Trafigura Maritime Logistics PTE Ltd v Clearlake Shipping PTE Ltd

Trafigura Maritime Logistics PTE Ltd v Clearlake Shipping PTE Ltd

The Defendant is contractually obliged under clause 33(6) of the charterparty, as amended by the Addendum, to provide security for the release of the vessel and to indemnify the Claimant. The clause operates without the need for a separate LOI, and the Defendant's conduct amounted to waiver or estoppel of any requirement for a separate LOI or for provision of LOI wording before the fixture. The urgency and inadequacy of damages justify mandatory injunctive relief.

Parties
Claimant/applicant: Trafigura Maritime Logistics Pte Ltd; Defendant/respondent: Clearlake Shipping Pte Ltd
Jurisdiction
England and Wales
Judgment Date
26 March 2020
Procedural Posture
Commercial Court Application for Urgent Mandatory Injunction / Interlocutory Application, Judgment on Urgent Injunction
Outcome
Injunction granted in favour of the Claimant
Legal Topics
Charterparty Indemnities, Mandatory Injunctions, Letters of Indemnity, Urgent Relief, Jurisdiction Clauses
Commercial Law Maritime Law Charterparty Indemnities Mandatory Injunctions Letters of Indemnity Urgent Relief Jurisdiction Clauses

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Parties

Trafigura Maritime Logistics Pte Ltd

Claimant/applicant

Clearlake Shipping Pte Ltd

Defendant/respondent

Procedural Posture

Commercial Court Application for Urgent Mandatory Injunction / Interlocutory Application, Judgment on Urgent Injunction

Legal Issues

  1. 1 Whether the Defendant is contractually obliged to provide security for the release of the vessel under the indemnity clause in the charterparty
  2. 2 Whether the indemnity clause was properly invoked and binding on the Defendant
  3. 3 Whether a separate LOI was required or the clause itself sufficed

Ratio Decidendi

The Defendant is contractually obliged under clause 33(6) of the charterparty, as amended by the Addendum, to provide security for the release of the vessel and to indemnify the Claimant. The clause operates without the need for a separate LOI, and the Defendant's conduct amounted to waiver or estoppel of any requirement for a separate LOI or for provision of LOI wording before the fixture. The urgency and inadequacy of damages justify mandatory injunctive relief.

Court Disposition

Injunction granted in favour of the Claimant

Orders

  • Defendant to provide to Natixis such bail or other security as may be required to secure the release of the vessel MT 'Miracle Hope'
  • Defendant to supply head owners with sufficient funds to defend any proceedings brought by Natixis in connection with the delivery of the cargo, upon demand