Centro Latino Americano De Commercio Exterior SA v The Owners of the Ship “Kommunar” (No 1) - QBD (Admlty Ct)(Clarke J) - 3 April 1996

Admiralty jurisdiction - Agreement providing that financier should discharge liabilities for goods and materials supplied to shipowner’s vessels - Financier discharging invoices and seeking reimbursement from shipowner - Shipowner contending that claim based on a general account does not fall within Admiralty jurisdiction of High Court

The plaintiffs entered into an agreement with the Leningrad Fishing Industry Production Association (“Lenrybprom”) whereby the plaintiffs agreed to discharge expenses incurred by Lenrybprom’s vessels operating in Latin America. Invoices were subsequently presented to the plaintiffs by various South American companies who alleged that they had supplied goods and services to vessels owned by Lenrybprom. Pursuant to their agreement with Lenrybprom, the plaintiffs paid the invoices and then sought reimbursement from Lenrybprom. Lenrybprom refused to pay. The plaintiffs arrested the vessel Kommunar which they said was beneficially owned by Lenrybprom at the time the action was commenced.