Lloyd's Maritime Law Newsletter
Gulf Oil Trading Co. v. The Fund Comprising the Proceeds of the Sale of The Emerald Transporter - Full Bench (Natal Provincial Division) (Milne J.P., Leon A.D.J.P. and Howard J.) - 14 June 1985
Claims against associated ship - Whether ranking ahead of direct claims
The vessel
Emerald Transporter
was owned by Outer Ocean Navigation Corporation Ltd., a member of the Eddie Steamship group of companies. The order for the
sale of the
Emerald Transporter
was granted at the instance of Mitchell Cotts Maritime (S.A.) Pty. Ltd., a creditor with a claim in respect of an associated
ship, which caused the ship to be arrested in an action
in rem
. Gulf Oil had claims against the
Emerald Transporter
Fund amounting to U.S.$1,048,719 for the supply of bunkers and lubes to the vessel and to other associated ships. The bulk
of the claims were in respect of associated ships. The ranking of these claims was disputed by Banque Paribas, a creditor
with large claims secured by mortgages over the
Emerald Transporter
.