Herculito Maritime Ltd & Ors v Gunvor International BV & Ors "POLAR" [2021] EWCA Civ 1828 (01 December 2021)

Herculito Maritime Ltd & Ors v Gunvor International BV & Ors "POLAR" [2021] EWCA Civ 1828 (01 December 2021)

The bills of lading did not exclude the cargo owners' liability to contribute in general average for ransom payments covered by insurance, as the obligation to pay the war risks and K&R insurance premium was not imposed on bill of lading holders, and there were no clear express words or necessary implication to preclude the shipowner's right to claim general average contribution from cargo interests.

Citation
[2021] EWCA Civ 1828
Parties
Respondents/claimants: Herculito Maritime Limited and Others; Appellants/defendants: Gunvor International BV and Others
Jurisdiction
England and Wales
Judgment Date
01 December 2021
Procedural Posture
Appeal From High Court (commercial Court) Under Section 69 Arbitration Act 1996 / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
General Average, Incorporation of Charterparty Terms, War Risks Insurance, Bills of Lading, Piracy, Subrogation, Contract Construction
Maritime Law Commercial Law Insurance Law General Average Incorporation of Charterparty Terms War Risks Insurance Bills of Lading Piracy +2 more

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Parties

Herculito Maritime Limited and Others

Respondents/claimants

Gunvor International BV and Others

Appellants/defendants

Procedural Posture

Appeal From High Court (commercial Court) Under Section 69 Arbitration Act 1996 / Court of Appeal Judgment

Legal Issues

  1. 1 Whether charterparty clauses allocating war risk and K&R insurance premium responsibility preclude shipowner from claiming general average contribution from cargo owners under bills of lading
  2. 2 Whether such clauses are incorporated into bills of lading and, if so, their effect on cargo owners' liability

Ratio Decidendi

The bills of lading did not exclude the cargo owners' liability to contribute in general average for ransom payments covered by insurance, as the obligation to pay the war risks and K&R insurance premium was not imposed on bill of lading holders, and there were no clear express words or necessary implication to preclude the shipowner's right to claim general average contribution from cargo interests.

Court Disposition

Appeal dismissed

Orders

  • Appellants' appeal dismissed
  • Appellants to pay Respondents' costs of £95,000 by 4 p.m. on 15 December 2021