Yilport Konteyner Terminali Ve Liman Isletmeleri AS v Buxcliff KG & Ors [2012] EWHC 3289 (Comm) (21 November 2012)

Yilport Konteyner Terminali Ve Liman Isletmeleri AS v Buxcliff KG & Ors [2012] EWHC 3289 (Comm) (21 November 2012)

The LOI provided by the Third Defendant did not operate as a guarantee for the Claimant's charges for discharging the vessel, but only indemnified against fortuitous losses or damages. The LOU entitled the Claimant to charge in accordance with its General Terms and Conditions, which allowed for uplifted rates and additional charges in the case of damaged vessels and containers, subject to an implied term of reasonableness. The Claimant's charges, including the 70% uplift and additional costs, were found to be reasonable in the exceptional circumstances, and the Claimant was entitled to recover the sum claimed, less any items withdrawn or not proved.

Citation
[2012] EWHC 3289 (Comm)
Parties
Claimant: Yilport Konteyner Terminali ve Liman Isletmeleri AS; First Defendant: Buxcliff KG; Second Defendant: Niederelbe Schiffahrtgesellschaft MGH & Co KG; Third Defendant: Sveriges Angfartygs Assurans Forening
Jurisdiction
England and Wales
Judgment Date
21 November 2012
Procedural Posture
Commercial Claim for Port Charges and Indemnity / High Court Trial Judgment
Outcome
Claim allowed in part; Claimant entitled to recover US$1,380,977 less any deductions for withdrawn or unproven items.
Legal Topics
Construction of Indemnity and Undertaking Agreements, Reasonableness of Charges Under Port Terms, Scope of Liability Under LOI and LOU, Implied Terms in Commercial Contracts
Contract Law Maritime Law Commercial Law Construction of Indemnity and Undertaking Agreements Reasonableness of Charges Under Port Terms Scope of Liability Under LOI and LOU Implied Terms in Commercial Contracts

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Parties

Yilport Konteyner Terminali ve Liman Isletmeleri AS

Claimant

Buxcliff KG

First Defendant

Niederelbe Schiffahrtgesellschaft MGH & Co KG

Second Defendant

Sveriges Angfartygs Assurans Forening

Third Defendant

Procedural Posture

Commercial Claim for Port Charges and Indemnity / High Court Trial Judgment

Legal Issues

  1. 1 Whether the Third Defendant's Letter of Indemnity (LOI) covers the Claimant's charges for discharging the vessel
  2. 2 Whether the Claimant is entitled to charge uplifted rates and additional costs under its General Terms and Conditions via the Letter of Undertaking (LOU)
  3. 3 What is the applicable standard for reasonableness of charges under the contract

Ratio Decidendi

The LOI provided by the Third Defendant did not operate as a guarantee for the Claimant's charges for discharging the vessel, but only indemnified against fortuitous losses or damages. The LOU entitled the Claimant to charge in accordance with its General Terms and Conditions, which allowed for uplifted rates and additional charges in the case of damaged vessels and containers, subject to an implied term of reasonableness. The Claimant's charges, including the 70% uplift and additional costs, were found to be reasonable in the exceptional circumstances, and the Claimant was entitled to recover the sum claimed, less any items withdrawn or not proved.

Court Disposition

Claim allowed in part; Claimant entitled to recover US$1,380,977 less any deductions for withdrawn or unproven items.

Orders

  • Defendants to pay the Claimant US$1,380,977 (being US$3,380,977 less US$2,000,000 already paid) subject to any further deductions as specified in the judgment.
  • Claimant entitled to recover US$15,000 in legal fees as costs.