Emeraldian Ltd Partnership v Wellmix Shipping Ltd & Anor

Emeraldian Ltd Partnership v Wellmix Shipping Ltd & Anor

The delay in berthing was caused by the unsafety of the nominated berth, which required more than ordinary navigation and seamanship and lacked proper systems for informing masters and pilots of hazards. The demurrage rate is the agreed measure of damages for such delay. The guarantee by the Second Defendant is enforceable under English law, as the parties impliedly chose English law and there is no public policy bar to enforcement, even though the guarantee was issued in breach of Chinese exchange control regulations.

Parties
Claimant: Emeraldian Limited Partnership; First Defendant: Wellmix Shipping Limited; Second Defendant: Guangzhou Iron & Steel Corporation Limited
Jurisdiction
England and Wales
Judgment Date
17 June 2010
Procedural Posture
Commercial Shipping/demurrage/guarantee Claim / Judgment After Trial
Outcome
Judgment for the Claimant against both Defendants
Legal Topics
Demurrage, Safe Berth Warranty, Guarantee Enforcement, Conflict of Laws, Illegality (foreign Law)
Commercial Law Shipping Law Contract Law Demurrage Safe Berth Warranty Guarantee Enforcement Conflict of Laws Illegality (foreign Law)

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 19 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Emeraldian Limited Partnership

Claimant

Wellmix Shipping Limited

First Defendant

Guangzhou Iron & Steel Corporation Limited

Second Defendant

Procedural Posture

Commercial Shipping/demurrage/guarantee Claim / Judgment After Trial

Legal Issues

  1. 1 When did laytime commence under the charterparty?
  2. 2 Does delay in berthing due to repairs count as laytime or is it excepted?
  3. 3 Was there a breach of the safe berth warranty?

Ratio Decidendi

The delay in berthing was caused by the unsafety of the nominated berth, which required more than ordinary navigation and seamanship and lacked proper systems for informing masters and pilots of hazards. The demurrage rate is the agreed measure of damages for such delay. The guarantee by the Second Defendant is enforceable under English law, as the parties impliedly chose English law and there is no public policy bar to enforcement, even though the guarantee was issued in breach of Chinese exchange control regulations.

Court Disposition

Judgment for the Claimant against both Defendants

Orders

  • Judgment against the Charterers (First Defendant) for demurrage (less despatch claim)
  • Judgment against the Guarantor (Second Defendant) for 100% of the Charterers’ liability under the charterparty