Silverburn Shipping(IoM) Ltd v Ark Shipping Company LLC (M/V "ARCTIC") [2019] EWHC 376 (Comm) (22 February 2019)

Silverburn Shipping(IoM) Ltd v Ark Shipping Company LLC (M/V "ARCTIC") [2019] EWHC 376 (Comm) (22 February 2019)

The obligation in Clause 9A) to keep the vessel with unexpired classification and other required certificates in force at all times is an absolute obligation, not qualified by a reasonable time to reinstate. This obligation is a condition of the contract, breach of which entitles the Owners to terminate. The...

Source-derived case information.

Citation
[2019] EWHC 376 (Comm)
Parties
Claimant / Appellant: Silverburn Shipping (IoM) Ltd; Defendant / Respondent: Ark Shipping Company LLC
Jurisdiction
England and Wales
Judgment Date
22 February 2019
Procedural Posture
Arbitration Appeal (s.69 Arbitration Act 1996) / High Court (commercial Court) Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed; Tribunal's construction overturned.
Legal Topics
Bareboat Charterparty, Contractual Construction, Classification Obligations, Conditions and Innominate Terms, Right of Termination, Arbitration Act 1996 S.69
Arbitration Commercial Law Maritime Law Bareboat Charterparty Contractual Construction Classification Obligations Conditions and Innominate Terms Right of Termination +1 more

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Summary, issues, holding and outcome

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Parties

Silverburn Shipping (IoM) Ltd

Claimant / Appellant

Ark Shipping Company LLC

Defendant / Respondent

Procedural Posture

Arbitration Appeal (s.69 Arbitration Act 1996) / High Court (commercial Court) Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Whether the obligation in Clause 9A) to keep the vessel with unexpired classification is absolute or qualified by a reasonable time to reinstate expired certificates
  2. 2 Whether the classification obligation is a condition of the contract or an innominate term

Ratio Decidendi

The obligation in Clause 9A) to keep the vessel with unexpired classification and other required certificates in force at all times is an absolute obligation, not qualified by a reasonable time to reinstate. This obligation is a condition of the contract, breach of which entitles the Owners to terminate. The Tribunal erred in law by treating the obligation as intermediate and not absolute.

Court Disposition

Appeal allowed; Tribunal's construction overturned.

Orders

  • Declaration that the classification obligation in Clause 9A) is absolute and a condition of the contract
  • Matter remitted for further determination consistent with this judgment