Last week, the U.S. District Court for the Southern District of Texas published proposed Prize Rules and Standing Interrogatories for Prize Proceedings for public comment. The Court’s proposal follows reports in late August that the Department of Justice intends to revive prize proceedings to condemn Iranian tankers and cargo captured under the U.S. naval blockade. A statement by the U.S. Attorney for the Southern District of Texas confirms that his office is ready to proceed with such cases (report).
In our April update, Blockade and Capture: the significance of M/V TOUSKA, we explained that the Persian Gulf blockade had activated the long-dormant maritime law of prize. The original April blockade was lifted in mid-June under the interim U.S.-Iran MOU and then reinstated after the ceasefire ended. Like the first blockade, the reinstated blockade was announced in a social media post by the President. This time, however, a formal notice quickly followed. On July 14, the Joint Maritime Information Center issued Advisory Note 015-26, announcing that U.S. Central Command would enforce a naval blockade of all Iranian ports and coastal areas from 2000Z on July 14, 2026.
The Southern District of Texas proposal would open the door to applying the law of prize to vessels captured by the U.S. Navy for violating the blockade and would allow the judicial sale of captured vessels. The development is historically significant because, to our knowledge, no federal court has current and effective rules for prize cases. In addition, the Federal Rules of Civil Procedure expressly provide that they do not apply to prize proceedings (Rule 81(a)(1)). Rules for prize cases are necessary because the prize statutes themselves refer to judicial proceedings. The last time a federal court published prize rules appears to have been January 8, 1942, one month after Pearl Harbor, when the Federal Court for the Southern District of New York re-adopted rules based on that Court’s prior practices from the U.S. Civil War.
The proposed rules would apply to prizes brought into the Southern District of Texas, and to prizes held abroad or appropriated by the government where the Attorney General or Secretary of the Navy elects to proceed in Texas.
The rules address the process from the point of capture onward. They allow the Capture Authority (the Navy Commanding Officer who directs the capture of the prize) to administer standing interrogatories at or near the time of capture, through NCIS agents or similarly qualified personnel under its direction. The Capture Authority must notify the court, a prize commissioner, and the U.S. Attorney within sixty (60) days of capture of either the prize’s arrival in the District, or of the Secretary of the Navy’s designation. The U.S. Attorney must file a libel, traditionally, the maritime equivalent of a complaint, within one hundred fifty (150) days. A warrant of arrest then issues, and the prize vessel or cargo enters the custody of the Court. Claimants to the prize—owners and holders of properly perfected security interests—have 14 days to file a Verified Statement of Right or Interest. If no proceedings are started within one hundred fifty (150) days, a claimant may petition for restitution. The proposed rules allow for summary judgment on the initial record, interrogatory answers, and the claimant’s verified statement. The Court may enter default judgment of condemnation if no claim is filed within fourteen (14) days of execution of process or publication.
The Texas proposal is recognizably based on the Southern District of New York’s rules. The proposal, however, introduces several new features, such as the Capture Authority’s role in conducting examinations. (The 1942 rules reserved this function for the commissioners). In addition, the standing interrogatories have been updated to obtain facts relevant to establishing violations in the modern context and summary judgment may be pursued. The proposed sixty (60) day notice requirement and one hundred fifty (150) day timeframe for filing a libel provide more time than the 1942 rules allowed. Finally, the proposed rules implement modern protections for witnesses, consistent with the Geneva Conventions, by making answers voluntary and allowing consultation with counsel beforehand.
The U.S. District Court for the Southern District of Texas has taken an essential step toward reviving the long-dormant law of prize. The Court will accept comments on the proposed rules until October 23, 2026. The short time between the U.S. Attorney’s announcement and the Court’s publication suggests that implementation will proceed promptly. If so, the Court could soon be the first in generations to adjudicate prize cases.
For more information on the proposed war prize rules and/or US admiralty law generally, please contact us at info@chaloslaw.com.