Archives: Case Law

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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

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 that the vessel was unsuitable for … 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

Owners held not liable under charterparties signed by manager in breach of implied warranty of authority

Navig8 Inc v South Vigour Shipping Inc [2015] EWHC 32 (Comm) The claimant had chartered four vessels, the charterparties for which had been signed by the vessels’ commercial manager. Each charterparty contained the phrase “the disponent owners signatory in contract”, followed by the manager’s name. During the negotiations, the manager had made it apparent that … Continue Reading

Tartsinis v Navona: A Successful Rectification Claim

Tartsinis v Navona Management Co [2015] EWHC 57 Case note posted with thanks to 7 King’s Bench Walk. An apparently normal case – a dispute under a Share Transfer Agreement – resulted in a very unusual outcome in commercial litigation – a successful claim for rectification. Two individuals, Tartsinis and Nikolaou, agreed to sell their shares … Continue Reading

Court considers nature of the breach and consequent measure of damages in “early redelivery” case

Maestro Bulk Ltd v Cosco Bulk Carrier Ltd (The “Great Creation”) [2014] EWHC 3978 (Comm) The vessel was chartered on an amended NYPE form for a minimum of four months and a maximum of five months, plus 15 days in Charterers’ option. Hire was at a rate of US$18,500/day gross. Clause 60 of the charterparty … Continue Reading

“Brilliante Virtuoso” held to have been a Constructive Total Loss

Suez Fortune Investments Ltd v Talbot Underwriting Ltd [2015] EWHC 42 (Comm) The High Court recently held that the “Brillante Virtuoso” was a constructive total loss following an attack by pirates in July 2011. Mr Justice Flaux made important key findings in the CTL claim, which totalled over US$80m. This case has been closely followed … Continue Reading

Right to enforce an “in rem” claim is not lost where the claim is issued after the court has ordered the sale of the vessel

Bank of Tokyo-Mitsubishi UFJ Ltd v Sanko Mineral (The MV Sanko Mineral) [2014]EWHC 3927 (Admlty) Cargo Interests began proceedings in the U.S. against the Defendant former owner of the M/V SANKO MINERAL for breach of a contract of carriage. The bill of lading under which the claim was brought incorporated the terms of a charterparty … Continue Reading

Court of Appeal Upholds Incorporation of English Jurisdiction Clause from Charterparty into Bill of Lading

Caresse Navigation Ltd v Zurich Assurances Maroc & Ors [2014] EWCA Civ 1366 A cargo of coal was carried by the Respondent Owners from Rotterdam to Nador (Morocco). Whilst underway, emergency cooling measures were taken to prevent the cargo combusting which allegedly caused damage to the cargo. Owners commenced proceedings in the English High Court, seeking … Continue Reading

Tribunal rules on incorporation of arbitration agreement into a charterparty and Owners’ entitlement to demurrage

London Arbitration 14/14 The vessel in question was chartered by way of a fixture recap. Owners brought a claim for demurrage against Charterers. Charterers argued that the charter did not contain a valid arbitration agreement/clause, and that although they had agreed to pay freight, they had not agreed to be liable for demurrage. Incorporation of … Continue Reading

Disclosure order made against individual and companies controlled by him in respect of marine insurance claim

Suez Fortune Investments Ltd v Talbot Underwriting Ltd (unreported) The First Claimant, owners of a vessel, claimed against the Defendant Insurers for an indemnity in respect of damage to their vessel. The Defendant argued that an individual was the ultimate beneficial owner of both the First Claimant and of the corporate group of which the … Continue Reading

Arbitration clause in LOU held to replace charterparty arbitration clause

Viscous Global Investment Ltd v Palladium Navigation Corp [2014] EWHC 2654 (Comm) The Claimants had claims for cargo damage against the vessel Owners arising under four bills of lading. The vessel was the subject of a chain of three charterparties. The head and sub-charter provided for London Arbitration (two arbitrators unless a sole could be … Continue Reading
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