Archives: Case Law

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Within Port Limits

NAVALMAR UK LTD V KALE MADEN HAMMADDELER SANAYI VE TICART AS [2017] EWHC 116 (COMM) – The MV “ARUNDEL CASTLE” In this case the Commercial Court considered the meaning of “within port limits” in the context of a charterparty on an amended Gencon 94 form which provided that: “[Notice of readiness] to be tendered at … Continue Reading

A Tale Of Dirty Deals, Demurrage And Discontent: Enforcement Of Arbitral Award Refused

In a recent decision, the Paris Court of Appeal refused to enforce an LMAA arbitral award on the basis that the underlying contract was affected by illegality on account of corruption. Introduction Pursuant to article V of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, a national authority may … Continue Reading

Culpability and Clause 8(d) of the Inter-Club Agreement – The Yangtze Xing Hua

TRANSGRAIN SHIPPING (SINGAPORE) PTE LTD v YANGTZE NAVIGATION (HONG KONG) CO LTD [2016] EWHC 3132 This was an appeal from an LMAA arbitration award, considering the true construction of clause 8(d) of the Inter-Club Agreement 1996 (“ICA”); specifically, whether the meaning of the term “act” in the phrase “act or neglect” should be restricted to … Continue Reading

English Court confirms that package limitation under the Hague Rules excludes a bulk cargo

A recent decision provides authority for the broadly accepted understanding that a “unit”, for the purposes of limitation under Article IV Rule 5 of the Hague Rules, cannot apply to a bulk cargo – it can only mean a physical unit for shipment and not a unit of measurement or a customary freight unit (the … Continue Reading

Collateral lies: The lie is dishonest but the claim is not

The Supreme Court rules that a collateral lie embellishing a valid claim does not amount to a fraudulent claim. Versloot Dredging BV and another (Appellants) v HDI Gerling Industrie Versicherung AG and others [2016] UKSC 45 Facts The vessel DC Merwestone was incapacitated by an ingress of water which flooded the engine room. A claim … Continue Reading

The importance of the arbitration notice: make sure it is sent to the right person

Sino Channel Asia Ltd v. Dana Shipping and Trading Pte Singapore and Another [2016] EWHC 1118 (Comm) A recent English High Court decision serves as a reminder of the importance of taking great care in relation to service of notice to commence arbitration. The case concerned whether the notice was sent to the correct party. … Continue Reading

Don’t trip up – a warning for owners

The recently decided case of SBT STAR BULK & TANKERS (GERMANY) GMBH & CO KG V COSMOTRADE SA (THE “WEHR TRAVE”) [2016] EWHC 583 (Comm) in the Queen’s Bench Division of the Commercial Court and before The Hon Sir Bernard Eder will, perhaps, come as a surprise. This was an appeal pursuant to section 69 … Continue Reading

Cargo owner has no claim for conversion where a shipper has discharged cargo into storage due to cargo owner’s failure to present a bill of lading

Sang Stone Hamoon Jonoub Co Ltd v Baoyue Shipping Co Ltd (“The Bao Yue”) [2015] EWHC 2288 (Comm) The dispute related to a cargo of iron ore carried from Iran to China by the Defendant Shipper. The bill of lading had been issued “to order”, with no consignee named. The Shipper was requested to discharge … Continue Reading

“At the expenses and risk of Charterers” – what does this mean?

The decision of Mr. Justice Flaux in (1) Societe de Distribution de Toutes Merchandises en Cote D’Ivoire trading as “SDTM-CI” (2) Kouma Assitan (3) Amlin Corporate Insurance N.V. (4) Axa Corporate Solutions Assurance and (1) Continental Lines N.V. (2) Genshipping Corporation [2015] EWHC 1747, considers the effect of clause 5 of the Synacomex 90 form, … Continue Reading

Court varies order recognising South Korean insolvency proceedings to allow pursuance of claims in London arbitration

Re Pan Ocean Co Ltd [2015] EWHC 1500 (Ch) The Applicants had entered into a pool agreement and time charter with Pan Ocean, both of which were governed by English law and provided for London arbitration. The agreements were terminated, and the Applicants sought damages. Pan Ocean went into rehabilitation in Korean, and the Applicants … Continue Reading

Bank ordered to honour refund guarantees despite foreign court orders prohibiting payment

The Claimant Buyers brought proceedings against the Defendant Bank under refund guarantees issued by the Bank in support of two shipbuilding contracts between the Buyers and Sellers. Pursuant to the contracts, the Claimant had paid instalments on terms that they would be refunded if the contracts were cancelled. When the ships were not delivered on … Continue Reading

Court of Appeal holds standard clause in bills of lading to be exclusive English jurisdiction clause

Hin-Pro International Logistics Ltd v Compania Sud Americana de Vapores SA [2015] EWCA Civ 401 The Appellant Freight Forwarder commenced actions in China under 70 bills of lading, which incorporated the Respondent’s standard clauses. Clause 23 provided in material part: “This Bill of Lading and any claim or dispute arising hereunder shall be subject to … Continue Reading

Court awards as damages costs incurred as a result of a breach of a law and jurisdiction clause

Swissmarine Services SA v Gupta Coal India Private Limited [2015] EWHC 265 (Comm) The Claimant and Defendant entered into a COA which contained an English law and jurisdiction clause. When the Defendant failed to comply with the terms due to difficulties in despatching and shipping the cargo, the Claimant brought a claim for breach of … Continue Reading

Loss of cargo due to piracy held not to be an “in-transit loss”

Trafigura Beheer BV v Navigazione Montanari SpA [2015] EWCA Civ 91 The subject vessel was chartered to carry a cargo of oil from Abidjan, Ivory Coast to Lagos, Nigeria. Clause 46 of the charter (on an amended BPVOY3 form) incorporated the Hague-Visby Rules, which contain exemptions in respect of loss or damage arising or resulting … Continue Reading

Court considers the documents required to be supplied in support of a demurrage claim under BPVOY4

Kassiopi Maritime Co Ltd v Fal Shipping Co Ltd [2015] EWHC 318 (Comm) Owners and Charterers had entered into a voyage charter on the BPVOY4 form. The charter contained the following provisions: Clause 19.7.1: demurrage claims to be accompanied by the vessel’s pumping log signed by a senior officer of the vessel and a terminal … Continue Reading

What is your broker up to? Broker found to have authority to enter into a fixture and guarantee

Posted on behalf of Christian Ayerst. Mitsui OSK Lines Ltd v Salgaocar Mining Industries Private Ltd (2015) (Unreported) After extensive negotiations, London brokers fixed a 10-year charterparty on behalf of their principals, the Charterers. The Charterers were named as a nominee with their performance guaranteed by the Defendant. Three years into performance, Charterers terminated, alleging … Continue Reading

“OCEAN VICTORY” – Court of Appeal Decision

In Gard Marine & Energy Ltd v China National Chartering Co Ltd (Rev 1) [2015] EWCA Civ 16, the Appellant sub-charterers appealed the 2013 judgment of Teare J. On or around 12 September 2006, the sub-charterers ordered the vessel, “Ocean Victory”, a Cape-size bulk carrier, to discharge a cargo of iron ore at Kashima, Japan. … Continue Reading
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