Case Summaries
Ark Shipping Company LLC v 22 February 2019 Silverburn Shipping (loM) [2019]
“In concluding that the Classification clause (9) in a BARECON '89 Charterparty is a condition, the CA (overruling the High Court) found that it is instead an innominate term, for the following reasons of construction and business common sense: it relates merely to classification status; it is not expressed to be a condition nor is it a time clause or a condition precedent leading to significant consequences; further, it was closely bound up with the general obligation to maintain physical condition of the vessel and a trivial breach might well result in disproportionate consequences destructive of a long-term contractual relationship.”
Woodward & Anor v Phoenix Healthcare Distribution Ltd [2019]
“In respect of its claim for damages for breach of contract, W issued a claim form on 19 June 2017, the day before expiry of the 6 year limitation period, and sent it, just before its validity expired, 4 months later, to P's solicitors, who had no authority to accept service. Accordingly, service was ineffective, the time bar had passed and the claim form expired. The Court of Appeal declined to allow "retrospective validation of service", the required "good reason" not having been established: Neither P nor its solicitors had a duty to advise of their lack of authorisation, they were not playing "technical games" and conversely W had "courted disaster" by leaving issue and service to the last moment.”
BV Nederlandse Industrie Van Eiprodukten v Rembrandt Enterprises, Inc. [2019]
“In the context of the avian flu epidemic of 2015 R, a US supplier of egg products, contracted with N to fulfil, over two years, R's supply commitments. In light of an agreed but suspicious increase in the sale price and alleged failure to meet required US standards, R suspended performance, causing N to claim loss of profit damages. The first instance judge dismissed the quality issue but granted R rescission on the grounds of N's fraudulent misrepresentation as to prices. The CA dismissed N's appeal based on the test of inducement, drawing a distinction between fraudulent and non-fraudulent misrepresentation: the test in the former is less rigorous, as there is no requirement for the representee to show that he would not have entered into the contract but for the representation, it being sufficient that the fraud was "actively present to his mind".”
Glencore Energy UK Ltd & Anor v Freeport Holdings Ltd (The 'Lady M') [2019]
“The Court upheld the first instance decision that article IV r2(b) exempts the carrier from liability if the fire was caused deliberately or barratrously (meaning without the actual fault or privity of the carrier). The appellants tried in vain to infer that barratry would be incompatible with fault or neglect of the crew (here the chief engineer) but the Court found no basis for justifying such conclusion.”
Wolff v Trinity Logistics USA Inc [2018]
“Trinity agreed with its agents that shipments for UK importers, Fielding, would be released against documents proving payment for goods. Nevertheless Mr Wolff, Fielding's director, agreed with the agents that shipments would be released just on payment of the agents' fees, the agents then falsifying the documents sent to Trinity. Fielding, in administration, failed to pay for the goods and Trinity (having paid the suppliers) sought damages from Mr Wolff based on various torts including procurement of breach, conversion, deceit and conspiracy. On the evidence, the High Court upheld only the first, the CA agreeing (although granting permission to appeal on conspiracy).”
Stallion Eight Shipping Co. SA v Natwest Markets Plc [2018]
“The CA has confirmed Teare J's decision to refuse to order a cross-undertaking in damages in relation to a ship-arrest. The CA found that there was no case to intervene on this discretionary decision when the Judge had followed the usual practice; further, departing from the established practice would undermine confidence in the maritime jurisdiction. However, whereas Teare J took the view that only Parliament could bring about the change sought by the defendants, the CA considered that theoretically it fell within the Court's discretion — although in the absence of international consensus and overwhelming support from the maritime industry, there was no reason to alter the status quo.”