Trans Tec Services Inc v The ship "Lyubov Orlova" and Ors - Federal Ct (Trial Div)(MacKay J) - 28 August 2001

Contract - Bunker supplier contracted with charterer of various vessels to supply bunkers - Contract entitled supplier to apply payments made to earliest outstanding debts of charterer - Charter of one of the vessels terminated - Supplier demanding payment for bunkers supplied to that vessel - New operator of vessel proposing to settle invoice by making two payments

The plaintiff supplied bunkers to ships, and entered into a contract with Marine Shipping Co Inc ("MSCI") a former charterer of the vessel Lyubov Orlova whereby the plaintiff was to supply bunkers to various ships operated by MSCI, and the terms of which provided that payments made by MSCI could be applied by the plaintiff to the oldest outstanding accounts of MSCI, who could not designate the account to which a payment would be applied.