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Commercial Court Louise Glover Commercial Court Louise Glover

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.

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Admiralty Court Louise Glover Admiralty Court Louise Glover

River Countess BV & Ors v MSC Cruise Management (UK) Ltd [2021] EWHC 2652 – 4 October 2021 (Baker J)

After MSC Opera ran into River Countess in Venice, Demise Charterers (MSC) accepted responsibility, conceding that Italian law governed recoverability. However, they challenged both title to sue of River Countess’ Charterers and recoverability of their pure economic losses. Relying on Italian law experts, the Court held that Charterers had (in contrast to English law) title to sue in tort and that their net loss of revenue together with ex gratia refunds and payments to passengers were recoverable (subject to proof of causation, unavailability of a substitute vessel and reasonable mitigation of damage to brand/goodwill).

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High Court Louise Glover High Court Louise Glover

NWA & Anor v NVF & Ors [2021] EWHC 2666 – 8 October 2021 (The Honourable Calver J)

An arbitration agreement provided that the parties were to first seek settlement by mediation. The claimants simultaneously commenced arbitration and sought a stay pending mediation. The respondents failed to engage, later arguing that the claimants’ failure first to mediate deprived the tribunal of jurisdiction to determine the (now time-barred) claim. The Court, dismissing the respondents’ s.67 challenge to the tribunal’s jurisdiction award, found the arbitration was validly commenced, with the mediation requirement being merely a procedural condition..

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Arbitration George Arghyrakis Arbitration George Arghyrakis

London Arbitration 20/21

Owners disputed Charterers’ renomination of one of the two discharge ports qualifying for additional freight, arguing that the first nomination was final. Charterers contended that changes were reasonable and foreseeable as ports were declarable “10 DAYS PRIOR VSL PASSING SINGAPORE” and that Owners were not entitled to extra freight due to failure of consideration (as they failed to perform the contractually nominated voyage). The Tribunal found no provisions in the cp which (i) authorised renomination – thus the first nomination was held final – or (ii) obliged Owners to relinquish the extra freight in case of failure to perform the nominated voyage.

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High Court Louise Glover High Court Louise Glover

Euronav NV v Repsol Trading SA (mt MARIA) [2021] EWHC 2565 – 24 September 2021 (The Honourable Henshaw J)

Owners’ USD500,000 demurrage claim under a cp in Shellvoy 6 form was time barred pursuant to Clause 15(3) providing for notification “within [here 30] days after completion of discharge”. Discharge had completed late Christmas Eve local time (PST) in California, already Christmas Day in Europe (CET or GMT). Owners’ notice had been served within 30 days only of the latter, which Owners argued was the most closely connected time zone, being that of sender (Owners, Belgium), recipient (Charterers, Spain) or the law of the CP (England). The Court disagreed, finding that the relevant event was completion of discharge, the time of which is determined according to the discharge place time zone.

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Court of Appeal Louise Glover Court of Appeal Louise Glover

Lakatamia Shipping Company Ltd v Su [2021] EWCA Civ 1355 – 15 September 2021 (Arnold LJ, Carr LJ)

. The CA dismissed the appeal of a serial contemnor – with an unsatisfied judgment debt of more than USD70m – against a two-year custodial sentence. The appellant claimed that the judge had adopted a starting point in excess of the statutory maximum by commenting that his behaviour "merited longer than 24 months". The CA held that there was no absolute rule requiring credit for the Appellant’s admissions of contempt, and the judge was entitled to find them “meaningless” and “lip service” only. Further, the prohibition on the Appellant from leaving the jurisdiction did not amount to mitigation, but rather compliance with an earlier injunction.

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