Arbitration awards are generally confidential unless appealed, however, summarised below is a small selection of the many arbitrations that we have been involved in.
An owner Member ordered a series of ten ships from a Chinese shipyard in 2007. As building of the ships progressed, several issues arose with the quality of construction. A number of disputes arose, most of which were settled with some contracts being cancelled and others amended with delayed delivery dates. Construction for one of the hulls continued but that ship suffered a main engine breakdown during its pre-delivery sea trials. Disputes arose and the Member was eventually successful in recovering the repayment of $19.6m pre-instalments following a two part arbitration hearing.
An owner Member pursued a claim for approximately $1.3 million for the consequence of improper remedial work to a ship’s main engine. ICC arbitration was brought against the engine maintenance technicians, which ultimately settled in the Member’s favour by means of commercial benefits including waiver of fees and extended engine warranties.
In one case the owner Member sought to recover substantial damages for wrongful termination of a charterparty. The tribunal issued a unanimous award and found that the charterer was in breach by its cancellation and early re-delivery of the ship at a time when the ship possessed the requisite oil major approvals. The charterer was ordered to pay $7.45m together with attorney fees in excess of $500,000.
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.
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.
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.
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.
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.