Category: English Maritime Cases

London Arbitration 1/15

CLERICAL ERROR -- DOCUMENTS WRONGLY IDENTIFIED IN NOTICE OF APPOINTMENT -- LIMITED JURISDICTION -- TIME BAR -- Respondent Award This dispute arose as a result of a clerical error made by the consignee’s lawyers. When appointing an arbitrator, they used incorrect references to the same bill of lading contracts on various correspondences / documents. This variation inadvertently made the correspondences / documents apply to a non-existing contract, and subsequently, the Respondent argued that the corresponding claims should be time barred.
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Trafigura Beheer BV v Navigazione Montanarini SpA (The “Valle di Cordoba”) – English Court of Appeal, 18 Feb 2015

BPVOY3 -- PIRACY -- FORCED TRANSFER OF CARGO -- LIABILITY FOR IN-TRANSIT LOSS OF CARGO -- Owner Award While en route to the discharge port the Vessel was overtaken by pirates who transferred about 15% of the cargo to an unknown vessel. Charterer argued that Owner had accepted a strict “In-Transit Loss” clause in the charter party and are therefore liable in this matter.
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Navig8 Inc v. South Vigour Shipping Inc and Others – QBD (Comm. Ct.), 16 Jan 2015

CHARTERPARTY -- WHETHER THE AGENT/MANAGER ACTED ON BEHALF OF THE REGISTERED OWNERS -- WHETHER REGISTERED OWNERS WERE PARTY TO THE CHARTERPARTIES -- MEANING OF THE PHRASE “DISPONENT OWNER” -- Registered Owners Award The Charterer submitted a damages claim against the Registered Owners of four vessels after they were withdrawn from the Charterers service. The Registered Owners claimed that they were not bound to the charterparties because they were not party to them, but rather by a third party without the authority to act on their behalf.
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Gard Marine & Energy Ltd v China National Chartering Co Ltd (The “Ocean Victory”) – Court of Appeal, 22 Jan 2015

BARECON 90 FORM -- SAFE PORT -- SEVERE WEATHER -- WHETHER HULL INSURERS ENTITLED TO FILE SUBROGATED CLAIM AGAINST DEMISE CHARTERER -- Charterer Award This dispute between the Claimant and Intermediate Charterer began over damages stemming from the loss of the Vessel when she went aground at the discharge port due to severe weather. However, the claim did not succeed as the demise charter contained an express stipulation to exclude the rights of subrogation.
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London Arbitration 14/14

ASBATANKVOY -- ARBITRATION JURISDICTION -- VALIDITY OF ARBITRATION AGREEMENT -- DEMURRAGE AND PORT COSTS -- Owner Award The Charterer denied liability for demurrage under several defenses. They argued that they never agreed to be liable for demurrage nor that there was a valid arbitration agreement. And if the Tribunal held that the charter party did provide for those considerations, then each party’s signature would be required for it to be a valid agreement.
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London Arbitration 19/14

NYPE -- TIME CHARTER -- NON-PAYMENT OF HIRE AND REPUDIATORY BREACH -- QUANTUM OF OWNER’S CLAIMS -- Owner Award This dispute arose under a time charter for two vessels for a period of 36 to 37 months with two additional optional periods (for each vessel) of 11 to 13 months. Vessels were delivered in February and April. Then in January the following year Charterer breached their obligation to pay hire causing Owner to withdraw the Vessels from Charterer’s service. In determining Charterer’s repudiatory breach, the Tribunal decided the appropriate measure of damages for lost hire and stevedore damages.
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London Arbitration 15/14

AMWELSH -- CONTRACT CONSTRUCTION -- LIABILITY FOR PORT CHARGES -- Final Owner Award This dispute arose under a voyage charter in determining the party responsible for paying the port charges at the discharge port. At issue is the interpretation of an amended clause alleged to be in contravention to the intention of the deal.
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London Arbitration 17/14

NYPE -- TIME CHARTER -- PERFORMANCE SUSPENDED FOR UNPAID HIRE -- WHETHER OWNER REQUIRED TO SERVE ANTI-TECHNICALITY NOTICE -- WHETHER OWNER ENTITLED TO EXERCISE LIEN ON CARGO -- Owner Award This dispute arose under a trip charter from U.S. to China, where Owner suspended performance of contract due to outstanding hire, resulting in delays to discharge and additional hire until the redelivery date as Owner ordered the vessel to anchorage to wait. Charterer refused to pay the additional hire claiming that the vessel was off-hire during time spent at anchorage and Owner was liable for damages by depriving Charterer of service.
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London Arbitration 16/14

NYPE -- TIME CHARTER -- LATE DELIVERY AND CREW CHANGE -- FAILURE TO PAY HIRE -- RIGHT TO WITHDRAW VESSEL -- REPUDIATORY BREACH -- DAMAGES -- Owner Award Charterer failed to make several hire payments and failed to reimburse bunker costs causing the Owner to withdraw the Vessel on the basis of Charterer’s repudiatory breach. Conversely, Charterer claimed that Owner’s withdrawal was improper because it was not in compliance with the governing term and asserted that Owner was in repudiatory breach by not following their voyage orders. Charterer counterclaimed for damages owing to the Vessel’s late delivery causing a missed cargo opportunity and rejected liability for hire when Owner failed to follow their voyage orders.
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London Arbitration 13/14

GENCON -- BERTH CHARTER -- VESSEL DELAYED REACHING LOAD PORT OWING TO ICE -- WHETHER NOTICE OF READINESS VALID -- ERRONEOUS OVERPAYMENT -- LAW OF RESTITUTION -- Partial Charterer Award This dispute arose under a voyage charter fixed to load end-January at Rostov-on-Don, Russia wherein a special Ice Clause was incorporated. The Vessel subsequently incurred excessive delays reaching the load port owing to ice, both at the ice edge and while in the ice. The validity of the Vessel’s Notice of Readiness tendered from the anchorage where she was ordered (400 miles from the port) was also at issue. Owner brought arbitration proceedings to collect outstanding demurrage or, alternatively, damages for detention; and, Charterer counterclaimed for an erroneous overpayment.
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