Maritime Lien Attachment and the Absence of Actual Knowledge

In this episode, the Fifth Circuit Court of Appeals affirms a district court decision regarding maritime liens and unpaid towage services. The dispute arose when Louisiana International Marine (LIM) sought payment for towing two barges owned by Trailer Bridge, which had been chartered to a third party that subsequently went bankrupt. The court determined that a valid maritime lien attached to the vessels because LIM provided necessary services without actual knowledge of a "no-lien" clause in the charter agreement at the time of contracting. Furthermore, the ruling clarifies that the Commercial Instruments and Maritime Liens Act does not require suppliers to perform due diligence to uncover such restrictive clauses. While the court upheld the lien values, it also affirmed the denial of attorney’s fees, maintaining that such costs are not considered "necessaries" under maritime law. Final adjustments to the award accounted for partial recoveries made during bankruptcy proceedings and confirmed the appropriateness of prejudgment interest.