Pacific Gulf Shipping has leveled serious accusations against the American Club, alleging that the insurance club played a part in obstructing Pacific Gulf Shipping from accessing crucial documents in a court case linked to George Gourdomichalis. Specifically, Pacific Gulf Shipping claims that the American Club has colluded with Chairman George Gourdomichalis in efforts to thwart a $22 million arbitration award Pacific Gulf Shipping won related to a ship abandonment case. The core of the dispute dates back to the 2015 abandonment of the MV Adamastos, a 1995-built 73K DWT bulk carrier, off the coast of Brazil. In the wake of this incident, Pacific Gulf Shipping initiated legal actions against several entities associated with George Gourdomichalis and his brother Stathis Gourdomichalis at the end of 2018. This legal effort resulted in the attachment of the MV Vigorous, a 2005-built supramax dry bulk carrier of 52K DWT, owned by Phoenix Shipping & Trading SA, led by George Gourdomichalis, at Oregon Port. This action was aimed at compelling repayment by George Gourdomichalis. Further complicating matters, in December 2018, just before the onset of 2019, the American Club sought to revoke a warrant in Brooklyn federal court. This warrant demanded the release of documents related to the insurance of the MV Vigorous and MV Adamastos in the Portland suit. The American Club argued that the request for documents was overly broad and that the documents contained confidential information. In January 2019, a Brooklyn judge agreed and approved the motion to revoke the warrant. Despite these challenges, Pacific Gulf Shipping successfully secured an arbitration award against Adamastos Shipping & Trading in London, maintaining that this company, allegedly controlled by the Gourdomichalis brothers, should allow Pacific Gulf Shipping to seize the MV Vigorous as compensation. However, lawyers for Adamastos Shipping & Trading countered in Portland federal court that Pacific Gulf Shipping simply represented a typical shipping business and was not the alter ego of either Phoenix Shipping & Trading SA or Blue Wall Shipping, challenging the adequacy of the grounds to seize the ship. The judge has granted additional time for Pacific Gulf Shipping to substantiate its claims. 1-November-2022
An appellate court has approved Pacific Gulf Shipping’s request to maintain control over the $9.5 million posted as security in its ongoing lawsuit against Blue Wall Shipping Ltd. Pacific Gulf Shipping argued that Blue Wall Shipping Ltd. was in the process of liquidating its assets, specifically by selling off most of its bulk carriers, and that returning the security to Blue Wall Shipping Ltd. would leave no assets to claim if Pacific Gulf Shipping were to win the lawsuit. Despite CEO George Gourdomichalis of Blue Wall Shipping Ltd. refuting claims of the company shutting down, stating that buying and selling ships is routine business, court documents reveal that Blue Wall Shipping Ltd. has indeed sold six out of eight bulk carriers during the dispute. The CEOs, George Gourdomichalis and his brother Stathis Gourdomichalis, manage Blue Wall Shipping Ltd. The lawsuit stems from the 2015 abandonment of the 73K DWT panamax bulk carrier MV Adamastos off Brazil, a case in which Pacific Gulf Shipping was awarded nearly $24 million in arbitration. Efforts to enforce this award included attempting to seize the MV Vigorous in South Africa and later attaching it in Portland in late 2018. Pacific Gulf Shipping contends that Blue Wall Shipping Ltd., along with Athens-based Phoenix Shipping & Trading SA and several shipowning entities controlled by George Gourdomichalis, should be held accountable for abandoning MV Adamastos. However, a federal court in Oregon ruled that these companies were independent entities, leading Pacific Gulf Shipping to file an appeal with the Ninth Circuit Court of Appeals in San Francisco. The appellate court has now denied Blue Wall Shipping Ltd.’s motion to uphold the lower court’s decision. 14-April-2020
