Mercuria bought a cargo of high-sulphur straight-run fuel oil from Onex on CIF terms, incorporating the BP General Terms. After discharge, part of the cargo was found to contain elevated organic chlorides. Mercuria claimed breach, arguing that the contractual term “typicals” created a quality warranty and that the cargo no longer met the contractual description. The Court rejected those arguments, holding that “typicals” were descriptive only and not contractual guarantees, and that organic chlorides were not part of the agreed specifications. The cargo retained its commercial identity. The buyer’s claim was dismissed.

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Trafigura PTE Ltd & another sued Prateek Gupta and others in the Commercial Court, alleging a multi-hundred-million-dollar fraud in nickel trading, where high-grade LME-grade nickel was purportedly sold but worthless material delivered instead. After a month-long trial, the Court found in favour of Trafigura, holding Gupta and the corporate defendants liable for the fraud and rejecting their defences. The judgment recognised that Trafigura was induced into contracts by false and fraudulent representations and awarded a decisive victory for the commodities trader. Trafigura succeeded and the defendants were found liable for fraudulent misrepresentation.

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The charterers claimed overpaid hire under a time charter, alleging underperformance, while the owners denied liability and counterclaimed. The tribunal determined preliminary issues concerning weather evidence and performance warranties. It held that weather should be assessed by deck logs unless the charterers proved a consistent discrepancy, and that the burden of proof lay on them. Of two competing definitions, the tribunal found that the narrower “good weather” definition applied. The performance warranty was not continuing but applied only at the date of the charter. Positive currents were not to be discounted.

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Moeve sold gasoline and gasoil to Mael on FOB Algeciras terms, with payment due 60 days after shipment under confirmed letters of credit (LCs). The cargo was shipped and discharged, but the issuing bank refused payment. Moeve sued for the price under S.49 Sale of Goods Act 1979. The Buyer argued that arranging the LCs discharged its payment obligation and raised a counterclaim for demurrage and delay. The Court rejected those arguments, holding that title had passed, the Buyer had received the cargo, the LCs were not payment, and the counterclaim was time-barred and excluded. The Seller obtained summary judgment, and the Court refused the Buyer’s application for a stay of execution.

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Oceanus provided finance secured by a mortgage over a vessel Vyssos and took mortgagee’s interest insurance (MII). The vessel, trading into Ukrainian waters based on a forged additional war risks cover, struck a mine and was a constructive total loss. Owners’ WRI declined cover for breach of trading warranties. The Court held that the proximate cause of Oceanus’ loss was a mine strike and that the MII Policy responded: the breach of the trading warranties was an insured peril, Oceanus was not privy to it because its conditional consent was induced by fraud, and the loss was fortuitous, so indemnity was payable.

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London arbitrators issued an Award in a dispute between V-Ships and Luna (managers of “M.T. “Priority”)  under a ship management agreement. The Award and a subsequent Injunction, restrained Luna from commencing or continuing any other civil claims arising out of the agreement; nonetheless, Luna and Lambros Stravelakis (adjudged by the Court to be “the directing mind and will of Luna”) persisted in proceedings in Greece. With judgment in the latter imminent, the Court granted V-Ships’ application for a Contempt of Court order against Mr Stravelakis, indicating a real possibility of a custodial sentence being imposed.

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