
Case Summaries
Maranello Rosso Ltd v Lohomij BV & Ors [2022] EWCA Civ 1667 – 21 December 2022 (Asplin LJ, Arnold LJ, Phillips LJ)
Following a dispute, the Seller of a premium car collection reached agreement with the selling auction house in respect of "all and any claims". The Seller later sued its financing company and the auction house for conspiracy to injure its interests by unlawful means (selling the cars at an undervalue). The CA confirmed the ruling of the Court below that the settlement agreement released the parties and compromised even claims for fraud and dishonesty, despite these neither featuring in the original dispute nor being expressly mentioned in the settlement agreement.
London Arbitration 33/22
Owners succeeded in avoiding an agreement settling a repair Yard’s invoice (albeit in ‘full and final’ terms, acknowledging satisfaction with work and that no claims could ensue) on the grounds of economic duress. The Tribunal found both the Yard’s insistence on a non-contractual waiver and the threat of exercising a non-contractual lien (thereby preventing the ship’s sailing), to be unlawful and amounting to illegitimate pressure. It was open to Owners to pursue their claims for delayed completion and disputed amounts (which largely succeeded) and loss of profit (which failed, the daily delay penalty sufficing).
Havila Kystruten AS & Ors v STLC Europe Twenty-Three Leasing Ltd & Anor [2022] EWHC 3166 – 08 December 2022 (Stephen Houseman KC)
Norwegian Havila group commissioned the building of 4 vessels financed by sale and lease-back arrangements with the Defendants, who were Irish-registered, indirect subsidiaries of a Russian state-owned entity. The Defendants relied on consequences flowing from the imposition of EU Sanctions as constituting contractual Termination Events, requiring “immediate” payment by Havila of Termination Sums; in the absence of such payment, the Defendants invoked contractual Enforcement Events, allowing foreclosure. The Court ruled that there were Termination (not Enforcement) Events and that payment of Termination Sums to the Defendants’ nominated, but frozen, account would constitute good discharge of Havila’s obligations.
London Arbitration 32/22
Time Charterers under an amended NYPE deducted for underperformance, relying on their weather routing company’s (WRC) report. One C/P clause contained performance criteria and good weather benchmarks, another the sources of weather data, namely Vessel log and WRC. The Tribunal found the WRC had not adhered to the benchmarks when assessing a period of some 48 hours as good weather because (i) the WRC’s ‘current factor’ netted adverse and favourable currents – and the latter should not be taken into account; and (ii) the WRC’s combined significant wave height data made it impossible to assess swell direction. Even though the Tribunal found that the log exaggerated sea and swell, and the WRC report was reliably sourced, the latter was not in compliance with the C/P and was therefore not valid as a resolution of the underperformance claim, causing Charterers’ claim to fail.
Arnold v Halcyon Yachts Ltd [2022] EWHC 2858 – 18 November 2022 (Registrar Davison)
A, owner of a transatlantic yacht contracted with H, a yacht transportation company, for her delivery to Delaware, USA. The yacht set sail in mid-November, her route being via Spain, Azores, Bermuda (the “northern route”). Severe weather and an accumulation of boat defects convinced the crew to put back to the Azores for repairs. Ultimately another contractor completed the transit the following year. A relied on a repudiatory breach by H and claimed its extra delivery charges, repair costs and marina fees citing A’s choice of the wrong route, failure to assess weather conditions, and damaging the yacht. The Court found that H’s planning and execution of the voyage was carried out with the necessary skill and care; the damage was attributable to multiple manufacturing defects. There was no breach and H was awarded its counterclaim for unpaid sums under the contract.
MV Pacific Pearl Co Ltd v Quick Ship Holdings SA [2022] EWHC 2828 – 11 November 2022 (Baker J)
Panamax Alexander (“PA”) was moored in a narrow part of the Suez Canal awaiting repairs/towage following a collision the previous day. NYK Falcon (“F”) and NYK Orpheus (“O”) passed by PA as part of a convoy. After F cleared PA the latter’s stern ropes parted and she swung into the channel. O collided with her. In consolidated proceedings the Court found F “clumsy” in the passing manoeuvre but greater blame lay with PA’s poor mooring and reaction and O’s excessive speed. PA and O were more than doubly to blame. Pa and O were ordered to pay 5/12 of the other damages and F 1/6 of PA’s.