Case Summaries
Volcafe Ltd and Ors v Compania Sud Americana de Vapores SA— [2016]
“The Court of Appeal has reversed a controversial first instance ruling and has held that it is not a pre-requisite for a carrier relying on the Article IV r2 (m) Hague Rules defence ('inherent vice') to disprove his negligence. Instead, once the carrier has shown an initial entitlement to rely on 'inherent vice', the burden then shifts to the cargo claimant to establish any negligence precluding reliance on the defence.”
Grand China Logistics Holding (Group) Co. Ltd v Spar Shipping AS (Rev 1) [2016]
“Absent a clear contractual indication, payment of hire under time charterparties is not a condition. Time is not presumed of essence and is generally an innominate term, whose breaches may range from the trivial to the grave.”
Atlasnavios - Navegacao, LDA v Navigators Insurance Company Ltd & Ors [2016]
“A vessel detained and later confiscated in Venezuela allegedly due to drugs strapped to its hull was not considered a constructive total loss under its war risks cover since a proximate cause of the loss, the detention of the vessel, was subject to the infringement of a customs regulation exclusion clause of the policy.“
Mitsui & Co Ltd & Ors v Beteiligungsgesellschaft LPG & Ors [2016]
“Following ransom negotiations that lasted for 51 days between Owners and pirates, it was held that Owners could not recover crew-related expenses or bunkers as general average for that period since these expenses were not incurred as a true alternative to the pirates' initial ransom demand, and therefore not within the meaning of Rule F of the York Antwerp Rules.”
Globe Motors, Inc & Ors v TRWLucas Varity Electric Steering Ltd & Anor [2016]
“A provision requiring that any amendment to an agreement be in writing was held to be unenforceable; such a clause can in fact be varied by oral agreement or by conduct.”
Shipowners' Mutual Protection and Indemnity Association (Luxembourg) v Containerships Denizcilik Nakliyat ve Ticaret A.S ("Yusuf Cepnioglu") [2016]
“Turkish Charterers unable to rely on Turkish statute allowing direct action against a P&I Club and ordered to arbitrate in London under Club Rules. But the "pay to be paid" rule means they are unlikely to recover.”