Shipping E-brief September 2022
Featured news & insights
News / Party offered reasonably satisfactory security following collision obliged to accept it
20-07-2022 / Maritime
MV Pacific Pearl Co Ltd v. Osios David Shipping Inc (Panamax Alexander)  EWCA Civ 798 The Court of Appeal has confirmed that a party to ASG 2, the standard form Collision Jurisdiction Agreement, is obliged to accept reasonable security once it is offered and cannot choose to refuse that security and seek alternative or better security by arresting a ship. In such circumstances, there is no right to an arrest or any justification for it.
News / Court finds Covid-19 restrictions did not constitute force majeure under MOA
13-07-2022 / Maritime
NKD Maritime Limited v. Bart Maritime (No 2) Inc (Shagang Giant)  EWHC 1615 (Comm) The Court has construed a force majeure clause and considered whether Buyers validly terminated a contract for the sale of a vessel on the basis that Covid-19 lockdown restrictions prevented Sellers from transferring title in the Vessel.
News / Navigating Precautionary Areas: cross carefully!
30-05-2022 / Maritime
Wilforce LLC and Awilco LNG AS v. Ratu Shipping Co SA and Sea Queen Shipping Corporation (Wilforce v. Western Moscow)  EWHC 1190 (Admlty) The Admiralty Court has recently handed down judgment in the case of the collision between the LNG carrier Wilforce and the bulk carrier Western Moscow which took place in the Singapore Straits in May 2019. This case is notably the first collision case to come before the Admiralty Court since the Supreme Court handed down its judgment in the Ever Smart collision case. It is also the first case in which the Court has had to consider responsibility for a collision in a Precautionary Area.
News / Finance charters and events of default
08-09-2022 / Maritime
OCM Maritime Nile LLC & Anor v. Courage Shipping Co Ltd & Others (Courage and Amethyst)  EWCA Civ 1091 This case concerned an alleged Event of Default under a finance bareboat charter and owners’ rights to terminate and raised issues of general importance under bareboat charters.
News / Court applies traditional good weather method for assessing vessel’s performance
07-09-2022 / Maritime
Eastern Pacific Chartering Inc v. Pola Maritime Ltd (Divinegate)  EWHC 2095 (Comm) The Court has recently dismissed a claim for wrongful arrest in an underperformance dispute and also given helpful guidance as to how speed and performance cases are to be approached.
News / Court finds extra-contractual counterclaims fell within scope of arbitration agreement
02-08-2022 / Maritime
Sea Master Special Maritime Enterprise & another v. Arab Bank (Switzerland) Ltd (Sea Master)  EWHC 1953 (Comm) This bill of lading dispute raised issues as to whether the Bank financing the purchase of a cargo, and the holder of a switch bill of lading for the cargo, was a party to the arbitration agreement incorporated into the switch bill and, if so, whether certain counterclaims brought by the Owners came within the scope of that arbitration agreement. The Court agreed with the tribunal’s findings that, once the Court had decided that the Bank was a party to the arbitration agreement, then the counterclaims for reasonable remuneration and quantum meruit came within the ambit of the arbitration agreement, being claims “arising out of or in connection” with the bill of lading contract.
News / Ince Scotland: Acquittal secured in marine prosecution - July 2022
02-09-2022 / Maritime
Dual-Qualified Partner, Stefanie Johnston, led the team from Ince, assisted by Iain Franklin, Senior Associate, following a Scottish instruction to act on behalf of Mr. Steven Davie, who was being prosecuted for alleged breaches of the Merchant Shipping Act 1995 and The International Regulations for Preventing Collisions at Sea 1972 (“COLREGS”). The defence at trial was conducted by David Nicolson, advocate from Compass Chambers. Mr. Davie’s legal team successfully secured his acquittal at Inverness Sheriff Court.