World Fuel Servs. Trading, DMCC v. M/V Hebei Shijiazhuang
| Decision Date | 03 April 2014 |
| Docket Number | Civil Action No. 2:13cv173. |
| Citation | 12 F.Supp.3d 792 |
| Court | U.S. District Court — Eastern District of Virginia |
| Parties | WORLD FUEL SERVICES TRADING, DMCC, d/b/a Bunkerfuels, Plaintiff, v. M/V HEBEI SHIJIAZHUANG, Her Engines, Tackle, Equipment, Appurtenances, Etc., In Rem, Defendant, v. Hebei Prince Shipping Company, Ltd., Claimant. |
Dustin Mitchell Paul, Mark T. Coberly, Vandeventer Black LLP, Norfolk, VA, for Plaintiff.
James L. Chapman, IV, Steven Michael Stancliff, Crenshaw Ware & Martin PLC, Norfolk, VA, for Claimant/Defendant.
Barry Jason Barlow, John Early Holloway, Troutman Sanders LLP, Norfolk, VA, for Claimant.
This matter is before the Court on a motion for summary judgment filed by plaintiff World Fuel Services Trading, DMCC (“Plaintiff” or “WFS DMCC”), a cross-motion for summary judgment filed by claimant Hebei Prince Shipping Company, Ltd. (“Claimant” or “Prince”), and a motion by Claimant seeking additional discovery pursuant to Fed.R.Civ.P. 56(d). The Court conducted a hearing on the summary judgment motions on March 27, 2014. For the reasons discussed below, Claimant's Rule 56(d) motion is DISMISSED AS MOOT, Claimant's cross-motion for summary judgment is DENIED, and Plaintiff's motion seeking summary judgment is GRANTED.
Tramp Maritime Enterprises Ltd. (“Tramp”), located in Greece, chartered the M/V HEBEI SHIJIAZHUANG (“the vessel”), registered in Hong Kong, from Claimant, located in China, for three consecutive time charters between May 23, 2012 and November 8, 2012. Bunkerfuels Hellas, located in Athens, Greece, provides marketing and promotion services to Greek vessel operators and owners on behalf of Plaintiff, a bunker fuel provider located in Dubai, United Arab Emirates. Heijmen Decl. ¶¶ 4, 5, 9, ECF No. 48–2. On October 22, 2012, Tramp sent an email to Aristides P. Vogas (“Vogas”), an employee of Bunkerfuels Hellas, for the purpose of obtaining a price quotation for fuel bunkers to be delivered to the vessel on or about October 27, 2012 at the port of Khor Fakkan, United Arab Emirates. Claimant's Ex. 8, ECF No. 39–8. Later that same day, Vogas sent an email to Tramp, confirming the order (“the bunker confirmation”). ECF No. 1–3. The bunker confirmation listed the “buyer” as “MV HEBEI SHIJIAZHUANG and her owners/operators and Tramp Maritime Enterprises Ltd.,” and the “seller” as “BUNKERFUELS A DBA/DIVISION of WFS Trading DMCC.” Id. at 1. The bunker confirmation indicated that the “physical supplier” of the fuel would be APSCO Jeddah (“APSCO”), that the payment terms would be “30 DDD by TTT.” Id. Below the details of the transaction was the following language:
The website located at www.wfscorp.com is the website for World Fuel Services Corporation (“WFS Corp.”), the United States parent corporation of WFS DMCC. A document titled “The World Fuel Services Corporation Marine Group of Companies General Terms and Conditions” is located on the “Marine Solutions” sub-page of WFS Corp.'s website, and can be accessed by clicking the “Marine” menu item at the top of the web page located at www.wfscorp.com and then clicking the “Marine Terms & Conditions” link at the bottom of the web page. The first paragraph of the document states, “the following terms of sale and supply shall constitute the General Terms and Conditions (‘General Terms') of the World Fuel Services Corporation Marine Group of companies (collectively, ‘World Fuel Services').” ECF No. 30–4 at 1. The document identifies a list of twelve companies comprising the “Marine Group of companies,” “which includes, but is not limited to, World Fuel Services, Inc.; World Fuel Services Europe, Ltd.; World Fuel Services (Singapore) Pte. Ltd.; [nine other companies] and their respective trade names, subsidiaries, affiliates and branch offices.” Id. The document further provides that the “list includes all subsidiaries of World Fuel Services Corporation who have sold, are selling or will sell petroleum products and services, whether or not in existence on the effective date.” Id.
