Marine Fuel Supply & Towing, Inc., a Foreign Corporation v. The M/v Ken Lucky, and Her Appurtenances

Marine Fuel Supply & Towing, Inc. (“Marine Fuel”) appeals the district court’s refusal to grant Marine Fuel a maritime lien on the M/V KEN LUCKY (“Ken Lucky”) pursuant to 46 U.S.C.App. §§ 971-75 (1982). The district court exercised jurisdiction pursuant to 28 U.S.C. § 1333 and we have jurisdiction pursuant to 28 U.S.C. § 1291 . We reverse and remand.

BACKGROUND

Ken Hieng Navigation Company S.A. (“Ken Hieng”) owns the Ken Lucky. During the time Marine Fuel alleges the lien arose, Ken Hieng had time chartered the vessel to Compaigne Continental Paris (“Continental Grain”). A time charter entails a division of responsibilities between the owner and charterer. Dampskibsselskabet Dannebrog v. Signal Oil & Gas Co., 310 U.S. 268, 278 , 60 S.Ct. 937, 942 , 84 L.Ed. 1197 (1940) (“Signal Oil”). Continental Grain in turn subchartered the vessel to Bulkferts, Inc. (“Bulkferts”). Both charter agreements contained “no lien” clauses, which prohibited maritime liens asserted by suppliers against the vessel.

When the Ken Lucky reached Tampa, Florida, in September 1984, it needed bunker fuel. To arrange for the supplies, Bulk-ferts’ managing agent, Eurostem Maritime Limited (“Eurostem”),…