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MARITIME LAW

Liens and Mortgages

Finansbanken ASA v. GTS Katie (The)

T-2009-00

2001 FCT 1316, Morneau P.

29/11/01

4 pp.

Claim for bunkers--Supplier thereof claiming priority over mortgage creditors--Macoil supplied bunkers ordered by charterer of GTS Katie--Macoil claiming contract governed by laws of Egypt on basis of mention on back of bunker invoice, stating agreement to be determined by maritime law of Egypt--Bunkers supplied in Gibraltar, not Egypt--Bunker delivery receipt not containing such notation, but stating vessel under charter and charterer has no right to incur or subject ship to maritime liens--Bunker invoice sent to charterer, never sent to owners--No evidence that charterer purported to act on behalf of owners, that they had authority from owners to act on their behalf, that Macoil had any dealings with owners, or that owners aware of intention of Macoil of making supply subject to Egyptian law--Mere mention of choice of law of country having no connection with supply of bunkers, in contract to which owner not party and to which specifically declared would not be bound, cannot under any circumstances serve to create maritime lien against vessel--As far as owners concerned, they accepted to receive on board bunkers ordered by charterer, notifying supplier they would not be liable for that contract, in port where such supply not giving rise to lien against vessel--Owners entitled to expect and rely on fact proper law applying to acceptance of bunkers on board ship will be that of port where bunkers received, and no other--Canadian conflict of law rules must be applied in order to determine proper law of supply--In determining whether choice of law clause in contract opposable to owners and can serve as guide to establishing proper law of supply as against owners, law of place where contract made applicable--As contract made in Gibraltar, and as law of Gibraltar not proven to be different from law of Canada, law of Canada must be applied--Under Canadian law, charterer may not bind owner to any contract of supply of bunkers without owners' consent.

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