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London Arbitration Louise Glover London Arbitration Louise Glover

London Arbitration 16/22

Further to an electrical breakdown, Time-Charterers first placed the Vessel off-hire, and then terminated the Charterparty (with cargo on board), relying on the C/P cancellation clause and a repudiatory breach. Whilst the breakdown inferred breach of delivery condition, the Tribunal held it was not repudiatory; nor had Charterers complied with cancellation clause notice requirements. Until the Vessel proceeded to the discharge port and delivered the cargo, she was not at Owners’ disposal and not redelivered; the C/P remained live but the vessel was, however, off-hire from the moment she could not follow Charterers’ orders until commencement of discharge.

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Arbitration Louise Glover Arbitration Louise Glover

London Arbitration 15/22

Multiple cargo Claimants, claiming cargo damage and short delivery under 14 B/Ls, alleged the cargo had been sold prior discharge to two of their number, who, as B/L holders had obtained title to sue pursuant to s.2(2)(a) of COGSA 1992. Shipowners put the Claimants to strict proof, from the outset, to evidence all endorsements and B/Ls movements, and that the cargo had not been sold onwards. The Tribunal placed little weight on witness evidence from the alleged cargo seller, nor on letters from the two Claimants confirming receipt of B/Ls and no onwards sale (produced some 4 years later). Contemporaneous material from the Claimants themselves was crucial – and absent. The Claimants had not established title to sue and their claim was dismissed.

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London Arbitration Louise Glover London Arbitration Louise Glover

London Arbitration 15/22

Multiple cargo Claimants, claiming cargo damage and short delivery under 14 B/Ls, alleged the cargo had been sold prior discharge to two of their number, who, as B/L holders had obtained title to sue pursuant to s.2(2)(a) of COGSA 1992. Shipowners put the Claimants to strict proof, from the outset, to evidence all endorsements and B/Ls movements, and that the cargo had not been sold onwards. The Tribunal placed little weight on witness evidence from the alleged cargo seller, nor on letters from the two Claimants confirming receipt of B/Ls and no onwards sale (produced some 4 years later). Contemporaneous material from the Claimants themselves was crucial – and absent. The Claimants had not established title to sue and their claim was dismissed.

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Court of Appeal Louise Glover Court of Appeal Louise Glover

Unicredit Bank AG v Euronav NV [2022] EWHC 957 – 28 April 2022 (Moulder J)

Charterers (BP), holding B/Ls at the time, novated the charterparty to cargo buyers who thereafter took delivery without production of B/Ls. BP subsequently indorsed the B/Ls in favour of the Claimant cargo financiers who claimed against Owners for misdelivery. In siding with Owners, the Court held the B/Ls did not contain the contract of carriage post-novation nor was this the parties’ intention. The Claimant’s financing scheme would in any event have permitted delivery without B/Ls, and the Claimant’s loss was found not to have been caused by the delivery without B/Ls.

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Arbitration Louise Glover Arbitration Louise Glover

London Arbitration 14/22

After ordering the Vessel to wait off port limits, Charterers required discharge at a 1st then 2nd berth, only permitted by the (1SP/ 1SB) Voyage C/P by “special agreement”. Owners insisted that Charterers first paid outstanding AWRP and fuel costs for a trip to replenish, both occasioned by the waiting. Charterers, having initially agreed, failed to pay. The Tribunal dismissed Charterers’ duress claim – Owners simply drove a hard bargain; nor was the agreement outside the C/P jurisdiction clause – it was concluded pursuant to a C/P term. Owners were entitled to both amounts.

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High Court Antonino Cordopatri High Court Antonino Cordopatri

Aquavita International SA v Indagro SA [2022] EWHC 892 – 12 April 2022 (Foxton J)

The defendant cargo buyers sought a ‘preliminary injunction’ from the Brazilian Court requiring discharge of cargo, despite B/Ls being withheld for non-payment. In England, Owners claimed an anti-suit injunction (‘ASI’) in support of the B/Ls’ London Arbitration clause. Although seeking interim performance elsewhere would not necessarily constitute a breach, Owners met the ‘high probability’ threshold in showing that the order in Brazil would, in practical terms, be final, outflanking the Arbitration Clause. Similar relief could have been sought in the chosen forum and the ASI was granted.

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