Category: English Maritime Cases
NYPE -- TIME CHARTER -- SPEED AND PERFORMANCE -- BOTTOM FOULING -- RISK UNDER DIRECT CONTINUATION -- STEVEDORE DAMAGE -- Partial Owner Award
Under the first trip charter the Vessel was forced to remain at the loadport anchorage for 48 days before sailing to the discharge port. Due to the extended delay, the high temperature waters caused bottom fouling that impacted her performance under two separate charters that were in direct continuation. At issue is whether the Owner breached the performance warranty under both trip charters and who is responsible for the hull cleaning costs.
TIME CHARTER -- INJURIOUS CARGO DEFINED -- DEBRIS IN PUMPS AND TANKS -- Charterer Award
Under a time charter contract, the Vessel loaded a cargo of LNG for the Charterer’s account. After the operation, it was reported that debris could have been introduced into the cargo tanks, however nothing was noticeably wrong at the time. During the course of the following voyages, intermittent problems accumulated until the Vessel had to undergo extensive repairs. Owner blamed the Charterer’s cargo and filed a damages claim to recover their losses.
NYPE -- TIME CHARTER -- PERFORMANCE WARRANTY -- SPEED AND CONSUMPTION -- GOOD WEATHER CRITERIA -- BREACH OF CHARTER -- CONTRACT LANGUAGE -- Owner Award
During a winter voyage the Vessel allegedly underperformed and Charterer subsequently argued that the Owner was in breach of the speed and consumption warranties. Owner countered that the Vessel’s performance warranty was not absolute, but instead, was only applicable during periods of good weather.
NYPE -- TIME CHARTER -- ANTICIPATORY BREACH – EARLY REDELIVERY – DAMAGES -- PROFIT FROM SALE OF VESSEL -- CAUSATION -- Owner Award
Under a time charter contract, Charterer redelivered the Vessel to the Owner two years early. In doing so, Owner considered Charterer in anticipatory repudiatory breach of the contract and filed for damages. Charterer, however, pointed out that the early redelivery allowed Owner to sell the Vessel at a much higher price before the market collapsed. They argued that this windfall should be factored into the Owner’s damages claim.
NYPE -- ANTICIPATORY BREACH -- WHETHER CHARTERERS ENTITLED TO GIVE VOYAGE ORDERS TO TRANSIT GULF OF ADEN -- OWNERS ASSERTING THAT PERMISSION REQUIRED -- WHETHER OWNERS IN REPUDIATORY BREACH -- Owner Award
At dispute is whether Charterer was entitled to terminate the time charter contract with the Disponent Owner because permission by the head owner was required if Charterer instructed the Vessel to transit the Gulf of Aden (GOA) – an area of piracy for which additional war risk premium was payable. Although GOA transit ability was a hard requirement by Charterer in the time charter negotiations with the Disponent Owner, it was not stipulated in the contract between Disponent Owner and head owners.
WHETHER VESSEL "IN EVERY WAY FITTED FOR THE VOYAGE" -- SUITABILITY OF VESSEL’S MOORING EQUIPMENT FOR THE LOADING INSTALLATION -- REPUDIATORY BREACH -- DETENTION AND DAMAGES -- Charterer Award
The Vessel arrived at loadport without the necessary equipment to operate safely at the shipper’s loading installation. Charterer cancelled the charter after the Vessel was viewed as unfit for the voyage. Owner claimed damages for Charterer’s rejection.
VOYAGE CHARTER -- CALCULATION OF TIME BAR DATE -- CHARTERPARTY LANGUAGE -- MEANING OF "FINAL DISCHARGE" -- NO CARGO LOADED -- REPUDIATORY BREACH -- Partial Owner Award
Prior to loading, Charterer cancelled the charter after the Vessel was deemed unfit. When Owner waited over three months from that notice to formally submit a claim for damages, Charterer argued that it was time barred.
GENCON -- WHETHER LAYTIME SUSPENDED AT LOADPORT -- FREIGHT PAYMENT ON “SIGNED/STAMPED FREIGHT INVOICE” OR “BREAKING BULK” -- NOR VALIDITIY -- WHETHER INVALIDITY OF NOR WAIVED -- WHETHER OWNERS ENTITLED TO DAMAGES FOR DETENTION -- CARGO LEIN -- WHETHER CARGO LIEN REASONABLY EXERCISED -- Owner Award
Owner is seeking compensation for balance of freight, demurrage, and detention. Charterer rejected the Vessel’s NOR tendered during port traffic delays due to the breakdown of a dredger; denied liability on balance 5% freight due based on Owner failing to comply with a C/P clause stipulating that freight be payable after receipt of “signed/stamped freight invoice” on Owner’s official letterhead but always before breaking bulk; and, denied demurrage at disport based on the fact that the SOF showed a second NOR and thus holding Owner bound by that. In turn, Owner exercised a lien on the cargo at disport awaiting payment of freight, consequently claiming detention and/or demurrage.
NYPE -- TIME CHARTER TRIP -- SPEED AND BUNKER CONSUMPTION -- ONGOING PERFORMANCE WARRANTY -- Partial Charterer Award
At issue is whether the seaworthiness of the Vessel as warranted in clause 1 "for the service and all time during the currency of this Charter" applies to the speed and consumption warranty as a continuing warranty throughout the duration of the charter (not just at the time of delivery).
SALE CONTRACT -- FOB DEMURRAGE -- RIVER PORT -- NOR TENDERED PRIOR TO ARRIVAL -- VESSEL’S SUSPENSION OF LOADING DUE POSSIBLE CARGO CONTAMINATION -- APPROPRIATE DATE FOR CURRENCY EXHANGE RATE -- Buyer Award
Under an FOB sale of ethanol ex Matadi, Democratic Republic of the Congo the Seller invoiced the Buyer for the contract price, which was paid by the Buyer. Subsequently the Seller claimed additional costs and supplemental freight, which the Buyer did not dispute, however Buyer presented a counterclaim for demurrage stating that it should be set off against Seller’s claim. Seller brought arbitration proceedings against the Buyer to dispute the demurrage and to recover the supplemental charges.
