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Commercial Court Louise Glover Commercial Court Louise Glover

Star Axe I LLC v Royal and Sun Alliance Luxembourg SA - Belgian Branch & Ors [2023] EWHC 2784 – 10 November 2023 (Butcher J)

The Claimant carrier issued 7 ‘Congenbill 1994’ B/Ls in 2021. GA was declared on the voyage and the Defendant cargo insurers issued Average Guarantees. The carrier sought a declaratory judgment that the B/Ls provision that GA “….shall be adjusted….according to the York-Antwerp Rules 1994 or any subsequent modification thereof…” applied the 1994 YAR to the exclusion of the 2004 and 2016 versions, as these were each more than “modification”. The Court ruled that both were properly considered “modifications” and that here the 2016 YAR applied.

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London Arbitration Lucy Arghyrakis London Arbitration Lucy Arghyrakis

London Arbitration 15/23

Arbitrators rejected Time Charterers’ Weather Routing Company (WRC) performance analysis as it departed from the C/P parameters including as to swell and significant wave height (attributing 2m to DSS3) and failed to recognise routine navigational alterations, casting doubt on reliability generally. However, they found Owners in breach due to Vessel’s hull and propeller fouling, affecting performance and entitling Charterers to deduct for damages (albeit in a lesser amount than pursuant to their WRC analysis).

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Commercial Court George Arghyrakis Commercial Court George Arghyrakis

Hulley Enterprises Ltd & Ors v The Russian Federation [2023] EWHC 2704 – 1 November 2023 (Cockerill J)

The claimant former shareholders of Yukos obtained – and sought to enforce – Arbitration Awards determining that the Tribunal had jurisdiction and that RF was in breach and liable to pay them some USD50bn in damages. RF challenged both the Tribunal’s jurisdiction and the English Court’s jurisdiction to enforce on the basis of state immunity. In fact, RF alleged that the claimants could not invoke the provision containing RF’s agreement to arbitration as they did not fit in the definition of "investors" as required. The same challenges were brought before Dutch Courts but they were rejected. The Commercial Court held that the Dutch judgments created issue-estoppel precluding RF from re-opening jurisdiction: RF’s challenges already had a determination and it could not seek another one before a different court.

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Commercial Court Panagiotis Galanos Commercial Court Panagiotis Galanos

The Federal Republic of Nigeria v Process & Industrial Developments Ltd [2023] EWHC 2638 – 23 October 2023 (Knowles J CBE)

Disputes arose under a substantial gas supply contract between the claimant State and the defendant BVI corporation. Following ICC arbitration in London, the defendant was awarded USD6.6bn in damages. Nigeria’s appeal under s.68(2)(g) of the Arbitration Act (serious irregularity – award obtained by fraud or in a manner contrary to public policy) succeeded.  The Court found that the defendant had provided false evidence to the Tribunal, bribed a Nigerian official to conceal significant facts and had improperly obtained Nigeria’s privileged documents. But for this conduct the Tribunal would have reached a different conclusion.

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London Arbitration George Arghyrakis London Arbitration George Arghyrakis

London Arbitration 14/23

Under a T/C, delays in berthing followed the Vessel’s grounding at her Mississippi River anchorage. With no berthing prospects in sight, and fearing another grounding, (but against advice of the local Pilots association), the Master shifted the Vessel to a 2nd anchorage where, as warned against, the Vessel swung 360◦ requiring her anchors to be disentangled with tug and pilot assistance. The Tribunal found (i) that although the first anchorage was safe for the Vessel, Charterers were nonetheless in breach of their ‘always afloat’ warranty and (ii) the Master’s choice was not unreasonable but the 2nd anchorage was unsafe, placing Charterers in breach of their warranty. Owners’ claims for the costs of re-floating, shifting, re-anchoring and disentangling the anchors succeeded, as did their claim for withheld hire during the delayed berthing (even that part of the delay caused by the Master’s late action to disentangle anchors).

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Commercial Court Louise Glover Commercial Court Louise Glover

JOL & Anor v JPM [2023] EWHC 2486 – 9 October 2023 (Foxton J)

Disputes arose under 2 bareboat charters over Owners’ Termination Notices (following shareholding changes in sub-charterers). After starting arbitration, Owners sought injunctive relief from the Court under s.44(3) of the Arbitration Act (orders to preserve evidence or assets in urgent cases) requiring the immediate redelivery of the Vessels, as during the proceedings the Vessels would be exposed to risks and loss of Owners’ opportunity. The Court declined the injunction because Owners failed to prove urgency and further, the injunction, in bringing about redelivery, would thwart the arbitrators’ role in deciding validity of the Notices.

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