Maritime-Executive: Trump Administration Moves to Revive Prize Courts for Vessel Seizures

Published by maritime-executive

The Trump administration is moving to reestablish a 19th-century maritime institution that has fallen into disuse: the prize court, a special-purpose tribunal for speedily determining the legality of the seizure and forfeiture of an enemy merchant vessel. The American legal framework for a prize court hasn’t been tested since World War II, and only rarely after 1900; but dusty as it may be, the administration sees it as a way to circumvent the delay-prone appeals process of the civil court system, according to Bloomberg. 

The idea of a prize court dates back to the Age of Sail and the contests between colonial powers, when blockades and militarily-aligned merchant shipping were part of the everyday business of warfare. The court is convened in a belligerent state’s seaport when a captured merchant ship is brought in. If the ship meets the standard for a prize, the court transfers ownership of the vessel (and any contraband cargo) to the belligerent state.

International law places limits on this practice. To be eligible for capture, the vessel must be doing one of six things: carrying militarily-useful goods toward enemy territory (contraband goods); transporting enemy servicemembers; operating under enemy control or charter; using fake documents; violating regulations near naval activity; or attempting to run a blockade. Recent U.S. ship seizures connected to its Venezuelan and Iranian blockades appear to satisfy several of these conditions, and more than a few legal experts have advocated taking advantage of the benefits of prize court procedure.

Bloomberg reports that the Department of Justice is looking to set up prize court proceedings in the Southern District of Texas, located in Houston, a natural destination for seized tankers due to its vast midstream infrastructure. U.S. Attorney for the Southern District Aaron Reitz confirmed that his office is involved in the effort. 

The real advantage of prize authority is in its streamlined proceedings, which limit the ability of third parties to intervene in the case. In a civil forfeiture suit, various other parties with potentially valid claims to the value of the vessel – for example, families of victims of Iranian terrorism, who can lay personal claim to forfeited Iranian assets under U.S. law – can file their own demands and slow down progress towards a final judgement. All the while, carrying costs for the captured vessel (insurance, wages, maintenance, fuel) continue to accrue for the federal government; a swift sale is the best route to profitability for vessel and cargo seizures, and Prize Act cases might be the answer.