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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

PAYCARGO FINANCE LP,

CASE NO.: 1:22-cv-22707-KMW

Plaintiff,

vs. 

ASPEN AMERICAN INSURANCE 

COMPANY,

Defendant,

and 

BAY MARITIMES INC.,

Nominal Defendant. 

 / 

PLAINTIFF’S PAYCARGO FINANCE LP’S STATEMENT OF MATERIAL FACTS IN 

SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT

Plaintiff PayCargo Finance LP (“Plaintiff”), pursuant to Local Rule 56.1(a), hereby files 

this Statement of Material Facts in support of its Motion for Summary Judgment, and states: 

1. Bay Maritimes Inc. is an NVOCC based on Canada which essentially serves “as an 

intermediary to help clients with their freight.” (P. Philliou Dep. at pg. 12) (attached as Exhibit 

A); id. at 13-14; see also 46 CFR § 515.2(m)(2) (an NVOCC or “[n]on-vessel-operating common 

carrier” is a type of “[o]cean transportation intermediary” or “OTI” which is “a common carrier 

that does not operate the vessels by which the ocean transportation is provided, and is a shipper in 

its relationship with an ocean common carrier”); see generally 

https://www.ups.com/us/en/supplychain/resources/glossary-term/nvocc.page (attached as Exhibit

B) (NVOCC: “An ocean carrier who performs all of the services of a carrier, but who does not 

own their own vessel(s). They operate by leasing or buying available space in containers and using 

their own House Bill of Lading to contract with customers.”). 

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2. On or about June 22, 2020, Aspen American Insurance Company issued an 

NVOCC Bond in the amount of $150,000.00 which listed Bay Maritimes Inc. as the principal, and 

which expired on December 31, 2022 (the “NVOCC Bond”). (Bond) (attached as Exhibit C).

3. The NVOCC Bond was made to comply with the financial responsibility 

requirements the Federal Maritimes Commission (“FMC”) imposes upon Ocean Transportation 

Intermediaries (“OTIs”) under the Shipping Act. (Bond) (Exhibit C).

4. The NVOCC is made “for the benefit of any and all persons who have obtained a 

judgment or a settlement made pursuant to a claim under 46 CFR § 515.23 for damages against 

the Principal [Bay Maritimes Inc.] arising from the Principal’s transportation-related activities...” 

(Bond) (Exhibit C).

5. “PayCargo” is a payment platform that allows cargo payments to be made to its 

network of transportation and logistics vendors. (P. Philliou Dep. Tr. at pg. 16, 27-28, 58) (Exhibit 

A); see generally https://paycargo.com/faq/ (attached as Exhibit D); (P. Philliou Declaration 

¶¶3-6) (attached as Exhibit E). 

6. Such a payment allows cargo to be released faster by the vendor. (P. Philliou Dep. 

Tr. at pg. 30-31, 43, 45) (Exhibit A); https://paycargo.com/faq/ (Exhibit D); (P. Philliou 

Declaration ¶5) (Exhibit E). 

7. Certain payers who are approved for financing in connection with this platform 

enter into an agreement with PayCargo Finance LP, which is a separate entity from PayCargo LLC 

that operates the payment platform. (P. Philliou Dep. Tr. at pg. 28) (Exhibit A); (P. Philliou 

Declaration ¶¶7-11) (Exhibit E). This financing involves PayCargo Finance LP advancing the 

funds for the freight payment and then debiting the payers account 30 days later. (P. Philliou Dep. 

Tr. at pg. 88-89) (Exhibit A); (P. Philliou Declaration ¶¶9-10) (Exhibit E).

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8. Typically, NVOCCs are paid by their own clients within a 30-day window. (P. 

Philliou Dep. Tr. at pg. 14-15) (Exhibit A); (P. Philliou Declaration ¶11) (Exhibit E).

9. Plaintiff’s credit was extended “predominantly to NVOCCs.” (P. Philliou Dep. Tr. 

at pg. 42) (Exhibit A).

10. On or about October 28, 2020, Bay Maritimes Inc. obtained a $500,000.00 line of 

credit from PayCargo Finance LP. (PCF Credit Documents) (attached as Exhibit F).

11. This line of credit required Bay Maritimes Inc. to provide “Shipment 

Documentation” in connection with each advance of funds. (PCF Credit Documents at pg. 2) 

(Exhibit F).

