Opinion ID: 2505
Heading Depth: 2
Heading Rank: 1

Heading: The Vessel's Arrest and TNT's Claimed Damages

Text: The instant dispute arises from FHT's arrest of the Vessel. At the time of the arrest, FHT was engaged in the arbitration of a maritime dispute with Oceanografia S.A. De C.V. (OSA). On November 10, 2005, FHT arrested the Vessel in a Rotterdam shipyard as security for its claim against OSA, believing that the Vessel belonged to OSA. TNT alleges that FHT failed to investigate reasonably the ownership of the Vessel and acted with reckless disregard of TNT's rights in the Vessel. TNT claims that the Vessel's arrest prevented it from delivering the Vessel as it had promised. According to TNT, it entered into a charter party (the Charter Party) with Con-Dive, LLC, on December 12, 2005, that required TNT to deliver the Vessel to Port Fourchon, Louisiana, on March 15, 2006. When TNT and Con-Dive entered into the Charter Party, both had knowledge that the Vessel was arrested in the Rotterdam shipyard. TNT alleges that it brought the Vessel to the Rotterdam shipyard at some unspecified time prior to the commencement of the Charter Party for modifications so the Vessel could meet the specifications of the Charter Party; FHT claims that the Vessel had been in the Rotterdam shipyard since October 2002. On May 15, 2006, six months after the Vessel's arrest and two months after the Vessel was allegedly due in Port Fourchon, TNT first contacted FHT to request that the arrest be lifted. FHT took immediate action to lift the arrest; the relevant authorities were notified on May 17 that the arrest had been lifted. TNT claims that it suffered $10,220,000 in damages from FHT's wrongful arrest of the Vessel. According to TNT, its damages claim is based on: (1) liquidated damages of 10% of the Charter Party's value ($3.65 million); (2) loss of net earnings under the Charter Party (approximately $6.57 million); and (3) other damages.