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MARINE OVERSEAS SERVICES v. CROSSOCEAN SHIPPING

No. 85-2029.

791 F.2d 1227 (1986)

MARINE OVERSEAS SERVICES, INC., Plaintiff-Appellant Cross-Appellee, v. CROSSOCEAN SHIPPING CO., INC., Defendant-Appellee Cross-Appellant, Muhammadi Steamship Co., Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied August 18, 1986.

Attorney(s) appearing for the Case

Ross, Griggs & Harrison, H. Lee Lewis, Jr., Victoria C. Blanks, Houston, Tex., for plaintiff-appellant cross-appellee.

Royston, Rayzor, Vickery & Williams, Kenneth D. Kuykendall, Houston, Tex., for defendant-appellee cross-appellant.

Before GOLDBERG, HILL, and JONES, Circuit Judges.

ROBERT MADDEN HILL, Circuit Judge:

The central issue presented by this admiralty case is whether a party in breach of a contract of affreightment is entitled to an offset reflecting the injured party's failure to repay loans taken out from the injured party's customers. We hold that the district court erred in allowing such an offset, and we reverse and remand.

I. BACKGROUND

A. Facts

In...

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