Imperial Oil Ltd v Petromar Inc (The “Le Brave” and “A G Farquharson”) - Federal Ct (Trial Div)(MacKay J) - 17 August 2000

Conflict of laws - Whether supplier of necessaries to Canadian vessels had maritime lien under United States substantive law enforceable by action in rem in Canadian courts

The plaintiff (“Imperial”), a Canadian company, was the registered owner of the vessels Le Brave and A G Farquharson . The defendant (“Petromar”) was a United States company carrying on the business of distribution and sale of marine lubricants. The vessels were demise-chartered to a Canadian company. The demise charterers contracted with a ship management company to manage the vessels. The ship management company was incorporated in and carried on business in the United States. The management company entered into an agreement with Petromar for the supply of marine lubricants to be delivered to various vessels which the management company managed around the world. Petromar had previously entered into an agreement with Exxon Company International (“ECI”) whereby ECI agreed to sell and deliver marine lubricants to customers solicited by Petromar. Pursuant to its agreement with the management company, Petromar supplied Imperial’s vessels with marine lubricants at various Canadian ports. Petromar paid ECI for the lubricants but was not paid by the management company or by the demise charterers.