Finora Co. v. Amitie Shipping, Ltd.

54 F.3d 209 (1995)

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Finora Co. v. Amitie Shipping, Ltd.

United States Court of Appeals for the Fourth Circuit
54 F.3d 209 (1995)

AR

Facts

Amitie Shipping Limited (Amitie) (defendant) owned a vessel. Amitie entered into a time charter with Crown Marine Mueller, Inc. (Mueller). Under the agreement, Mueller had to pay Amitie every 15 days. In the event that it did not pay, the charter granted Amitie an express lien on subfreights earned by Mueller. Mueller then subchartered the vessel to Finora Co. (plaintiff). Mueller fell behind on payments as the vessel sailed from Bombay to the United States. Mueller demanded payment from Finora, which Finora paid. Amitie then demanded payment from Finora based on the express liens on the subfreights caused by Mueller’s failure to pay Amitie. Finora sued Amitie to settle the payment dispute. Finora argued that it had already paid Mueller the disputed fees and that Amitie had never given Finora actual notice of any liens. The court ruled in favor of Finora, and Amitie appealed.

Rule of Law

Issue

Holding and Reasoning (Wilkinson, J.)

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