Legal Definitions - Federal Maritime Lien Act

The Federal Maritime Lien Act (FMLA) is a law that gives a legal right to anyone who provides goods or services to a vessel. This law automatically creates a lien on the vessel, which means that the person who provided the goods or services has a right to be paid before anyone else if the vessel is sold or if there is a dispute over payment.

• If a shipyard repairs a boat and the owner doesn't pay, the shipyard can use the FMLA to place a lien on the boat. This means that if the boat is sold, the shipyard will be paid before anyone else.
• If a supplier provides fuel to a ship and the shipping company goes bankrupt, the supplier can use the FMLA to place a lien on the ship. This means that if the ship is sold, the supplier will be paid before any other creditors.

These examples illustrate how the FMLA works in practice. The law is designed to protect people who provide goods and services to vessels, as they often have to wait a long time to be paid. By creating an automatic lien, the FMLA ensures that these people have a legal right to be paid, even if the vessel owner or operator is unable or unwilling to pay.