
Case Summaries
JB Cocoa SDN BHD and others v Maersk Line AS trading as Safmarine [2023] EWHC 2203 – 5 September 2023 (Keyser KC)
Those interested in a cargo of cocoa beans claimed against the carrier in respect of damage. The Court found that the condensation damage was caused by post-discharge lack of container ventilation pending de-vanning. The contractual claim (by the B/L holder/ endorsee) failed as the B/L provided that carrier’s liability ended upon tendering the goods for delivery (here discharge) and incorporated the Hague Rules to the same effect. The negligence claim by the alleged goods owner failed as there was neither evidence as to cargo ownership at the material time, nor basis for carrier liability outside the terms of the B/L.
Jaldhi Mideast DMCC v Al Ghurair Resources LLC [2023]
Following an unpaid Judgment for damages for wrongful arrest of the vessel ‘Captain Silver’, the Claimants took enforcement steps, including an Asset Disclosure Order (ADO), which was disobeyed, resulting in a Contempt of Court ruling, a £100,000 fine on AGR (unpaid) and a 12-month Committal Order on its general manager, Mr AG. The latter applied to discharge the Committal Order on the grounds that whilst he was willing to comply with the ADO, he had no authority to do so because his co-signatories withheld consent. The Court declined: the Committal Order could not be discharged whilst the underlying Contempt remained and there were insufficient grounds to ‘purge’ the Contempt. Mr AG had failed to take adequate steps to obtain co-signatories’ support, and he could have at least partially complied with the ADO. Should he do so in future purging might be possible.
Smart Gain Shipping Co. Ltd v Langlois Enterprises Ltd [2023]
A T/C clause provided for underwater cleaning (necessitated by Charterers’ trading) to be done “at first workable opportunity and always at Charterers’ time and expense”. The Court on a s.69 appeal upheld the Tribunal’s ruling that post-redelivery cleaning time was reimbursable, and at the T/C rate (without Owners having to prove loss of time and damages suffered).
Rhine Shipping DMCC v Vitol SA [2023] EWHC 1265 – 26 May 2023 (Simon Birt KC)
Rhine as Disponent Owners voyage chartered a vessel to Vitol. Third parties arrested Rhine’s bunkers and property on board at the first load port. In the ensuing delay, claimed Vitol, the price payable by them for the second load port cargo increased, causing them loss of some USD3.7m, for which they sought damages. The Court found Rhine in breach of the CP warranty: “…Vessel, Owners….disponent owners are free of any encumbrances….that may affect performance…”; and that the “Third Party Arrest” clause: “…in the event of arrest…levied against the vessel….Owner shall indemnify Charterer for any damages…” was activated. In awarding Vitol the damages sought, the Court ruled that price fluctuation was within the contemplation of the parties and that in any event the rules of remoteness did not apply to the indemnity.
Fimbank Plc v KCH Shipping Co., Ltd [2023] EWCA Civ 569– 24 May 2023 (Males LJ, Popplewell LJ, Nugee LJ)
The CA upheld the first instance judgment that the claims against the carrier for misdelivery were time-barred by Art. III r.6 of the Hague Visby Rules as they were brought more than one year after cargo discharge. The CA found that both the language and purpose of the rule and the travaux préparatoires of the convention make it clear that it applies even when misdelivery occurs after completion of discharge. Nor did the CA accept that Congenbill clause 2(c) disapplied the rule: if the carrier remains liable after discharge, there would be no reason to exclude the time-bar defence.
Primafacio Ltd v Tres Canopia Ltd & Anor [2023] EWHC 430 – 2 March 2022 (Teare J)
The Claimant claimed an unpaid amount under a share purchase agreement, against the purchaser (D1, a Cypriot company) and guarantor (D2, a BVI company). The Defendants counterclaimed that they were entitled to set-off the equivalent amount. In ordering that the Defendants secure the Claimants’ costs of defending the counterclaim (by way of a first-Class London bank guarantee), the Court found there was reason to believe (and not just suspect) that D1 would be unable to pay those costs. Nor was it willing to accept that an undertaking by D2 to pay D1’s costs was sufficient: despite contentions that D2 and its subsidiaries had net assets over USD67m and cash over USD10m, the evidence was unconvincing and D2 was a BVI corporation, not obliged to file audited accounts.