Detained by USCG for bypassing OWS - owners claiming for unreasonable delay to ship's departure

In The Antonis G. Pappadakis [2018], ship owner tried claiming damages from USCG for unreasonable departure delay after the vessel which had been caught for discharging oil illegally had to spend nearly 6 months in detention untill the legal proceedings were completed against the owner, charterer and chief engineer. Whilst 33 U.S.C. 1904(h) allows for such claims, the burden on the party seeking relief is heavy, as evidenced by this case.

Brief summary: Soon after detaining the ship in April'13, USCG demanded a $2.5 mil bond which also had non-monetary conditions such as maintaining the employment of seafarers etc. for releasing the vessel. Owners offered $1.5 mil (because of their poor financial state) but it was not accepted by USCG. In their action against USCG, they said that bond demand was unreasonable. Their argument was that bond amount should be based on what the court is likely to impose as fine and not on maximum statutory fine. The court found owners’ approach to be impractical. Also, as per precedent, USCG had authority to detain a ship until legal proceedings are completed. Regarding lack of available funds, owners did not submit any documentation to prove such. As for non-monetary conditions, court declined to comment on their reasonableness.

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