World Fuel Services Singapore Pte, Ltd. v. Bulk Juliana M/V

822 F.3d 766, 2016 A.M.C. 2722, 2016 U.S. App. LEXIS 6066, 2016 WL 1295041
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 1, 2016
Docket15-30239
StatusPublished
Cited by9 cases

This text of 822 F.3d 766 (World Fuel Services Singapore Pte, Ltd. v. Bulk Juliana M/V) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
World Fuel Services Singapore Pte, Ltd. v. Bulk Juliana M/V, 822 F.3d 766, 2016 A.M.C. 2722, 2016 U.S. App. LEXIS 6066, 2016 WL 1295041 (5th Cir. 2016).

Opinion

EDITH H. JONES, Circuit Judge:

“This admiralty and maritime case concerns a Singapore-based marine fuel supplier’s attempt to recover a debt arising from the supply of fuel oil bunkers in Singapore to a Panamanian-flag vessel, the M/V BULK JULIANA, which is beneficially owned by a United States company, operated and managed by a United States company, and which was chartered by a German company.” World Fuel Servs. Singapore Pte, Ltd. v. Bulk Juliana M/V, *768 No. 13-5421, 2015 WL 575201, at *1 (EJD.La. Feb. 11, 2015). On summary judgment, the district court applied Singapore law to the formation of the fuel sales contract, enforced the parties’ choice of law as the “General Maritime law of the United States,” and concluded that the vessel lien under the Federal Maritime Lien Act (“FMLA”), 46 U.S.C. §§ 31341 and 31342, was enforceable. ' Agreeing with the district court’s conclusion and substantially with its reasoning, we AFFIRM AND REMAND.

BACKGROUND

World Fuel Services Corp., a Florida corporation, is the parent corporation of the^ World Fuel Services group of companies. This group of companies, which includes Plaintiff-Appellee WFS Singapore (‘WFS Singapore”) and WFS Europe, provides fuel to ocean-faring vessels around the world. Bulk Juliana Ltd. is the owner of the vessel M/V BULK JULIANA. On November 7, 2012, Peter Turner (“Turner”), Manager of Commercial Sales at WFS Europe, negotiated on behalf of WFS Singapore with Denmar for the delivery of the bunkers (fuel) to the vessel, which Denmar had recently time-chartered. On November 7, Turner, on behalf of WFS Singapore, confirmed the bunker order via email to Denmar.

The confirmation email outlined the terms of Denmar’s bunker order. First, the email described the relative bargaining authorities of WFS Singapore and Den-mar:

ALL SALES ARE ON THE CREDIT OF THE VSL [vessel]. BUYER IS PRESUMED TO HAVE AUTHORITY TO BIND THE VSL WITH A MARITIME LIEN. DISCLAIMER STAMPS PLACED BY VSL ON THE BUNKER RECEIPT WILL HAVE NO EFFECT AND DO NOT WAIVE THE SELLER’S LIEN.

Next, the email incorporated by reference the “General Terms and Conditions” (the “General Terms”) of all such contracts entered into by WFS Singapore:

THIS CONFIRMATION IS GOVERNED BY AND INCORPORATES BY REFERENCE SELLER’S GENERAL TERMS AND CONDITIONS IN EFFECT AS OF THE DATE THAT THIS CONFIRMATION IS ISSUED. THESE INCORPORATED AND REFERENCED TERMS CAN BE FOUND AT WWW.WFSCORP. COM. ALTERNATIVELY, YOU MAY INFORM US IF YOU REQUIRE A COPY AND SAME WILL BE PROVIDED TO YOU.

The “General Terms and Conditions” include three sections relevant to this appeal:

1. INCORPORATION AND MERGER: Each sale of Products shall be confirmed by email, fax or other writing from the Seller to the Buyer (“Confirmation”). The Confirmation shall incorporate the General Terms by reference so that the General Terms thereby supplement and are made part of the particular terms set forth in the Confirmation. The Confirmation and the General Terms shall together constitute the complete and exclusive agreement governing the transaction in question (the “Transaction”) ....
8. CREDIT AND SECURITY:
(a) Products supplied in each Transaction are sold and effected on the credit of the Receiving Vessel, as well as on the promise of the Buyer to pay, and it is agreed and the Buyer warrants that the Seller will have and may assert a maritime lien against the Receiving Vessel for the amount due for the Products delivered....
(d) All sales made under these terms and conditions are made to the regis *769 tered owner of the vessel, in addition to any other parties that may be listed as Buyer in the confirmation. Any bunkers ordered by an agent, management company, charterer, broker or any other party are ordered on behalf of the registered owner and the registered owner is liable as a principal for payment of the bunker invoice....
17. LAW AND JURISDICTION: The General Terms and each Transaction shall be governed by the General Maritime Law of the United States ... The General Maritime Law of the United States shall apply with respect to the existence of a maritime lien, regardless of the country in which Seller takes legal action. Any disputes concerning quality or quantity shall only be resolved in a court of competent jurisdiction in Florida. Disputes over payment and collection may be resolved, at Seller’s option, in the Florida courts or in the courts of any jurisdiction where either the Receiving Vessel or an asset of the Buyer may be found. Each of the parties hereby irrevocably submits to the jurisdiction of any such court, and irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum or its foreign equivalent to the maintenance of any action in any such court. Seller shall be entitled to assert its right of lien or attachment or other rights, whether in law, in equity or otherwise, in any country where it finds the vessel. BUYER AND SELLER WAIVE ANY RIGHT EITHER OF THEM MIGHT HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING FROM OR RELATED TO THE GENERAL TERMS OR ANY TRANSACTION.

There is no indication in the record that Denmar ever objected to, or inquired about, the contractual terms expressed in the bunker confirmation email.

On November 13, Transocean Oil, a Singapore fuel supplier subcontracted by WFS Singapore, delivered the bunkers to the vessel at the Port of Singapore. R.L. Vicente, Master/Chief Engineer of the vessel, signed the Bunker Delivery Notes and affixed the vessel’s stamp to each confirming receipt of the bunkers. On November 15, 2012, WFS Singapore issued an invoice to “MV BULK JULIANA AND/OR HER OWNERS/OPERATORS AND DEN-MAR ....” for the sale.

Because payment was never remitted, WFS Singapore filed a complaint in the Eastern District of Louisiana in August 2013, which sought the arrest of the vessel then docked in the Port of New Orleans and recovery of the sales price. (The complaint also named Denmar as a defendant, but Denmar had become insolvent and was dismissed.) The next day, an arrest warrant was issued by the district court. On September 13, 2013, Bulk Juliana claimed ownership of the vessel, posted security to release it,' and answered WFS Singapore’s complaint. In its answer, Bulk Juliana asserted that: (1) WFS Singapore had no maritime lien under the law of Singapore (where the bunkers were delivered to the vessel); (2) WFS Singapore had no legal basis to assert a maritime lien under 46 U.S.C. § 31342 against the vessel; and (3) the WFS Singapore’s arrest of the vessel was wrongful and improper and should be vacated by the district court.

Faced with conflicting motions on the validity and enforceability of the maritime lien, the district court ordered each party to file additional briefing concerning the choice-of-law issue before the court.

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822 F.3d 766, 2016 A.M.C. 2722, 2016 U.S. App. LEXIS 6066, 2016 WL 1295041, Counsel Stack Legal Research, https://law.counselstack.com/opinion/world-fuel-services-singapore-pte-ltd-v-bulk-juliana-mv-ca5-2016.