In the unpublished opinion of Adams Offshore, Ltd.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
Category Archives: Maritime Contracts
Subscribe to Maritime Contracts RSS FeedWhat’s done cannot be undone: The perils of e-mail confirmations of payments for vessel necessaries
Posted in Marine Services, Maritime Contracts, Ports & Cargo ShippingMost 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 ShippingOne 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 ShippingWhen 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 ContractsTransactions 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 ShippingWhen 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 ShippingThe 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 ShippingThe 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 ShippingThe 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 OilRep. 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
Enforcing Internet Terms and Conditions in Maritime Contracts
Posted in Maritime ContractsThe U.S. Fifth Circuit, in One Beacon Ins. Co. v. Crowley Marine Servs., Inc., concluded that, under the general maritime law applicable to ship repair contracts, the indemnity and insurance requirements of the vessel owner will be enforceable if they are set forth on an Internet website and clearly incorporated by reference into the vessel… Continue Reading