## Facts

- Amstar Corporation shipped sugar aboard the S/S Alexandros T., owned by Nava Shipping Co., Ltd.
- The sugar cargo was damaged during carriage.
- Amstar sued Nava in personam and proceeded against the vessel in rem to enforce a maritime lien.
- The district court issued an arrest warrant under Supplemental Admiralty Rule C; the U.S. Marshal arrested the vessel.
- The vessel was released after security was posted, but Nava challenged the arrest procedure as violating Fifth Amendment due process.
- The district court rejected the constitutional challenge, held Nava and the vessel liable, and awarded damages for the cargo loss.
- Nava and the vessel appealed, contesting both the constitutionality of Rule C arrest and the damages calculation.

## Issues

1. Whether Supplemental Admiralty Rule C (as implemented with Rule E), permitting ex parte arrest of a vessel to enforce a maritime lien, violates Fifth Amendment due process.
2. Whether the district court erred in assessing damages for the cargo loss.

## Decision

- The Fourth Circuit affirmed the judgment for Amstar.
- The court held that lower courts may consider constitutional challenges to rules promulgated under the Rules Enabling Act; the rules are not immune from review.
- The court held that Rule C vessel arrest in an in rem maritime lien action, together with Rule E procedures, satisfies due process.
- The court upheld the damage award, finding no legal or factual error.

## Legal Principles

- Federal rules adopted through the Rules Enabling Act remain subject to constitutional review in lower courts.
- In rem admiralty proceedings to enforce maritime liens are historically distinct from ordinary debtor-creditor attachment and garnishment remedies.
- Ex parte arrest of a vessel to enforce a maritime lien may comport with due process where procedures require a verified complaint stating a basis for the lien and provide prompt post-seizure mechanisms to contest arrest and security under Rule E.
- Appellate review of admiralty damages awards generally defers to district-court factfinding absent clear legal or factual error.

## Conclusion

The Fourth Circuit held that Supplemental Admiralty Rule C vessel arrest, when coupled with Rule E’s post-arrest protections, does not violate Fifth Amendment due process in a maritime lien action, and it affirmed the district court’s cargo-damage judgment against both the vessel and its owner.


Amstar Corp. v. S/S Alexandros T., 664 F.2d 904 (4th Cir. 1981)