ADCC 789/2009

The original dispute involved the arrest of a ship and its cargo which had been rented out to one defendant who had also been given the right to rent it out through subcontracts. A sub-lessor had failed to pay. It was stated the company had decided to request its claims from the first defendant only and so he could not request the second defendant fulfil these claims. It was claimed the letters between the parties had been fabricated. The court was incorrect to ignore the existence of a tenancy agreement between the two parties.

Background

A company filed a case against two defendants claiming it had signed a contract with a ship owner to rent a ship and the contract gave it the right to rent out the ship through subcontracts. The company stated it had rented out the ship to the first defendant but they had failed to pay. The company reserved the ship and the goods inside it. The company requested the court to validate the reservation order and order the first defendant to pay $2540334.37 and interest.

The court rejected the case.