Practice Strengths

On the business or litigation side of maritime law, Baker Hostetler has represented clients in bet-the-company matters for nearly three quarters of a century. We represent many of the world's largest energy companies and have helped them deal with issues at sea, undersea and in port.

In addition to the usual array of Jones Act and 905(b) claims, Rule C arrests to foreclose maritime liens and mortgages, Rule B writs of foreign attachment, Rule D petitory actions, cargo claims, oil pollution claims, general average, limitation proceedings, charter parties, dock damage, and collision and allision litigation, we have handled some unique maritime issues. Whether it be the "Case of the Missing Zeros," Homeland Security, major motion pictures filmed at sea or offshore matters, we have the depth of experience to deal with related matters.

Partners in our maritime section have more than 25 years of maritime law experience and have handled a wide range of maritime matters.

Leadership in Action

Fleet Foreclosure: The Case of the Missing Zeroes

Foreclosure on a fleet of vessels became complicated when a document reported their value at $90,000 rather than $90,000,000.

Client: A financial services company

Type of Matter: We represented the mortgagee in enforcing fleet mortgage against eight United States Lines LANCER class container vessels.

Our Client's Challenge: Our client's challenge was to recover the full value of their mortgage on vessels despite the fact that the value of the mortgage had been misrecorded on the vessels’ documents as some $92,000 instead of the intended $92,000,000. The battles over the mortgage were fought out in the bankruptcy court as well as the district court sitting in admiralty and the Second Circuit Court of Appeals.

The Goal: The immediate goal was to establish the full value of the lien and foreclose on the ships.

Our Strategy: We foreclosed on five ships in the Southern District of New York and three more in the Northern District of California.

Results: We prevailed in representing our client's position on the value of the fleet mortgage and sold the eight vessels at U.S. Marshal's auction.

Representative Experience
Our comprehensive experience in maritime law is evident in our work related to major motion pictures shot at sea. We have handled the full spectrum of issues for award winning films.

• Obtained MARAD Approval to charter vessel to foreign production company for use of the vessel in filming
• Prepared Charter Party for lease of vessel to movie production company
• Drafted crewing contracts for vessel's operating crew, film crew and actors
• Drafted Contract of Sale for sale of the vessel after filming
• Drafted Preferred Mortgage for vessel
• Review and commented on shipyard refitting and repair contract
• Provided advice on U.S. Coast Guard and American Bureau of Shipping issues.

Homeland Security and Hurricane Katrina have given rise to new maritime issues. We are working with clients to help them address the challenges of a changing world.

• Provided advice and counsel to a major oil concerning major dispute with vessel owner over delays due to shutdown refinery and resulting delays to vessels, delivering crude oil as a result of a Gulf Coast major hurricane in 2005.
• Provided advice to clients concerning content and scope of U.S. Coast Guard Homeland Security Regulations covering land based terminals as well as offshore oil and gas production facilities pursuant to the Maritime Security Act of 2004.

Transportation and storage of Liquid Natural Gas requires specific knowledge.

• Provided client with a complete list of regulations applicable to the operation of an LNG terminal as well as LNG vessels calling at such terminals. Review and provide advice in connection with LNG vessel chartering.

Regulatory Compliance requires a systematic approach.

• Performed Regulatory Compliance Audit of major oil company's shipping affiliate related to Maritime regulatory compliance with U.S. Coast Guard Regulations and other applicable federal and state laws and regulations.

Our admiralty representations have covered a broad scope of matters, including:

• CABOTAGE Law Issues (46 USCA § 883)
• Cargo Loss or Damage
• Carriage of Goods by Sea Act
• Carriage of Hazardous Goods
• Charter Parties
• Defense Bases Act
• Defense Indemnity and Insurance Claims
• Demurrage
• Diver Claims
• Foreclosures of Ship Mortgages and Liens
• Interpretation of International and Maritime Conventions
• Jones Act
• Limitation of Liability
• MARAD, U.S. Coast Guard Proceedings/Hearings
• Marine and Inland Marine Policy Disputes
• Ocean Shipping Reform Act (1998)
• Ocean Shipping Service Contracts
• Personal Injury and Death
• Ship Collisions, Groundings, and Other Losses
• Pollution (OPA 90 Litigation)
• Product Liability Claims
• Public Vessels Act
• Purchase and Sale of Vessels
• Salvage/General Average Claims
• Ship Mortgages
• Suits in Admiralty Act
• Vessel Arrests
• Vessel Design and Construction Contracting

Natural Disaster and the Oil Pollution Act 1990 Experience
We were retained by an offshore oil pipeline operator whose pipeline was damaged in a hurricane when a nearby jack-up rig was destroyed and sunk in a hurricane resulting in large heavy pieces of the rig landing on the subsea pipeline. The rig operator refused to pay the costs of removal of the rig and repair of the pipeline, forcing the pipeline company to pay for the removal. We sued the rig operator relying in part on the Oil Pollution Act 1990 (“OPA-90”) for our right to recover the costs of avoiding a pollution incident that may have resulted from damage to the line.

Selected Representative Matters:

• Represented tank vessel and pipeline interests in compliance matters under the Oil Pollution Act of 1990
• Developed oil spill response organizations
• Negotiated agreements for oil spill response
• Represented drilling, construction and service companies on matters involving the offshore oil industry—personal injury claims, registration and documentation, manning requirements, chartering, financing, bankruptcy foreclosure proceedings, government control of vessel operations and insurance
• Represented a major natural gas producing company in litigation involving licensing of geophysical data
• Represented clients in litigation involving major offshore oil spills during production and transportation of hydrocarbons by sea
• Represented a client in a cargo claim against them following the loss of feeder vessel in a typhoon in Bay of Bengal
• Represented major oil companies' shipping subsidiaries in Jones Act and maintenance and cure opinions
• Represented major oil company regarding oil spill at its offshore terminal
• Represented vessel owners in personal injury claims, Jones Act maintenance and cure and § 905(b) claims
• Represented clients in claims for insurance coverage arising out of contractual provisions for defense, indemnity and insurance between vessel operators and service contractors
• Represented a number of dry shipping firms in work consisting of providing assistance in the preparation of service contracts and other types of marine transportation contracts, including charter parties
• Represented clients in the negotiation and drafting of ship construction and repair contracts
• Represented clients in the negotiation and drafting of all types of marine transportation agreements
• Advised major integrated oil company on how to respond to a threat by environmental activists to disrupt drilling operations in the Chuck Chi Sea during the short drilling window in which the area is ice free. The environmental activists threatened to board the ship while it was drilling and thereby disrupt the operations. The issue posed was how to deal with such if it occurred, given that the area is so remote that there are no local law enforcement officers in the area and the Coast Guard does not routinely patrol the area. We advised the client on how to protect operations without exposing itself to tort claims or accusations of criminal assault by the activists based on ancient principles of maritime practice in conjunction with modern remedies available to them.

About Baker Hostetler's Litigation Team

When the stakes are bet-the-company monetary damages, potential criminal sentences and intense scrutiny in the court of public opinion, the 200-plus litigators of Baker Hostetler are a team to depend on. We have the kind of credentials you expect from a leading national litigation firm and a client base we have protected in and out of court for decades.

What really sets us apart is our practical experience as trial lawyers. The Baker Hostetler team includes former top prosecutors of the U.S. Justice Department (four of whom received the Attorney General's Distinguished Services Award), former prosecutors for major municipalities, veteran civil trial attorneys and enforcement officials from various federal agencies, from the Department of Energy to the SEC and NASD (now FINRA).