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Admiralty Court George Arghyrakis Admiralty Court George Arghyrakis

Arnold v Halcyon Yachts Ltd [2022] EWHC 2858 – 18 November 2022 (Registrar Davison)

A, owner of a transatlantic yacht contracted with H, a yacht transportation company, for her delivery to Delaware, USA. The yacht set sail in mid-November, her route being via Spain, Azores, Bermuda (the “northern route”). Severe weather and an accumulation of boat defects convinced the crew to put back to the Azores for repairs. Ultimately another contractor completed the transit the following year. A relied on a repudiatory breach by H and claimed its extra delivery charges, repair costs and marina fees citing A’s choice of the wrong route, failure to assess weather conditions, and damaging the yacht. The Court found that H’s planning and execution of the voyage was carried out with the necessary skill and care; the damage was attributable to multiple manufacturing defects. There was no breach and H was awarded its counterclaim for unpaid sums under the contract.

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Admiralty Court Louise Glover Admiralty Court Louise Glover

MV Pacific Pearl Co Ltd v Quick Ship Holdings SA [2022] EWHC 2828 – 11 November 2022 (Baker J)

Panamax Alexander (“PA”) was moored in a narrow part of the Suez Canal awaiting repairs/towage following a collision the previous day. NYK Falcon (“F”) and NYK Orpheus (“O”) passed by PA as part of a convoy. After F cleared PA the latter’s stern ropes parted and she swung into the channel. O collided with her. In consolidated proceedings the Court found F “clumsy” in the passing manoeuvre but greater blame lay with PA’s poor mooring and reaction and O’s excessive speed. PA and O were more than doubly to blame. Pa and O were ordered to pay 5/12 of the other damages and F 1/6 of PA’s.

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Admiralty Court Louise Glover Admiralty Court Louise Glover

MSC Mediterranean Shipping Company SA v Stolt Tank Containers BV & Ors [2022] EWHC 2476 – 2 November 2022 (Baker J)

The MSC Flaminia suffered a cargo fire and explosion (originating in laden containers) causing, sadly, loss of life and personal injury and giving rise to numerous claims including for cargo damage. Time Charterers (MSC) sought to limit their liability viz a viz Owners for damage to the Vessel, pursuant to Art.2.1 of the Amended 1976 Convention on Limitation of Liability: “Claims in respect of … loss or damage to property…occurring on board….and consequential loss”. MSC argued that Vessel damage was “consequential loss” flowing from cargo damage thus entitling them to limit under Art. 2.1. The Court disagreed: Owners’ claim was for Vessel damage, not cargo damage. MSC were solely time charterers, not cargo owners. Owners’ claim was not, therefore, limitable.

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High Court Louise Glover High Court Louise Glover

Fimbank Plc v KCH Shipping Co., Ltd [2022] EWHC 2400 – 28 September 2022 (Sir William Blair)

The Tribunal held the claims against the carrier for misdelivery after cargo discharge were time-barred by Art. III r.6 of the Hague Visby Rules. The Claimant (financiers and B/L holders) argued the Rules only applied to the sea voyage, not misdelivery from storage, and that the time-bar immunity ended when the cargo was discharged. The High court dismissed the appeal (s.69) and upheld the Tribunal’s award. Most deliveries take place after discharge, and outside of carrier’s control, and it would be odd if the critical distinction for time bar purposes depended on the timing of delivery. Such an interpretation was consistent with the objective of finality and to allow a carrier to “close his books”.

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High Court Louise Glover High Court Louise Glover

Ceto Shipping Corporation v Savory Shipping Inc [2022] EWHC 2636 – 21 October 2022 (Baker J)

The demise charter contained a purchase obligation by Charterers at expiry. Title would pass automatically provided “Charterers have paid all hire… and… all management fees... due”. Charterers subsequently faced claims for management fees and crew wages, and a Singapore Court ordered the Vessel’s sale. Charterers, who disputed these claims, argued that disputed debts were not “due” and that Vessel title had passed to them. The Court disagreed; reasonable business persons would consider an amount due despite being disputed. There was nothing unfair to Charterers about a bona fide dispute depriving Charterers of the passing of title when they had failed to satisfy the conditions set out in the c/p.

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Arbitration Louise Glover Arbitration Louise Glover

London Arbitration 31/22

Charterers instructed Owners to not “allow sampling and discharge” as receivers had not paid. Owners claimed damages for the detention and relied on a provision in the Recap allowing time lost to be reimbursed as damages. Charterers disagreed and argued demurrage was only remedy for failing to complete discharge within time. The Tribunal agreed; the Recap also contained an express term stating “CARGO ANALYSES…IMPORT AND/OR EXPORT FORMALITIES” to count as laytime. This included “cargo sampling” and Charterers’ delayed authorisation. Owners claim for damages failed, but they were entitled to demurrage with laytime running as stipulated in the Recap.

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