Archives: Case Law

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Shipper’s presentation of bill of lading for signature is merely an invitation to master to make his own assessment of cargo’s apparent condition on loading: Priminds Shipping (HK) Co Ltd v Noble Chartering Inc, Tai Prize [2020] EWHC 127 (Comm)

On appeal by the charterer, the High Court overturned the award of a London tribunal ordering the charterer to indemnify the disponent owner for the payment it had made to the owner of the vessel in settlement of the latter’s claim for a 50% contribution to the sum paid to cargo receivers for damage to … Continue Reading

Demurrage time bar: The importance of providing supporting documents in demurrage claims

Summary Charterers successfully appealed an arbitration award under section 69 Arbitration Act 1996 on the basis that Owners did not submit all supporting documents for a demurrage claim within the 90-day time bar under the charterparty. Mr Justice Robin Knowles ruled that as the calculation of demurrage was pro-rated under the charterparty where another parcel … Continue Reading

Demurrage claims

There seem to be endless variations of the clauses in voyage charterparties requiring owners to provide copies of the relevant or supporting documentation with demurrage claims. We receive a surprising number of queries relating to what is required. In Amalie Essberger, a Commercial Court decision of 11 December 2019, the charter was on an amended … Continue Reading

Rubicon Vantage International PTE Ltd v. Krisenergy Ltd [2019] EWHC 2012 (Comm)

Summary This case provides useful guidance on the application of rules of construction in relation to guarantees that display characteristics of both an “on-demand” guarantee and a “true guarantee,” and where obligations are undertaken by a non-bank entity. In such cases, there is no requirement for a narrow construction of the guarantor’s obligations. For information … Continue Reading

Force majeure clauses: what matters is not the label but the content of the tin!

The Court of Appeal in Classic Maritime Inc. v Limbungan Makmur SDN BHD and Another [2019] EWCA Civ 1102 contrasted the circumstances in which an exceptions clause and a contract frustration clause would operate. The appeal concerned the charterer’s failure to ship five cargos of iron ore from Brazil to Malaysia in the period following … Continue Reading

The “Atlantic Tonjer” – the first glimpse of the judicial approach to interpreting SupplyTime 2017

Summary The “Atlantic Tonjer” [2019] EWHC 1213 (Comm) is thought to be the first reported judgment on SupplyTime 2017. The decision clarifies the meaning of clause 12(e) of the standard form, which requires Charterers to notify Owners by no later than the due date of an invoice, if they reasonably believe that the invoice is … Continue Reading

MV “ARCTIC” – Obligation to “keep vessel in class” is an innominate term

Summary The Court of Appeal’s decision in Ark Shipping Co LLC v. Silverburn Shipping (IOM) Ltd, “ARCTIC”  [2019] EWCA Civ 1161, provides a clear statement of the principles of construction, and how they are applied in ascertaining whether a term is a condition or an innominate term. This decision provides guidance on the proper interpretation … Continue Reading

No hindsight for implied terms

In Robert Bou-Simon v. BGC Brokers LP [2018] EWCA Civ 1525, the Court of Appeal considered deleted provisions and implied terms. Although in the context of an employment contract, the decision obviously has wider application. The Court held that the judge at first instance had not properly applied the legal test for the implication of contractual … Continue Reading

Update on recent developments in the Shipping Industry

For an update on recent developments in the Shipping Industry, click here to listen to our recent webinar. During the webinar, we cover some of the key shipping cases in the last 6 months. We also take a look at electronic bills of lading including how they work, common benefits and pitfalls, as well as … Continue Reading

Venezuelan drug smuggling – CTL and recovery for detention under Institute clauses

Navigators Insurance Company Limited v Atlasnavios-Navegacao LDA [2018] UKSC 26 In a decision handed down yesterday (22 May) the Supreme  Court  held that where a vessel was used by unknown third parties in an unsuccessful attempt to export cocaine from Venezuela (by strapping a parcel of drugs to the vessel underwater), leading to a detention … Continue Reading

Settlement of claims

The Court of Appeal case Khanty-Mansiysk Recoveries Limited v Forsters LLP [2018] EWCA Civ 89 considers the ambit of settlement agreement wording and the extent to which this can cover future claims. Background facts Forsters LLP (“Forsters”) were solicitors who had been instructed by Rupert Galliers-Pratt (“RGP”) to assist with preparatory work required to incorporate … Continue Reading

Shipowners face risk of criminal liability for illegal demolition of end-of-life vessels

A Rotterdam court has found Dutch reefer operator Seatrade and two of its directors criminally liable last week for illegally selling vessels for demolition in South Asian yards in breach of the EU Waste Shipment Regulation. The decision appears to be the first time an EU shipowner has been held criminally liable for the illegal … Continue Reading

The Yangtze Xing Hua

Transgrain Shipping (Singapore) Pte Ltd V Yangtze Navigation (Hong Kong) Co Ltd [2017] EWCA Civ 2107 This was a further appeal, to the Court of Appeal, from an LMAA arbitration award, considering the true construction of the sweep-up provision at sub-clause 8(d) of the Inter-Club Agreement 1996 (“ICA ‘96”); specifically, whether the meaning of the … Continue Reading

Service of Arbitration Notice

Sino Channel Asia Ltd v Dana Shipping & Trading Pte Singapore Ltd & Anr [2017] EWCA Civ 1703 Background The case looks at the question of when notices of arbitration passed to a counterparty’s agent can be considered effective service on the counterparty in circumstances where that the agent is not authorised to receive the … Continue Reading

Getting the arbitrator right

This week the Commercial Court handed down judgment in Tonicstar Limited v (1) Allianz Insurance PLC; (2) Sirius International Insurance Corporation ( PUBL) (London Branch) [2017] EWHC 2753, a matter where the question was whether a barrister was a person “with not less than 10 years’ experience of insurance or reinsurance” for the purposes of … Continue Reading

The Approach Voyage

The Pacific Voyager [2017] EWHC 2579 is a Commercial Court decision about which a number of articles have been written over the last week. It considers the often neglected approach voyage;  identifying the moment when the duty to proceed with utmost despatch to the loadport arises under a voyage charter; and whether that obligation is … Continue Reading

Recoverability of Operating Expenses under Rule F of the York-Antwerp Rules 1974

On 25 October 2017, the English Supreme Court handed down judgment in Mitsui & Co Ltd and Others v Beteiligungsgesellschaft LPG Tankerflotte MBH & Co KG and Another (The “Longchamp”). The case provided the Supreme Court a rare opportunity to consider and interpret the York Antwerp Rules 1974 (in particular Rule F), which are more … Continue Reading

Power to order sale of cargo – when is cargo the subject of arbitral proceedings?

Earlier this month the Commercial Court handed down an interesting judgment which considered the question of when a cargo is the “subject of the [arbitral] proceedings”, so as to give rise to a power to order the sale of the cargo under Section 44(2)(d) Arbitration Act 1996 – Dainford Navigation Inc v PDVSA Petroleo SA … Continue Reading
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