Emergency

The damage lien holder, on the other hand, being a person who has suffered loss or damage not by reason of a broken contract but as a result of another’s wrongful or tortious act has not, by the very nature of the incident, this benefit of such forewarning or foreknowledge of the likelihood of such loss or damage; the innocent, injured passenger after a collision at sea is an obvious example. Thus the fact that damage lien holders should rank for priority, generally speaking, before the holders of contractual liens is not only logical but also is the basic rule. In relation to the ranking of claims it is interesting to note that salvage has priority over (a) earlier salvage, (b) earlier damage, (c) earlier wages, (d) earlier claims to forfeiture by the Crown, (e) subsequent possessory liens, (f) necessaries, and (g) mortgages. A salvor’s lien ranks first (and in reverse order of time if there is more than one salvor – i.e. the later before the earlier) simply because without the emergency services he renders there would be no funds preserved out of which anybody else could be satisfied. The Tacoma City (1991). The extent of the crew wages maritime lien was considered by the Court of Appeal. In 1985 the world shipping group, Reardon Smith Line became insolvent and ceased trading.