Great Eastern Shipping Company Ltd v Far East Chartering Ltd & Anor [2011] EWHC 1372 (Comm) (05 May 2011)

Great Eastern Shipping Company Ltd v Far East Chartering Ltd & Anor [2011] EWHC 1372 (Comm) (05 May 2011)

The claimant shipowners are entitled to enforce the LOI as agents of the charterers under the Contracts (Rights of Third Parties) Act 1999. Delivery occurred within the meaning of the LOI when the cargo was discharged and made available to Binani, including via barges or the port authority. There is no public policy bar to enforcement as the dispute was bona fide and not manifestly unlawful.

Citation
[2011] EWHC 1372 (Comm)
Parties
Claimant: Great Eastern Shipping Company Limited; First Defendant: Far East Chartering Limited; Second Defendant: Binani Cement Limited
Jurisdiction
England and Wales
Judgment Date
05 May 2011
Procedural Posture
Commercial Claim (shipping/indemnity) / High Court Trial Judgment
Outcome
Claim succeeds on primary argument; quantum deferred.
Legal Topics
Letter of Indemnity, Third Party Rights, Delivery of Goods, Public Policy in Contracts, Unilateral Contracts
Commercial Law Shipping Law Contract Law Letter of Indemnity Third Party Rights Delivery of Goods Public Policy in Contracts Unilateral Contracts

Case Brief

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Parties

Great Eastern Shipping Company Limited

Claimant

Far East Chartering Limited

First Defendant

Binani Cement Limited

Second Defendant

Procedural Posture

Commercial Claim (shipping/indemnity) / High Court Trial Judgment

Legal Issues

  1. 1 Whether the claimant shipowners can enforce a Letter of Indemnity (LOI) issued by cargo receivers under the Contracts (Rights of Third Parties) Act 1999 or as a unilateral contract
  2. 2 Whether delivery of cargo occurred within the meaning of the LOI
  3. 3 Whether public policy precludes enforcement of the LOI

Ratio Decidendi

The claimant shipowners are entitled to enforce the LOI as agents of the charterers under the Contracts (Rights of Third Parties) Act 1999. Delivery occurred within the meaning of the LOI when the cargo was discharged and made available to Binani, including via barges or the port authority. There is no public policy bar to enforcement as the dispute was bona fide and not manifestly unlawful.

Court Disposition

Claim succeeds on primary argument; quantum deferred.

Orders

  • Parties to make further submissions on quantum and form of order at hand-down.
  • Draft order and corrections to be submitted before hand-down.