Mineralolhandelsgesellschaft m.b.H. v. Commonwealth Oil Refining Co. - U.S.Ct. of Appeals (5th Circ.) (Brown, Tate & Higginbotham C.JJ.) - 25 June 1984

Sale contract not providing for payment of demurrage - Whether obligation to pay demurrage implied by reference to “freight”

A shipload of naphtha was at sea in a vessel chartered by a third party. The plaintiff offered to buy the naphtha and resell it to the defendant. The defendant accepted. After the sale and resale, the third party charterer became liable to the vessel for demurrage charges under the charterparty. The delay was caused by inadequate documentation of the cargo. The plaintiff, as assignee of the naphtha from its owner (the third party charterer), reimbursed the charterer for the demurrage charges and sought to recover those charges from the defendant.