CEO George Gourdomichalis of Phoenix Shipping & Trading SA has denied allegations that Blue Wall Shipping Ltd. is winding down its operations. Despite assertions in court filings and the recent sales of bulk carriers, Gourdomichalis insists that Blue Wall Shipping Ltd. is not shutting down. He emphasized that the sale and purchase of vessels are common practices in the shipping industry and rejected claims that any director confirmed the company is selling off its fleet as part of a wind-down. Attorneys for Pacific Gulf Shipping have claimed in documents filed with the Ninth Circuit Court of Appeals that directors of Blue Wall Shipping Ltd. admitted the company was winding down during the prolonged legal dispute over the abandonment of the now-scrapped 73K DWT panamax bulk carrier MV Adamastos. Since March 2019, Blue Wall Shipping Ltd. has sold six out of its eight bulk carriers, generating over $30 million. The most recent sale reported was the 52K DWT supramax bulk carrier MV Vigorous. Pacific Gulf Shipping has seized two of Blue Wall Shipping Ltd.’s vessels, the MV Vigorous and the 30K DWT handysize bulk carrier MV Fearless, in efforts to enforce a nearly $24 million arbitration award from London. They allege that Blue Wall Shipping Ltd., managed by Athens-based Phoenix Shipping & Trading SA, along with several shipowning companies, are corporate alter egos and thus liable for the abandonment of the MV Adamastos off Brazil in 2015. The vessel, which had multiple deficiencies, was detained by authorities, broke free of its moorings, and was eventually abandoned and scrapped. The seizure of MV Vigorous in Portland, Oregon, was temporarily resolved after Blue Wall Shipping Ltd. posted $9.5 million in security. However, Pacific Gulf Shipping’s lawsuit was dismissed by US District Judge Michael Mosman in January, who ruled that Pacific Gulf Shipping failed to prove its alter ego claims. As part of their ongoing appeal, Pacific Gulf Shipping, represented by Chaos & Co, requested that the San Francisco-based appeals court prevent the release of the $9.5 million, citing the alleged wind-down of Blue Wall Shipping Ltd. They argued that Blue Wall Shipping Ltd. might sell the remainder of its fleet in 2020, potentially leaving no entity from which to collect. 8-April-2020
Pacific Gulf Shipping is gearing up to appeal a significant legal decision in its protracted dispute with Phoenix Shipping & Trading SA CEO George Gourdomichalis and Stathis Gourdomichalis regarding the abandonment of the 1995-built, now-scrapped 73K DWT panamax bulk carrier MV Adamastos. The company has filed a notice of its intention to challenge the dismissal of its $22.6 million lawsuit by US District Judge Michael Mosman, which sought to enforce an arbitration award won in London. This appeal is set to be presented to the Ninth Circuit Court of Appeals, with the opening brief due by June 1, as indicated by the appellate court docket. The dispute centers around allegations that companies controlled by George Gourdomichalis and Stathis Gourdomichalis abandoned the Blue Wall Shipping Ltd. controlled bulk carrier MV Adamastos off the coast of Brazil in 2014. The vessel, which was chartered to carry soybeans to the Far East, encountered legal troubles when it was detained by Brazilian authorities, subsequently breaking free of its moorings and being declared abandoned months later. In the lawsuit, Pacific Gulf Shipping contended that the shipowner and manager, Blue Wall Shipping Ltd.—another entity led by the Gourdomichalis brothers—was essentially a puppet operated by the duo, and thus liable for the arbitration award concerning MV Adamastos. However, Judge Michael Mosman dismissed these claims, stating that no rational jury could view Blue Wall Shipping Ltd. as an illegitimate entity. He pointed out that the company had an independent board and generally operated normally, despite some internal communication issues, such as the failure to inform the board of directors about the arrest of another vessel, the 52K DWT supramax bulk carrier MV Vigorous, by Pacific Gulf Shipping in South Africa during the dispute. 7-March-2020
