Serial Cases Listed in “Typical Cases of Maritime Trial in 2021” by China’s Supreme Court

07.06.2022 |NEWS&ARTICLES

 
On 7th June, China’s Supreme Court published the list of “Typical Cases of Maritime Trial in 2021”. The crew wage claims against the sale proceeds of MV “Angelic Power” where we successfully acted for the claimants are among the list.
 
For more information, please link here.
 
Our legal team in this case, led by our managing partner Huang Hui represent the vessel’s Master, Chief Officer and four other Hellenic crew members in their claims which involve registration of the claims, action to have the claims confirmed by court and enforcement proceedings.
 
On 22nd July 2021, all 22 foreign crew members were successfully repatriated to their homes. In October, the vessel was auctioned for RMB64 million by Guangzhou Maritime Court. On 24th December 2021, the court granted the request of the Master and the Chief Officer for registration of their claims against the vessel’s sale proceeds and on 27th December 2021 handed down judgments upholding our clients’ claims in full.  
 


[Background]
 
MV “Angelic Power” was registered at Port of Piraeus, Greece, owned by Angeliki Dynamis Investment Corporation and managed by Panthalassa Maritime Corporation. In mid-January 2021, the ship manager signed seafarer employment contracts with several Hellenic and 13 Philippines. In March, the shipowner abandoned the vessel due to financial disputes with outsiders. The vessel was then arrested and subsequently auctioned by Guangzhou Maritime Court. In the process, 2 Hellenic and 13 Filipino crew members commenced proceedings to seek payment of unpaid wages and related compensation and a declaration that their claims are maritime liens and should be given preferential status.
 
[Court decision]
 
Guangzhou Maritime Court considered that: there were employment contracts in place between the shipowner and the Hellenic and Filipino seafarers providing for the application of the laws of Greece and Philippines respectively; the Master’s act of confirming the amounts of remuneration owed to the crew members shall amount to the act of the shipowner; in terms of the Hellenic crew, quantum shall be determined in accordance with the laws of Greece while in terms of the Filipino crew, it shall be determined in accordance with the laws of the Philippines; the issue concerning maritime lien shall be governed by Chinese laws. The court upheld the crew members’ claims and confirmed that they are maritime liens and can take priority in payment from the vessel’s sale proceeds.   
 
[Significance]
 
This case arose from employment contracts between a foreign shipowner and foreign seafarers. In accordance with Law of the People’s Republic of China on the Law Applicable to Foreign-Related Civil Relationships, the court fully respected the parties’ freedom to contract, determined the governing laws based on the specific legal relationships, and accurately ascertained and applied Greek law and Philippine law. The court actively explored effective ways to ascertain foreign laws and accurately applied the laws of different countries, which demonstrates the capability and level of China’s maritime justice and provides useful experience for accelerating the establishment and improvement of the legal mechanism for ascertaining and applying foreign laws.
 
The foreign crew members were offered cross-border litigation services by the court, allowed to complete identity and authorization authentication under the court’s remote witnessing via the mobile micro-court platform. Besides, the court proactively helped facilitate the repatriation of the abandoned crew. At the 108th meeting of the IMO Legal Committee in July 2021, the Hellenic delegation expressed their gratitude to the relevant parties in actively resolving the shipowner’s abandonment of MV “Angelic Power” and take care of the needs of the crew.
 
 
Lawyers successfully acting for the crew



Huang Hui | Managing partner



Huang Qianxin | Associate



Liang Handeng | Associate