We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 03 March 14
COSTS LIABILITY PASSING DOWN A CHARTERPARTY CHAIN - SKULD
 KNOWLEDGE TO ELEVATE
Provided that charterparties are on back to back terms, and the claim is successful, liability for costs incurred should be able to be passed down a charterparty chain. A technical issue will not be allowed to prevent such liability for costs being passed down a charterparty chain. This is illustrated by the recent case outlined below:
Occidental Chartering INC. V Progress Bulk Carrier Ltd (2012) EWHC3515
Background facts
This case involved a chain of charterparties.
- Precious Garnets Ltd (PG), Head Owners time chartered the MV Chada Naree to the Disponent Owners Occidental Services Corporation (OSC).
- OSC did not enter into a charterparty but instead re-let the vessel to a company within its corporation known as Occidental Chartering Inc (OCI).
- OCI time-chartered this vessel onto Progress Bulk Carriers (PBC).
- PBC in turn, sub-chartered this vessel onto CNAN.
At all times, the charterparties including the re-let agreement between OCI and OSC, were on material and identical terms. CNAN during the proceedings became divested of all its assets.
PG, Head Owners, commenced arbitration proceedings against OSC for a claim in damages against them for a breach of a safe port warranty obligation under the head charter. This claim succeeded in favour of the Head Owners and therefore passed down the charterparty chain including all legal costs initiated for recovery. During the entire arbitration proceedings there was no issue or dispute about the relationship between OSC and OCI as the arbitrators did not appear to draw a distinction between the two.
However, when the awards were handed down there were typographical errors on the written awards. The main issue arose in connection to the award between OCI and PBC. The party named as the claimants on this award was OSC and not OCI. This error lead to a technical dispute having to be resolved. It is noted that a distinction needs to be drawn between the initial claim for damages and the claim for recovering costs in pursuing the matter. The claim for damages to the vessel was not disputed. However, OCI's recoverability of costs from PBC was.
Position of the parties
The distinction between OCI/OSC was not foreseen at the time of the initial arbitration but PBC contended that OCI was not party to the charterparty chain and thus the recoverability for costs claim could not be passed down the chain via the Head Owners. PBC therefore argued that OCI had not incurred any liability for costs which could be claimed against themselves.
The Tribunal's award
The Tribunal was persuaded in favour of PBC's arguments and it published a second award which held that OCI were not entitled to recover the costs incurred in the head arbitration between OSC and PG.
Judgment by the Commercial Court of Appeal
OCI was granted leave to appeal the second award. The fundamental issue before Mr Justice Teare was to decide whether it is possible for a party to recover costs for a claim to which it had not been liable to pay to a third party. This case was fact specific and the judge felt that the Tribunal had not fully considered the background to the award i.e. that during the initial arbitration all parties had the intention of treating OCI and OSC as one.
Comments
The Appeal reaffirms the standard position that where there is a claim successfully being passed down through a chain of charterparties and where there was a break in the chain, this would not necessarily prevent the liability for costs from being passed down the chain. OCI was therefore entitled to recover all costs incurred from PBC including Head Owners legal costs, the legal costs of OSC for defending the matter as well as OCI's legal costs in pursing it in terms of the appeal.
Advice
If engaged in chartering, and using a possible "in-house" re-letting it is important to check that contractual chains are fully maintained, and there is an unbroken link down to the further sub-charterers of the vessel. That way, if a liability needs to be passed on the contractual chain, the risk of a "liability gap" are mitigated.
Furthermore it must be remembered that costs liabilities can only be passed on in successful claims, or face the situation similar to the Vakis T [2004] 2 Lloyd's Rep. 465 where it was not possible to recover costs up the line when the main claim itself was unsuccessful.
Source: Skuld / Hellenic Shipping News
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 28 February 14
PTBA TO INCREASE ITS COAL TERMINAL'S LOADING CAPACITY TO 25 MILLION TONS PER ANNUM BY JULY 2014
COALspot.com: PT. Bukit Asam (PTBA), the Indonesian government owned coal miner operates several coal mining units in Sumatera as well as in Kaliman ...
Friday, 28 February 14
U.S PRODUCED 1.9% LESS COAL WEEK ON WEEK
COALspot.com – United States the world’s second largest coal producer, produced approximately 18.8 million short tons (mmst) of coal in ...
Friday, 28 February 14
DRY BULK MARKET SLOWLY BUT STEADILY FINDS ITS FOOTING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market, hit by the low seasonal demand which is a typical characteristic of the first quarter of each year, is beginning to emerge from ...
Thursday, 27 February 14
PANAMAX : MARKET CONTINUED TO DECLINE IN THE ATLANTIC
Handy
The Atlantic handy/supra market experienced a downward trend this week but not a dramatic one. TA rates are down around USD 800 w-o-w lead b ...
Thursday, 27 February 14
SHIPPING LOANS WORTH $5 BILLION HAVE CHANGED HANDS OVER THE PAST YEAR, AS FUNDS INVEST IN SHIPPING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Funds investing in shipping has been the "talk of the town" over the past couple of years, as institutional investors, private equity and ...
