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.
|
|
Sunday, 16 February 14
SUPRAMAX : THE FAR EAST/SE ASIA CHARTER RATES FIRMED UP
COALspot.com: The freight market had a mixed reaction this week with BDI increased by 1.37 pct and closing at 1106 points on Valentine day. The cape ...
Friday, 14 February 14
US COAL PRODUCTION STILL SLIPPING
COALspot.com – United States the world’s second largest coal producer, produced approximately 17.9 million short tons (mmst) of coal in ...
Thursday, 13 February 14
PANAMAX : NOT ENOUGH REQUIREMENTS TO KEEP THE ATLANTIC MARKET FLOATING - FEARNLEYS AS
Handy
After the Chinese holidays the week started on a positive note. Owners are talking higher rates but chrtrs are still somehow reluctant to mov ...
Thursday, 13 February 14
DRY BULK MARKET FACES BETTER PROSPECTS ON THE BACK OF IMPROVING DEMAND AND SUPPLY BALANCE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has started off the New Year on the "left foot", with the strong finish of 2013 proving to be unsustainable, on the ba ...
Wednesday, 12 February 14
NEW BUILDING ORDERS REACHING NEW POST-CRISIS HEIGHTS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Ship owners are looking to take advantage of the last few attractive deals in the new building market, before prices start climbing to new highs and ...
|
|
|
Showing 3851 to 3855 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- PowerSource Philippines DevCo
- GAC Shipping (India) Pvt Ltd
- Toyota Tsusho Corporation, Japan
- SN Aboitiz Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Straits Asia Resources Limited - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Singapore Mercantile Exchange
- Makarim & Taira - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Ministry of Transport, Egypt
- Medco Energi Mining Internasional
- The University of Queensland
- Coalindo Energy - Indonesia
- SMG Consultants - Indonesia
- Indika Energy - Indonesia
- Antam Resourcindo - Indonesia
- Aboitiz Power Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Ind-Barath Power Infra Limited - India
- Central Electricity Authority - India
- Oldendorff Carriers - Singapore
- India Bulls Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- South Luzon Thermal Energy Corporation
- Parry Sugars Refinery, India
- Altura Mining Limited, Indonesia
- Economic Council, Georgia
- GMR Energy Limited - India
- Metalloyd Limited - United Kingdom
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- Directorate Of Revenue Intelligence - India
- Marubeni Corporation - India
- Aditya Birla Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Australian Coal Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Global Green Power PLC Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- CIMB Investment Bank - Malaysia
- Pendopo Energi Batubara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Billiton Holdings Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Miang Besar Coal Terminal - Indonesia
- Carbofer General Trading SA - India
- Wood Mackenzie - Singapore
- Cigading International Bulk Terminal - Indonesia
- Vizag Seaport Private Limited - India
- Vedanta Resources Plc - India
- Ambuja Cements Ltd - India
- Africa Commodities Group - South Africa
- Uttam Galva Steels Limited - India
- Borneo Indobara - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Formosa Plastics Group - Taiwan
- Samtan Co., Ltd - South Korea
- Iligan Light & Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Central Java Power - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- New Zealand Coal & Carbon
- Lanco Infratech Ltd - India
- Dalmia Cement Bharat India
- Petrochimia International Co. Ltd.- Taiwan
- Eastern Coal Council - USA
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- LBH Netherlands Bv - Netherlands
- Orica Australia Pty. Ltd.
- Port Waratah Coal Services - Australia
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Kobexindo Tractors - Indoneisa
- Bukit Baiduri Energy - Indonesia
- CNBM International Corporation - China
- Eastern Energy - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Indonesian Coal Mining Association
- Planning Commission, India
- Sarangani Energy Corporation, Philippines
- Global Business Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Parliament of New Zealand
- San Jose City I Power Corp, Philippines
- Sindya Power Generating Company Private Ltd
- AsiaOL BioFuels Corp., Philippines
- Indogreen Group - Indonesia
- Commonwealth Bank - Australia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Makmur.PT - Indonesia
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- IEA Clean Coal Centre - UK
- Anglo American - United Kingdom
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Riau Bara Harum - Indonesia
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Globalindo Alam Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Kaltim Prima Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Bhoruka Overseas - Indonesia
- Renaissance Capital - South Africa
- Meralco Power Generation, Philippines
- Bhatia International Limited - India
- Price Waterhouse Coopers - Russia
- Power Finance Corporation Ltd., India
- International Coal Ventures Pvt Ltd - India
- Videocon Industries ltd - India
- Mercuria Energy - Indonesia
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Mjunction Services Limited - India
- Simpson Spence & Young - Indonesia
- Attock Cement Pakistan Limited
- The Treasury - Australian Government
- Savvy Resources Ltd - HongKong
- Ministry of Finance - Indonesia
- MS Steel International - UAE
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Global Coal Blending Company Limited - Australia
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- Trasteel International SA, Italy
- Electricity Authority, New Zealand
- Intertek Mineral Services - Indonesia
- Coal and Oil Company - UAE
- Sakthi Sugars Limited - India
- Thai Mozambique Logistica
- TNB Fuel Sdn Bhd - Malaysia
- Energy Development Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Minerals Council of Australia
- Petron Corporation, Philippines
- Gujarat Sidhee Cement - India
- Bulk Trading Sa - Switzerland
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chettinad Cement Corporation Ltd - India
- GVK Power & Infra Limited - India
- Star Paper Mills Limited - India
- TeaM Sual Corporation - Philippines
- Chamber of Mines of South Africa
- Tata Chemicals Ltd - India
- Independent Power Producers Association of India
- Gujarat Electricity Regulatory Commission - India
- Jaiprakash Power Ventures ltd
- OPG Power Generation Pvt Ltd - India
- London Commodity Brokers - England
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- ICICI Bank Limited - India
- Deloitte Consulting - India
- Leighton Contractors Pty Ltd - Australia
- Electricity Generating Authority of Thailand
- Kalimantan Lumbung Energi - Indonesia
- Merrill Lynch Commodities Europe
- VISA Power Limited - India
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- The State Trading Corporation of India Ltd
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Thiess Contractors Indonesia
- Siam City Cement PLC, Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Bangladesh Power Developement Board
- Maharashtra Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Link Ltd, New Zealand
- Agrawal Coal Company - India
- Standard Chartered Bank - UAE
- ASAPP Information Group - India
- Sinarmas Energy and Mining - Indonesia
- Posco Energy - South Korea
- Edison Trading Spa - Italy
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Sical Logistics Limited - India
- Rio Tinto Coal - Australia
- McConnell Dowell - Australia
- Grasim Industreis Ltd - India
- Binh Thuan Hamico - Vietnam
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- Bhushan Steel Limited - India
- Orica Mining Services - Indonesia
- Semirara Mining Corp, Philippines
- Georgia Ports Authority, United States
- Mercator Lines Limited - India
- Tamil Nadu electricity Board
- Coastal Gujarat Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Baramulti Group, Indonesia
- SMC Global Power, Philippines
- Bharathi Cement Corporation - India
- Essar Steel Hazira Ltd - India
- Romanian Commodities Exchange
|
| |
| |
|
