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Category Archives: Maritime Contracts

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Designated Entity Clauses — No Substitute for Knowing Who You Are Dealing With

Posted in Maritime Contracts

With increasing frequency, parties to charters and other maritime contracts are including so-called Designated Entity Clauses or “OFAC” provisions. These clauses have the aim of complying with sanction programs such those administered by the U.S. Office of Foreign Assets Control (“OFAC”) or multi-national organizations such as the European Union or United Nations. But, do the… Continue Reading

Don’t You Forget About Me . . . Include Insurers in List of Indemnified Groups

Posted in Maritime Contracts

How many insureds entering into a master service agreement (“MSA”) go to bat for their insurers when negotiating who will compromise the members of their respective indemnified “Groups?” Given a recent decision of the U.S. Court of Appeals for the Fifth Circuit (“Fifth Circuit”), Duval v. Northern Assurance Company of America, __ F.3d __, 2013 WL 3367483 (5th Cir…. Continue Reading

11th Circuit Approves Pro Rata Apportionment to Plaintiff and Intervenors of Attachment Costs

Posted in Marine Services, Maritime Contracts, Ports & Cargo Shipping

In the unpublished opinion of  Adams Offshore, Ltd. v. Blake Marine Group, No. 11-12753 (11th Cir. Apr. 27, 2012), the Eleventh Circuit Court of Appeals adopted the Fifth Circuit’s suggestion in Beauregard, Inc. v. Sword Servs., L.L.C., 107 F.3d 351, 353 n. 8 (5th Cir. 1997), and affirmed the district court’s allocation of costs to… Continue Reading

What’s done cannot be undone: The perils of e-mail confirmations of payments for vessel necessaries

Posted in Marine Services, Maritime Contracts, Ports & Cargo Shipping

Most contracts for the sale of goods and services contain a standard provision regarding the application of payments on overdue accounts, such as:  “When more than one invoice is past due at the same time, Seller shall be entitled, at its sole discretion, to specify the particular invoice to which any subsequent payment shall be… Continue Reading

If in Doubt, File the Complaint for Limitation of Liability

Posted in Jones Act, Marine Services, Maritime Contracts, Ports & Cargo Shipping

One of the recurring issues in handling maritime wrongful death and personal injury claims is determining what information is sufficient to start the vessel owner’s six-month deadline to file a complaint seeking exoneration or limitation of liability under the Shipowners’ Limitation of Liability Act, 46 U.S.C. § 30501 et seq. from that claim.  It is… Continue Reading

Costa Concordia – Lessons Learned and Path Forward

Posted in Marine Services, Maritime Contracts, Ports & Cargo Shipping

When the Costa Concordia ran aground on a reef off Giglio Island near the Tuscan coast of Italy last month, owners and insurers of vessels certainly paid attention.  How could they not?  The incident was the most noteworthy shipping casualty since the Exxon Valdez disaster, and it is now being called the biggest ever shipping… Continue Reading

When No Privity of Contract Qualifies as “Any Contractual Relationship” under OPA

Posted in Marine Services, Maritime Contracts

Transactions to procure supplies for vessels engaged in international trade typically involve numerous international and local brokers, agents and contractors.  The vessel operator or charterer will place an order for supplies with a broker.  The broker locates a seller with the best price and reputation in the vicinity of the vessel.  The seller makes arrangements… Continue Reading

A Checklist: What to Expect When Financing Vessel Construction

Posted in Marine Services, Maritime Contracts, Ports & Cargo Shipping

When seeking construction financing for a proposed newbuilding, shipowners should understand and be prepared to address the particular concerns that lenders have in assessing risk and documenting vessel construction projects. When deciding whether to approve a construction financing loan, lenders focus on certain key factors: Does the shipyard have the requisite experience, manpower and financial… Continue Reading

Supreme Court Extends the Scope of the Outer Continental Shelf Lands Act Landward

Posted in Marine Services, Maritime Contracts, Offshore Oil, Ports & Cargo Shipping

The United States Supreme Court, in Pacific Operators Offshore, LLP v. Valladolid, concluded that the widow of an employee who suffered fatal injuries on shore may still recover LHWCA benefits pursuant to OCSLA if her husband’s death had a “substantial nexus” to his employer’s oil and gas operations on the OCS.  This is an unexpected… Continue Reading

EPA proposes new vessel general permits–let the games begin.

Posted in Energy, Marine Services, Maritime Contracts, Ports & Cargo Shipping

The EPA issued drafts of two vessel general permits seeking to regulate discharge from commercial vessels (military and recreational vessels are excluded) on November 30. The draft permits – (1) Vessel General Permit for Discharges Incidental to The Normal Operation of Vessels (VGP) and (2) Small Vessel General Permit for Discharges Incidental to The Normal… Continue Reading

Coast Guard proposes changes to Inspection of Towing Vessels regulations

Posted in Energy, Maritime Contracts, Offshore Oil, Ports & Cargo Shipping

The U.S. Coast Guard has proposed significant changes to the regulations concerning the Inspection of Towing Vessels and arguably eliminating the class of vessels formerly known as uninspected towing vessels.  The Coast Guard has established a deadline of December 9, 2011, to receive public comments, which can be made at the following link:  www.regulations.gov and… Continue Reading

Competing Interests Collide Over Proposed New Legislation for Oil and Gas Rigs and Vessels

Posted in Energy, Maritime Contracts, Offshore Oil

Rep. Jeff Landry (R-LA) has added a provision to the Coast Guard and Maritime Transportation Act of 2011, currently under consideration in Congress, which would require the owner/operator of any offshore rig or vessel engaged in drilling, plugging and abandoning or workover operations to maintain a standby rescue vessels within 3 nautical miles. The provision… Continue Reading