ING Bank N.V. v. M/V Maritime King

The Second Circuit affirmed the district court's grant of summary judgment to the Vessel on a competing maritime lien claim brought against it by ING and Chemoil under the Commercial Instruments and Maritime Liens Act (CIMLA), 46 U.S.C. 31301. The claims arose from the provision of bunkers (marine fuel) to the Vessel. The district court also reduced the principal amount and interest rate posted by Cobelfret, the charterer of the Vessel, to secure the Vessel's release from arrest. The court held that, where, as here, security was posted and a vessel was released, Civ. P. Admiralty Supp R. E(5)(a) empowered the court to reduce security. In this case, the district court found that Cobelfret had shown good cause for reducing security. The court held that the district court committed no legal error in imposing an interest rate other than the 6% rate mentioned in Rule E(5), nor did the district court abuse its discretion in determining that there was "good cause shown" for reducing the interest rate to 3.5%. View "ING Bank N.V. v. M/V Maritime King" on Justia Law