Bankers Trust International Ltd. v. Todd Shipyards Corporation - Lord Diplock, Lord Salmon, Lord Elwyn-Jones, Lord Scarman and Lord Lane - Privy Council - June 24, 1980

Effect within jurisdiction of a maritime lien conferred by the lex loci contractus

The appellants, an English bank, were the registered mortgagees of a British vessel, the Halcyon Isle . The mortgage was registered on May 8, 1974. In March, 1974, the respondent ship repairers, Todd, carrying on business in New York State, carried out repairs and supplied material to the vessel while she was in port at New York. Under U.S. law, but not under English law, a ship repairer is entitled to a maritime lien for the price of repairs. The Halcyon Isle was arrested in Singapore in September, 1974, in an action in rem brought by the mortgagees in the High Court of Singapore. She was sold by the order of the Court but the proceeds of sale were insufficient to satisfy in full all the claims of the owners’ creditors.