BG Gas AS v JAS Shipping Ltd [2010] EWCA Civ 68 (11 February 2010)

BG Gas AS v JAS Shipping Ltd [2010] EWCA Civ 68 (11 February 2010)

The obligation to supply the paragraph 14 owner's supply items was not a strict or mandatory obligation under the building contract or the bareboat charters. Article XVII of the building contract made clear that if the buyer did not supply such items, the vessel could be delivered without them and would still be...

Source-derived case information.

Citation
[2010] EWCA Civ 68
Parties
Appellant / Claimant: BW Gas AS; Respondent / Defendant: JAS Shipping Ltd
Jurisdiction
England and Wales
Judgment Date
11 February 2010
Procedural Posture
Appeal From Commercial Court (queen's Bench Division) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Bareboat Charter, Shipbuilding Contract, Implied Terms, Contractual Interpretation, Obligations of Owner and Charterer
Commercial Law Maritime Law Contract Law Bareboat Charter Shipbuilding Contract Implied Terms Contractual Interpretation Obligations of Owner and Charterer

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Parties

BW Gas AS

Appellant / Claimant

JAS Shipping Ltd

Respondent / Defendant

Procedural Posture

Appeal From Commercial Court (queen's Bench Division) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the head charterer was obliged under the sub bareboat charter to supply the vessel with 'owner's supply' items listed in the shipbuilding contract specifications (paragraph 14).
  2. 2 Whether the obligation to supply such items was mandatory or optional under the contract structure.
  3. 3 Whether implied terms could or should be read into the contract to require supply of such items.

Ratio Decidendi

The obligation to supply the paragraph 14 owner's supply items was not a strict or mandatory obligation under the building contract or the bareboat charters. Article XVII of the building contract made clear that if the buyer did not supply such items, the vessel could be delivered without them and would still be deemed constructed in accordance with the contract and specifications. Therefore, the head charterer was not in breach for failing to supply such items, and no implied term could be read into the contract to require their supply. The only exception was for items required by paragraph 5 (classification, rule and regulation), where their absence would render the vessel unseaworthy...

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed. The head charterer is not liable for the cost of supplying the paragraph 14 owner's supply items, except to the extent that any such items are required by paragraph 5 (classification, rule and regulation).