George Gourdomichalis, CEO of Phoenix Shipping & Trading SA, successfully claimed a legal victory in the United States concerning the now-scrapped 73K DWT panamax bulk carrier MV Adamastos. A US federal judge ruled that Blue Wall Shipping Ltd. operated as a legitimate entity, not merely as a facade. Greek entrepreneurs George Gourdomichalis and Stathis Gourdomichalis secured a win in a global legal conflict over the abandoned panamax bulk carrier MV Adamastos, previously under their ownership. US District Judge Michael Mosman issued a summary judgment favoring Blue Wall Shipping Ltd., managed by the brothers, concluding the legal proceedings in Portland, Oregon. The affiliate of Phoenix Shipping & Trading SA, Blue Wall Shipping Ltd., defended against efforts by charterer Pacific Gulf Shipping Co. in federal court to enforce a $22.6 million arbitration award from London after the abandonment of MV Adamastos off the coast of Brazil in 2015. Pacific Gulf Shipping Co. aimed to hold Blue Wall Shipping Ltd. accountable for the entire award, claiming that Phoenix Shipping & Trading SA and several associated shipowning entities were all under the control of the Gourdomichalis brothers. The legal team for Pacific Gulf Shipping Co. contended that they could target Blue Wall Shipping Ltd.’s assets, arguing that these companies were mere extensions of each other. US District Judge Michael Mosman expressed concerns about certain questionable activities and the general handling of the MV Adamastos case, noting a lot to critique. However, he concluded that the arguments presented by Pacific Gulf Shipping Co. and its lawyers from Chalos & Co and Schwabe, Williamson & Wyatt were insufficient to convince a rational jury that the company was a facade. The judge acknowledged that George Gourdomichalis and Stathis Gourdomichalis might not have informed the Board of Directors of Blue Wall Shipping Ltd. about the arrest of another of their vessels, the 52K DWT supramax bulk carrier MV Vigorous, in South Africa and later in Portland. He also noted possible misinformation about the insurance status of both carriers through the American Club. Nevertheless, these factors did not prove that the Gourdomichalis brothers dominated Blue Wall Shipping Ltd. Judge Mosman affirmed that Blue Wall Shipping Ltd. functioned as a typical company. The panamax bulk carrier MV Adamastos was chartered by Pacific Gulf Shipping in July 2014 and was subsequently sub-chartered to South Korean logistics firm Integris and Japanese conglomerate Marubeni, which used the vessel to transport soybeans from Brazil to Japan and Singapore. During loading, Brazilian authorities identified 42 deficiencies during an inspection and detained the vessel. The following day, MV Adamastos broke free from its moorings and drifted out to sea. It was later towed to an anchorage and refloated, where it remained for six months amid crew complaints of inadequate provisions, expired contracts, and unpaid wages, leading to its declaration as abandoned. The protracted legal saga began with the abandonment of MV Adamastos in Brazil in 2014. Following its initial seizure, MV Vigorous was arrested again in Portland after a lawsuit in December 2018 by the charterer and was released in April 2019 when Blue Wall Shipping Ltd. posted a substitute bond. Another lawsuit involved the seizure of Blue Wall Shipping Ltd.’s handysize bulk carrier 30K DWT MV Fearless in Houston in February 2019 to secure claims fully. This case is ongoing, with a motion to dismiss filed by Blue Wall Shipping Ltd. in October 2019. A separate lawsuit by Munich Re-supported Great Lakes Insurance accuses the American Club and the Gourdomichalis brothers of colluding to terminate the insurance of MV Adamastos, thereby avoiding an $18.5 million claim, far exceeding the P&I club’s typical claims over several years. At the time, George Gourdomichalis served as a director and is now the chairman of the American Club, which has labeled the lawsuit as baseless and filed a motion to dismiss it in January. 11-February-2020
