AIC Ltd v Marine Pilot Ltd [2008] EWCA Civ 175 (07 March 2008)

AIC Ltd v Marine Pilot Ltd [2008] EWCA Civ 175 (07 March 2008)

The charterers were liable for deadfreight because they failed to supply the minimum contractual cargo, despite the availability of alternative loading methods under the charterparty. The provision to load at 'one safe port Ventspils' imposed a warranty by the charterers as to the safety of the port, even though it was specifically named.

Citation
[2008] EWCA Civ 175
Parties
Claimant / Charterers: AIC Limited; Defendant / Owners: Marine Pilot Limited
Jurisdiction
England and Wales
Judgment Date
07 March 2008
Procedural Posture
Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment
Outcome
Owners' appeal on deadfreight allowed; declaration (iii) reinstated. Charterers' appeal on safe port warranty dismissed; declaration (iv) upheld.
Legal Topics
Charterparty Interpretation, Deadfreight Liability, Safe Port Warranty, Arbitration Appeals
Commercial Law Maritime Law Arbitration Charterparty Interpretation Deadfreight Liability Safe Port Warranty Arbitration Appeals

Case Brief

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Parties

AIC Limited

Claimant / Charterers

Marine Pilot Limited

Defendant / Owners

Procedural Posture

Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether charterers are liable for deadfreight when less than the minimum contractual cargo is loaded and alternative loading (STS) was available
  2. 2 Whether a charterparty provision to load at 'one safe port Ventspils' imports a warranty by the charterers as to the safety of the named port

Ratio Decidendi

The charterers were liable for deadfreight because they failed to supply the minimum contractual cargo, despite the availability of alternative loading methods under the charterparty. The provision to load at 'one safe port Ventspils' imposed a warranty by the charterers as to the safety of the port, even though it was specifically named.

Court Disposition

Owners' appeal on deadfreight allowed; declaration (iii) reinstated. Charterers' appeal on safe port warranty dismissed; declaration (iv) upheld.

Orders

  • Declaration (iii): Owners are in principle entitled to claim deadfreight for the difference between the minimum contractual quantity and the quantity loaded on the sixth voyage.
  • Declaration (iv): No objection in principle to owners bringing a claim for damages for breach of safe port/berth warranty in the alternative to deadfreight.