Court of Appeals for the Fifth Circuit June 16, 1986, 85-2029 (Marine Overseas Services, Inc., Cross-Appellee v. Crossocean Shipping Co., Inc., Cross-Appellant, Muhammadi Steamship Co.)

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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.