
Case Summaries
M/V Pacific Pearl Co. Ltd v Osios David Shipping Inc. [2021] EWHC 2808 – 21 October 2021 (Sir Nigel Teare)
The Panamax Alexander (“PA”), bound for Iran, struck the Osios David (“OD”) and a Collision Jurisdiction Agreement on the ASG2 form (the ‘CJA’) was agreed, requiring security “reasonably satisfactory to the other”. OD refused PA’s Club LOU tendered, on the grounds that risk of non-payment under its sanction clause would “effectively render the LOU useless”. Alleging that the refusal was a breach of the CJA, PA sought as damages the cost of the alternative security provided. Although finding that, given the Iranian nexus, inclusion of the tendered clause was reasonable, the Court held that on a true construction, the CJA did not oblige OD to accept that security (it remaining the recipient’s choice to accept an LOU or arrest) and PA’s claim failed.
AI Giorgis Oil Trading Ltd v AG Shipping & Energy PTE Ltd RE: M.T. Marquessa [2021] EWHC 2319 – 17 August 2021 (The Honourable Henshaw J)
The Defendant Charterers consistently failed to pay or pay on time. The Claimant Owners, relying on the amended Shelltime 4 c/p, suspended performance, whilst claiming hire. When the 6th hire went unpaid, leaving some USD3.7m outstanding, Owners accepted Charterers’ conduct as a repudiation or renunciation, and elected to terminate the c/p and claim damages. The Court dismissed Charterers’ claim for wrongful termination, and held Owners were within their rights to suspend performance having regard purely to their own interests. Charterers’ consistent failure to pay on time had deprived Owners of “substantially the whole benefit” of the c/p and provided Owners with reasonable grounds for believing they would not receive them in the future. Charterers were held to be in both repudiatory and renunciatory breach, and summary judgment was granted.
SPACE SHIPPING LTD v ST SHIPPING AND TRANSPORT PTE LTD [2021] EWHC 2288 (Comm) (Sir Nigel Teare sitting as a judge of the High Court)
The Claimants (disponent owners) let the Vessel on 8 months t/c to the Defendants, who ordered her to Venezuela to load a cargo not authorised for export. Following a resulting detention of almost 3 years, the Vessel was redelivered by the Claimants to head owners, who having declared a CTL, sold her for scrap. Some USD24m. for loss of earnings and other items (based on the t/c express indemnity and/or breach of the non-exposure to seizure clause) was awarded to the Claimants in a series of arbitration awards, the last of which deducted USD1.4m. for their saved dry-docking costs. The Court dismissed the Claimants’ challenge to this ‘saving’, confirming (i) no co-extensive dry-docking liability to head owners (ii) sufficient connection between t/c breach and saving and (iii) no reason why set-off could not be made against an express indemnity claim.
Falcon Trident Shipping Ltd v Levant Shipping Ltd [2021] EWHC 2204 (Comm) – 4 August 2021 (Clare Ambrose sitting as a Deputy Judge of the High Court)
London jurisdiction having been agreed by the two owners following a collision in India, liability was admitted and quantum settled by an accepted pre-action ‘Part 36’ offer, appending a more detailed Settlement Agreement. In addition to its London lawyers’ and Club costs (comprised in the ‘Part 36’), the Claimant (in costs proceedings) sought additional fees of Indian agents, lawyers and P&I Correspondents and those of its H&M insurers’ Italian lawyers. The Court found that whilst these items might have been open for recovery under the ‘Part 36’ terms, they were in fact covered by the more detailed Settlement Agreement, which superseded the ‘Part 36’ terms.
Lakatamia Shipping Co Ltd. v Nobu Su & Others [2021] EWHC 1907 – 7 July 2021 (The Honourable Bryan J)
Two Monegasque villas and a private jet were sold in breach of a worldwide Freezing Order against Mr Su’s assets. The Claimant thus brought claims for unlawful means conspiracy and violation of rights in the judgment debt (‘Marex tort’) against the Defendant recipients of the sales proceeds, including Mr. Su’s mother and entities in her control. The Court found her to be untruthful, “up to her neck” in conspiracy, and that the Defendants had combined to evade the Order, rendering enforcement more difficult, thus constituting an unlawful means conspiracy. The ‘Marex tort’ was also satisfied as, knowing of the judgment against Mr Su and the Claimant’s rights, the Defendants had procured, induced and/or facilitated transfer of the sales proceeds.
Eastern Pacific Chartering Inc v Pola Maritime Ltd [2021] EWHC 1707 – 28 June 2021 (Patricia Robertson QC)
The Claimant Owners brought High Court proceedings against the Defendant Charterers, pursuant to the C/P exclusive jurisdiction clause, for unpaid hire. The Claimants had earlier arrested the POLA DEVORA, at Gibraltar, as security for their claim, in the mistaken belief that she was owned, rather than chartered by, the Defendants, who now sought to counterclaim tortious damages for wrongful arrest. The Court held that as the arrest was in reliance on the Claimants’ C/P rights, it fell within “any dispute arising out of or in connection with” the C/P conferring jurisdiction on the High Court, and allowing it to dismiss the Claimants’ challenge.