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A Snappy Case Relevant to Shipping Agents

The Federal Court recently delivered its decision in the case of Nirint Inc. (Nirint Canada) v. Mega Throphy Ltd, 2019 FC 1015.

The case is relevant to ship agents who frequently incur expenses on behalf of their ship-owner clients.

The facts are simple.

Nirint are shipping agents based in Quebec. Their client, Mega Trophy owned the ship "Seren". The Seren required repairs which were conducted by Groupe Ocean. Groupe Ocean had been retained by Nirint which ultimately paid all of Groupe Ocean's invoices (despite some irregularities regarding scope of work). Mega Trophy disputed the validity Groupe Ocean's invoices and refused to reimburse Nirint accordingly. The key issue was whether Nirint was authorized to incur the relevant expenses on behalf of Mega Trophy.

Mega Trophy's primary defence was that Groupe Ocean’s invoices showed payment terms of 30 days, and because of that, Nirint should not have paid Groupe Ocean immediately upon threat by it to arrest the Ser…

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