Category: English Maritime Cases
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.
GENCON -- VOYAGE CHARTER -- COST OF SECURITY GUARDS -- DISTINCTION OF BIMCO ISPS CLAUSES -- NATIONALITY OF CREW -- Owner Award
This dispute arose under a voyage charter from Turkey to a U.S. port wherein the U.S. Customs and Border Protection (hereinafter CBP) ordered security guards to be posted. Charterer denied liability for the cost of the guards on the basis that the latest BIMCO ISPS clause excuses Charterer from liability when security guards are required due to the nationality of the crew.
NYPE -- TIME CHARTER -- REPUDIATION OF CHARTER -- UNPAID HIRE -- CALCULATION OF DAMAGES -- Owner Award
Charterer withheld payment for hire thereby frustrating the charter. Owner considered this a repudiatory breach and withdrew the Vessel from the Charterer’s service.
NYPE -- WHETHER BILL OF LADING INCORPORATED CHARTER PARTY LAW AND JURISDICTION -- Owner Award
With respect to a cargo contamination claim, the consignees and the cargo insurers challenge the jurisdiction of the English court and law (stipulated in the charter party) when the cargo contamination occurred at the place of delivery in Morocco.
CONTRACT OF AFFREIGHTMENT -- REPUDIATORY BREACH -- CONTRACT CONSTRUCTION -- DAMAGES -- Owner Award
A three-year contract of affreightment (COA) was fixed basis six liftings per year from 2009 to 2011. Charterer failed to declare laycans for the last two shipments of 2009 and for all shipments the following year. At arbitration the Disponent Owner was awarded damages in the form of lost revenues, being the difference between the COA and market rate. Charterer appealed claiming that the Tribunal erred at law and serious irregularity. Namely, that after the sudden collapse of the freight market in 2009 the Owner’s financial position had deteriorated to a point that would have prevented them from being able to provide the required vessels; the tribunal’s belated request for supporting documents from Owner; and, the tribunal’s failure to consider the issue of Owner’s dishonesty raised by Charterer.
LONG-TERM PERIOD TIME CHARTERS -- CHARTER RESTRUCTURING AGREEMENT (CRA) -- SEMI-ANNUAL HIRE ADJUSTMENT -- CONTRACT CONSTRUCTION -- Owner Award
Due to the financial challenges brought on by the market collapse of 2008/9, Owner and Charterer restructured the long-term period time charters for eight VLCCs. Under this new agreement, the hire would be derived on a month-to-month basis relative to the Clarkson Index and adjusted semi-annually. Disagreements arose with respect to the proper construction of the contract and interpretation of the semi-annual adjustment clause.
SUGAR CHARTER PARTY 1999 -- FIRE DAMAGE AT TERMINAL -- MECHANICAL BREAKDOWN DEFINED -- OBLIGATION TO NOMINATE ALTERNATE BERTH -- FORCE MAJEURE -- GOVERNMENT INTERFERENCE -- Owner Award
The Vessel was delayed in berthing due to a fire that had destroyed the conveyor belt system at the Charterer’s regularly-scheduled terminal. Charterer submitted their case to the Court of Appeal for consideration that this situation should constitute a mechanical breakdown and likewise exempted from the Owner’s laytime calculation.
GROUNDING -- PERIL OF SEAS OR NEGLIGENCE OF CREW -- MARINE INSURANCE -- MEASURE OF DAMAGES -- Owner Award
The Vessel grounded while she was at anchorage awaiting berth and the insurance underwriters refused to compensate the Owner. The underwriters argued that the Owner had not proven how the grounding occurred. In ruling for the Owner, the Panel held that whether the grounding was due to peril of the seas or negligence of the crew, either was sufficient for insurance compensation.
