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| Part 2. Civil Procedure | Part 5. Common Provisions |
PART III
ARREST OF A VESSEL, CARGO, OR FREIGHT
RULE 6
WARRANT OF ARREST OF VESSEL, CARGO OR FREIGHT
Section 1. When available, and scope. – In an action in rem in Admiralty jurisdiction as defined in Part 1, Rule 1, Section 6 of these Rules, the plaintiff or defendant, as the case may be, may upon commencement of an action in rem, apply for a Warrant of Arrest of Vessel, Cargo, or Freight applicable against the vessel or ship, cargo, or freight subject of the action or counterclaim. The Warrant of Arrest may be issued together with the Writ of Summons in Action In Rem.
The Warrant of Arrest directs the Sheriff or a duly authorized person to arrest a specific vessel or ship, cargo, or freight while it is within the jurisdiction of a Philippine port, and detain the same within the port limits until further orders from the court. The same shall be valid for twelve (12) months from the date of its issuance.
Section 2. Requirements. – A Warrant of Arrest shall not be issued unless the party applying for the warrant or his or her duly authorized agent has filed an affidavit stating the following:
(a) In actions in rem:
- i. The name, address and occupation of the applicant for the Warrant of Arrest of Vessel, Cargo, or Freight;
- ii. The nature of the claim or counterclaim which has not been satisfied in respect of which the warrant is required, and if it arises in connection with a ship, the name of the ship; and
- iii.The nature of the property to be arrested and, if the property is a ship, the name of the ship and the port of her registry;
(b) In actions both in rem and in personam:
- i. The name of the person who would be liable on the claim in an action in personam, should the action be both in rem and in personam (the “relevant person”);
- ii. That the relevant person was the owner or charterer of, or person in possession or control of the ship, cargo, or freight in connection with which the claim arose;
- iii. That at the time of the issuance of the writ, the relevant person was either the beneficial owner of all the shares in the ship, cargo, or freight in respect of which the warrant is required, or the charterer of a ship under a charter by demise; and
- iv. In the case of a claim for possession of a ship or for wages, the nationality of the ship in respect of which the warrant is required, and that the copy of the writ and complaint have been sent to the Registry or consulate should the ship be of foreign nationality.
Section 3. Issuance of a Warrant of Arrest of Vessel, Cargo, or Freight. – Upon the commencement of the action, the plaintiff or defendant, as the case may be, may apply for a Warrant of Arrest for the arrest of the ship, cargo, or freight against which the action or any counterclaim in the action may be brought. No Warrant of Arrest shall be granted unless the arresting party has given a bond or security, including a corporate surety from a surety company accredited by the Supreme Court, executed in favor of the Admiralty court in the amount of thirty percent (30%) of the claim, but in no case less than five million pesos (?5,000,000.00), conditioned that the arresting party will pay all the costs which may be adjudged to the adverse party and all damages which he or she may sustain by reason of the arrest, if the court shall finally adjudge that the applicant was not entitled thereto.
A Warrant of Arrest shall not be issued without prior notice to the owner, charterer, master, or person in actual possession and control of the property at the time of application, and after due hearing, However, a plaintiff may request the issuance of a Warrant of Arrest of Vessel, Cargo or Freight ex parte in cases of extreme urgency where the complainant may suffer irreparable injury or gross inconvenience on account of the mobility or transportability of the ship, or the cargo, or the person in custody of the freight, against which the action in rem is directed. In such case, the court may issue ex parte a warrant which shall immediately be executed pursuant to Section 5 hereof.
Section 4. Payment of port fees and charges. – The arresting party shall, in addition, pay all port fees, charges and expenses incurred in the preservation and maintenance of the ship or cargo during its arrest, until its release or sale.
Section 5. Execution of a Warrant of Arrest of Vessel, Cargo, or Freight. – A Warrant of Arrest of Vessel, Cargo, or Freight must be served on the ship, cargo, or freight against which it is issued. Service of a Warrant of Arrest shall be effected in the same manner as service of a Writ of Summons in Action In Rem specified in Rule 2, Section 11(a) hereof. The warrant must also be served upon the master of the vessel or person in custody of the cargo or freight. The warrant of arrest shall likewise be served on the Ship Registry or consulate of the flag State of the ship, and annotated on the ship’s certificate of registration.
While a ship is under arrest, its cargo may still be discharged.
A court-designated Sheriff serving a warrant of arrest may summon officers from the Philippine Coast Guard, Bureau of Customs, Philippine Ports Authority, or pertinent port authority, or any other law enforcement agency for assistance in enforcing the warrant. Officers so summoned shall be considered as duly deputized and shall assist in effecting the arrest when they can render such assistance without detriment to their safety. The Sheriff shall make a return on the Warrant of Arrest of Vessel, Cargo or Freight in accordance with the Rules of Court.
Section 6. Applications with respect to property under arrest. – The Sheriff may at any time request the court to provide directions with respect to the property under arrest, and shall give notice thereof to any or all of the following persons who, in relation to the property, have:
(a) Caused a warrant for the arrest of the property to be executed by the Sheriff;
(b) Entered appearance in any action in which the property is under arrest; or
(c) Intervened in any action in which the property is under arrest.
Section 7. Bail bond. – A bail bond or security, including a corporate surety from a surety company accredited by the Supreme Court, in sufficient amount to answer for the arresting party’s claims, may be given on behalf of a party to an action in rem to secure the release of the ship, cargo, or freight from arrest. The bail bond shall be filed with the court and notice thereon served on the adverse party. Upon receipt of the bail bond and finding that it is in good order, the court shall forthwith order the lifting of the warrant of arrest.
In case a warrant of arrest is issued against the cargo or freight only, the amount of the bail bond shall be based on the value of such cargo or freight subject of the arresting party’s claim.
Section 8. Report on Arrest of Vessels, Cargo, or Freight. – The judge shall report to the Supreme Court, through the Office of the Court Administrator, every action taken on all Warrants of Arrest of Vessel, Cargo, or Freight, within fifteen (15) calendar days from the action taken.
RULE 7
SALE OF PROPERTY IN CUSTODIA LEGIS
Section 1. Satisfaction of final judgment in actions in rem. – After finality of judgment, a ship or cargo which has been subject of a warrant of arrest, and has remained in custodia legis due to failure to file the appropriate bail bond, may be sold at public auction as directed by the court to satisfy the maritime claim upon motion of the prevailing party.
Section 2. Appointment of Appraisers. – Upon motion of the prevailing party for the sale of the arrested ship or cargo, the court may, within five (5) calendar days, cause the appointment of one or more appraiser/s who shall assign a value of the ship or cargo, and assist the Sheriff in the sale of the property.
Appraisers shall be appointed taking into account their specialized knowledge and expertise in the classification and valuation of ships, and familiarity with ships and ship management or operations.
Appraisers shall be entitled to compensation in the same manner as Sheriffs of the court, out of the proceeds of the sale.
Section 3. Order of Priority. – In case a judgment is rendered and there are numerous prevailing parties in an action in rem, they may file a motion before the court to determine the priority of the claims against the proceeds of the sale of the ship.
| Part 1. General Provisions | Part 4. Special Proceedings |
| Part 2. Civil Procedure | Part 5. Common Provisions |
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