Case Summaries
London Arbitration 22/18
“A time charter performance warranty was based on "good weather condition" (Beaufort 4 etc.) but without specifying the period it must subsist in order to qualify. The Tribunal rejected an argument that at least 12 hours of good or bad weather in any noon to noon period should characterise weather. Although performance was ultimately decided on other grounds, the Tribunal suggested that a better method was to look at weather conditions at the beginning and end each 6-hour period within any noon to noon 24 hours in order to characterise a weather day.”
Cargill International Trading Pte Ltd v Uttam Galva Steels Ltd [2018]
“Pursuant to contracts, Cargill made advance payments (USD61m) to Uttam for the purchase of steel, obliging Uttam either to provide steel to that value or refund the advance. Uttam did neither and Cargill sought and obtained summary judgment. The Court declined to hold that Cargill's contractually separate failure to take up Uttam's other offers of steel constituted a defence (based on the 'prevention principle') with a reasonable prospect of success.”
Suez Fortune Investments Ltd & Anor v Talbot Underwriting Ltd & Ors [2018]
“In connection with a contested constructive total loss claim under a war risks policy on the vessel "Brillante Virtuoso", the defendant underwriters — who allege that the vessel was "scuttled" by her Owner — applied for an order to reveal the hitherto protected identity of a key witness in the action. Despite the order being opposed by City of London Police, the Court granted the application because the true identity was already known to those who could pose a threat to the witness, therefore the anonymity was not necessary to avoid harm to him or his relatives.”
CSSA Chartering and Shipping Services SA v Mitsui OSK Lines Ltd ("The Pacific Voyager") [2018]
“Under a voyage charter on an amended Shellvoy 5 form, charterers exercised their right to cancel but also claimed damages following from a breach of the obligation to commence the approach voyage in time. Although the c/p contained neither ETA nor expected readiness to load provision, the CA, confirming the Court below, found that the c/p references to the previous fixture itinerary equally imposed upon owners an obligation to begin the approach voyage "forthwith" or "within a reasonable time".”
Boru Hatlari AS & Ors v Tepe Insaat Sanayii AS (Jersey) [2018]
“Tepe obtained arbitration awards against (Turkish-State owned) Bota§ for amounts over USD100m in respect of work on the Baku-Tbilisi-Ceyhan oil pipeline. By way of enforcement, Tepe obtained interim orders from the Jersey Courts over shares held by Bota§ in two Jersey subsidiaries. The Privy Council heard Bota§' appeal on the grounds of State Immunity and concluded that the shares were neither "property" of the Turkish State nor sufficiently controlled by the State as to qualify for immunity under the relevant statutes.”
Clearlake Shipping PTE Limited (Appellant) v Privocean Shipping Limited (Respondent) [2018]
“For the carriage of soya beans pursuant to an NYPE T/C, the Master insisted on a stowage plan involving strapping cargo in a slack hold. The issue was the cost and time of that operation, amounting to some USD410,000. Arbitrators found that the Master's requirement was unfounded, unnecessary and a breach of CI.8 but ruled that Art.IV r.2(a) of incorporated US COGSA excused Owners. The Court dismissed Charterers' appeal against that ruling, agreeing with the Tribunal that what motivated the Master was stability of the Vessel, thus his insistence was management of the Vessel and not the cargo.”