Havila Kystruten AS v Abarca Companhia De Seguros, SA [2022] EWHC 3196 (Comm) (16 December 2022)

Havila Kystruten AS v Abarca Companhia De Seguros, SA [2022] EWHC 3196 (Comm) (16 December 2022)

The Yard was not entitled to terminate the shipbuilding contracts because the conditions precedent for termination under Addenda 7 and 9 were not satisfied; the Yard's purported termination was itself a repudiatory breach, entitling Havila to terminate and recover instalments paid. The insurance bonds issued by Abarca were on-demand and responded to Havila's claims following valid termination. The Yard was not entitled to damages or further instalments.

Citation
[2022] EWHC 3196 (Comm)
Parties
Claimant in CL 2020 000246; Defendant in CL 2020 000559: Havila Kystruten A. S.; Defendant in CL 2020 000246: Abarca Companhia de Seguros, S. A.; Claimant in CL 2020 000559: Hijos de J Barreras S. A
Jurisdiction
England and Wales
Judgment Date
16 December 2022
Procedural Posture
Commercial Contract Dispute (shipbuilding Contracts and Insurance Bonds) / High Court Trial Judgment
Outcome
Judgment for Havila Kystruten A. S.
Legal Topics
Termination of Contract, Repudiatory Breach, Construction of Contract Terms, On Demand Bonds, Damages for Breach, Waiver of Rights, Insolvency Proceedings
Commercial Law Contract Law Insurance Law Termination of Contract Repudiatory Breach Construction of Contract Terms On Demand Bonds Damages for Breach +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Havila Kystruten A. S.

Claimant in CL 2020 000246; Defendant in CL 2020 000559

Abarca Companhia de Seguros, S. A.

Defendant in CL 2020 000246

Hijos de J Barreras S. A

Claimant in CL 2020 000559

Procedural Posture

Commercial Contract Dispute (shipbuilding Contracts and Insurance Bonds) / High Court Trial Judgment

Legal Issues

  1. 1 Whether the Yard was entitled to terminate the shipbuilding contracts under Addenda 7 or 9
  2. 2 Whether the Yard waived any right to terminate
  3. 3 Whether Havila was entitled to terminate the contracts for repudiatory breach, delay, or insolvency

Ratio Decidendi

The Yard was not entitled to terminate the shipbuilding contracts because the conditions precedent for termination under Addenda 7 and 9 were not satisfied; the Yard's purported termination was itself a repudiatory breach, entitling Havila to terminate and recover instalments paid. The insurance bonds issued by Abarca were on-demand and responded to Havila's claims following valid termination. The Yard was not entitled to damages or further instalments.

Court Disposition

Judgment for Havila Kystruten A. S.

Orders

  • Declaration that the Yard was not entitled to terminate the shipbuilding contracts
  • Declaration that Havila validly terminated the contracts