Wollongong Coal Limited v PCL (Shipping) Pte Ltd [2020] NSWSC 184

Procedural Posture

Supreme Court of New South Wales Equity Commercial Arbitration List Proceeding Concerning a Shipping Claim Under Bills of Lading / Principal Judgment After Hearing

Legal Issues

1. 1 ["Whether PCL, as assignee of the vessel owner's rights under the August Bills, could recover freight and other shipping costs from WCL as shipper." 'Whether cancellation of the August Bills and issue of the Switch Bills constituted a novation extinguishing any liability WCL had under the August Bills.' 'Whether the words "freight payable as per charter party" imposed liability on WCL to pay freight to the Owner.' 'Whether any recoverable claim under the August Bills included demurrage, dead-freight, bunker adjustment and port costs.']

Ratio Decidendi

The August Bills were surrendered, marked "NULL & VOID" with the Owner's authority, and replaced by Switch Bills identifying New Alloys as shipper. WCL consented to that course, as evidenced by its seal and signature on the August Bills. The parties intended the Switch Bills to be substituted for the August Bills, with New Alloys assuming identical obligations, and the necessary consideration was New Alloys' promise to pay freight. Any liability WCL otherwise had under the August Bills was therefore extinguished, so PCL as assignee could not recover from WCL.

Court Disposition

PCL's claim against WCL under the August Bills is to be dismissed.

Orders

• ["Claim of vessel owner's assignee against shipper under bills of lading to be dismissed." 'The parties should bring in short minutes to give effect to the reasons.' 'The Court will hear the parties as to costs.']