Choice of Law May Result in Claim Forfeiture

Monday, May 03, 2004
In an unpublished decision, the U.S. Court of Appeals for the Second Circuit ruled that a freely negotiated choice of law clause is binding, even where that choice tacitly included forfeiture of a claim. In the instant case, an insurance policy purchased by a ship owner included a clause providing that Norwegian law was controlling. Norwegian law does not recognize a maritime lien for unpaid insurance premiums. The ship owner went into bankruptcy, owing various debts, including the insurance premiums and various mortgages. The court held that, in transactions of an international character, a choice of law clause is binding unless the court finds that it would be unfair, unjust, or unreasonable to hold a party to its bargain. In re Millenium Seacarriers, Inc., No. 03-5028 (2nd Cir.) (HK Law)
Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

Japan, U.S. Look to Expand Naval Cooperation

Japanese Prime Minister Shinzo Abe's push to allow Tokyo to come to the aid of an ally under attack will pave the way for closer cooperation between U.S. and Japanese forces across Asia, a top U.

India Halts Iran oil Imports Under U.S. Pressure

Oil imports from Iran at 220,000 bpd in year to March 31. U.S. pressured India not to raise annual Iran oil imports. India halted oil imports from Iran for the

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1085 sec (9 req/sec)