Bahamian Subsidiary of Carnival Corporation Sued by King Ocean Services for Unpaid Freight and Demurrage Charges
King Ocean Services Limited, Inc., a vessel operating common carrier based in Miami-Dade County, has filed a maritime breach of contract lawsuit against HAL Properties Limited in the United States District Court for the Southern District of Florida. The complaint, filed under Case No. 1:26-cv-21054-DSL, alleges that the defendant, a Bahamian-based subsidiary of Carnival Corporation and Carnival PLC, failed to pay for the transportation of building materials and construction goods delivered to a private island in the Bahamas.
Maritime Carrier Seeks Recovery of Unpaid Ocean Freight and Demurrage Fees from Carnival Subsidiary
According to the allegations in the complaint, King Ocean Services provided maritime transportation for various goods from Port Everglades, Florida, to Little San Salvador, Bahamas, between August 2024 and February 2025. These shipments were reportedly made at the specific request and direction of HAL Properties Limited. The plaintiff asserts that while the goods were successfully delivered to the defendant as the named consignee, HAL Properties has failed to compensate the carrier for the services rendered. The lawsuit specifies that the unpaid balance includes $256,880.51 in earned ocean freight and related charges, along with an additional $22,640.00 in accrued demurrage fees associated with a specific bill of lading.
Construction Materials for Half Moon Cay Upgrades at Center of Admiralty Lawsuit Against HAL Properties
The legal filing details that the cargo transported by King Ocean Services consisted of building materials and other essential goods used for property enhancements and construction upgrades at Half Moon Cay. Half Moon Cay is a well-known private island destination in the Bahamas utilized by cruise lines. King Ocean Services contends that HAL Properties Limited received and used these materials for the island’s infrastructure but has refused to settle the outstanding invoices. The plaintiff emphasizes that the defendant is clearly identified as the consignee on the relevant bills of lading and is therefore responsible for the associated costs under the terms of the maritime contract.
Contract Dispute Highlights Liability for Freight Payments Made to Third Party Agents Rather Than Carriers
A central point of contention in the lawsuit involves the defense allegedly raised by HAL Properties regarding the method of payment. The complaint notes that the defendant has claimed the freight charges were previously paid to a notify party, Fowlco Maritime and Project Services. However, King Ocean Services points to specific language in the bill of lading terms and conditions which states that payment of ocean freight to a freight forwarder, broker, or any party other than the carrier or its authorized agent does not constitute payment to the carrier. The contract specifies that such payments are made at the payor’s sole risk. Consequently, the plaintiff maintains that HAL Properties remains jointly and severally liable for all original charges regardless of any payments made to third parties.
King Ocean Services Alleges Material Breach of Contract and Demands Judgment for Damages and Attorney Fees
The lawsuit includes a single count for breach of contract, asserting that valid maritime contracts were formed when the carrier agreed to transport the goods in exchange for payment. By failing to compensate King Ocean Services for the ocean freight and demurrage, the plaintiff alleges that HAL Properties committed a material breach of the agreement. In addition to the principal sum of $279,520.51, the carrier is seeking pre-judgment interest, taxable costs, and the recovery of reasonable attorney’s fees as provided for in the terms of the bill of lading. The plaintiff argues that the defendant’s refusal to pay has resulted in significant financial damages that necessitate judicial intervention.
Contact an Experienced Maritime Contract and Cargo Dispute Lawyer to Protect Your Shipping Rights
Companies involved in international shipping and maritime commerce must ensure that their contractual rights are protected when disputes over freight, demurrage, or cargo delivery arise. Maritime law provides specific protections for carriers and shippers alike, particularly regarding the enforcement of bill of lading terms and the recovery of unpaid service fees. If your business is facing a breach of maritime contract or a dispute involving ocean freight charges, it is essential to consult with legal professionals who understand the complexities of admiralty jurisdiction and international trade.
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Disclaimer: Our firm does not represent the plaintiff in this case and is not involved in the litigation. The information provided is a summary of allegations based on publicly available court filings. We make no representations about the truth of these allegations, are not commenting on the merits of the case, and are not predicting any outcome.
