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Malaysia's MISC Berhad is seeking around $500,000 in damages as a result of its vessel being arrested by bunker supplier Equatorial Marine Fuel Management Services, after a US Court ruled that the Singapore firm had no right to arrest one of its ships.

In a statement MISC Berhad said "Following the positive outcome of this case, MISC will now focus on pursuing a legal claim for approximately USD 500,000 against Equatorial for all damages caused as a result of wrongful attachment of MISC's vessel."

The United States Court of Appeals upheld an initial judgment of the district court that Equatorial had no basis for admiralty action against MISC Berhad as it had no legally binding bunker supply contract with the Malaysian firm.

Equatorial arrested the MISC Berhad vessel Bunga Kasturi Lima in Long Beach, California, in April 2008 after the supplier claimed not to have received $22 million in payment for bunker deliveries.

According to MISC Berhad, the company said it entered into a contract with the bunker-trader Market Asia Link (MA Link), and not Equatorial, to procure bunkers for its vessel. MISC said that it paid MA Link for all the bunkers it received, but MA Link later became insolvent, which resulted in Equatorial not receiving payment.

During the court process, MISC came forward with evidence showing that it contracted with MA Link, not Equatorial, and paid MA Link for the bunkers.

"Even though Equatorial arranged for the delivery of the bunkers which MISC accepted and used, MISC presented unrebutted evidence that it paid MA Link for the bunkers. Because MISC paid for the bunkers, it hasn't been unjustly enriched," Chief Judge Kozinski said in a published analysis of the case.

Commenting on the court's decision to uphold the district court's initial judgment, MISC said “This much awaited decision is warmly welcomed, as no physical supplier can now arrest vessels without presence of [a] proper legally binding contract supported by sufficient evidentiary documents, causing grave commercial strain on ship owners.