After protracted and expensive litigation overseas, you obtain a judgment against the defendant. There remains one series of hurdles left to cross: the defendant refuses to pay that judgment and has no assets in the country where the litigation was conducted. However, the defendant (or possibly one or more of its numerous alter egos) has
Maritime Contracts
Designated Entity Clauses — No Substitute for Knowing Who You Are Dealing With
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…
Don’t You Forget About Me . . . Include Insurers in List of Indemnified Groups

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…
11th Circuit Approves Pro Rata Apportionment to Plaintiff and Intervenors of Attachment Costs
In the unpublished opinion of Adams Offshore, Ltd.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…
What’s done cannot be undone: The perils of e-mail confirmations of payments for vessel necessaries
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…
If in Doubt, File the Complaint for Limitation of Liability
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…
Costa Concordia – Lessons Learned and Path Forward

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…
When No Privity of Contract Qualifies as “Any Contractual Relationship” under OPA
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…
A Checklist: What to Expect When Financing Vessel Construction
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
…
Supreme Court Extends the Scope of the Outer Continental Shelf Lands Act Landward
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…