NEW ORLEANS –– A federal judge declined to completely throw out a contract dispute between a fuel supplier and the owner of a fleet of boats.
C-Port Stone LLC filed the lawsuit against Gulf Logistics and its boat Grey Cup over alleged nonpayment of fuel and supplies for the boat. According to court documents, C-Port Stone sold the supplies to the boat's leasee, Whistler Energy II, who was placed in bankruptcy two years ago.
C-Port sought payment through a lien on the boat.
“C-Port/Stone’s contention is that it obtained a maritime lien on the Grey Cup by operation of law each time it provided necessaries to the Grey Cup on credit, and to the extent that specific invoices remain unpaid, those liens remain extant and enforceable," the filing states.
C-Port has threatened to seize the boat.
Gulf Logistics also entered a motion for summary judgment, and asked for C-Port Stone’s complaint to be dismissed. The company said that any liens against its vessel had been paid.
Gulf Logistics questions C-Port/Stone’s diligence in checking Whistler’s creditworthiness before selling the fuel and associated supplies on credit. The company also said that C-Port Stone continued to extend credit to Whistler although invoices were not being paid on time. Therefore, Gulf Logistics argues that C-Port/Stone “should not reap the benefit of having a maritime lien cover its own poor credit practices,” as quoted in court documents.
On Sept. 28, Judge Jay C. Zainey of the U.S. District Court for the Eastern District of Louisiana dismissed the breach of contract and quantum merit claims against Gulf Logistics.
"A vessel is a distinct entity from its owner and is statutorily liable for its own debts," Zainey wrote in the order.
The judge also wanted more information on any settlements between C-Port and the bankrupt company.
"In other words, the court is not persuaded that C-Port Stone can enforce a lien against the Grey Cup for more than what remains on Whistler’s debt to C-Port Stone,” Zainey wrote.
A bench trial is scheduled for Nov. 28.