The “Credit and Security” section of the General Terms provides, in pertinent part:
Id. at 6. The document concludes with a “Law and Jurisdiction” paragraph, which provides:
The General Terms and each Transaction shall be governed by the General Maritime Law of the United States and, in the event that the General Maritime Law of the United States is silent on the disputed issue, the law of the State of Florida, without reference to any conflict of laws rules which may result in the application of the laws of another jurisdiction. 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.... Seller shall be entitled to assert its rights of lien or attachment or other rights, whether in law, in equity or otherwise, in any country where it finds the vessel.
On October 29, 2012, APSCO delivered the bunkers at issue to the vessel in the port of Khor Fakkan and provided the vessel's chief engineer with two “Bunker Delivery Note[s]” reflecting the amount of fuel delivered to the vessel. See ECF Nos. 1–1 and 1–2. The chief engineer signed each Bunker Delivery Note and stamped them with the following “no lien” language: Id.
On April 4, 2013, Plaintiff filed a Verified Complaint with this Court, alleging that, “[d]espite repeated demands for payments for the amounts due for the fuel oil and marine gas oil provided, Tramp ... and the [vessel] have failed to pay and refused to pay the amounts due.” Compl. ¶ 15, ECF No. 1. Plaintiff asserted that, because Tramp and the vessel owed Plaintiff “the sum of $809,420.50,” Plaintiff had “a maritime lien on the [vessel] for the unpaid balance due of $809,420.50 for necessaries provided to the vessel, pursuant to 46 U.S.C. §§ 31341 and 31342. Id. ¶¶ 19, 20. Along with the Verified Complaint, Plaintiff filed a Motion for Issuance of Warrant of Maritime Arrest, pursuant to Supplemental Admiralty Rule C, for arrest of the vessel, which was expected to arrive in the Eastern District of Virginia within the next fourteen days. ECF No. 3. After reviewing the Verified Complaint and accompanying documents, the Court granted Plaintiff's motion and issued an Order for Issuance of Warrant of Maritime Arrest. ECF No. 4. The vessel was arrested on or about April 8, 2013. On April 10, 2013, the Court entered a joint stipulation filed by Plaintiff and Claimant, agreeing that Plaintiff would release the vessel from arrest in exchange for a cash bond deposited by Claimant with the Court in the amount of $850,000. ECF No. 11.
Plaintiff filed its motion for summary judgment on December 17, 2013, alleging that it is “entitled to a maritime lien on the vessel” and requesting that the Court “allow Plaintiff to execute its maritime lien and collect that sum owed by the Vessel.” Pl.'s Mot. Summ. J. at 1, ECF No. 29. On January 15, 2014, Claimant filed a brief opposing Plaintiff's motion, alleging that the Court “lacks subject matter jurisdiction,” that “there are genuine issues of material fact regarding the contractual privity between plaintiff and the parties and property,” and that Plaintiff “does not have an in rem lien on the narrow facts of this case.” Claimant's Br. in Opp'n at 1–2, ECF No. 39. Plaintiff filed its reply brief on February 6, 2014. ECF No. 48.
Claimant filed its cross-motion for summary judgment on March 10, 2014, asserting as grounds for its cross-motion the same grounds it had asserted as defenses to Plaintiff's summary judgment motion. ECF No. 64. Plaintiff filed its brief opposing the cross-motion on March 24, 2014. ECF No. 79. Claimant filed its reply brief on March 31, 2014. ECF No. 87. Accordingly, both motions are ripe for review.
The Federal Rules of Civil Procedure provide that a district court shall grant summary judgment in favor of a movant if such party “shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). The mere existence of some alleged factual dispute between the parties “will not defeat an otherwise properly supported motion for summary judgment; the requirement is that...
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