12. In the PCF Credit Documents, Bay Maritimes asserted that it provided 

“transportation and/or logistics services” and agreed to secure the debt to PayCargo Finance by 

granting a lien in the cargo for which Bay Maritimes provides such services. (PCF Credit 

Documents at pg. 4-5, 13-14) (Exhibit F).

13. As a practical matter, this line of credit could only be used to make payments in the 

PayCargo system to its network of transportation and logistics vendors. (P. Philliou Dep. Tr. at pg. 

27-28) (Exhibit A); (P. Philliou Declaration ¶8) (Exhibit E).

14. A Bill of Lading number was typically provided by Bay Maritimes Inc. in 

connection with each transaction in the PayCargo system. (M. Mirza Dep. Tr. at pg. 23-24) 

(attached as Exhibit G).

15. Bay Maritimes Inc.’s core business was out of the United States until its FMC bond 

was revoked as a result of Plaintiff’s claim. (M. Mirza Dep. Tr. at pg. 17-18) (Exhibit G). 

16. The bond was cancelled on or about July 22, 2021. (Aspen000114) (attached as 

Exhibit H).

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17. Approximately 98%-99% of the shipments booked by Bay Maritimes, Inc. were 

booked out of either the United States or Canada, and it very rarely booked shipments out of 

Canada prior to its bond being revoked. (M. Mirza Dep. Tr. at pg. 17-18) (Exhibit G).

18. Bay Maritimes Inc. used Plaintiff’s financing to make the following payments 

through the PayCargo System, which were returned when Plaintiff attempted to debit Bay 

Maritimes Inc.’s account at the expiration of the 30 days: 

DATE VENDOR AMOUNT

02/23/2021 Growth Capital Corp. $10,000.00

02/23/2021 Growth Capital Corp. $10,000.00

02/23/2021 Hapag-Lloyd (Canada) Inc. $1,672.00

02/24/2021 Hapag-Lloyd (Canada) Inc. $1,099.08

02/24/2021 Hapag-Lloyd (Canada) Inc. $3,306.24

02/24/2021 Growth Capital Corp. $10,000.00

02/25/2021 Hapag-Lloyd (Canada) Inc. $1,347.08

02/25/2021 Hapag-Lloyd (Canada) Inc. $1,604.31

02/25/2021 Growth Capital Corp. $10,825.00

03/02/2021 Hapag-Lloyd (Canada) Inc. $624.16

03/02/2021 Growth Capital Corp. $10,000.00

03/03/2021 Growth Capital Corp. $9,095.00

03/03/2021 Maersk Line $6,113.91

03/04/2021 Growth Capital Corp. $10,000.00

03/04/2021 Hapag-Lloyd (Canada) Inc. $7,539.56

03/04/2021 Hapag-Lloyd (Canada) Inc. $3,445.00

03/05/2021 Hapag-Lloyd (Canada) Inc. $1,077.08

03/07/2021 Hapag-Lloyd (Canada) Inc. $2,521.73

03/07/2021 Maersk Line $1,369.00

03/07/2021 Growth Capital Corp. $10,225.00

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,469.16

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,469.16

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,099.08

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,372.08

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,469.16

03/18/2021 Hapag-Lloyd (Canada) Inc. $2,688.32

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,019.08

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,102.08

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,469.16

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,349.16

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,469.16

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,077.08

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03/18/2021 Hapag-Lloyd (Canada) Inc. $1,358.16

