Tagged: Apr/Jun 2012

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.

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.