U.S. Vessel Seizures – The Prize Law's Return?
Maritime attorneys Allison Luzwick and Michael Frevola were interviewed by Seatrade Maritime News about a federal court's proposed rules reimplementing prize proceedings. The U.S. District Court for the Southern District of Texas is giving stakeholders until October 23, 2026, to submit comments on its proposal, a significant step toward reviving the prize law framework that has lain dormant since just after World War II.
The article cited an alert Allison and Michael published on this development, where they explain that prize law refers to the process under which courts determine whether a vessel or cargo was lawfully captured under the law of armed conflict as enemy property or as part of a blockade. Allison emphasized that prize proceedings differ substantially from civil forfeiture procedures: Unlike civil forfeiture, in which vessel owners, lien holders and cargo holders can file claims to delay asset transfers, prize law allows ownership to transfer immediately to the capturing nation.
"The first thing to understand, it's a fundamentally different framework [than the current civil forfeiture framework] and needs to be taken into consideration from an insurance provision, route planning and security standpoint, and with an eye to what's happening geopolitically," she said. "It's important for vessel interests to be aware of what happens if these new procedures go into effect, and what they look like, so that they can make informed decisions well before getting involved."
Michael commented on the reasons behind the attempt to revive prize law, noting escalating military operations in the Middle East, particularly those involving Iran, mean the U.S. government is sourcing options beyond sanctions to pressure the country economically.
"The better the U.S. is able to limit Iran's ability to sell and transport its products, either through its own vessels or through third-party vessels, the less they feel constrained to resolve the war," he said, adding though it is too early to forecast exactly how prize law will function in practice, maritime operators should assess exposure now.