Podcasts

Bunker arrests   This is Part 7 of our series on how to deal with an economic crisis – a guide for international businesses.   In 2016, the Supreme Court handed down its judgment in the Res Cogitans, the leading case arising out of the OW Bunkers insolvency. That case had a profound effect on the shipping market, with many ship operators left with debts to the physical suppliers of the bunkers, and to OW Bunkers’ liquidators.    We are now entering the most serious economic downturn since that judgment. In that economic climate, it is fair to expect parties seeking security by ever more creative means, including an uptick in bunker arrests against time charterers. In the spirit of being prepared, we take a look at what the Res Cogitans means for bunker arrests.    In particular, in the Res Cogitans the Supreme Court held that where bunker supply agreements are made on credit terms, with a retention of title clause pending payment, title to the bunkers remained in the bunker supplier. We look at whether charterers can rely on that judgment to defeat the attachment – after all, if charterers don’t actually own the bunkers, how can the arrest succeed? Contact Calum, or your normal ZFZ, for more.

Pre-action discovery   This is Part 6 of our series on the tools and strategies that international companies can use to protect their positions in the current economic situation.    Eva-Maria Mayer explains a useful tool to gain access to the often much broader reel of discoverable evidence under the U.S. Federal Rules of Civil Procedure while litigating abroad.    28 U.S.C. 1782 provides parties in a foreign proceeding with a tool to gain access to the U.S. discovery rules. Such an application can be brought by a party to a foreign litigation against another party in such litigation or against a third-party in the district of the federal court where the application is being brought.    The significant aspect of such an application is that it is not required that the discovery sought be admissible in the foreign tribunal – such determination is left to be made by such a foreign tribunal. This leads to parties gaining access to a much vaster array of discoverable materials than would often be the case in the jurisdiction where the foreign proceedings are taking place.   Keeping in mind certain restrictions, and of course, meeting all required elements this can be a very useful tool in the age over globalization and ever growing international commercial agreements and disputes. For further information please contact Eva-Maria Mayer or anyone from the ZFZ team to discuss this, or any of the other topics in the video series.