The American Club has dismissed the $18.5 million lawsuit filed by Great Lakes Insurance as completely unfounded. According to a statement from the American Club’s CEO, the lawsuit contains inaccuracies, blatantly false claims, and deeply offensive remarks directed at the club, its Board of Directors, managers, and employees. Filed in Manhattan federal court on Monday by Munich Re-supported Great Lakes Insurance, the lawsuit alleges that the American Club, along with George Gourdomichalis and Stathis Gourdomichalis, orchestrated the abandonment of a ship detained in Brazil in 2014. During that period, George Gourdomichalis held a directorial position at the American Club, a role he has since elevated to chairman. The complaint, presented by attorney George Chalos of Chalos & Co, accuses the American Club of cancelling coverage for the panamax bulk carrier 73K DWT MV Adamastos in early 2015 to sidestep a substantial claim. It also claims that George and Stathis Gourdomichalis informed the Greek government that Phoenix Shipping & Trading SA, their company, had ceased operations of the MV Adamastos, a ship they allegedly owned through another entity, Adamastos Shipping & Trading. Following this, the American Club informed the Gourdomichalis brothers of the termination of the coverage due to operational changes. Initially chartered to Pacific Gulf Shipping Co in April 2014 and subsequently sub-chartered, the MV Adamastos was detained in Brazil after failing an inspection that revealed 42 deficiencies. The ship was officially declared abandoned in February 2015. According to the lawsuit, the potential claim against the American Club could have exceeded tens of millions of dollars, amounting to several years’ worth of claims. The lawsuit also alleges that as a purported reward for their actions, two American Club employees, Donald Moore and Dorthea Ioannou, received promotions. The lawsuit references multiple London arbitration cases involving the MV Adamastos’ various charterers to substantiate the $18.5 million claim amount. This legal action is part of a broader ongoing dispute surrounding the ship, including a December 2018 lawsuit in which Pacific Gulf Shipping Co., also represented by Chalos & Co, accused the American Club of withholding documents in a separate legal matter in Portland, Oregon. The American Club countered these accusations, and the motion to quash the subpoena in Brooklyn federal court was eventually granted, deeming it overly broad. 25-November-2019
A new lawsuit claims the American Club intentionally ended insurance coverage for a problematic ship managed by Greek shipping magnates George Gourdomichalis and Stathis Gourdomichalis to dodge a multi-million-dollar claim. Filed by Munich Re-backed Great Lakes Insurance, the $18.5 million lawsuit accuses both the American Club and the Gourdomichalis brothers of conspiring to abandon the panamax bulk carrier 73K DWT MV Adamastos after Brazilian authorities detained it in 2014. At that time, George Gourdomichalis was serving as a director at the American Club, and has since become its chairman. The lawsuit alleges that the American Club and the Greek shipping magnates George Gourdomichalis and Stathis Gourdomichalis have continued to act without repercussions despite abandoning the ship, its contractual partners, and its cargo in Brazil, leaving about $20 million in claims unpaid. The panamax bulk carrier MV Adamastos was chartered to Pacific Gulf Shipping Co in April 2014, and sub-chartered to Integris and then to Marubeni Corporation to transport soybeans from Brazil to Japan and Singapore. However, the vessel was detained on August 5th after a port state inspection revealed 42 deficiencies and subsequently broke free from its moorings the next day, running aground with nearly 60,000 tonnes of soybeans on board. Internal emails referenced in the complaint reveal that American Club executives were deeply concerned about the incident, fearing claims that initially were projected to exceed $25 million. This amount would have surpassed the club’s $10 million claim cap, with any excess potentially falling to the International Group of P&I Clubs to cover. The complaint details how Phoenix Shipping & Trading SA, controlled by George Gourdomichalis and based in Athens, notified the Greek government in January 2015 that it had stopped operating the MV Adamastos. The American Club canceled the ship’s coverage the following day, citing the change in management. The Brazilian government declared the panamax bulk carrier MV Adamastos abandoned in February 2015, and its cargo was eventually sold to a third-party salvor. Subsequent arbitrations in