Reported Cases
The UKDC has been involved in the following cases which have influenced the maritime industry...
ELLI
The ELLI was chartered out a on a long term basis. During the course of the charter the MARPOL accelerated single hull phase out regulations came into force. The ship was a partially, but not fully double sided oil tanker, and under these regulations, was no longer legally able to carry fuel oil. As a result, the charterer paid a reduced rate of hire for the balance of the charter period, and brought a claim for lost profits.
The English High Court and subsequently the Court of Appeal found in favour of the charterer and ruled that once the regulations came into force the owner was obliged to restore the ship to a condition in which she could carry fuel oil. The judgment establishes that an owner rather than a charterer bears the risk of changes in international regulations and the costs of continuing compliance with those regulations
The Club supported the owner's costs of the proceedings in the English High Court as well as the Court of Appeal. The case is reported here.
GOLDEN VICTORY
In December, 2001 the charterer of the GOLDEN VICTORY redelivered the ship at a time when the charter had over 4 years to run. The owner claimed damages covering the balance of the charter period. However, the charter contained a clause which would have allowed either party to bring the charter to an end in the event of hostilities breaking out between a number of named countries, including the United States, Great Britain and Iraq. When the case came to court in 2004 the charterer argued that it would have brought the charter to an end at the time of the US led invasion of Iraq invasion of Iraq in 2003 and that the owner was not entitled to damages for the period after that.
The question of whether the owner's damages were to be assessed at and awarded from the date of the breach, for the balance of the charter, or whether the could should take into account the fact that the charter would have come to an early end was ultimately decided in the charterer's favour.
The Club supported the owner's costs throughout the course of the case. The case is reported here.
SILVER CONSTELLATION
In 2003 a charter of the SILVER CONSTELLATION, a capesize bulk carrier, was agreed. During the charter negotiations, the charterer sought to include a requirement that the owner obtain approval for the ship under the RightShip private vetting scheme but this was declined by the owner. Several years later the charterer sought to argue that RightShip approval was so pervasive in the dry bulk trade that it was an unspoken contractual requirement.
The matter was referred to arbitration, and was initially decided in the charterer's favour. This decision was however overturned by the English Court in a ruling which establishes that express wording is required in a charterparty to place an owner under an obligation to comply with the private and commercial requirements of a charterer, as opposed to legal obligations. The case is reported here.