Equatorial Marine Fuel Management Services Pte Ltd. v. Berhad

MEMORANDUM

MISC Berhad appeals the district court’s denial of its motion for damages, costs and fees resulting from wrongful attachment of its vessel by Equatorial Marine. The facts regarding the vessel’s attachment are set forth in our prior opinion. Equatorial Marine Fuel Mgmt. Servs. Pte Ltd. v. MISC Berhad, 591 F.3d 1208 (9th Cir.2010). We reverse and remand.

A vessel owner can recover damages for wrongful attachment by establishing bad faith, malice or gross negligence. See Stevens v. F/V Bonnie Doon, 655 F.2d 206, 209 (9th Cir.1981). Bad faith also supports the equitable recovery of attorney fees and costs in admiralty cases. See Madeja v. Olympic Packers, LLC, 310 F.3d 628, 635 (9th Cir.2002). We review the district court’s bad faith finding for clear error. Id. at 635-36 .

The district court clearly erred by finding that Equatorial acted in good faith when it attached the vessel. As the district court found, Equatorial knew or should have known that MISC had contracted with Market Asia Link, and that Market Asia Link, not MISC, was liable to Equatorial for the fuel. Before Equatorial verified and filed the complaint, MISC directly notified Equatorial by email that MISC…