London, initiated by Pacific Gulf Shipping Co., Integris, and Marubeni, determined damages to be $18.5 million. Meanwhile, American Club executives Donald Moore and Dorthea Ioannou, both implicated in the alleged scheme, received promotions. This lawsuit is part of a series of ongoing legal disputes concerning the abandonment of the panamax bulk carrier MV Adamastos. Recently, Pacific Gulf Shipping Co. initiated a $22.6 million lawsuit by seizing the 52K DWT supramax bulk carrier MV Vigorous and the 30K DWT handysize bulk carrier MV Fearless to secure funds to cover the claims, with these cases still active. In another legal action, Pacific Gulf Shipping Co. accused the American Club of withholding crucial documents in the arrest of the supramax bulk carrier MV Vigorous to shield Greek shipping magnates George Gourdomichalis and Stathis Gourdomichalis, but the club successfully argued that the subpoena was overly broad and involved confidential information. The American Club maintains that its dealings with the Greek shipping magnates George Gourdomichalis and Stathis Gourdomichalis were standard business practice. 19-November-2019
Another vessel managed by Greek shipping magnates George and Stathis Gourdomichalis’ company, Blue Wall Shipping Ltd., has been sold, reducing its fleet size to four bulk carriers from eight at the start of the year. Since March, clients entangled in legal disputes with Danish charterer Pacific Gulf Shipping Co. have disposed of four of Blue Wall Shipping Ltd.’s bulk carriers in transactions totaling approximately $23 million. The most recent sale involved the 28K DWT handysize bulk carrier MV Courageous, built in 2004 by Imabari Shipbuilding, which was sold for about $5.5 million in July. Following the sale, MV Courageous has been renamed MV AG Valour and is currently managed by Unifleet Management. There are also reports that Lebanese interests acquired another Imabari-built vessel managed by Blue Wall Shipping Ltd., the 28K DWT handysize bulk carrier MV Dauntless, built in 2002, for a similar price earlier this year. Post-sale, MV Dauntless is now operating under the name MV ABK Tiger, managed by ABK Shipping Management. These recent transactions, along with the sales of a supramax and a handymax earlier in the spring, leave Blue Wall Shipping Ltd. with a reduced fleet comprising two handysize bulk carriers, one handymax, and one supramax. Among these, the 30K DWT handysize bulk carrier MV Fearless, built in 2001, and the 52K DWT supramax bulk carrier MV Vigorous, built in 2005, have both faced legal challenges in the U.S. following disputes with Pacific Gulf Shipping Co. Vigorous Shipping & Trading, the registered owner of MV Vigorous, reached an agreement in April with Pacific Gulf Shipping Co. to release the vessel against a $9.5 million substitute bond. MV Vigorous had been detained since December 2018 to secure a $22.6 million arbitration award. Shortly after, the MV Fearless was seized in Houston due to legal actions by the same charterer, though it has since been released from Houston. 1-September-2019
A second vessel linked to Greek shipping magnates George and Stathis Gourdomichalis, the 30K DWT handysize bulk carrier MV Fearless (built 2001), has been seized amidst ongoing legal proceedings initiated by the Danish charterer Pacific Gulf Shipping Co. This action follows the earlier seizure of the 52K DWT supramax bulk carrier MV Vigorous (built 2005) in Portland, Oregon, in December. Court documents recently made public reveal that MV Fearless was arrested in Houston after Pacific Gulf Shipping Co. filed a lawsuit against several companies associated with the Gourdomichalis brothers in February. The legal disputes stem from issues with the 73K DWT panamax bulk carrier MV Adamastos (built 1995), which was abandoned in 2015 after being detained by Brazilian authorities due to over 40 deficiencies found while the vessel was loading soybeans destined for Japan and Singapore. The vessel subsequently broke free from its moorings and ran aground, leading to its declaration as abandoned in January 2015 amidst reports of insufficient provisions for the crew. Pacific Gulf Shipping Co. pursued an arbitration in London, resulting in a $19.2 