Category: English Maritime Cases

London Arbitration 12/11

BALTIME 1939 -- NON-PAYMENT OF HIRE AND BUNKERS -- REPUDIATORY BREACH -- QUANTUM MERUIT FOR COMPLETION OF VOYAGE -- Owner Award When Charterer failed to pay three installments of hire, other expenses and arrange and pay for bunkers under a time charter contract, Owner first informed Charterer that they were suspending performance of the charter until outstanding hire was paid and then three days later, informed Charterer that they accepted Charterer's repudiatory breach. At the time of the repudiatory breach the Vessel was at sea en-route to the disport and in fact Vessel continued on to the disport and discharged Charterer's cargo.
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Star Reefers Pool Inc v JFC Group Co Ltd

BALTIME 1939 -- VESSEL BREAKDOWN -- WRONGFUL TERMINATION -- REPUDIATORY BREACH -- DAMAGES -- Owner Award When Charterer emailed Owner that Owner had committed breaches of two time charter parties amounting to repudiations and that the two charter parties were terminated, Owner responded by stating Charterer's email was itself a repudiatory breach and that the charter parties were thusly terminated. Owner claimed damages in the form of lost profits due to early redelivery, unpaid hire and fees, detention at the disport and the cost incurred when containers were left on board one of the vessels at redelivery.
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Thai Mapar Trading Co. Ltd. v. Louis Dreyfus Commodities Asia Pte. Ltd. – QBD (Comm. Ct.), 4 Oct 2011

GAFTA FORM 120 -- FOB SALE -- INSUFFICIENT ETA NOTICE -- REPUDIATORY BREACH -- Buyer Award When the FOB Buyer failed to nominate the vessel at least 7 working days prior to vessel's ETA, Seller rejected the nomination. Despite non-conformity with the contract’s ETA requirement, this was not a sufficient basis for Seller to repudiate the contract.
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ED & F Man Sugar Ltd. v. Belmont Shipping Ltd. (The “Amplify”) – QBD (Comm. Ct.), 18 Nov 2011

SUGAR CHARTER PARTY 1999 -- INVALID NOTICE OF READINESS -- DEMURRAGE -- ALLEGED SERIOUS IRREGULARITY BY ARBITRATORS -- Owner Award In ruling for Charterer in an arbitration on documents alone, the Panel noted that as Charterer had not introduced the case of "The Happy Day", the inclusion of which may have further reduced Charterer's demurrage obligation, the Panel need not consider it. Charterer subsequently appealed to the High Court on the basis that the arbitrators, knowing Charterer had made a concession, had a duty to alert Charterer and failing to do so it constituted a serious irregularity.
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Transpetrol Maritime Services Ltd. v. SJB Marine Energy (The “Rowan”) – English Court of Appeal, 27 Jan 2012

CONSTRUCTION OF WARRANTY -- OIL COMPANIES APPROVALS CLAUSE -- "TBOOK" DEFINED -- Owner Award At the time of the fixture, Owner alleged that the Vessel was approved by five oil majors as required by the charter. Thus, when Charterer’s buyer rejected the Vessel due to a sea-chest valve needing repairs as imposed by the Class survey, a sale was lost with Charterer incurring substantial damages. The Commercial Court ruled Owner had breached the Oil Companies Approval Clause. The Court of Appeal overturned the Commercial Court’s ruling and clarified the meaning of the acronym "TBOOK" and the word “approved” in regards to the charter's majors approval requirement.
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London Arbitration 6/11

GENCON -- DEMURRAGE -- TIDE -- EXCESSIVE AIR DRAFT -- TERMINAL BREAKDOWN OR BAD WEATHER -- Partial Owner Award Whilst loading, operations ceased due to excessive air draft of the Vessel during high tide. Later operations stopped again due to either the breakdown of the terminal’s camera or bad weather. Owner claimed demurrage during both delays which Charterer refuted.
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London Arbitration 9/11

GENCON -- SOF VS METEOROLOGICAL REPORT -- FREIGHT CALCULATION WHEN DISPORT NOT NAMED IN FIXTURE -- Partial Owner Award At the disport the Vessel’s statement of facts (SOF) referenced possible weather related delays yet when Charterer attempted to deduct said delays from time counting, Owner produced a weather report for a nearby port which reflected fair weather during the time in question. Additionally, there was a dispute over the calculation of freight when the nominated disport, albeit an acceptable port option, was not within any of the port ranges in the fixture’s freight rate schedule.
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Suek AG v. Glencore International AG (The “Hang Ta”) – QBD (Comm. Ct.), 19 May 2011

CIF SALES CONTRACT -- WIBON -- BERTH CONGESTION CONCURRENT WITH TIDE DELAY -- Seller Award Upon arrival at the discharge port the berth was occupied and inaccessible owing to tide. Per the WIBON phrase in the CIF Sales Contract, Notice of Readiness (NOR) could be tendered prior to arrival in berth should the berth be occupied. The Buyer, however, argued that in this instance NOR must be tendered at the berth since congestion was not the sole cause of delay.
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Glory Wealth Shpping Pte. Ltd. v. Korea Line Corp. (The “Wren”) – QBD (Comm. Ct.), 14 July 2011

NYPE -- REPUDIATED TIME-CHARTER -- MEASURE OF DAMAGES -- Charterer Award and Seller Award This court case is an appeal by Charterer of an arbitration award. When the economy went sour, Charterer wrongfully repudiated a time-charter contract. At the time of the repudiation there was no available long-term charter market on which to base Owner’s damages. About six months later an available market developed. The arbitration panel awarded Owner damages using a hybrid assessment: actual losses based on spot trading and then market losses once a long-term charter market emerged (despite Owner opting, for own business reasons, to continue trading on the spot market).
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Great Eastern Shipping Co. Ltd. v. Far East Chartering Ltd. (The “Jag Ravi”) – English Court of Appeal, 9 Mar 2012

FOB SALES CONTRACT-- LETTER OF INDEMNITY -- WRONGFUL DELIVERY -- SALES CONTRACT -- Owner Award The Vessel discharged cargo without presentation of Bills of Lading (B/Ls) per the Receiver's Letter of Indemnity (LOI) to the Voyage Charterer. FOB Seller successfully claimed damages from Owner for delivering cargo without presentation of the Bills of Lading with Owner subsequently claiming indemnity from Receiver as Owner had acted as an agent of Charterer as referenced within the LOI.
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