MARITIME LAW |
Contracts |
Kirgan Holding S.A. v. Panamax Leader (The)
T-1684-99
2002 FCT 1235, Blais J.
29/11/02
20 pp.
Plaintiff Kirgan Holding S.A. brought action by way of statement of claim against Panamax Leader seeking payment for bunker fuel supplied--Panamax Leader owned by Pacific Pearl Co., registered at Port of Valletta, under Maltese flag-- Ship managed by Cyprus Maritime Co. Ltd., Greek company --As Panamax Leader discharged cargo in Port of Québec, warrant filed on September 21, 1999 by plaintiff directed arrest of vessel--Marine Fuels Purchasing Contract between Kirgan and Tor Shipping Limited--Kirgan agreed to furnish bunker fuel to various ships for whom Tor acted as agent including Panamax Leader, chartered by Tonga Shipping Inc.-- Bunkering contracts providing U.S.A. law applicable-- Validity of choice in law in Clause 13 of contract--Choice of law provisions in freely negotiated private agreements valid if absence of fraud, undue influence or overwhelming bargaining power--Choice of law provision herein considered valid as defendants failed to prove unreasonableness of Clause 13--Whether plaintiff right in presuming bunkers delivered on credit of ship--If so, defendants bound by contract thus entitling plaintiff to benefit of maritime lien against Panamax Leader--Supplier has neither duty nor obligation to investigate whether party has actual authority-- Presumed authority based on possession of vessel--In case at bar, bareboat charterers had complete possession and control of ship at all material times, thus entitling plaintiff to rely on presumed authority of Tor Shipping Limited to bind shipowner--Part IV of charterparty between Tonga and Panamax Leader constituting hire/purchase agreement clause, thereby affording Tonga right to burden title of registered owner of Panamax Leader-- Plaintiff right in presuming bunkers delivered on credit of ship --Therefore Kirgan established a valid claim--Both parties of good faith--On one hand, plaintiff delivered bunkers to bareboat charterer, passing as owner, without pay--On other hand, defendants, unaware of transaction, must now assume bankrupt bareboat charterer's obligation to plaintiff--Panamax Leader gained windfall in receiving fuel without payment and to require owner to bear cost of benefit neither inequitable nor in contradiction of established principles under American maritime law--Plaintiff entitled to claim value of fuel supplied --Defendants condemned to pay plaintiff sum of C$123,914.74 together with interest at prime rate charged by Canadian chartered banks on March 31, 1999, plus 2% per annum--Claim allowed.