Two Vessels under T/Cs, had been sold. with MOA deliveries on set dates after latest T/C redeliveries. On assumed facts that (i) T/C redelivery was respectively 2 and 4 days late and (ii) Owners never intended to trade the Vessels post T/Cs, a Tribunal had nonetheless held that Owners were entitled to damages for the overrun, based on (increased) market rates. The High Court overturned, substituting only nominal damages. The C.A. restored the Tribunal’s Award, ruling that the MoAs were “collateral” and did not affect the usual compensatory basis of damages. Alternatively, “user” damages (here based on Charterers’ continued use of the Vessels) would achieve the same result.

Read the full judgment here.

Claimant shipowners (Nefelia Shipping SA) issued English proceedings for general average contributions against Brazilian Defendant (Mosaic Fertilizantes do Brazil LTDA and Seguros Sura SA) and attempted service in Brazil via diplomatic channels. Severe administrative delays followed, forcing the Claimants to obtain two extensions of time for service. The Defendants challenged the second extension, but the Court held that the delays stemmed from the diplomatic process rather than any fault of the Claimants, and the extension was upheld.

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Time Chartereres, Bintan Mining Corporation, were held by the Tribunal to be responsible for the grounding of the Solomon Trader and liable to Owners for approximately USD $47m. Before the award could be satisfied, Time Charterers were wound up under the Insolvency Act. The Court of Appeal upheld the “pay to be paid” provision in Amlin’s Charterers’ Marine Policy, such that it did not respond to Owners’ claim.

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Nigeria succeeded in setting aside P&ID’s 2 fraudulently-obtained Arbitration Awards against it. In so doing it incurred legal costs said to be GBP44m. P&ID argued that the costs award against it should be made in naira, not sterling, as the latter would result in a windfall to Nigeria, the naira having depreciated substantially in the decade or so since the Arbitration Awards. Rejecting that contention (and upholding the Courts below) the SC ruled that costs should be awarded to Nigeria in sterling, quoting  the discretionary rather than compensatory nature of a costs award and the fact that Nigeria had paid its legal team in sterling.

Under an amended NYPE T/C for a China-Canada trip, the Vessel failed to follow the route recommended by Charterers’ weather routing company, choosing instead one which in the event was 320 miles longer, on the (later-advanced) grounds that it better avoided a forecast typhoon. The LMAA SCP Arbitrator found that the Master’s contemporaneous justification made no reference to navigational safety (and indeed took the Vessel nearer the typhoon) and the longer route taken was solely to facilitate a crew change. Owners were responsible for the additional time and consumption. The Tribunal however dismissed Charterers’ claim that despite there being no “good weather” days as defined in the c/p, the Vessel nevertheless underperformed if weather and current factors were applied to average speed attained.

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Songa, Owners under a bareboat c/p on the Barecon 2001 form, terminated early (legitimately) whilst the Vessel was at Stockton USA but required redelivery at Trogir, Croatia. Cl.29 specified repossession “at current or next port…or at a place convenient to [Owners]…[who]…shall arrange…to board as soon as reasonably practicable…[when]…Vessel shall be deemed to be repossessed”. Charterers complied but claimed damages. The Tribunal ruled that Trogir was “objectively convenient to Owners” and valid. Both the High Court and the C.A. disagreed, finding that if the Vessel is in port when termination occurs, the sentences of Cl.29 when read together mean that Owners must repossess at that port unless impracticable or impossible.

Read the full judgment here.