million award against Adamastos Shipping & Trading, the registered owner of the MV Adamastos. Efforts to enforce this award led to the seizure attempts of MV Vigorous, initially in South Africa (where it was unsuccessful) and subsequently in Portland (where it was successful). Following the posting of a $9.5 million bond by Vigorous Shipping & Trading, MV Vigorous resumed sailing. The Houston lawsuit mirrors earlier legal actions in Portland, asserting that Blue Wall Shipping & Trading Ltd, Phoenix Shipping & Trading SA, and the ship registration companies involved are controlled by the Gourdomichalis brothers, and thus Pacific Gulf Shipping Co. should be able to collect from them as per the arbitration award related to the MV Adamastos. New details emerged from the discovery in the Portland case, indicating complex financial arrangements and minimal funding in the accounts of Adamastos Shipping & Trading prior to the chartering to Pacific Gulf Shipping Co. The complaint further reveals that Phoenix Shipping & Trading SA is majority-owned by the Gourdomichalis brothers through two other entities, Thalassa Gourdomichalis and Alastor Gourdomichalis, with the remaining 12.5% held by George Gourdomichalis’ son through a company called Golden Hind. It characterizes the ownership and mortgage of the MV Adamastos as a “complex financing scheme” that allowed the brothers substantial control with minimal financial input. Legal representatives for Blue Wall Shipping Ltd. have dismissed the veil-piercing allegations as groundless and are prepared to contest them vigorously, according to Bruce Paulsen, an attorney with Seward Kissel. Meanwhile, MV Fearless remains anchored in the Gulf of Mexico off Galveston. Despite nearly being released in mid-March after legal arguments suggested that a company down the charter chain had not yet established liability on the part of Pacific Gulf Shipping Co., a judge reversed his decision following an emergency motion by Pacific Gulf Shipping Co. Last Friday, further arguments were heard on a second motion for reconsideration by the registration company of MV Fearless. 12-April-2019
The 52K DWT supramax bulk carrier MV Vigorous, loaded with wheat intended for Yemen, has finally been released from its arrest after being anchored on the Columbia River for over three months. The vessel, associated with Greek shipping tycoons George Gourdomichalis and Stathis Gourdomichalis, was embroiled in a lengthy legal battle that reached the federal courts in Portland, Oregon, late last year. Vigorous Shipping & Trading, the ship’s registered owner, along with plaintiff Pacific Gulf Shipping Co., have reached an agreement on a $9.5 million substitute bond for the bulker, which was initially seized in early December to secure a $22.6 million arbitration award. The bond, financed through a loan, was officially posted on March 20. On the same day, Vigorous Shipping & Trading notified the court of its intent to appeal the decision made on February 19, which denied their motion to require a bond for the ongoing attachment of the ship. This motion, like most filings since mid-December, is under a protective order, with court records only indicating the denial. The MV Vigorous was detained on December 3 after Danish firm Pacific Gulf Shipping Co. filed a lawsuit against several companies linked to the Gourdomichalis brothers, including Blue Wall Shipping and Phoenix Shipping & Trading, in an effort to collect on the arbitration award from the abandonment of the panamax bulk carrier 73K DWT MV Adamastos in 2014. The MV Adamastos, which had been chartered by Pacific Gulf Shipping Co., experienced a series of issues leading to its detainment off Brazil after an inspection revealed 42 deficiencies, and subsequently breaking free from its moorings and running aground. The legal actions by Pacific Gulf Shipping Co., which also attempted to seize the MV Vigorous in South Africa, argue that George and Stathis Gourdomichalis operate several legal entities as extensions of themselves to manage the sizable arbitration award. However, attorneys for Vigorous Shipping & Trading contend that the lawsuit merely portrays standard operations typical of a shipping company. 1-April-2019