Another bunker supplier came up short in its attempt to recoup damages related to the OW Bunker bankruptcy.
A US appeals court upheld a lower court decision that denied Valero Marketing & Supply a maritime lien for the 157,000-dwt Almi Sun (built 2013).
Valero claimed its owed $124,000 for supplying bunkers to the Almi Tankers owned vessel. Almi had contracted with an OW Bunker subsidiary as contract supplier for the bunkers. But OW subcontracted the physical delivery to Valero.
In affirming the lower court decision, the appeals court says that the contract exists between the contract supplier, OW, and the Almi. Valero is not able to assert a lien over the vessel as its contract was with OW.
The decision mirrors recent a decision by another US appeals court that upheld Dutch bank ING could assert a lien, rather than the physical supplier on another vessel that had contracted with OW for bunkers.
Seward & Kissel partner Bruce Paulsen, who argued the ING case, filed a brief in the appellate case supporting the vessel and its owner. He says this is the third such decision that supports the right of contract suppliers, and not physical suppliers, to assert liens related to OW's bankruptcy.
"We are very pleased with the decision," Paulsen said.
