Canadian Federal Court decision in the Samatan Maritime Lien for Bunkers

The Canadian Federal Court recently (December 11, 2014) awarded a maritime lien for bunkers supplied to a ship. Alexander Holburn partner Doug Schmitt represented the plaintiffs and successfully argued that Brazilian law applied, granting a maritime lien enforceable against a ship in Canada even though Canadian law did not grant a maritime lien in those circumstances. A maritime lien is a high priority claim against a ship that continues even if the ship is sold to new owners.

The Court held that Brazil was the jurisdiction with which the transaction had the closest and most substantial connection, even though the contract for sale of the bunkers was made in Norway. Click here for details on the decision.

If you have any questions, please contact Doug Schmitt of our Maritime Practice Group.