Category: English Maritime Cases
REPUDIATED VOYAGE CHARTER - SMITH v M’GUIRE - THE COMPENSATORY PRINCIPLE - Owner award
When the charterer wrongfully repudiated a voyage charter, an arbitration panel awarded owner damages basis the vessel’s actual earnings versus hypothetical earnings up to the conclusion of the mitigating employment despite the mitigating employment ending well after when the repudiated voyage charter would have concluded. In doing so, the arbitrators awarded owner for its losses suffered whilst returning to an area of more profitable employment. The charterer appealed.
DISPONENT OWNER CLAIMING DAMAGES FROM SHIPPER - IDENTIFICATION OF CARRIER UNDER COGEN FORM BILL OF LADING - DOCTRINE OF ESTOPPEL- IMPLIED CONTRACTS
After loading a bulk cargo shipper ran into difficulties with its sales contract which the FOB buyer / charterer ultimately repudiated. At the request of the shipper the vessel was detained and waited at the load port until she eventually discharged the cargo on instruction from a local court. The disponent owner claimed damages from the shipper stating that under the bill of lading the disponent owner was the carrier. The shipper, i.e. seller under FOB terms, denied the basis of owner’s claims with the implication being that the shipper’s contract was not with the disponent owner and thus no arbitration clause existed between the disponent owner and shipper.
LOAN AGREEMENT – WITHOUT PREJUDICE RULE – CORRESPONDENCE – DOES RULE APPLY – Claimant award
When a Claimant requested correspondences to be admissible in evidence, Defendant objected given they were headed “Without Prejudice and Subject to Contract” and thus privileged.
SALES CONTRACT – CRUDE OIL – EMAIL CORRESPONDENCE – FULL TRADING NAME NOT LISTED IN CORRESPONDENCE - IS CONTRACT BINDING – Claimant Award
When buyer’s buyer rejected 630K bbls of crude oil as it was blended rather than being from a sole well, buyer maintained no binding contract existed between seller and buyer. Seller subsequently pressed for damages under the Sale of Goods Act 1979, Sections 50(2) and (3) basis buyer’s unlawful repudiation. In addition to maintaining no binding contract existed, buyer in turn rejected the claim for damages under the auspices of Clause 32.1 of BP 2007 GT&Cs for CFR Sales.
ESTABLISHING MARKET VALUE - TORT OF CONVERSION - DAMAGES - SUPPLY CHAIN - Buyer Award
While the Vessel was en route to the discharge port, the Vessel was withdrawn from the Contract Carriers’ service when they defaulted on hire and the cargo of river sand onboard was sold to mitigate the Owners’ losses. However, the Buyer argued that this constituted a tort of conversion and filed for damages against the Contract Carriers and the Owners basis an alleged market price of the sand.
VESSEL DAMAGED BY STEVEDORES – WHETHER 24 HOURS NOTICE REQUIRED BY OWNER – COMPETING CLAUSES WITHIN FIXTURE - Owner Award
The vessel sustained damage during the loading and discharging of a cargo of logs Owner requested that the charterer pay for the repairs per 2 clauses included in the charter party. However, relying upon a 3rd clause Charterers believed owner was required to provide notice within 24 hours of the damage and thus refused to pay.
GENCON – LENGTHY LOAD PORT DELAYS – DEMURRAGE -- VALIDITY OF BILLS OF LADING – CARGO LIEN – Owner Award
In this dispute significant load port delays led to the Owner and Charterer negotiating an addendum including supplemental compensation. Charterer did not establish a line of credit on time with Owner subsequently deeming the Charterer’s agents’ bills of lading invalid and exercised a lien on the cargo for the outstanding demurrage.
COLLISION -- TWO-YEAR LIMITATION TO COMMENCE PROCEEDINGS -- EXTENSION REQUESTED -- Defendant award
A dispute arose after two vessels collided. In the course of negotiations, the Claimant issued an application for an extension to commence proceedings, but only after the expiration of a two-year limitation for claims filing passed. At issue was whether the Claimant’s extension request was reasonable.
TRIP CHARTER – BERTHING DELAY – VESSEL GROUNDING – SAFE BERTH -- BUNKER CONSUMPTION – CHARTERER’S RIGHT TO ACCESS SHIP’S GENERATORS -- Partial Owner Award
In this dispute, Owner claimed damages for survey costs and delay in discharge due to an insufficient draft at the berth causing the vessel to touch bottom. Charterers counterclaimed for overpaid bunkers and wanted compensation for denied access to the vessel’s generators to power shore grabs.
DEMURRAGE -- MISSING DOCUMENTS – OWNER’S CLAIM NOT PROVIDED – TIME BAR -- Buyer Award
This dispute centers on determining the documents considered necessary to file a valid claim in order to avoid a time bar. In this case the seller was requesting demurrage payment while the buyer refused believing the claim had received a time bar.
