Federal Court upholds claim for contractual lien

by

Ed.

From www.holdingredlich.com: The Federal Court upheld a lien clause allowing Lion Global Forwarding Pty Ltd to retain possession of approximately 240 shipping containers valued at $18.6 million from Nick Scali Ltd due to unpaid amounts of around $3.3 million.

The court ruled that Nick Scali’s concerns about double payment did not invalidate Lion’s legal right to enforce the lien as per their contractual agreement.

This case highlights the significance of lien clauses in securing debts and the potential impact on supply chain operations when such agreements are exercised.

Filed under: Business Law

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