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Commercial Court George Arghyrakis Commercial Court George Arghyrakis

H1 & Anor v W & Ors [2024] EWHC 382 – 22 February 2024 (Calver J)

In the context of an arbitration relating a claim under a film-production policy, the insurer applied to Court for the removal of the sole arbitrator on the ground of apparent bias due to his knowledge of and attitude towards the insured's factual and expert witnesses and some remarks that he did not intend hear the insured’s expert witnesses because he knew them “all personally extremely well” as "exceptional people in their fields". The judge found no actual or apparent bias based purely on his past industry relationship with the witnesses. Nevertheless, the arbitrator was removed because the suggestion that it was unnecessary to cross-examine the insured’s expert witnesses was plainly not an expression of a balanced and impartial view as it gave rise to an apprehension that he had pre-determined favourable views, thereby pre-judging the merits of the dispute.

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Commercial Court Louise Glover Commercial Court Louise Glover

Southeaster Maritime Ltd v Trafigura Maritime Logistics Pte Ltd MV "Aquafreedom" [2024] EWHC 255 – 8 February 2024 (Jacobs J)

The parties conducted negotiations for a 4 year T/C, culminating in a Recap, containing ‘subs’ and references to further terms to be agreed; further terms were advanced by Trafigura, commented on by Owners (“Owners’ last”) and countered by Trafigura. Following Owners’ silence and Trafigura’s chasers, the latter purported to accept “Owners’ last” and advised that they lifted all ‘subs’ and were fully fixed. Granting summary judgment to Owners, the Court held: the ‘subs’ and further terms TBA precluded the Recap being a concluded contract; “Owners’ last” was not capable of acceptance (and had been rejected) and Trafigura’s subsequent conduct was of no contractual effect. There was no concluded C/P.

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Commercial Court George Arghyrakis Commercial Court George Arghyrakis

London Arbitration 1/24

A voyage C/P provided for discharge at 1 / 2 safe ports China, to be nominated within a certain time. Freight varied according to ports and number and was deemed earned on shipment. Charterers timeously nominated 2 ports, the 2nd attracting additional freight. Later, they nominated a different, sole port. Owners complied, under protest and on terms that the additional freight be placed in escrow. Charterers challenged the additional freight, given their replacement nomination. The Tribunal held that the first nominations were treated as if written into the C/P from the outset. Charterers’ arguments that variation, waiver or estoppel applied were all defeated by Owners’ protest and reservation recorded in the escrow. Nor could it be said that Owners were unjustly enriched by not performing the additional freight voyage, as freight had been earned on shipment.

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Commercial Court Louise Glover Commercial Court Louise Glover

Premier Oil UK Ltd v Shell International Trading and Shipping Company Ltd [2023] EWHC 3269 – 20 December 2023 (Nigel Cooper KC)

Two crude oil sale contracts provided for pricing to be calculated by reference to particular Platts indices, and in the event of material change to Platts methodology, for a referee to determine a new source. Platts changed their methodology, the parties agreed on a referee, but not his terms of reference. Shell raised a number of issues as to the nature and extent of his task, arguably limiting it. Premier sought declaratory relief from the Court, arguing that the referee’s task was clear from the contracts and he should be allowed to get on with it. Premier succeeded, the Court ruling that it was inappropriate to decide the scope of the referee’s task before his determination, as there were no strong grounds pointing to a likelihood of the expert going wrong.

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Commercial Court Panagiotis Galanos Commercial Court Panagiotis Galanos

AMS Ameropa Marketing Sales AG & Anor v Ocean Unity Navigation Inc [2023] EWHC 3264 – 19 December 2023 (Ms Clare Ambrose)

The Claimants sold 50,000mt soybeans on CIF terms, carried pursuant to a B/L on the Defendants’ Vessel. The receivers rejected a quantity (comprising sound and allegedly damaged cargo) and later effected a salvage sale of the damaged cargo. The Claimants sought damages being the difference between the CIF price of the rejected quantity and that achieved on the salvage sale, plus inspection, survey, and cargo handling expenses. The Defendants admitted liability but contended that a much lesser quantity than alleged was affected, and that the Claimants failed properly to segregate and to obtain sufficient bids on the salvage sale. The Court, whilst accepting the Defendants’ evidence on damage extent, rejected the arguments on mitigation, emphasising the high evidential burden of showing unreasonable conduct by a claimant. It also allowed the CIF price as the comparator but disallowed the additional expenses.

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Commercial Court Louise Glover Commercial Court Louise Glover

Mercuria Energy Trading PTE v Raphael Cotoner Investments Ltd (m/t Afra Oak) [2023] EWHC 2978 – 23 November 2023 (Tearing J)

Charterers under an Exxonvoy ordered the Vessel to wait at Singapore EOPL. The Master anchored in Indonesian waters, where the Vessel was arrested by the Navy along with the Master and detained for 8 months. The Tribunal rejected both Owners’ and Charterers’ claims, based respectively on ‘safety’ and breach of Exxonvoy Cl.2 (‘Compliance’). Charterers appealed the latter but in view of the Tribunal’s finding that error in navigation caused the Master to anchor where he did, the Court upheld their ruling that Owners were entitled to rely on Art. IV rule 2(a) of the Hague Rules.  Even if such defence was an ‘anachronism’ (as Charterers argued) the parties had nonetheless agreed to its application by US COGSA.

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