BHPB Freight Pty Ltd v Cosco Oceania Chartering Pty Ltd (No 4) [2009] FCA 1448

BHPB Freight Pty Ltd v Cosco Oceania Chartering Pty Ltd (No 4) [2009] FCA 1448

BHPB was entitled to judgment on the breach of warranty of authority claim. Because the charterparty would have yielded hire and ballast bonus in US dollars but there was no evidence proving the currency in which the remaining expenses were discharged, judgment should be in US dollars for unpaid hire and ballast bonus, or the Australian dollar equivalent at payment or execution, and in Australian dollars for the balance converted at the rates when each debt fell due, taken as the invoice date. Interest on the US dollar judgment should use the US prime borrowing rate calculated monthly, while interest on the Australian dollar judgment should use the applicable Victorian Supreme Court rate,...

Jurisdiction
Australia
Judgment Date
07 December 2009
Procedural Posture
Practice and Procedure; Costs Following Judgment on Substantive Claims / Reasons on Election of Claim, Currency of Judgment, Interest and Costs After Substantive Judgment
Outcome
BHPB to have judgment against Cosco on the breach of warranty of authority claim; ordinary costs awarded to BHPB, indemnity costs refused, and a Bullock order to be made in respect of Seawise's costs.
Legal Topics
['judgment in Foreign Currency' 'date for Conversion to Australian Currency' 'interest on Foreign Currency Judgment' 'calderbank Offer' 'indemnity Costs' 'bullock Order' 'sanderson Order' 'breach of Warranty of Authority']
['practice and Procedure' 'costs' 'contract' 'damages'] ['judgment in Foreign Currency' 'date for Conversion to Australian Currency' 'interest on Foreign Currency Judgment' 'calderbank Offer' 'indemnity Costs' 'bullock Order' 'sanderson Order' 'breach of Warranty of Authority']

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Procedural Posture

Practice and Procedure; Costs Following Judgment on Substantive Claims / Reasons on Election of Claim, Currency of Judgment, Interest and Costs After Substantive Judgment

Legal Issues

  1. 1 ['On what claim BHPB should elect to take judgment.' 'In what currency judgment should be given for damages for breach of warranty of authority.' 'What interest rate and period should apply to judgment in foreign currency and Australian currency.' 'Whether BHPB should receive indemnity costs following refusal of its Calderbank offer.' 'Whether indemnity costs should be awarded because respondents abandoned contentions at trial.' "Whether a Bullock or Sanderson order should be made so that Cosco bears Seawise's costs."]

Ratio Decidendi

BHPB was entitled to judgment on the breach of warranty of authority claim. Because the charterparty would have yielded hire and ballast bonus in US dollars but there was no evidence proving the currency in which the remaining expenses were discharged, judgment should be in US dollars for unpaid hire and ballast bonus, or the Australian dollar equivalent at payment or execution, and in Australian dollars for the balance converted at the rates when each debt fell due, taken as the invoice date. Interest on the US dollar judgment should use the US prime borrowing rate calculated monthly, while interest on the Australian dollar judgment should use the applicable Victorian Supreme Court rate,...

Court Disposition

BHPB to have judgment against Cosco on the breach of warranty of authority claim; ordinary costs awarded to BHPB, indemnity costs refused, and a Bullock order to be made in respect of Seawise's costs.

Orders

  • ['Judgment for the unpaid hire and ballast bonus is to be in US dollars or the Australian equivalent at the time of payment or execution.' "The balance of BHPB's claim is to be in Australian dollars, converted at the rates existing when each debt fell due, taken to be the day on which the relevant invoice was sent."...