Maersk Tankers will pay damages of $39.4m in a cargo misdelivery case arising from the collapse of Singapore oil trader Hin Leong Trading in 2020.
The Danish company was taken to court by United Overseas Bank (UOB), which held two bills of lading for gasoil on the 109,600-dwt Maersk Princess (built 2005).
The LR2 tanker was carrying oil sold by ship charterer Winson Oil Trading to Hin Leong.
High Court of Singapore judge S Mohan said in a ruling that the case was “yet another product” stemming from the collapse of Hin Leong.
“It is not disputed that the cargo was discharged without original bills of lading [OBLs] having been presented,” the judge added. “Maersk did so in reliance on indemnities given by Winson.”
Winson was granted permission to intervene in the legal action and joined forces with Maersk in resisting UOB’s claims.
The defendants argued that the bank “never looked to the bills of lading as security”.
But Mohan allowed UOB’s claim for breach of contract.
The ship was carrying 752,870 barrels of gasoil in four parcels.
The judge ruled: “I am satisfied that UOB, as lawful holders of the OBLs, has established its claim against Maersk for breach of contract by reason of the latter having discharged and delivered the cargo without the presentation of the OBLs.”
Maersk Tankers told TradeWinds it does not comment on ongoing cases.
On Monday, oil and tanker tycoon OK Lim received a 17-and-a-half-year jail sentence after being found guilty of cheating and forgery charges.
Singapore’s State Courts handed down the term to the 82-year-old founder of Ocean Tankers and Hin Leong Trading.
He was accused of cheating lender HSBC and instigating forgery.
Lim will not be jailed until the outcome of an appeal has been decided.
