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Augusta failed to take delivery of the vessel and did not pay the balance of the Contract price.
Augusta also owned other vessels, including the “Constanza M”. Furtrans arrested the “Constanza M” at Amsterdam to obtain security for the balance of the Contract price, interest and costs. Furtrans alleged a maritime claim as set out in Art.1.l of the Arrest Convention, namely a claim arising out of the construction of a ship, and said that Augusta was a ‘party’ within the meaning of the second paragraph of Art.3.4 of the Convention. This article reads as follows:
“When in the case of a charter by demise of a ship the charterer and not the registered owner is liable in respect of a maritime claim relating to that ship, the claimant may arrest such ship or any other ship in the ownership of the charterer by demise, subject to the provisions of this Convention, but no other ship in the ownership of the registered owner shall be liable to arrest in respect of such maritime claim.
The provisions of this paragraph shall apply to any case in which a person other than the registered owner of a ship is liable in respect of a maritime claim relating to that ship.”
