Tradigrain SA & Ors v King Diamond Marine Ltd "The Spiros C" [2000] EWCA Civ 217 (13 July 2000)

Tradigrain SA & Ors v King Diamond Marine Ltd "The Spiros C" [2000] EWCA Civ 217 (13 July 2000)

The court held that payment of freight under the bill of lading, even if made by deductions agreed with the time charterer and not expressly provided for in the sub-charter, constitutes valid payment discharging the shipper's liability, provided the owner had delegated authority to the time charterer to manage freight collection. The owner's claim for summary judgment for the amount of such deductions failed. The court also held that the owner could not claim freight payable to a third party in debt unless the contract allowed redirection of payment. There is no implied term in every bill of lading that the shipper must discharge the goods in a reasonable time unless such a term is both...

Citation
[2000] EWCA Civ 217
Parties
Defendant/owner: King Diamond Marine Limited; First Claimant/shipper: Tradigrain SA; Second Claimant/shipper: Finagrain Compagnie Commerciale Agricole et Financiere SA; Third Claimant/sub Charterer: Tradigrain Shipping SA
Jurisdiction
England and Wales
Judgment Date
13 July 2000
Procedural Posture
Appeal / Judgment on Appeal From Mr Justice Colman
Outcome
Appeal allowed in respect of the owner's claim for summary judgment for freight; declaration regarding implied term for discharge not granted.
Legal Topics
Bills of Lading, Freight Payment, Charterparty Incorporation, Implied Terms, Demurrage, Lien on Sub Freights
Shipping Law Contract Law Bills of Lading Freight Payment Charterparty Incorporation Implied Terms Demurrage Lien on Sub Freights

Case Brief

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Parties

King Diamond Marine Limited

Defendant/owner

Tradigrain SA

First Claimant/shipper

Finagrain Compagnie Commerciale Agricole et Financiere SA

Second Claimant/shipper

Tradigrain Shipping SA

Third Claimant/sub Charterer

Procedural Posture

Appeal / Judgment on Appeal From Mr Justice Colman

Legal Issues

  1. 1 Whether a shipper is liable to pay freight under a bill of lading when freight under the charter has already been paid
  2. 2 Whether a shipowner can demand payment of freight to himself when the contract stipulates payment to another party
  3. 3 Whether there is an implied term in every bill of lading that the shipper will discharge the goods in a reasonable time

Ratio Decidendi

The court held that payment of freight under the bill of lading, even if made by deductions agreed with the time charterer and not expressly provided for in the sub-charter, constitutes valid payment discharging the shipper's liability, provided the owner had delegated authority to the time charterer to manage freight collection. The owner's claim for summary judgment for the amount of such deductions failed. The court also held that the owner could not claim freight payable to a third party in debt unless the contract allowed redirection of payment. There is no implied term in every bill of lading that the shipper must discharge the goods in a reasonable time unless such a term is both...

Court Disposition

Appeal allowed in respect of the owner's claim for summary judgment for freight; declaration regarding implied term for discharge not granted.

Orders

  • Owner's claim for summary judgment in the sum of $35,931.59 dismissed.
  • Declaration that shippers are not liable under an implied term to discharge within a reasonable time.