Tenerife Court Prioritizes Unpaid Crew Wages Over Commercial Maritime Debts

A recent ruling by Social Court Number 7 in Santa Cruz de Tenerife has reinforced the priority of worker wages over other commercial debts in the Canary Islands. The court determined that unpaid wages owed to a former employee take precedence over claims from third-party creditors, even when those creditors claim rights tied to maritime assets.

The case involved a company that went insolvent, leaving an employee owed 36,728.67 euros for unfair dismissal and unpaid wages. To recover these funds, the court seized a vessel owned by the company. An outside entity attempted to block the sale, arguing that it was owed 24,530.11 euros for the vessel’s maintenance and mooring fees and therefore held a superior claim.

In a ruling dated March 5, the judge resolved the dispute by citing the 1993 Geneva Convention and the Maritime Navigation Act. The court clarified that, under maritime law, crew wages—in this instance, the worker was a skipper—rank higher than port operating costs like mooring or pilotage. This decision aligns with previous rulings from the High Court of Justice of the Canary Islands, further protecting seafarers during company liquidations.

The judge also noted that the third-party company failed to provide sufficient evidence for its claim. The documentation submitted consisted only of unilateral delivery notes without a signed contract, casting doubt on the legitimacy of the expenses, such as hauling and launching fees.

Ultimately, the creditor’s attempt to halt the process failed. The vessel had already been awarded to a buyer in late February for 35,150.99 euros. Under the Law Regulating Social Jurisdiction, such third-party claims are not sufficient to stop the enforcement of a final labor court judgment.