Ship Arrest in Bulgaria

Ship arrest proceedings in Bulgaria (Varna and Burgas) are governed by the International Convention on Arrest of Ships 1999, the Merchant Shipping Code, and the Code of Civil Procedure. Security motions are heard by the competent court and, upon approval, a court order is issued, either unconditionally or subject to deposing counter-security, which is typically set at 10% of the claim amount. The court order is then presented to the Harbour Master, at which point the ship is deemed arrested.

Arrest

Scanned copies of a power of attorney, the claimant’s certificate of good standing or company registry extract, and supporting documentation establishing prima facie evidence of the claim (charterparties, recaps, emails, contracts, etc.) must be submitted with the application.
Depending on the factual and legal complexity of the matter, the application can usually be prepared within up to 8 hours. The court rules on the same day the application is filed and, provided that any required counter-security is deposited and the court order is obtained sufficiently prior to the close of business, the arrest may be effected on the same day.
Piercing the corporate veil and the arrest of vessels under the control of bareboat charterers, time charterers, or ship managers—thereby achieving an in rem effect in an otherwise in personam jurisdiction—while difficult to establish, has been confirmed by Bulgarian case law on several occasions. Such an approach may be considered following a detailed review of the full charterparty chain, and the relevant contractual and agency relationships.

Release of a ship from arrest

The respondent may, at any time and without the consent of the claimant, provide a deposit equal to the claim amount, upon which the vessel will be released. Release is typically effected within 24 hours of the deposit being paid into court.
The arrest order itself may be appealed before the court of second instance.

Wrongful arrest

Should the action on the merits be rejected or terminated, the court may accept a claim for damages sustained by the respondent as a result of a wrongful arrest.

Other information

The arrest of ships in Bulgarian ports along the Danube River (Ruse, Lom, Vidin, etc.) follows a procedure broadly similar to that outlined above.
Detention of a vessel pursuant to an order issued by a public authority in criminal or administrative proceedings (i.e. deficiencies identified during Port State Control, Paris MoU or Black Sea MoU inspections) is governed separately and is subject to appeal in accordance with the Criminal Procedure Code and the Administrative Procedure Code.

Ship Arrest in Bulgaria