03/18/2021 Hapag-Lloyd (Canada) Inc. $2,232.87

03/18/2021 Hapag-Lloyd (Canada) Inc. $4,925.00

03/18/2021 Hapag-Lloyd (Canada) Inc. $2,955.00

03/18/2021 Hapag-Lloyd (Canada) Inc. $3,940.00

03/18/2021 Hapag-Lloyd (Canada) Inc. $770.00

03/18/2021 Hapag-Lloyd (Canada) Inc. $770.00

03/18/2021 Hapag-Lloyd (Canada) Inc. $1,358.16

03/18/2021 Growth Capital Corp. $10,325.00

03/29/2021 Hapag-Lloyd (Canada) Inc. $1,579.00

03/29/2021 Hapag-Lloyd (Canada) Inc. $1,643.16

03/29/2021 Hapag-Lloyd (Canada) Inc. $1,538.16

03/29/2021 Hapag-Lloyd (Canada) Inc. $1,538.16

03/29/2021 Hapag-Lloyd (Canada) Inc. $1,102.08

03/29/2021 Hapag-Lloyd (Canada) Inc. $1,438.16

03/29/2021 Hapag-Lloyd (Canada) Inc. $100.00

03/29/2021 Hapag-Lloyd (Canada) Inc. $100.00

03/29/2021 Hapag-Lloyd (Canada) Inc. $1,413.00

03/29/2021 Hapag-Lloyd (Canada) Inc. $1,010.00

03/29/2021 Hapag-Lloyd (Canada) Inc. $4,239.00

(PCF000029-PCF000089) (attached as Exhibit I); (P. Philliou Dep. Tr. at pg. 83-84) (Exhibit A).

19. Each of the transactions in the table above was accompanied by a “Shipper Fee” 

and “Finance Fee.” (PCF000029-PCF000089) (attached as Exhibit I).

20. Hapag-Loyd (Canada) Inc. has provided the associated Bills of Lading for a 

majority of the transactions referred to above, further corroborating they were freight payments. 

(HL Bills of Lading) (attached as Exhibit J).

21. Hapag-Lloyd and Maersk Lines are common carriers. (M. Mirza Dep. Tr. at pg. 19) 

(Exhibit G); (P. Philliou Declaration ¶13) (Exhibit E).

22. On June 21, 2021, Plaintiff filed suit against Bay Maritimes Inc. in the Florida 

Eleventh Judicial Circuit Court in and for Miami-Dade County, Florida to recover $156,911.75 

plus interest in connection with the funds it advanced on Bay Maritimes Inc.’s behalf. (Complaint) 

(attached as Exhibit K).

23. A default was entered against Bay Maritimes Inc. in connection with those 

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proceedings. (Order Granting Motion for Court Default) (attached as Exhibit L).

24. On January 11, 2022, a Default Final Judgment was entered against Bay Maritimes

in the amount of $150,548.54 plus interest. (Default Final Judgment) (attached as Exhibit M).

25. During those state court proceedings, Bay Maritimes Inc. had made partial

payments to Plaintiff. (M. Mirza Dep. Tr. at pg. 25-28) (Exhibit G).

26. Despite the default, Bay Maritimes Inc’s principal attended court hearings in the

state court proceedings and represented to the court that it was a “legit amount which I owe to 

PayCargo...” (M. Mirza Dep. Tr. at pg. 30-31) (Exhibit G).

27. A default was also entered against Bay Maritimes Inc. in the instant proceedings.

(D.E. 13). 

28. Aspen American Insurance Company denied Plaintiff’s claim on the Bay Maritimes

Inc.’s bond based on the argument that Plaintiff is “not a vessel carrier, shipper, or OTI, but rather 

a lender to our Principal, Bay Maritimes. Inc.” (Aspen000029-000031) (attached as Exhibit N).

29. PayCargo Finance LP has been unsuccessful in collecting on its judgment against

Bay Maritimes Inc. (P. Philliou Declaration ¶¶16-19) (Exhibit E).

XANDER LAW GROUP, P.A.

One N.E. 2nd Avenue, Suite 200 

Miami, Florida 33132 

Tel: (305) 767-2001 

Fax: (855) 926-3370 

wayne@xanderlaw.com

marcus@xanderlaw.com

jose@xanderlaw.com

By: /s/Jose Teurbe-Tolon

WAYNE R. ATKINS

Fla. Bar No. 84000 

MARCUS TAN

Fla. Bar No. 38616 

JOSE TEURBE-TOLON

Fla. Bar No. 87791 

Case 1:22-cv-22707-KMW Document 46 Entered on FLSD Docket 08/23/2023 Page 6 of 7
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CERTIFICATE OF SERVICE

I HEREBY CERTIFY that, on August 23, 2023, a copy of this Plaintiff PayCargo Finance 

LP’s Statement of Material Facts in Support of its Motion for Summary Judgment was served 

upon: 

Served by mail:

Bay Maritimes Inc.

1290 Eglinton Ave E #05 

Mississauga, ON L4W 1K8

Canada

Served via CM/ECF:

David E. Gurley 

Michael A. Fant

Christopher C. Fiore 

Gurley & Associates

601 South Osprey Avenue 

Sarasota, Florida 34236 

eservice@gurleyassociates.com

/s/Jose Teurbe-Tolon

JOSE TEURBE-TOLON, ESQ.

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