Unreported Cases
Shipbuilding dispute
A Member has a claim against a shipyard for the return of advance instalments paid under a shipbuilding contract. The Member cancels the contract following long delays in construction however the yard argues that in agreeing an extension of time for the delivery of the ship the Member has effectively waived its rights of cancellation.
The Club supported the Member's costs in obtaining a London arbitration award against the yard and the Member made a successful demand for repayment under the refund guarantees.
Repudiation of long-term time charter
Following the economic downturn, a Member has a substantial claim of many millions of dollars against a time charterer following the charterer's repudiation of a five year charter. The charterer has no valid reason for repudiating the charter other than his own commercial considerations.
The Club supported the costs incurred by the Member in pursuing its claim in London arbitration proceedings and in reaching an amicable settlement with the charterer.
The Club has supported Members in a number of similar cases where a charterer has repudiated a long term charter or contract of affreightment, leaving Members facing very significant potential losses. Because the sums at stake are so high, the parties understandably conduct a vigorous pursuit and defence of the claims and as a consequence the costs incurred can run into hundreds of thousands of pounds.
Explosion and loss of ship
A cargo carried in a container exploded, and the resulting fire resulted in the loss of the Member's ship. The original explosion was traced to a container which was carrying undeclared dangerous goods. Proceedings were subsequently commenced against the charterer for damages for the carriage of an undeclared dangerous cargo, comprising of the loss of the ship and loss of earnings. The total claimed was over $50 million.
The Club supported the proportion of costs relating to the loss of earnings claim and amounts falling within the Hull and Machinery deductible as well as a claim against the ship's loss of hire insurers. The remaining proportion of the costs were met by the ship's P&I and Hull insurers.
Bunker quality dispute
Defective bunkers were supplied to a ship chartered out by a Member which caused substantial damage to the ship's engines and loss of earnings during repairs. A claim was brought against the charterer but was unsuccessful due to the wording of the charterparty. A direct action was subsequently commenced against the bunker supplier.
The Club advised the Member over the initial response to the incident and met the initial investigative costs, including consultation with experts and subsequently supported both the member's costs of the claim against the charterer, and the resulting costs liability. The Clubs also met the costs of the direct action against the bunker supplier.
Withdrawal dispute
A charterer declared a ship off hire alleging that the ship's condition rendered her unseaworthy and that the ship had been rejected by cargo interests. The Club appointed an independent surveyor to inspect who reported that the ship was in good condition and that there were lengthy delays at the load port.
The Club advised the member on its position and appointed senior counsel to advise on the Member's right to withdraw the ship.The Club the supported the Member in a claim by the charterer for wrongful withdrawal.
Conversion dispute
A cruise ship owner contracted with a shipyard to perform a major conversion project on the ship. However, the early stages of the project ran behind time and in order to minimise disputation to it trading pattern the owner cancelled the contract shortly before delivering the ship to the yard.
The yard subsequently brought a claim for several million dollars for losses arising out of the Member's cancellation. The Club supported the Member in its successful defence of the yard's claim. The legal costs ran into seven figures.