Repudiation of long-term time charter
- Date: 01/01/2001
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.