An attachment is similar to the English law Mareva injunction. 5.9 Releasing an Arrested Vessel The Admiralty Rules provide that the defendant may file a bail bond or security, including a corporate sure - ty, from a surety company accredited by the Philippine Supreme Court, to lift a Warrant of Arrest. The bail bond or security must be approved by the Admiralty Court, in an amount sufficient to cover the arresting party’s claims. While a letter of undertaking or a foreign bank’s guar - antee are not expressly mentioned, the same may be offered by the defendant and, if accepted by the plaintiff, may be allowed by the court in the exercise of its discretion. 5.10 Procedure for the Judicial Sale of Arrested Ships During the pendency of the action, the applicant shall pay all port charges, fees and expenses for preserva - tion and maintenance of the ship or cargo during its arrest until its release or sale. After final judgment and upon motion of the prevail - ing party, the Admiralty Court may direct the sale (at a public auction) of a ship or cargo which has been the subject of a Warrant of Arrest and has remained in custodia legis due to failure to file the appropriate bail bond. For this purpose, the Admiralty Court shall cause the appointment of one or more appraisers who shall assign a value of the ship or cargo and assist the sheriff in the sale of the property. If there are numerous prevailing parties in an action in rem, a motion may be filed before the court to deter - mine the priority of the claims against the proceeds of the sale of the ship or cargo. In determining the priority of claims, the court shall consider the relevant laws such as, but not limited to, the Ship Mortgage Decree of 1978, which gives preferred status to duly constituted mortgages over the vessel. 5.11 Insolvency Laws Applied by Maritime Courts The Philippines’ insolvency law is Republic Act No 10142, also known as the Financial Rehabilitation and
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