|
|
|
Showing 3826 to 3830 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- GAC Shipping (India) Pvt Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Timah Investasi Mineral - Indoneisa
- Economic Council, Georgia
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- Larsen & Toubro Limited - India
- Australian Coal Association
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Singapore Mercantile Exchange
- Mintek Dendrill Indonesia
- Sojitz Corporation - Japan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Independent Power Producers Association of India
- Bukit Asam (Persero) Tbk - Indonesia
- GMR Energy Limited - India
- Chettinad Cement Corporation Ltd - India
- Energy Development Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Salva Resources Pvt Ltd - India
- Coalindo Energy - Indonesia
- The Treasury - Australian Government
- Rio Tinto Coal - Australia
- Simpson Spence & Young - Indonesia
- Marubeni Corporation - India
- Carbofer General Trading SA - India
- Petrochimia International Co. Ltd.- Taiwan
- Sindya Power Generating Company Private Ltd
- Price Waterhouse Coopers - Russia
- Vizag Seaport Private Limited - India
- Ind-Barath Power Infra Limited - India
- Kumho Petrochemical, South Korea
- Alfred C Toepfer International GmbH - Germany
- Bukit Baiduri Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Parliament of New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Link Ltd, New Zealand
- Mercator Lines Limited - India
- Coal and Oil Company - UAE
- Africa Commodities Group - South Africa
- Parry Sugars Refinery, India
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Merrill Lynch Commodities Europe
- Medco Energi Mining Internasional
- Indo Tambangraya Megah - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Heidelberg Cement - Germany
- Lanco Infratech Ltd - India
- Meenaskhi Energy Private Limited - India
- International Coal Ventures Pvt Ltd - India
- Central Java Power - Indonesia
- Deloitte Consulting - India
- Directorate Of Revenue Intelligence - India
- Maheswari Brothers Coal Limited - India
- Indogreen Group - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- ICICI Bank Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Kapuas Tunggal Persada - Indonesia
- Toyota Tsusho Corporation, Japan
- Bhushan Steel Limited - India
- Orica Mining Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Wood Mackenzie - Singapore
- Malabar Cements Ltd - India
- Kobexindo Tractors - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Tata Chemicals Ltd - India
- Bhatia International Limited - India
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Videocon Industries ltd - India
- Baramulti Group, Indonesia
- India Bulls Power Limited - India
- Posco Energy - South Korea
- Uttam Galva Steels Limited - India
- MS Steel International - UAE
- Meralco Power Generation, Philippines
- Therma Luzon, Inc, Philippines
- Agrawal Coal Company - India
- Thai Mozambique Logistica
- GN Power Mariveles Coal Plant, Philippines
- Madhucon Powers Ltd - India
- Thiess Contractors Indonesia
- Wilmar Investment Holdings
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- Eastern Coal Council - USA
- OPG Power Generation Pvt Ltd - India
- Georgia Ports Authority, United States
- Interocean Group of Companies - India
- Coastal Gujarat Power Limited - India
- IHS Mccloskey Coal Group - USA
- Vedanta Resources Plc - India
- Chamber of Mines of South Africa
- Dalmia Cement Bharat India
- PetroVietnam Power Coal Import and Supply Company
- Oldendorff Carriers - Singapore
- Semirara Mining Corp, Philippines
- Bayan Resources Tbk. - Indonesia
- Siam City Cement - Thailand
- Formosa Plastics Group - Taiwan
- Riau Bara Harum - Indonesia
- PTC India Limited - India
- Ambuja Cements Ltd - India
- Anglo American - United Kingdom
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- CIMB Investment Bank - Malaysia
- Power Finance Corporation Ltd., India
- Pendopo Energi Batubara - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Standard Chartered Bank - UAE
- Electricity Authority, New Zealand
- AsiaOL BioFuels Corp., Philippines
- IEA Clean Coal Centre - UK
- Kaltim Prima Coal - Indonesia
- Minerals Council of Australia
- New Zealand Coal & Carbon
- Sarangani Energy Corporation, Philippines
- Sakthi Sugars Limited - India
- Ceylon Electricity Board - Sri Lanka
- Metalloyd Limited - United Kingdom
- San Jose City I Power Corp, Philippines
- Ministry of Mines - Canada
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Indonesian Coal Mining Association
- Bhoruka Overseas - Indonesia
- White Energy Company Limited
- Jaiprakash Power Ventures ltd
- Trasteel International SA, Italy
- Karaikal Port Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Tamil Nadu electricity Board
- Bulk Trading Sa - Switzerland
- Binh Thuan Hamico - Vietnam
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
- GVK Power & Infra Limited - India
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Port Waratah Coal Services - Australia
- Grasim Industreis Ltd - India
- The State Trading Corporation of India Ltd
- Siam City Cement PLC, Thailand
- Bangladesh Power Developement Board
- Bahari Cakrawala Sebuku - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indian Energy Exchange, India
- Kartika Selabumi Mining - Indonesia
- The University of Queensland
- SMC Global Power, Philippines
- Global Coal Blending Company Limited - Australia
- TeaM Sual Corporation - Philippines
- Mjunction Services Limited - India
- Makarim & Taira - Indonesia
- Straits Asia Resources Limited - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Orica Australia Pty. Ltd.
- Kideco Jaya Agung - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Ministry of Transport, Egypt
- Global Green Power PLC Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Antam Resourcindo - Indonesia
- Manunggal Multi Energi - Indonesia
- Borneo Indobara - Indonesia
- Essar Steel Hazira Ltd - India
- ASAPP Information Group - India
- Sinarmas Energy and Mining - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Energy - Thailand
- Commonwealth Bank - Australia
- Renaissance Capital - South Africa
- SMG Consultants - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Aditya Birla Group - India
- PNOC Exploration Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- London Commodity Brokers - England
- Australian Commodity Traders Exchange
- Intertek Mineral Services - Indonesia
- CNBM International Corporation - China
- Asmin Koalindo Tuhup - Indonesia
- Star Paper Mills Limited - India
- Attock Cement Pakistan Limited
- McConnell Dowell - Australia
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- Sree Jayajothi Cements Limited - India
- Indian Oil Corporation Limited
- Latin American Coal - Colombia
- South Luzon Thermal Energy Corporation
- Cigading International Bulk Terminal - Indonesia
- Savvy Resources Ltd - HongKong
|
| |
| |
|
