The Law Office of Lynnette Ariathurai A Professional Corporation

Shipowner sues international shipper in contract dispute

In life, it is generally best to keep one's promises. However, this is particularly important in business since not keeping agreements can cause significant financial problems for California companies. One shipowner is now facing such an issue due to a recent contract dispute with an international shipping company. This has resulted in a breach of contract lawsuit being filed in court.

The dispute revolves around an agreement to rent out the ship Kacey. The shipowner claims that it entered into a contract with the defendant, Daebo International Shipping Co., in mid-October 2014. The contract required Daebo to pay the shipowner $3,750 per day for the first 65 days of a 70 day lease. The agreement then required the defendant to pay $9,750 per day for each remaining day on the lease.

The shipowner filed the lawsuit against Daebo in mid-February, claiming that the defendant still owed the shipowner more than $66,000 for rental fees. However, when the ship was detained in order to enforce the lien against Daebo, the shipowner was required to pay more than $120,000 to lease bunkers to secure the vessel's release. The shipowner also paid more than $8,000 in tugboat services.

The lawsuit alleges that the defendant owes the shipowner a total of more than $200,000 for economic damages incurred as a result of the contract dispute. On the other hand, a defendant in California also has a right to defend him or herself in a court of law. Ultimately, a judge will rule in favor of the party with the best legal argument based upon evidence and facts.

Source:, "Maritime company alleges breach of contract", March 18, 2015

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