Category: English Maritime Cases
TIME CHARTER -- REPUDIATION OF CONTRACT BY CHARTERER -- MEASURE OF DAMAGES WHEN NO SIMILAR MARKET EXISTS -- Owner Award
After non-payment of hire for 10 consecutive months, Owner withdrew the Vessel and sought restitution from the Guarantor of Charterer’s liabilities for the unpaid hire up to the point the time charter contract was deemed repudiated, damages for the unexpired period remaining, and restitution for bunker costs.
TIME CHARTER -- GROUNDING DUE EXCESS DRAFT RESULTING FROM SUB-CHARTERER’S LOAD INSTRUCTIONS -- Charterer Award
Under a chain of time charters, the Vessel grounded and damaged her hull as a result of following the sub-Charterer’s load instructions to a draft of 13.3m. The Head Owner’s claim for indemnity failed because the sub-Charterer’s indemnity guarantee was given to the Master as the representative of the intermediate Charterer (not as a representative of the Head Owner) and the indemnity was not provided on a back-to-back basis throughout the chain.
TIME CHARTER -- ENFORCEABILITY OF ENGLISH ARBITRATION IN CONTRACT CONTAINING AN ILLEGAL GUARANTEE -- NON-COMPLIANCE WITH CHINESE "SAFE" (STATE ADMINISTRATION FOR FOREIGN EXCHANGE) REGISTRATION -- Owner Award
The background to this case involved five claims pursued by various ship owners against Beijing Jianlong Heavy Industry Group (hereinafter "Charterer") against the Charterer’s guarantor to resolve essentially the same issue i.e. Charterer’s repudiation of its obligations under several time charter contracts. Due to the similarities, the dispute was consolidated at London arbitration.
CARGO LIEN -- RIGHT TO RECOVER STORAGE COSTS -- GENERAL AVERAGE -- CONGEN BILLS OF LADING -- Owner Award
Owner exercised his right of lien on the cargo while awaiting the Charterer’s General Average payment due to the Vessel’s main engine breakdown en route to the discharge port. At issue is whether the lien was waived when an average guarantee (rather than an average bond) was given by the consignee; and, whether the Owner could claim the expense of storage costs when exercising the lien.
BPVOY 3 -- VESSEL DETAINED -- RESTRAINT OF PRINCES -- DEMURRAGE LIABILITY -- FORCE MAJEURE -- FOB Buyer Award
In overturning the lower Court ruling, the Court of Appeal held that parties may not be able to rely on Force Majeure clauses where the event is within their reasonable control or that of the parties whom they had delegated their responsibilities.
NYPE 1946 -- TIME CHARTER -- OFF-HIRE CLAUSE MEANING OF “LOSS OF TIME” -- Owner Award
Charterer was liable to pay for the off-hire period while drifting off the discharge port as there was no net loss of time as the discharge berth was unavailable.
UNLAWFUL MEANS CONSPIRACY -- CONFIDENTIALITY WAIVED -- DISCLOSURE FOR JUSTICE -- Claimant Award
Bdocuments that had been presented in a London arbitration were needed by the Claimant to pursue court proceedings against others for alleged unlawful means conspiracy
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BPVOY 4 -- “REASONABLE” OVERAGE FREIGHT -- INCORRECT FREIGHT CALCULATION -- RECOVERY OF OVERPAYMENT -- Owner Award
Owner and Charterer appealed a judgment that found Charterer was liable for a "reasonable" amount (subject to further inquiry) of freight that was overpaid on the Owner’s purportedly miscalculated invoice. At issue is whether freight overage applies for cargo carried in excess of the minimum volume stipulated when the additional port/region was not named in the Overage Section of the contract.
NYPE -- TIME CHARTER -- BACK-TO-BACK CHARTERS -- 1986 US TAX REFORM ACT -- INEMNITY FOR US FREIGHT TAX -- Charterer Award
Tax payable under U.S. Tax Code for transportation income earned by a nonresident alien or foreign corporation is potentially payable for the hire earned by the head owner as well as the income earned by the disponent owner, subject to any exemptions. In this instance the disponent owner was found to be exempt and, therefore, their request for indemnity from the sub-charterer had to fail.
BIMCO PIRACY CLAUSE -- TIME CHARTER -- NECESSITY OF PIRACY INSURANCE -- REIMBURSEMENT OF INSURANCE PREMIUM -- Charterer Award
When the Vessel was instructed to sail on a voyage which took her through the Gulf of Aden -- an area known to be exposed to piracy risks – the Owner undertook insurance against kidnap, ransom, and loss of hire for which they seek reimbursement for the $31K insurance premium. At issue is whether the insurance was "necessary" as stipulated in the BIMCO Piracy Clause.
