Pentonville Shipping Ltd. v Transfield Shipping Inc (MV Johnny K)

Pentonville Shipping Ltd. v Transfield Shipping Inc (MV Johnny K)

The arbitrators’ finding that the order to sail was given by the port authorities and not attributable to the charterers was not clearly or consistently expressed, and the arbitrators may not have addressed or applied the correct legal test for attribution. The owners’ claim for deadfreight/damages depends on whether the order to sail is attributable to the charterers. The matter is remitted to the arbitrators for reconsideration in light of the court’s determination.

Parties
Claimant (disponent Owners): Pentonville Shipping Ltd; Respondent (charterers): Transfield Shipping Inc
Jurisdiction
England and Wales
Judgment Date
10 February 2006
Procedural Posture
Commercial Arbitration Appeal / Judgment on Appeal From Arbitral Award
Outcome
Remitted to arbitrators for reconsideration
Legal Topics
Deadfreight, Demurrage, Charterparty Obligations, Causation, Attribution of Orders
Maritime Law Commercial Law Arbitration Deadfreight Demurrage Charterparty Obligations Causation Attribution of Orders

Case Brief

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Parties

Pentonville Shipping Ltd

Claimant (disponent Owners)

Transfield Shipping Inc

Respondent (charterers)

Procedural Posture

Commercial Arbitration Appeal / Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Whether charterers are liable for deadfreight/damages when vessel sails without full cargo due to order to vacate berth
  2. 2 Whether the order to sail is attributable to the charterers or is an act of the port/terminal authorities
  3. 3 Whether the arbitrators correctly applied the principles of causation and contractual responsibility

Ratio Decidendi

The arbitrators’ finding that the order to sail was given by the port authorities and not attributable to the charterers was not clearly or consistently expressed, and the arbitrators may not have addressed or applied the correct legal test for attribution. The owners’ claim for deadfreight/damages depends on whether the order to sail is attributable to the charterers. The matter is remitted to the arbitrators for reconsideration in light of the court’s determination.

Court Disposition

Remitted to arbitrators for reconsideration

Orders

  • The part of the award dismissing the owners’ claim for deadfreight/damages and consequential costs is remitted to the arbitrators for reconsideration under s.69(7)(c) Arbitration Act 1996.