Classic Maritime Inc v Limbungan Makmur SDN BHD

Classic Maritime Inc v Limbungan Makmur SDN BHD

Limbungan was contractually obliged to perform 59 shipments under the COA as amended, including 16 Unscheduled Shipments, regardless of the existence of Extra Requirements. The extension of the PCL COA by Antara breached the Requirements Undertaking, triggering Extra Requirements and requiring Unscheduled Shipments to be declared and performed under the Classic COA. The force majeure defence failed because Limbungan did not prove that, but for the dam burst, it would have performed the shipments. The Missed 2013 Scheduled Shipment was not cancelled by Addendum Number 1 and Classic is entitled to damages for its non-performance. Damages are to be assessed based on the difference between...

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 Contract Claim / Judgment After Trial (defendants Not Appearing)
Outcome
Claim allowed; judgment for the Claimant for substantial damages (quantum to be finalized)
Legal Topics
Contract of Affreightment, Force Majeure, Damages for Breach of Contract, Guarantee Liability, Interpretation of Contractual Terms
Commercial Law Contract Law Shipping Law Contract of Affreightment Force Majeure Damages for Breach of Contract Guarantee Liability Interpretation of Contractual Terms

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Parties

Classic Maritime Inc

Claimant

Limbungan Makmur Sdn Bhd

First Defendant

Lion Diversified Holdings Bhd

Second Defendant

Procedural Posture

Commercial Contract Claim / Judgment After Trial (defendants Not Appearing)

Legal Issues

  1. 1 Whether Limbungan was obliged to perform Unscheduled Shipments under the COA regardless of Extra Requirements
  2. 2 Whether the number of Unscheduled Shipments was 16 or 8
  3. 3 Whether the Lion Group had Extra Requirements triggering earlier Unscheduled Shipments

Ratio Decidendi

Limbungan was contractually obliged to perform 59 shipments under the COA as amended, including 16 Unscheduled Shipments, regardless of the existence of Extra Requirements. The extension of the PCL COA by Antara breached the Requirements Undertaking, triggering Extra Requirements and requiring Unscheduled Shipments to be declared and performed under the Classic COA. The force majeure defence failed because Limbungan did not prove that, but for the dam burst, it would have performed the shipments. The Missed 2013 Scheduled Shipment was not cancelled by Addendum Number 1 and Classic is entitled to damages for its non-performance. Damages are to be assessed based on the difference between...

Court Disposition

Claim allowed; judgment for the Claimant for substantial damages (quantum to be finalized)

Orders

  • Limbungan and Lion Diversified are liable for damages for breach of contract under the COA and guarantee, respectively.
  • Damages to be assessed in accordance with the court's findings on quantum methodology.