Transgrain Shipping (Singapore) Pte Ltd v Yangtze Navigation (Hong Kong) Co Ltd [2017] EWCA Civ 2107 (13 December 2017)

The word 'act' in clause 8(d) of the Inter-Club Agreement 1996 is to be given its natural meaning and does not require culpability; liability is apportioned based on causation, not fault.

Citation: [2017] EWCA Civ 2107
Parties: Claimant/respondent in the Arbitration/charterers: TRANSGRAIN SHIPPING (SINGAPORE) PTE LTD; Defendant/claimant in the Arbitration/owners: YANGTZE NAVIGATION (HONG KONG) CO LTD
Jurisdiction: England and Wales
Judgment Date: 13 December 2017
Procedural Posture: Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment
Outcome: Appeal dismissed
Legal Topics: Interpretation of Inter Club Agreement, Apportionment of Cargo Claims, Meaning of 'act or Neglect', Charterparty Liability

Shipping Law Commercial Law Contract Law Interpretation of Inter Club Agreement Apportionment of Cargo Claims Meaning of 'act or Neglect' Charterparty Liability

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Parties

TRANSGRAIN SHIPPING (SINGAPORE) PTE LTD

Claimant/respondent in the Arbitration/charterers

YANGTZE NAVIGATION (HONG KONG) CO LTD

Defendant/claimant in the Arbitration/owners

Procedural Posture

Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment

Legal Issues

1 Whether 'act' in 'act or neglect' in clause 8(d) of the Inter-Club Agreement 1996 requires culpability or includes any act
2 Whether liability under clause 8(d) is fault-based or causation-based

Ratio Decidendi

The word 'act' in clause 8(d) of the Inter-Club Agreement 1996 is to be given its natural meaning and does not require culpability; liability is apportioned based on causation, not fault.

Court Disposition

Appeal dismissed

Orders

The Appeal is dismissed.
The Claimant to pay the Defendants' costs of the Appeal in the amount of £40,000, payable within 14 days.