Asia/Pacific News
Australian Court Sides with Bunker Supplier, Paves Way For Enforcement of Foreign Maritime Liens
The Federal Court of Australia has upheld the arrest of a SPV Sam Hawk Inc-owned vessel over unpaid bunkers, potentially creating a precedent of allowing parties who have a maritime lien under foreign law to arrest ships in Australia, law firm Holding Redlich has noted.
Chartered to Egyptian Bulk Carriers at the time, the Sam Hawk was reportedly arrested in November 2014 by Canada-based Reiter Petroleum Inc, who argued that the fuel contract signed made the ship subject to either a Canadian or U.S. maritime lien.
The bunkers were supplied in Istanbul, Turkey, with the ultimate physical supplier being Socar Marine.
The case is expected to proceed into a final hearing, though Holding Redlich said that the decision has cleared up a previously grey area in Australian law.
According to separate reports, bunker supply is not on the list of claims that can hold the status of a maritime lien in the country.
"Regardless of the final outcome, this decision means that Australian courts will uphold the arrest of a vessel in Australia in respect of an arguable claim based on a foreign maritime lien," the firm said.
"Whilst the ultimate success of any such claim will depend on the particular circumstances in each case, this decision means that the circumstances in which bunker suppliers can arrest vessels in Australia, at least in order to obtain security for an arguable claim, have now been significantly increased."
Holding Redlich added that suppliers can now also consider Australia as a country with easier access to enforcement of claims.
Last week, Ship & Bunker reported that numerous parties involved in OW-Bunker related lawsuits are awaiting a final court ruling which will determine who should receive payment for oil sold by the failed fuel supplier around the time of its bankruptcy.
