Pan Ocean is demanding millions of dollars from Clearlake Shipping for allegedly reneging on a promise to pay security for one of the diversified shipowner's seized vessels.
The South Korean company filed a lawsuit seeking $7.25m for alleged breach of a 2016 charter contract requiring indemnity for any added costs incurred from Clearlake's actions.
Lawyers for both sides declined to comment on the suit filed in US District court for the Southern District of California.
Clearlake asked Pan Ocean to release clean petroleum cargo aboard the 46,200-dwt Grand Ace 12 (built 2008) without receiving original bills of lading, according to legal documents filed by Pan Ocean's lawyers.
Clearlake requested this after Chinese custom authorities in 2016 seized the ship and 38,000 tonnes of cargo for allegedly smuggling 36 cargoes and evading taxes and tariffs.
China-Base Ningbo Group and Beihai Xinan Petrochemical claimed to be the cargo's receivers and said they were out millions of dollars as a result of the vessel's arrest.
The former Pan Ocean and Clearlake Shipping clients arrested the ship in Singapore in March, prompting Pan Ocean to pay a $5.65m security for the vessel's release.
Pan Ocean also wants another $1.6m from Clearlake in Singaporean interest, court and defense fees, according to Pan Ocean's lawyers led by David Russo of San Francisco firm Lewis Brisbois Bisgaard & Smith.
The court may require garnishee Chevron to pay out the sought funds.
