DENMARK Law and Practice Contributed by: Johannes Grove Nielsen and Camilla Søgaard Hudson, Bech-Bruun
4.9 Releasing an Arrested Vessel An arrest shall be lifted if security is provided that is deemed by the enforcement court to be suf - ficient to cover the claimant’s claim, including: • interest due and estimated future interest; and • likely costs of the arrest procedure, the arrest action and the action regarding the claim. Usually, an amount corresponding to the total claim plus 30% to 40% is regarded as sufficient. A club letter of indemnity (LOI) is usually accept - ed and, similarly, a bank guarantee issued by an EU bank should be acceptable in Danish courts. There is no formalised procedure, and a petition to release the ship can simply be submitted to the court by email. 4.10 Procedure for the Judicial Sale of Arrested Ships Judicial sales of arrested vessels are regulated by the general rules on judicial sales of goods, which are laid down in the Danish Administration of Justice Act, Chapters 49–50. Arrest is only an interim remedy designed to secure the payment of debt where execution is not immediately available. A judicial sale of a vessel requires that execution first be levied on the vessel. Execution cannot be levied on the basis of a statutory maritime lien, but requires (for example) a judgment, an enforceable settle - ment or a mortgage. Once execution is levied on the arrested vessel, usually on the basis of a judgment regarding the merits of the claim, the person with the claim can apply for judicial sale with the enforcement court.
Moreover, the Danish Administration of Jus - tice Act allows for obtaining attachments (levy execution) once a judgment or award has been obtained, a settlement entered into or a mort- gage signed. Once execution is levied, it gives the execution creditor the right to apply for a forced sale. To levy execution on a vessel, the following is required: • an enforceable judgment or court order; • a settlement that expressly states that it is enforceable; • an instrument of debt expressly stating enforceability; or • a mortgage. Thus, this form of attachment can be used to secure payment of a right already established through a judgment, settlement agreement, debt instrument or mortgage. The Brussels Regulation (recast) No 1215/2012 on Jurisdiction and Recognition and Enforce - ment of Judgments in Civil and Commercial Mat - ters is in force in Denmark through Denmark’s bilateral agreement with the EU. In accordance with the Regulation, judgments from within the EU are recognised and enforceable without any special proceedings. As Denmark is bound by the Lugano Convention, judgments rendered by a court within the European Free Trade Associa - tion (EFTA) are similarly recognised and enforce - able in Denmark. The Brussels Regulation also allows for provi - sional measures, including arrest. This means that a Danish court should allow arrest of a ves - sel situated outside Danish waters in accordance with the Danish Administration of Justice Act.
190 CHAMBERS.COM
Powered by FlippingBook