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In a recent judgment (The THORCO LINEAGE)1 the English High Court has considered how limitation should be calculated in respect of cargo claims under the Hague Visby Rules. Limitation under the Hague-Visby Rules Article IV r.5(a) of the Hague-Visby Rules provides as follows: “Unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading, neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with the goods in an amount exceeding the equivalent of 667.67 units of account ..read more

There has, observed the Court of Appeal the recent case of Candey v Bosheh1, been something of an avalanche of claimants in recent years trying to show that the contract in dispute is a “relational contract”, thereby bringing with it the implied obligation of good faith. The judgment in that case seems to suggest a more restrictive view on implied good faith obligations in the future that would end the avalanche. So what is the back story? Good faith – no general principle applicable to contracts Firstly it is, and continues to be, well understood that in contrast to some other legal systems t ..read more

Estimated reading time: 8 minutes ” Owing to the outbreak of hostilities it is now quite evident that the delivery of the machines on order … cannot take place. Under the circumstances we shall be obliged if you will kindly arrange to return our initial payment … at your early convenience.” So wrote the agents of the Eastern European buyers of machinery to the UK based sellers some seven days after the buyers’ country had been invaded. The sellers refused. This was not the invasion of Ukraine in 2022 but the German invasion of Poland in 1939. Nothing changes. In that event further performanc ..read more

In the recent judgment of K Line Pte Ltd v Priminds Shipping (HK) Co Ltd (The “ETERNAL BLISS”)[1] the UK Court of Appeal has held that demurrage is an exclusive remedy that covers all consequences of a charterer’s failure to load or discharge within the agreed laytime and there is no right to recover further damages for the same breach of charter party in addition. Legal characterisation The background to the judgement is the legal characterisation of demurrage. The court confirmed earlier authority[2] that conceptually demurrage is, in the words of a leading textbook (Scrutton on Charterparti ..read more

It is rare for cases involving the International Regulations for Preventing Collisions at Sea 1972 as amended (“the Collision Regulations”) to come before the UK Supreme Court. The last case to be considered by the House of Lords (the predecessor of the UK Supreme Court) was in 1976[1]. Now the Supreme Court has considered the collision Regulations in another case[2]. The Collision Regulations The case concerned Rule 9 (Narrow Channels) and Rule 15 (Crossing Situation). Rule 9(a) states A vessel proceeding along the course of a narrow channel or fairway shall keep as near to the outer limit of ..read more

In the recent judgment of K Line Pte Ltd v Priminds Shipping (HK) Co Ltd (The “ETERNAL BLISS”)[1] the UK Court of Appeal has held that demurrage is an exclusive remedy that covers all consequences of a charterer’s failure to load or discharge within the agreed laytime and there is no right to recover further damages for the same breach of charter party in addition. Legal characterisation The background to the judgement is the legal characterisation of demurrage. The court confirmed earlier authority[2] that conceptually demurrage is, in the words of a leading textbook (Scrutton on Charterparti ..read more

In its judgment in Alize 1954 v Allianz  Elementar Versicherungs A G (the CGM LIBRA)[1] the UK Supreme Court has considered the obligation of a carrier under the Hague Rules to exercise due diligence to make a vessel seaworthy. The seaworthiness obligation is fundamental to all contract of carriage. This case concerned a contract that incorporated the terms of the Hague Rules but the relevant parts of the Hague Visby Rules are in identical terms. This conclusions of this judgment are thus of wide application as the terms of either Hague or Hague Visby Rules are incorporated in most contra ..read more

In the recent judgment of K Line Pte Ltd v Priminds Shipping (HK) Co Ltd (The “ETERNAL BLISS”)[1] the UK Court of Appeal has held that demurrage is an exclusive remedy that covers all consequences of a charterer’s failure to load or discharge within the agreed laytime and there is no right to recover further damages for the same breach of charter party in addition. Legal characterisation The background to the judgement is the legal characterisation of demurrage. The court confirmed earlier authority[2] that conceptually demurrage is, in the words of a leading textbook (Scrutton on Charterparti ..read more

It is rare for cases involving the International Regulations for Preventing Collisions at Sea 1972 as amended (“the Collision Regulations”) to come before the UK Supreme Court. The last case to be considered by the House of Lords (the predecessor of the UK Supreme Court) was in 1976[1]. Now the Supreme Court has considered the collision Regulations in another case[2]. The Collision Regulations The case concerned Rule 9 (Narrow Channels) and Rule 15 (Crossing Situation). Rule 9(a) states A vessel proceeding along the course of a narrow channel or fairway shall keep as near to the outer limit of ..read more