Using the IRAC (Issues, Rules of Relevant Law, Application and Conclusion) approach.

On 20thJune 2020, Mr Xiao Li was contacted by a crew agent in Shanghai to work on board a shipThe Fortune Star, a Chinese-flagged ship owned by the Lucky 888 Limited of Shanghai("Lucky 888").

On 9thSeptember 2020, whileThe Fortune Starwas conducting her regular trade from Denmark to Australia via Shanghai, she unexpectedly passed through a rough sea condition as the typhoon in the area had intensified into a super typhoon.The Fortune Starcould safely pass through this area. However, the rudder and the propeller shaft went missing. Fearing of further danger, the Master, with the permission of Lucky 888, decided to engage Drag &Drop Limited ("Drag & Drop") to use the tugThe ERto towThe Fortune Starto the nearest port whereThe Fortune Starcould get the rudder and the propeller shaft repaired and replaced. WhileThe Fortune Starwas in tow, the tow line broke and theFortune Stardrifted. In an attempt to re-connect her withThe ER, Mr Xiao Li, who held the position of the Chief Engineer on board, decided to throw the new tow line whichThe Fortune Starhad on board towardsThe ERin an attempt to re-connect. While Mr Xiao Li was attempting to throw the tow line,The Fortune Starturned hard and fast to the starboard side all of a sudden due to the tide. Due to this, Mr Xiao Li slipped since the floor of the deck where he was standing was particularly slippery due to the stain of lubricating oil which was left unclean. As a result, Mr Xiao Li suffered serious injuries. He received first aid on board the ship. The tow line was then successfully reconnected, andThe Fortune Stararrived at the nearest port where the rudder and the propeller shaft got repaired and replaced and from there Mr Xiao Li was repatriated back to Shanghai to receive further treatment.

When Mr Xiao Li arrived in Shanghai, he was brought to the hospital where the doctor came to the conclusion that his right leg had to be amputated. He decided to launch a claim against Lucky 888 in the amount of US$400,000 before the Shanghai Maritime Court to recover all treatment costs and compensations for his permanent disability. The Shanghai Maritime Court gave the judgment for Mr Xiao Li accordingly.

Still, to date, Lucky 888 has not made any payment to Mr Xiao Li. Mr Xiao Li heard that theFortune Teller,another ship owned by Lucky 888, is due to stop in Australia for few days to take on bunkers. He is thus considering arrestingThe Fortune Tellerin Australia since he estimated that the value ofThe Fortune Teller, if it is sold by judicial sale in Australia, will be around US$450,000. He received the following advice from his friend who is a maritime lawyer in Shanghai:

Question 1

Mr Xiao Li can still arrestThe Fortune Tellerin Australia as the judgment of the Shanghai Maritime Court was against Lucky 888.

Question 2

Mr Xiao Li is a maritime lien holder. If his claim succeeds before the court in Australia, he is likely to get US$400,000. To the extent that Drag & Drop is attempting to maintain that its work was in the nature of the salvage services and hence it is entitled to the reward in the amount of US$500,000, this is wrong and there is no way Drag & Drop can have better right from the proceeds of sale ofThe Fortune Tellerthan Mr Xiao Li.

Advise Mr Xiao Li on his right to arrestThe Fortune Tellerin Australia and, if he can, whether he should do so in light of the potential claim by Drag & Drop.