Alpha Marine Corp v Minmetals Logistics Zhejiang Co Ltd (MV Smart) [2021] EWHC 1157 (Comm) (05 May 2021)

Alpha Marine Corp v Minmetals Logistics Zhejiang Co Ltd (MV Smart) [2021] EWHC 1157 (Comm) (05 May 2021)

No implied term restricting Owners' right to revoke Charterers' authority to collect freight is necessary or obvious; the Charterparty works commercially without such a term, and the established duty to account suffices. The Tribunal erred in implying such a term and awarding damages for its breach.

Citation
[2021] EWHC 1157 (Comm)
Parties
Claimant/owners: Alpha Marine Corp; Defendant/charterers: Minmetals Logistics Zhejiang Co. Ltd
Jurisdiction
England and Wales
Judgment Date
05 May 2021
Procedural Posture
Arbitration Appeal / High Court (queen's Bench Division, Commercial Court) Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed
Legal Topics
Implied Terms in Contracts, Time Charterparties, Owners' Right to Collect Freight, Obligation to Account, Arbitration Appeals, Damages for Breach of Contract
Commercial Law Shipping Law Arbitration Implied Terms in Contracts Time Charterparties Owners' Right to Collect Freight Obligation to Account Arbitration Appeals +1 more

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Parties

Alpha Marine Corp

Claimant/owners

Minmetals Logistics Zhejiang Co. Ltd

Defendant/charterers

Procedural Posture

Arbitration Appeal / High Court (queen's Bench Division, Commercial Court) Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Whether the Charterparty contained an implied obligation preventing Owners from revoking Charterers' authority to collect freight unless sums were due under the Charterparty
  2. 2 Whether any such implied term is necessary or obvious under English law
  3. 3 Whether damages for breach of such an implied term were properly awarded

Ratio Decidendi

No implied term restricting Owners' right to revoke Charterers' authority to collect freight is necessary or obvious; the Charterparty works commercially without such a term, and the established duty to account suffices. The Tribunal erred in implying such a term and awarding damages for its breach.

Court Disposition

Appeal allowed

Orders

  • Award set aside insofar as it awarded damages for breach of the implied term found by the Tribunal
  • Matter remitted to the Tribunal for reconsideration of the Charterers' freight counterclaim on the alternative Tortious Basis