THE US Courts of Appeal has ruled in favour of MISC Bhd (3816), in the case between the company and Equatorial Marine Fuel Management Services Pte Ltd (Equatorial).
The Court of Appeal yesterday, upheld a ruling by the US District Court, that Equatorial had no basis of admiralty action against MISC, as the company had not entered into any contract for supply of bunker with Equatorial.
MISC will now focus on pursuing a legal claim for about US$500,000 (RM1.67 million) against Equatorial for all damages caused as a result of the arrest of MISC's vessel.
"This much awaited decision is warmly welcomed , as no physical supplier can now arrest vessels without presence of proper legally binding contract supported by sufficient evidentiary documents, causing grave commercial strain on ship owners," MISC said in a statement yesterday.
In April 2008, Equatorial arrested a vessel belonging to MISC in Long Beach, California, in an effort to hold it as security for a claim on MISC.
Equatorial claimed that it had not received any payment for various deliveries of bunker fuel to MISC, which amounted to US$22 million (RM73.5 million).
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