Navision Shipping AS v Precious Pearls Ltd (mv Mookda Naree)

Navision Shipping AS v Precious Pearls Ltd (mv Mookda Naree)

The arbitrators did not err in law in holding that Cerealis' failure to act promptly to secure or settle SMG's claim, once aware of the arrest, was an 'omission' within clause 47, so the vessel was not off hire after 12:00 hrs on 17 December 2018. However, the arbitrators erred in law in construing clause 86 to cover SMG's claim, as 'cargo claims' in that clause are limited to claims concerning cargo carried under the charter, not unrelated cargoes or vessels.

Parties
Claimant (claim 119), Defendant (claim 138): Navision Shipping A/S; Defendant (claim 119): Precious Pearls Ltd; Claimant (claim 138): Conti Lines Shipping NV
Jurisdiction
England and Wales
Judgment Date
10 March 2021
Procedural Posture
Commercial Arbitration Appeal / Judgment on Appeal From Arbitration Awards
Outcome
Conti's appeal dismissed; Navision's appeal allowed in part
Legal Topics
Charterparty Interpretation, Off Hire Clauses, Cargo Claims, Arrest of Vessel, Construction of Contractual Terms
Maritime Law Commercial Law Arbitration Charterparty Interpretation Off Hire Clauses Cargo Claims Arrest of Vessel Construction of Contractual Terms

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Navision Shipping A/S

Claimant (claim 119), Defendant (claim 138)

Precious Pearls Ltd

Defendant (claim 119)

Conti Lines Shipping NV

Claimant (claim 138)

Procedural Posture

Commercial Arbitration Appeal / Judgment on Appeal From Arbitration Awards

Legal Issues

  1. 1 Proper construction of off-hire clause 47 in time charterparty
  2. 2 Meaning of 'omission' by sub-charterer under clause 47
  3. 3 Scope of 'cargo claims' under clause 86 in head charter

Ratio Decidendi

The arbitrators did not err in law in holding that Cerealis' failure to act promptly to secure or settle SMG's claim, once aware of the arrest, was an 'omission' within clause 47, so the vessel was not off hire after 12:00 hrs on 17 December 2018. However, the arbitrators erred in law in construing clause 86 to cover SMG's claim, as 'cargo claims' in that clause are limited to claims concerning cargo carried under the charter, not unrelated cargoes or vessels.

Court Disposition

Conti's appeal dismissed; Navision's appeal allowed in part

Orders

  • Award in sub-charter reference (Conti v Navision) affirmed; vessel not off hire after 12:00 hrs on 17 December 2018.
  • Award in head charter reference (Navision v Precious Pearls) set aside in part; matter remitted to arbitrators to determine hire and damages in accordance with judgment.