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Admiralty Law Keyed to Maraist
Exxon Corp. v. Central Gulf Lines
Citation:
500 U.S. 603, 111 S. Ct. 2071, 114 L. Ed. 2d 649 (1991)Facts
Exxon Corporation had a long-standing contractual relationship with Waterman Steamship Corporation to supply fuel to Waterman’s vessels. Under their 1983 marine fuel requirements contract, Exxon would either directly supply fuel to Waterman’s vessels or arrange for local suppliers to provide fuel in ports where Exxon could not directly supply it. In the latter case, Exxon would pay the local supplier and then invoice Waterman. In October 1983, Exxon, acting as Waterman’s agent, arranged for Arabian Marine Operating Co. to deliver over 4,000 tons of fuel to the vessel Green Harbour ex William Hooper in Jeddah, Saudi Arabia. Exxon paid Arabian Marine $763,644 for the fuel and invoiced Waterman for the same amount. Shortly thereafter, Waterman filed for Chapter 11 bankruptcy and never paid the full amount. Central Gulf Lines, the owner of the vessel, agreed to assume personal liability if the vessel was found liable in rem for the cost.
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