How have courts dealt with a dispute where an agent misappropriated payment from a vessel to another vessel?
MultiRegion, United States of America
The following excerpt is from Stevens Technical Services, Inc. v. SS BROOKLYN, 885 F.2d 584 (9th Cir. 1989):
The present case more closely resembles Roxbury v. Lotta, 65 F. 319 (S.D.N.Y.1894). There, the court determined that an agent for several vessels had diverted one vessel's payment to another. The creditor had innocently applied the payment according to the agent's improper instructions. The court restored the parties to their proper debtor-creditor positions by reallocating the payment as it should have been allocated in the first place.
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