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Shipping E-Brief January 2018

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The Shipping E-Brief is a regular publication providing you with key information on legal decisions and developments in shipping and related business areas. 

Our January 2018 edition of the Shipping E-Brief is full of articles dealing with topical shipping issues.  

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Shipping E-Brief November 2017

Shipping E-Brief September 2017

Shipping E-Brief July 2017

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Featured news & insights

News / Serving notice of arbitration on agent: a fair conclusion on unusual facts

22-01-2018 / Maritime

Dana Shipping and Trading PTE Singapore & Another v. Sino Channel Asia Ltd [2017] EWCA Civ 1703 The Court of Appeal has recently revisited the question of whether an arbitration award was made without jurisdiction because a notice of arbitration was not validly served. This case provides a helpful reminder of the legal framework behind implied actual authority and ostensible authority.

Serving notice of arbitration on agent: a fair conclusion on unusual facts

News / Court of Appeal upholds liability without fault under the Inter-Club Agreement

22-01-2018 / Maritime

Transgrain Shipping (Singapore) Pte Ltd v Yangtze Navigation (Hong Kong) Co Ltd (Yangtze Xing Hua) 2017 EWCA Civ 2107This recent Court of Appeal decision reaffirms the view that the word act in the phrase act or neglect in Clause 8(d) of the Inter-Club Agreement (the ICA) does not stretch to culpable act The Court of Appeal, upholding the first instance decision, held firm to the reasoning that the intention behind Clause 8 was to provide a mechanical apportionment of liability based on causation without comprising a fault-based analysis

Court of Appeal upholds liability without fault under the Inter-Club Agreement

News / Due diligence: what is the standard expected of owners?

22-01-2018 / Maritime

MT “Cape Bonny” Tankschiffarhts GmbH & Co KG v. Ping An Property and Casualty Insurance Company of China Limited, Beijing Branch (Cape Bonny) [2017] EWHC 3036 (Comm) The Commercial Court has considered whether the Owners in this case had exercised due diligence to make the vessel seaworthy in circumstances where the vessel suffered an engine breakdown mid-voyage from uncertain causes.

Due diligence: what is the standard expected of owners?

News / Commencing arbitration effectively: is the recipient an employee with authority to accept service?

22-01-2018 / Maritime

Glencore Agriculture B.V. v Conqueror Holdings Limited (m/v Amity) [2017] EWHC 2893 (Comm) The Commercial Court has recently allowed an application to set aside an arbitration award on the grounds that the arbitration notice had not been properly served as it was sent to the email address of a junior employee. The Court held that the employee had neither actual (whether express or implied) authority, nor ostensible authority, to accept service.

Commencing arbitration effectively: is the recipient an employee with authority to accept service?

News / Court dismisses appeal against tribunal’s findings of fact dressed up as appeal on law

22-01-2018 / Maritime

ST Shipping & Transport Pte Ltd v. Space Shipping Ltd (CV Stealth) [2017] EWHC 2808 This case is an example of how a routine charterparty can go horribly wrong, with nightmares for the owners and the charterers, even if they are both innocent of any wrongdoing. On the legal side, it provides a useful summary of the test of causation – the cause of a loss – where there is more than one potential factor. It also takes an interesting "wait and see" approach to dealing with potential savings where it is too soon to assess them. And it shows again the courts' refusal to re-open issues of fact that have been put by the parties to arbitration. Unless the arbitrators make errors of law, their decision on factual issues is for them and them alone.

Court dismisses appeal against tribunal’s findings of fact dressed up as appeal on law

News / When is a guarantee an on demand bond?

22-01-2018 / Maritime

Ultrabulk A/S v. Jagatramka [2017] EWHC 2792 (Comm) The Commercial Court has indicated when a guarantee might give rise to a primary liability arising independently and upon demand, as opposed to a secondary liability where the guarantor’s liability mirrors the liability of the debtor.

When is a guarantee an on demand bond?

News / New corporate criminal offence of failure to prevent the facilitation of tax evasion

22-01-2018 / Maritime

The Criminal Finances Act 2017 (“the Act”) came into force on 30 September 2017. Its target is the prevention of tax evasion, which is the deliberate and illegal circumvention of tax rules in order to escape a tax liability. This should be distinguished from tax avoidance, which is a legal method of minimising tax liability. The legislation impacts all service providers, including those operating internationally, as many shipping companies do, provided they have a presence and/or business operations in the UK and/or there is some other link to the UK.

New corporate criminal offence of failure to prevent the facilitation of tax evasion

News / Singapore Court of Appeal re-emphasises pro-arbitration stance

22-01-2018 / Maritime

Prometheus Marine Pte Ltd v. King, Ann Rita and another [2017] SGCA 61  In considering an appeal to set aside an arbitration award, the Singapore Court of Appeal has reinforced the judiciary’s pro-arbitration stance and upheld a high threshold for setting aside. Separately, the Court of Appeal also warned that any allegation of bias, fraud and corruption should be credibly substantiated.

Singapore Court of Appeal re-emphasises pro-arbitration stance

Insights / What will Brexit mean for the international shipping community choosing English law and jurisdiction?

22-01-2018 / Maritime

English law, and the jurisdiction of the English courts or arbitration in England, remains the most frequent choice for parties throughout the shipping industry.

What will Brexit mean for the international shipping community choosing English law and jurisdiction?