DOJ revives dormant prize law to claim Iranian oil tankers

The Justice Department is reaching back to a legal regime that has not been used regularly since the Spanish-American War as it seeks to claim Iranian oil tankers seized during the conflict with Iran.

Aaron Reitz, the U.S. attorney for the Southern District of Texas, confirmed that his office is involved in efforts to revive prize law. The framework governs what happens to maritime property captured during military conflict, including whether it should be condemned, returned, or otherwise disposed of.

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Our national security interests may require the United States military to seize vessels or cargo supporting the enemy during military conflict.

“Our national security interests may require the United States military to seize vessels or cargo supporting the enemy during military conflict,” Reitz said in a statement. “If that happens, our federal courts must be ready to adjudicate the disposition of these captured vessels and cargo.”

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If that happens, our federal courts must be ready to adjudicate the disposition of these captured vessels and cargo.

The approach could allow the administration to avoid the slower civil asset forfeiture process. A federal judge overseeing a seizure would still need to find that the United States met the legal standard for receiving the vessel as a prize. The Justice Department and Pentagon would need to show that the ship carried contraband, transported enemy soldiers, operated under enemy control, used false documents, or tried to evade a blockade.

If the plan withstands legal challenges, a court could award the United States the oil or other cargo aboard captured Iran-linked ships. The government could then sell the prize and likely transfer the proceeds to the Treasury Department.

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Prize law is an ancient body of maritime law, already codified in statute but which we are now reviving, that sets the rules for how seized maritime property is condemned, returned, or disposed of.