Collecting bunker debt - when urgency matters
The Client – large bunkering company making business in Black Sea Region – applied to Interlegal for debt recovery for bunker supply from the Shipowner amounting to 50,000 USD.
With regards to the Client’s maritime claim against the Debtor, Interlegal lawyers offered to arrest the Debtor’s Vessel.
The fact of indebtedness was evidenced by email correspondence between the Vessel Manager and the Client upon bunker order and payment, the Bunker Delivery Note signed by the Vessel Master and the Client’s current Terms and Conditions on bunker sale and purchase.
Interlegal tasks were the following:
1) Standard terms to be proved in the process of ship arrest (the Vessel location, title on the Vessel, evidence of maritime claim etc.);
2) Evidence of Manager’s powers under bunker purchase order;
3) Whether the Client’s current Terms and Conditions on bunker sale and purchase shall apply to the Customer.
With regards to vast experience in similar dispute settlement, Interlegal project team drafted in due time and submitted to the appropriate bodies a series of Attorney’s Requests regarding the Vessel location (route) and certifying title on the Vessel.
Till the crucial moment, Interlegal lawyers drafted the Application on the Vessel arrest as maritime claim security and obtained the necessary replies to their Attorney’s Requests.
Application stated that the Vessel Master, acting in the interests and on behalf of the Shipowner, signed the Bunker Delivery Note, certifying the fact of bunker receiving in the prescribed quantity and quality, and confirmed the fact that the Client’s current Terms and Conditions on bunker sale and purchase apply to the Customer.
The Client’s current Terms and Conditions on bunker sale and purchase, inter alia, provide the following:
- Order on all the products shall be deemed as arisen from the Vessel Master, even if sent by the Buyer to the Seller, even in the absence of the Vessel Master’s written request. Therefore the cost of such supplies shall be deemed as direct encumbrance of the Vessel.
- The Buyer undertakes to pay the cost in accordance with the Contract. Although the Seller issues its invoice immediately upon delivery, the Buyer’s payment obligation shall not depend on issuing the invoice.
In view of the aforesaid situation, Interlegal lawyers could settle all the issues in order to satisfy the Client’s request in full.
The Ukrainian court arrested the Vessel; one day later the Client received full indebtedness from the Shipowner amounting to 50,000 USD.
Our principles of cooperation with clients do not allow us to disclose company names and other confidential information.
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