Case Summaries
Unreported case in the Commercial Court - November & December 2017
“In a series of public hearings relating to tracing money stolen from a commodity company's bank accounts, the Commercial Court ordered (amongst other things):
(i) the issue of a worldwide freezing order against "persons unknown";, (ii) disclosure orders against banks situated abroad for the purpose of tracing money; and (iii) service of documents by a combination of email and online data room and by Facebook.
It is believed that this is the first time such orders have been made.”
Rosgosstrakh Ltd v Yapi Kredi Finansal Kiralama AO & Anor [2017]
“A P&I insurer who had paid out under the policy following the sinking in 2010 of the insured vessel, later sought to avoid the policy and reclaim the payment. After the payment the insurer had changed name and identity by restructuring but the proceedings were issued (just before the 6 year limit) in the old name. The Court dismissed the defendants' argument that the mistake was legal (and inexcusable) rather than factual and despite the time bar passing and criticism of the solicitor for not investigating the name change, the Court allowed the substitution of the correct party.”
Glencore Energy UK Ltd and Anor v Freeport Holdings Ltd [2017]
“Following a fire on board a laden tanker (possibly started deliberately by the Chief Engineer), cargo owners Glencore sought recovery from shipowners for their proportion of salvage (and costs) and challenged shipowners' entitlement to GA contribution. The Court ruled on preliminary issues as to barratry and Article IV r2(b) (fire) and (q) (other cause) of the Hague Visby Rules. Barratry required a deliberate and wrongful act prejudicing owners or cargo; the wrongful element must involve something generally recognised as a crime or a deliberate or reckless breach of duty to shipowners; if therefore the C/E was suffering from a clinical mental disorder, the act would not be barratrous. However, Art IV r2(b) can still apply to a deliberately started or barratrous fire, although not r2(q).”
MT "Cape Bonny" Tankschiffahrts GMBH & Co KG v Ping An Property And Casualty Insurance Co Of China Ltd, Beijing Branch (The "Cape Bonny") [2017]
“The owners of a tanker were refused contribution to general average of some USD 2.1 million as the engine breakdown suffered was considered to be the result of an actionable fault in failing to make the vessel seaworthy. The failure of a crankshaft main bearing was caused by a damaged filter failing to remove harmful particles from the lub oil. Deflection readings had earlier indicated that something was wrong, but they were ignored.”
CSSA Chartering and Shipping Services SA v Mitsui O.S.K Lines Ltd (the "Pacific Voyager" [2017]
“Dealing with an unexplored corner last week the Commercial Court ruled that the Owners' obligation to proceed with "utmost despatch" or "use all convenient speed" will extend to cases where there is no provision as to ERTL or ETA, but merely a cancelling date. The laycan will still indicate the period of time within which the approach voyage should commence so that the Vessel arrives at the loading port by the cancelling date.”
Dainford Navigation Inc. v PDVSA Petroleo SA "Moscow Stars" [2017]
“Time Charterers, the Venezuelan state-owned PDVSA, ordered the vessel to load their crude oil cargo in Venezuela for delivery in the Bahamas (although subsequently vessel and cargo diverted to Curacao). As a consequence of Charterers' failures to pay hire in full, Owners notified the exercise of their charterparty lien over the cargo, commenced London arbitration and sought an order from the High Court for sale of the cargo pursuant to s.44 (2) (d) of the Arbitration Act. In granting the order, the Court found that there was the necessary nexus between cargo and proceedings (namely the exercise of a contractual lien over the defendants' cargo in order to secure the claim in arbitration). The Court made no finding as to what the position would be had the cargo been owned by a third party. It is also significant that the order was to take effect in a Dutch overseas territory, giving Owners access to EU judgment enforcement.”