Onego Shipping & Chartering BV v JSC Arcadia Shipping [2010] EWHC 777 (Comm) (23 April 2010)

Onego Shipping & Chartering BV v JSC Arcadia Shipping [2010] EWHC 777 (Comm) (23 April 2010)

The Hague/Hague-Visby Rules, when incorporated into a charterparty, do not apply to deck cargo unless the bill of lading contains an on-deck statement; the relevant 'contract of carriage' for Article 1(c) is the bill of lading, not the charterparty. Clause 13(b) of the NYPE 1993 Form does not indemnify owners for loss, damage, or liability effectively caused by their own negligence or breach of seaworthiness; clear words are required to achieve such an indemnity, and the clause is construed as covering only losses effectively caused by the carriage of deck cargo, not by owners' fault.

Citation
[2010] EWHC 777 (Comm)
Parties
Claimant (charterers): Onego Shipping & Chartering BV; Defendant (owners): JSC Arcadia Shipping
Jurisdiction
England and Wales
Judgment Date
23 April 2010
Procedural Posture
Appeal Under Arbitration Act 1996, S.69 / High Court (commercial Court) Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed in part; Tribunal's construction of Clause 13(b) overturned.
Legal Topics
Time Charterparties, Deck Cargo, Hague Visby Rules, Indemnity Clauses, Exclusion of Liability, Seaworthiness, Interpretation of Contracts
Shipping Law Commercial Law Arbitration Time Charterparties Deck Cargo Hague Visby Rules Indemnity Clauses Exclusion of Liability +2 more

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Parties

Onego Shipping & Chartering BV

Claimant (charterers)

JSC Arcadia Shipping

Defendant (owners)

Procedural Posture

Appeal Under Arbitration Act 1996, S.69 / High Court (commercial Court) Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Does incorporation of the Hague/Hague-Visby Rules into a charterparty apply to deck cargo absent an on-deck statement in the charterparty?
  2. 2 What is the scope of indemnity under Clause 13(b) of the NYPE 1993 Form—does it cover loss caused by owners' negligence or unseaworthiness?

Ratio Decidendi

The Hague/Hague-Visby Rules, when incorporated into a charterparty, do not apply to deck cargo unless the bill of lading contains an on-deck statement; the relevant 'contract of carriage' for Article 1(c) is the bill of lading, not the charterparty. Clause 13(b) of the NYPE 1993 Form does not indemnify owners for loss, damage, or liability effectively caused by their own negligence or breach of seaworthiness; clear words are required to achieve such an indemnity, and the clause is construed as covering only losses effectively caused by the carriage of deck cargo, not by owners' fault.

Court Disposition

Appeal allowed in part; Tribunal's construction of Clause 13(b) overturned.

Orders

  • Hague/Hague-Visby Rules do not apply to deck cargo absent an on-deck statement in the bill of lading.
  • Clause 13(b) does not indemnify owners for loss, damage, or liability caused by their own negligence or unseaworthiness.