Hyundai Merchant Marine Co Ltd v Daelim Corporation

Hyundai Merchant Marine Co Ltd v Daelim Corporation

Overperformance for the purposes of clause 42 means consumption less than 38 mt per day; as consumption was not less than 38 mt per day, no credit is due for overperformance. Overperformance in one period cannot be set off against underperformance in another period; calculations are to be made on a yearly basis as per clause 24.

Parties
Claimant: Hyundai Merchant Marine Co Ltd; Defendant/part 20 Claimant: Daelim Corporation; Part 20 Defendant: Trafigura Beheer BV
Jurisdiction
England and Wales
Judgment Date
21 June 2012
Procedural Posture
Commercial / Judgment on Preliminary Issues
Outcome
Claim dismissed as to credit for overperformance; no set-off allowed between periods.
Legal Topics
Charterparty Construction, Contract Interpretation, Speed and Consumption Warranties
Commercial Law Maritime Law Charterparty Construction Contract Interpretation Speed and Consumption Warranties

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Parties

Hyundai Merchant Marine Co Ltd

Claimant

Daelim Corporation

Defendant/part 20 Claimant

Trafigura Beheer BV

Part 20 Defendant

Procedural Posture

Commercial / Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether owners are entitled to a credit for bunkers saved during the first period of the charter
  2. 2 Whether savings should be calculated by reference to 38 mt or 42 mt per day
  3. 3 Whether overperformance in one period can be set off against underperformance in another period

Ratio Decidendi

Overperformance for the purposes of clause 42 means consumption less than 38 mt per day; as consumption was not less than 38 mt per day, no credit is due for overperformance. Overperformance in one period cannot be set off against underperformance in another period; calculations are to be made on a yearly basis as per clause 24.

Court Disposition

Claim dismissed as to credit for overperformance; no set-off allowed between periods.

Orders

  • No credit to be given for overperformance pursuant to clause 42 of the charterparty.
  • Overperformance in one period cannot be set off against underperformance in another period.