Equilease Corporation v. M/V Sampson et al. - U.S. Ct. of Appeals (5th Circuit) (Clark C.J., Gee, Rubin, Reavley, Politz, Randall, Johnson, Williams, Garwood, Jolly, Higginbotham, Davis, Hill and Jones C.JJ.) - 25 April 1986

Whether federal maritime lien claimable for unpaid insurance premiums

The charterers of three vessels were required by the charters to purchase insurance for each vessel. Insurance cover was arranged through agents. The charterers defaulted on the insurance premiums. $184,000 of the insurance premiums remained owing at the end of the first year. The agents therefore advanced the money themselves. The charterers subsequently defaulted on the charterparties and the vessels’ mortgagees seized the vessel and instituted proceedings for foreclosure.