U.S. Aims to Revive Civil War-Era Court to Claim Iran Oil as Prize

Litigation attorneys Allison Luzwick and Michael Frevola were quoted in a Bloomberg Law article examining the U.S. Department of Justice's plans to revive long-dormant maritime prize courts as part of efforts to streamline the military capture and disposition of Iranian oil tankers and cargo. The article explored the legal and operational challenges associated with resurrecting a court system that has remained largely unused since World War II, as well as the potential advantages of prize proceedings compared to traditional procedures. Allison highlighted the factors for the government to consider when attempting to invoke prize authority.

"This really is a historical area of law that is not tested in modern times," she said. "Great strides have been made in international law and the law of war since the late 1800s, and all of that is going to come into play when we're actually looking at proceedings involving a vessel that is potentially seized under Prize Act authority."

Michael explained how prize court proceedings could offer a quicker path for transferring proceeds from seized vessels and cargo to the U.S. Department of the Treasury, noting third parties would have more limited opportunities to challenge captures than they would in traditional civil forfeiture actions.

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