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.
|
|
Monday, 20 January 14
SUB-BIT INDONESIA COAL SWAP SEEN LOWER IN 2ND HALF OF 2014
COALspot.com – Sub-Bit Indonesia coal swap (FOB) for average Q1’ 14 delivery lost $ 0.78 pmt month on month on Friday 17 January 2014. T ...
Monday, 20 January 14
THE CFR SOUTH CHINA COAL MARKET APPEARS TO HAVE LOST DIRECTION
COALspot.com : API 8 CFR South China Coal swaps for average Q1’ 14 delivery lost 4.25 percept month on month and closed at US$ 79.48 per mt as ...
Sunday, 19 January 14
FREIGHT MARKETS SEE CONTINUED WEAK PERFORMANCE
COALspot.com: The market has continued to soften particularly in the far East/SE Asia sector.
The BDI was down 6 pct week on week, the index was ...
Friday, 17 January 14
US COAL PRODUCTION DOWN WEEK ON WEEK: EIA
COALspot.com – United States the world’s second largest coal producer, produced approximately 18.3 million short tons (mmst) of co ...
Friday, 17 January 14
DRY BULK MARKET ENDS DECLINE, BOUNCES BACK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
It's been a rough start to the New Year for the dry bulk market, which was supposed to be on the verge of rallying to new heights this year, on the ...
|
|
|
Showing 3896 to 3900 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Sical Logistics Limited - India
- Merrill Lynch Commodities Europe
- Aditya Birla Group - India
- GVK Power & Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Power Finance Corporation Ltd., India
- ICICI Bank Limited - India
- Billiton Holdings Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Planning Commission, India
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Sidhee Cement - India
- GAC Shipping (India) Pvt Ltd
- Bhushan Steel Limited - India
- Electricity Generating Authority of Thailand
- European Bulk Services B.V. - Netherlands
- Metalloyd Limited - United Kingdom
- SMC Global Power, Philippines
- Iligan Light & Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Siam City Cement PLC, Thailand
- Orica Australia Pty. Ltd.
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Indogreen Group - Indonesia
- Heidelberg Cement - Germany
- Energy Link Ltd, New Zealand
- Dalmia Cement Bharat India
- Borneo Indobara - Indonesia
- Larsen & Toubro Limited - India
- ASAPP Information Group - India
- Jindal Steel & Power Ltd - India
- Binh Thuan Hamico - Vietnam
- Ministry of Mines - Canada
- Formosa Plastics Group - Taiwan
- Antam Resourcindo - Indonesia
- Medco Energi Mining Internasional
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- Therma Luzon, Inc, Philippines
- Petron Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Meralco Power Generation, Philippines
- Sree Jayajothi Cements Limited - India
- India Bulls Power Limited - India
- Australian Commodity Traders Exchange
- Meenaskhi Energy Private Limited - India
- Africa Commodities Group - South Africa
- Vizag Seaport Private Limited - India
- Bhatia International Limited - India
- Commonwealth Bank - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Sakthi Sugars Limited - India
- Energy Development Corp, Philippines
- Orica Mining Services - Indonesia
- SMG Consultants - Indonesia
- Coal and Oil Company - UAE
- PNOC Exploration Corporation - Philippines
- Tata Chemicals Ltd - India
- SN Aboitiz Power Inc, Philippines
- Posco Energy - South Korea
- Agrawal Coal Company - India
- Rashtriya Ispat Nigam Limited - India
- GMR Energy Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Makmur.PT - Indonesia
- The State Trading Corporation of India Ltd
- Mjunction Services Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- PetroVietnam Power Coal Import and Supply Company
- Renaissance Capital - South Africa
- Tamil Nadu electricity Board
- Pendopo Energi Batubara - Indonesia
- Riau Bara Harum - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CNBM International Corporation - China
- Sinarmas Energy and Mining - Indonesia
- IHS Mccloskey Coal Group - USA
- Bahari Cakrawala Sebuku - Indonesia
- Anglo American - United Kingdom
- Coalindo Energy - Indonesia
- Parliament of New Zealand
- Trasteel International SA, Italy
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- The Treasury - Australian Government
- Global Green Power PLC Corporation, Philippines
- IEA Clean Coal Centre - UK
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Thai Mozambique Logistica
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Savvy Resources Ltd - HongKong
- Kartika Selabumi Mining - Indonesia
- Eastern Coal Council - USA
- Carbofer General Trading SA - India
- Chamber of Mines of South Africa
- Bayan Resources Tbk. - Indonesia
- Singapore Mercantile Exchange
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Toyota Tsusho Corporation, Japan
- Mintek Dendrill Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Deloitte Consulting - India
- Indonesian Coal Mining Association
- Bulk Trading Sa - Switzerland
- White Energy Company Limited
- McConnell Dowell - Australia
- Makarim & Taira - Indonesia
- Parry Sugars Refinery, India
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Indika Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Videocon Industries ltd - India
- Altura Mining Limited, Indonesia
- Attock Cement Pakistan Limited
- Kepco SPC Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Eastern Energy - Thailand
- Oldendorff Carriers - Singapore
- Gujarat Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Kaltim Prima Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Latin American Coal - Colombia
- Independent Power Producers Association of India
- Edison Trading Spa - Italy
- Ind-Barath Power Infra Limited - India
- South Luzon Thermal Energy Corporation
- Star Paper Mills Limited - India
- Krishnapatnam Port Company Ltd. - India
- Georgia Ports Authority, United States
- Uttam Galva Steels Limited - India
- Cement Manufacturers Association - India
- Holcim Trading Pte Ltd - Singapore
- Price Waterhouse Coopers - Russia
- Kideco Jaya Agung - Indonesia
- Maheswari Brothers Coal Limited - India
- AsiaOL BioFuels Corp., Philippines
- Australian Coal Association
- Alfred C Toepfer International GmbH - Germany
- Vedanta Resources Plc - India
- Malabar Cements Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Xindia Steels Limited - India
- Karaikal Port Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- MS Steel International - UAE
- Baramulti Group, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Wood Mackenzie - Singapore
- Timah Investasi Mineral - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Economic Council, Georgia
- Ceylon Electricity Board - Sri Lanka
- Central Java Power - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Minerals Council of Australia
- VISA Power Limited - India
- Ministry of Transport, Egypt
- New Zealand Coal & Carbon
- Madhucon Powers Ltd - India
- Lanco Infratech Ltd - India
- San Jose City I Power Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Bangladesh Power Developement Board
- London Commodity Brokers - England
- Simpson Spence & Young - Indonesia
- Interocean Group of Companies - India
- Straits Asia Resources Limited - Singapore
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Kobexindo Tractors - Indoneisa
- Rio Tinto Coal - Australia
- PTC India Limited - India
- PowerSource Philippines DevCo
- Goldman Sachs - Singapore
- Global Business Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Marubeni Corporation - India
- Coastal Gujarat Power Limited - India
- Manunggal Multi Energi - Indonesia
- Standard Chartered Bank - UAE
- Grasim Industreis Ltd - India
- Wilmar Investment Holdings
- Port Waratah Coal Services - Australia
- Salva Resources Pvt Ltd - India
- Romanian Commodities Exchange
- TeaM Sual Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Kumho Petrochemical, South Korea
- Ministry of Finance - Indonesia
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Barasentosa Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Chettinad Cement Corporation Ltd - India
- Essar Steel Hazira Ltd - India
|
| |
| |
|
