Shipping E-Brief May 2020
The Shipping E-Brief is a publication providing you with key information on legal decisions and developments in shipping and related business areas.
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Featured news & insights
News / Supreme Court has no jurisdiction over hull underwriters’ claims against mortgagee bank in vessel scuttling case
03-04-2020 / Maritime
Aspen Underwriting Ltd and others (Appellants) v. Credit Europe Bank NV (Atlantik Confidence)  UKSC 11 In a decision that will be significant for marine and other insurers, the Supreme Court has found that the English courts did not have jurisdiction over claims brought by the hull underwriters of the vessel, Atlantik Confidence, as against the Dutch bank that was the mortgagee of the vessel and also the assignee of the insurance policy and the loss payee. The Supreme Court held that the bank was not bound by the exclusive English jurisdiction clauses in the policy or the settlement agreement with the vessel owners and managers. Nor could the underwriters rely on the special insurance provisions in the recast Brussels Regulation to establish English Court jurisdiction over their claims. The underwriters are now faced with the prospect of pursuing their claims against the bank in the Netherlands.
Insights / Failure to produce bills of lading in support of demurrage claim bars entire claim
07-04-2020 / Maritime
Tricon Energy Ltd v. MTM Trading LLC (MTM Hong Kong)  EWHC 700 (Comm) The Commercial Court has held that where a charterparty requires demurrage to be calculated by reference to bill of lading quantities, and incorporates a demurrage time bar which requires provision of all supporting documents, a claim for demurrage will be time-barred if the shipowner fails to provide copies of the bills of lading within the required time.
News / We demand that you see to this guarantee right away
08-04-2020 / Maritime
Shanghai Shipyard Co Ltd v. Reignwood International Investment (Group) Company Limited  EWHC 803 (Comm) The Commercial Court has recently given an important decision that highlights how the different types of guarantee provided under shipbuilding contracts can have important consequences as to how quickly a demand has to be paid.
News / Hong Kong Court affirms rule that arbitration clauses must be expressly incorporated into bills of lading
07-04-2020 / Maritime
OCBC Wing Hang Bank Ltd v. Kai Sen Shipping Co Ltd (Yue You 903)  HKCFI 375 This recent Hong Kong case confirms the rule that express wording must be used in order to incorporate an arbitration clause from a charterparty into a bill of lading. General words of incorporation will not be sufficient.
News / Court exhibits reluctance to interfere in arbitral process
15-04-2020 / Maritime
Daelim Corporation v. (1) Bonita Company Limited (2) Eastern Media International Corporation and (3) Far Eastern Silo & Shipping (Panama) S.A. (DL Carnation)  EWHC 697 (Comm)
News / Experts’ fiduciary duty of loyalty to clients: practical implications for marine and offshore sectors
22-04-2020 / Maritime
A Company v. X, Y and Z  EWHC 809 (TCC) In this case, companies of the same group were retained as experts by opposing sides in two related arbitration references in respect of an offshore construction project. The Court found that the whole company group, in its capacity as expert, owed a fiduciary duty of loyalty to their client, which was not inconsistent with an expert’s paramount duty to the Court or Tribunal. On this basis, the Court granted an injunction prohibiting the expert group of companies from acting for another party in the arbitration. This decision highlights the need for clients to be quick in retaining their experts when facing complex marine or offshore disputes, given that the number of experts able to give evidence in relation to these fields in courts and tribunals is very limited.
News / Court dismisses defences to non-performance under contract of affreightment
07-05-2020 / Maritime
Classic Maritime Inc v. Limbungan Makmur Sdn Bhd and another company  EWHC 619 (Comm) This was the latest dispute under a Contract of Affreightment (“COA”) between Classic Maritime Inc (“Owners”) and Limbungan Makmur Sdn Bhd (“Charterers”), with the Owners claiming damages for unperformed shipments under the COA. In reaching its decision, the Court relied closely on an earlier Court of Appeal judgment relating to the Owners’ claim for damages involving seven unperformed shipments.