Case Summaries
London Arbitration 17/17
“The demurrage rate net of commission was used by an arbitral tribunal to calculate damages for detention, even though the Charterparty did not contain any reference to commission in the event of detention. Awarding damages on the basis of the gross demurrage rate was not deemed appropriate as Owners would have only received the net amount had they been paid demurrage for the delay.”
Smith v The "Ross Revenge" — QBD [2017]
“A vessel once operating as pirate radio station "Radio Caroline" was considered to be abandoned by the owner despite absence of an express statement by the owner to that end. Failure to engage in a court process, and a clear absence of interest in the vessel over a sustained period of time, led the Court to infer that owner had abandoned its rights of ownership. The claimant 'caretaker' was able to become owner of the vessel since no other party, including the Crown, had asserted a better right.”
Pan Petroleum AJE Ltd v Yinka Folawiyo Petroleum Co Ltd & Ors [2017]
“An agreement for the operation of Nigerian oil wells contained a London arbitration clause and the High Court issued an injunction in support of the arbitration, restraining the defendants from taking certain default steps under the agreement; the Court ruled that default steps had been taken, in breach of the injunction, and held the defendants to be in Contempt of Court.”
Gard Shipping AS v Clearlake Shipping Pte Ltd [2017]
“A Charterparty on an amended BPVoy4 form provided an enhanced and escalating demurrage rate in the event of revised voyage orders, including stopping and waiting. In construing the relevant clauses, the Court held that the enhanced rate was not triggered in the absence of a clear instruction, prior to NOR, to stop and wait; a passive failure to give orders, post-NOR, even where such failure was driven by commercial reasons, was not a trigger.”
Gard Marine and Energy Ltd & Anor v China National Chartering Company Ltd & Anor [2017]
“The rare concurrence of two individually not uncommon events (strong northerly gale and long waves) was an "abnormal occurrence" such that charterers were not in breach of the C/P safe port warranty (even if each event separately may have been characteristic of the port). Further, and in any event, the C/P joint insurance clause excluded rights of recourse between the parties, each of whom had agreed to look to insurers for indemnification rather than to each other in the event of total loss. “
Sam Purpose AS v Transnav Purpose Navigation Ltd (Rev 2) [2017]
“In breach of a London arbitration clause, charterers commenced substantive proceedings in a foreign jurisdiction in addition to arresting the vessel as security for their claim. The English Court had granted the owners (ex-parte) an anti-suit injunction, in accordance with normal principles. However, the Court later declined to grant further injunctive relief or order discontinuance of the foreign proceedings (including the 'tainted' arrest) in circumstances where charterers had in the meantime applied to the foreign court for a stay of the substantive proceedings. In other words, charterers had cured the historic breach by the time of the present hearing so no further injunctive relief was appropriate.”