Thornsteinsson v. M/V Drangur case brief summary

Thornsteinsson v. M/V Drangur (1990)

• Seamen asserted claims for wages against a ship that had been seized in Iceland and sold in foreclosure to the Δ
• Icelandic jurisdiction in the in rem foreclosure proceeding was based on constructive possession of the vessel via the vessel’s paper
• Δ raises defenses of laches and execution sale as clearing all liens
• Court held that actual, not constructive, seizure is needed in order to put claimants on notice as to the execution sale
• Laches defense involved analysis of actual notice to the seamen
• Factors emphasized:
• Whether seamen’s employer knew of seamen’s claims when suit was filed in Ireland, and if so;
• Whether the employer had an obligation to inform either the Icelandic court or the vessel purchaser at the auction and
• Whether the purchaser was prejudiced by enforcement of the claims