Geoquip Marine Operations AG v Tower Resources Cameroon SA & Anor

Geoquip Marine Operations AG v Tower Resources Cameroon SA & Anor

Following waiver of the condition precedent, Tower remained obligated to secure the licence extension and permits. Clause 4.5 applied to delays caused by Tower’s failure to provide security and/or licence extension, entitling Geoquip to standby charges regardless of which cause was dominant, as Tower was responsible for both.

Parties
Claimant/appellant: Geoquip Marine Operations AG; Defendant/respondent: Tower Resources Cameroon SA; Defendant/respondent: Tower Resources PLC
Jurisdiction
England and Wales
Judgment Date
21 March 2023
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed in part
Legal Topics
Contractual Interpretation, Waiver of Condition Precedent, Concurrent Causation, Standby Charges, Remuneration Under Contract
Contract Law Commercial Law Contractual Interpretation Waiver of Condition Precedent Concurrent Causation Standby Charges Remuneration Under Contract

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Parties

Geoquip Marine Operations AG

Claimant/appellant

Tower Resources Cameroon SA

Defendant/respondent

Tower Resources PLC

Defendant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Geoquip can claim standby charges for delays caused by Tower's failure to provide security for the Vessel under clause 4.5
  2. 2 Whether the judge was correct to hold that Geoquip could not recover standby charges for delay under clause 4.5 due to the contract being conditional on licence extension
  3. 3 Whether the judge ought to have found that the only operative cause of delay was the absence of a Presidential decree confirming the licence extension

Ratio Decidendi

Following waiver of the condition precedent, Tower remained obligated to secure the licence extension and permits. Clause 4.5 applied to delays caused by Tower’s failure to provide security and/or licence extension, entitling Geoquip to standby charges regardless of which cause was dominant, as Tower was responsible for both.

Court Disposition

Appeal allowed in part

Orders

  • Geoquip is entitled to judgment for an additional sum of US$1,619,541.69 in respect of standby charges for delays caused by Tower’s failure to secure a necessary licence extension and to provide security for the Vessel.
  • Permission to amend appellant’s notice refused.