Exemption clauses, including those purporting to exclude or limit liability for deliberate and repudiatory breaches, are to be construed by reference to the normal principles of contractual construction. There is no presumption in English law that exemption clauses do not apply to fundamental breaches. Nor is there a requirement for any particular form of words … Continue Reading
We have previously dedicated blog posts to so-called “No Oral Modification” or “NOM” clauses. You can find our previous post focusing on the Supreme Court judgment in MWB Business Exchange Centres v. Rock Advertising [2018] UKSC 24 here. The validity of contractual modifications is a recurring theme in commercial disputes. A recent English Court of … Continue Reading
In a late 2020 judgment (Aegean Baltic Bank SA v Renzlor Shipping Ltd and Ors [2020] EWHC 2851 (Comm)), the High Court provided important guidance on the position of a bank under security documents relating to a loan agreement, and its obligations when exercising its rights as assignee to the insurance policies over a vessel. … Continue Reading
Public today: an important judgment handed down by the English High Court this morning has re-opened the door to recovering damages in addition to demurrage for losses caused by exceeding laytime in cargo operations. In today’s 43 page judgment in K Line Pte Ltd vs Priminds Shipping (HK) Co Ltd (The Eternal Bliss) [2020] EWHC … Continue Reading
In Sea Master Shipping Inc v Arab Bank (Switzerland) Ltd & Yousef Freiha & Sons SA [2020] EWHC 2030, Owners, in a situation where Charterers were in insolvent liquidation and unable to meet their obligations under a voyage charter, sought to hold receivers liable for delay at the discharge port under the bill of lading. … Continue Reading
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
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
Readers will recall from Reed Smith’s recent blog that concerns have been raised regarding common Inter-Club Agreement (ICA) incorporation clauses. A London Tribunal, in a recent arbitral award in which Reed Smith acted, held in favour of Reed Smith’s client that a traditional ICA incorporation clause incorporated the entire ICA, including clause 9 (i.e. the … Continue Reading
Last week, the International Group of P & I Clubs published a recommended Inter-Club Agreement (ICA) incorporation clause. It is commonplace for charterparties to incorporate the ICA as a contract term. For decades, ICA incorporation clauses have been considered relatively uncontroversial. However, the recent London Arbitration 18/18 decision has thrown the cat amongst the pigeons; the Tribunal … Continue Reading
In Dera Commercial Estate v. Derya Inc [2018] EWHC 1673, the Commercial Court considered several issues of interest arising out of Article III Rule 6 of the Hague Rules ( “Article III Rule 6”), in the context of a bill of lading for the carriage of maize destined for Jordan which, on arrival, was not … Continue Reading
The law on ship arrest in England is well-entrenched. In essence, a party’s ability to arrest a ship in the UK occurs as of right. Accordingly, a shipowner will be unable to recover any compensation at all for wrongful arrest unless the arrest was obtained by mala fides (bad faith or malice) or crassa negligentia … Continue Reading
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
In Rock Advertising Limited v MWB Business Exchange Centres Limited [2018] UKSC 24, the Supreme Court has handed down a decision which has provided further certainty in the area of no oral variation /modification clauses, albeit in doing so it has overturned the decision of the Court of Appeal referred to previously in our blog … Continue Reading
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
On 2 February 2018 the Commercial Court allowed an appeal from a decision of the Arbitration Tribunal in Lukoil Asia Pacific Pte Ltd v Ocean Tankers Pte Ltd. The Judgment serves as a reminder to Owners to ensure that, if they have a claim for demurrage (no matter how it arises under the charter), as … Continue Reading
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
The London Circuit Commercial Court has held that the well established common law rule in shipping law that “a claim in respect of cargo cannot be asserted by way of a deduction from freight” extends to air freight. In this landmark case, the contract was for the carriage of chia seeds between a well known … Continue Reading
By way of follow up to our blog on this matter dated 3 May 2016, the Commercial Court heard a further arbitration appeal earlier this month arising out of the detention of the vessel at Puerto la Cruz on 19 September 2014. The vessel was chartered on an amended Shelltime 4 form, and the vessel … Continue Reading
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
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 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
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
The High Court has handed down Judgment in Vitol SA v Beta Renowable SA [2017] EWHC 1734 (Comm) highlighting the importance of ensuring that communication and conduct for the purpose of accepting repudiatory breach is clear and unambiguous. This concerned a contractual dispute between Vitol, a major oil trader, and Beta Renowable Group, a manufacturer … Continue Reading
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
