London Arbitration 4/23

Under an ongoing T/C trip Owners claimed and commenced arbitration for a USD3m balance of hire. Some 3 weeks later, the parties entered a T/C addendum resolving the disputes to date upon payment of USD1m by Charterers. Owners contended that the addendum was unenforceable for want of consideration. Charterers responded that the settlement of accrued disputes, including the relinquishment of their own claims, was the consideration. The Tribunal found that the addendum was valid and enforceable. Nevertheless, as Charterers failed to pay some US$200k subsequently accruing in respect of delay in berthing (as per invoice dated 4 weeks post addendum), the Tribunal agreed with Owners that such failure amounted to repudiatory breach of the addendum, which therefore fell away, leaving Owners’ rights those provided in the T/C, so their original claim succeed.