Dainford Navigation Inc. v PDVSA Petroleo SA "Moscow Stars" [2017]

Dainford Navigation Inc. v PDVSA Petroleo SA "Moscow Stars" [2017] EWHC 2150 (Comm) — 02 August 2017 (Males J)

“Time Charterers, the Venezuelan state-owned PDVSA, ordered the vessel to load their crude oil cargo in Venezuela for delivery in the Bahamas (although subsequently vessel and cargo diverted to Curacao). As a consequence of Charterers' failures to pay hire in full, Owners notified the exercise of their charterparty lien over the cargo, commenced London arbitration and sought an order from the High Court for sale of the cargo pursuant to s.44 (2) (d) of the Arbitration Act. In granting the order, the Court found that there was the necessary nexus between cargo and proceedings (namely the exercise of a contractual lien over the defendants' cargo in order to secure the claim in arbitration). The Court made no finding as to what the position would be had the cargo been owned by a third party. It is also significant that the order was to take effect in a Dutch overseas territory, giving Owners access to EU judgment enforcement.”

Antonino Cordopatri
E. G. Arghyrakis & Co.
30th August 2017