Classic Maritime Inc v Limbungan Makmur SDN BHD [2020] EWHC 619 (Comm) (11 March 2020)

Classic Maritime Inc v Limbungan Makmur SDN BHD [2020] EWHC 619 (Comm) (11 March 2020)

Limbungan was contractually obliged to perform 16 Unscheduled Shipments by 31 December 2017 regardless of Extra Requirements. The extension of the PCL COA breached the Requirements Undertaking, triggering Extra Requirements and requiring earlier performance of Unscheduled Shipments. The force majeure clause did not excuse non-performance as Limbungan failed to prove it would have performed but for the dam burst. The missed 2013 Scheduled Shipment was not cancelled and gives rise to damages for non-performance.

Citation
[2020] EWHC 619 (Comm)
Parties
Claimant: Classic Maritime Inc; First Defendant: Limbungan Makmur Sdn Bhd; Second Defendant: Lion Diversified Holdings Bhd
Jurisdiction
England and Wales
Judgment Date
11 March 2020
Procedural Posture
Commercial Damages Claim (breach of Contract) / High Court Trial Judgment
Outcome
Claim allowed
Legal Topics
Contract Interpretation, Force Majeure, Damages for Breach of Contract, Guarantee Liability, Shipping Contracts, Cross Border Insolvency
Commercial Law Contract Law Shipping Law Insolvency Law Contract Interpretation Force Majeure Damages for Breach of Contract Guarantee Liability +2 more

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Parties

Classic Maritime Inc

Claimant

Limbungan Makmur Sdn Bhd

First Defendant

Lion Diversified Holdings Bhd

Second Defendant

Procedural Posture

Commercial Damages Claim (breach of Contract) / High Court Trial Judgment

Legal Issues

  1. 1 Whether Limbungan was obliged to perform 16 Unscheduled Shipments under the COA regardless of Extra Requirements
  2. 2 Whether the 'Requirements Undertaking' in clause 56.3(d) was breached by extending the PCL COA
  3. 3 Whether the force majeure clause (clause 32) excused non-performance after the dam burst

Ratio Decidendi

Limbungan was contractually obliged to perform 16 Unscheduled Shipments by 31 December 2017 regardless of Extra Requirements. The extension of the PCL COA breached the Requirements Undertaking, triggering Extra Requirements and requiring earlier performance of Unscheduled Shipments. The force majeure clause did not excuse non-performance as Limbungan failed to prove it would have performed but for the dam burst. The missed 2013 Scheduled Shipment was not cancelled and gives rise to damages for non-performance.

Court Disposition

Claim allowed

Orders

  • Judgment for the Claimant against both Defendants for damages for 13 Unscheduled Shipments and the missed 2013 Scheduled Shipment
  • Damages to be assessed in accordance with the judgment