Polestar Maritime Ltd v YHM Shipping Co Ltd & Anor [2011] EWHC 894 (Comm) (16 March 2011)

Polestar Maritime Ltd v YHM Shipping Co Ltd & Anor [2011] EWHC 894 (Comm) (16 March 2011)

Clause 11 of the Saleform 1993 requires the Sellers to deliver the vessel with such certificates as she had at the time of inspection, valid and unextended at the time of delivery, and does not require the procurement of new certificates required by law after inspection but before delivery. Addendum No 1 does not override this obligation. The Sellers are entitled to three banking days after Notice of Readiness to make arrangements, including securing release from detention, to enable delivery of a bill of sale free from detentions.

Citation
[2011] EWHC 894 (Comm)
Parties
Claimant: Polestar Maritime Ltd.; First Defendant: YHM Shipping Co. Ltd.; Second Defendant: Ningyuan Shipping Co. Ltd.
Jurisdiction
England and Wales
Judgment Date
16 March 2011
Procedural Posture
Arbitration Appeal / Judgment on Appeal From Arbitration Award
Outcome
Appeal allowed; award remitted to arbitrator.
Legal Topics
Ship Sale and Purchase, Interpretation of Contractual Terms, Arbitration Appeals, Delivery Obligations, Certificates Required by Law
Commercial Law Maritime Law Contract Law Ship Sale and Purchase Interpretation of Contractual Terms Arbitration Appeals Delivery Obligations Certificates Required by Law

Case Brief

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Parties

Polestar Maritime Ltd.

Claimant

YHM Shipping Co. Ltd.

First Defendant

Ningyuan Shipping Co. Ltd.

Second Defendant

Procedural Posture

Arbitration Appeal / Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 Whether clause 11 of the Saleform 1993 requires delivery of all certificates required by law at the date of delivery or only those held at inspection
  2. 2 Whether Addendum No 1 overrides the obligation to deliver new certificates required by law
  3. 3 Whether Sellers had three banking days to make arrangements to deliver a bill of sale free from detentions

Ratio Decidendi

Clause 11 of the Saleform 1993 requires the Sellers to deliver the vessel with such certificates as she had at the time of inspection, valid and unextended at the time of delivery, and does not require the procurement of new certificates required by law after inspection but before delivery. Addendum No 1 does not override this obligation. The Sellers are entitled to three banking days after Notice of Readiness to make arrangements, including securing release from detention, to enable delivery of a bill of sale free from detentions.

Court Disposition

Appeal allowed; award remitted to arbitrator.

Orders

  • The arbitrator's award is set aside to the extent inconsistent with this judgment.
  • The matter is remitted to the arbitrator for determination in accordance with the court's findings.