Ease Faith Ltd v Leonis Marine Management Ltd

Ease Faith Ltd v Leonis Marine Management Ltd

Both the sub-towcon and head towcon included undertakings that the 'Kent Reliant' would be in light ballast condition, which was satisfied. Leonis breached the sub-towcon by failing to proceed at utmost dispatch, including delays in February and April 2004 and by operating on one engine for extended periods. Cloudfree breached the head towcon by failing to proceed with all reasonable dispatch. The delays caused Ease Faith to suffer recoverable losses, including a reduced sale price and additional charges. Clause 18.3 did not exclude these direct losses. There was no actionable misrepresentation or estoppel by convention preventing Leonis from recovering from Cloudfree. Cloudfree's...

Parties
Claimant: Ease Faith Limited; Defendant/part 20 Claimant: Leonis Marine Management Limited; 2nd Part 20 Defendant/part 20 Claimant: Cloudfree Ship Management Limited
Jurisdiction
England and Wales
Judgment Date
23 February 2006
Procedural Posture
Commercial Contractual Dispute / Judgment After Trial
Outcome
Judgment for Ease Faith Limited against Leonis Marine Management Limited; Leonis entitled to indemnity from Cloudfree Ship Management Limited; Cloudfree's counterclaims dismissed.
Legal Topics
Towage Contracts, Breach of Contract, Misrepresentation, Damages, Estoppel by Convention, Lien, Interpretation of Exclusion Clauses
Contract Law Maritime Law Towage Contracts Breach of Contract Misrepresentation Damages Estoppel by Convention Lien +1 more

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Parties

Ease Faith Limited

Claimant

Leonis Marine Management Limited

Defendant/part 20 Claimant

Cloudfree Ship Management Limited

2nd Part 20 Defendant/part 20 Claimant

Procedural Posture

Commercial Contractual Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether the tug proceeded at utmost dispatch under the sub-towcon
  2. 2 Whether the 'Kent Reliant' was in light ballast condition as contractually required
  3. 3 Whether there was misrepresentation regarding the condition/displacement of the vessel

Ratio Decidendi

Both the sub-towcon and head towcon included undertakings that the 'Kent Reliant' would be in light ballast condition, which was satisfied. Leonis breached the sub-towcon by failing to proceed at utmost dispatch, including delays in February and April 2004 and by operating on one engine for extended periods. Cloudfree breached the head towcon by failing to proceed with all reasonable dispatch. The delays caused Ease Faith to suffer recoverable losses, including a reduced sale price and additional charges. Clause 18.3 did not exclude these direct losses. There was no actionable misrepresentation or estoppel by convention preventing Leonis from recovering from Cloudfree. Cloudfree's...

Court Disposition

Judgment for Ease Faith Limited against Leonis Marine Management Limited; Leonis entitled to indemnity from Cloudfree Ship Management Limited; Cloudfree's counterclaims dismissed.

Orders

  • Ease Faith's claim for damages against Leonis succeeds for pilot and escort charges and reduced sale price (US$5,818, US$16,363.63, US$101,929.20)
  • Leonis entitled to recover from Cloudfree in respect of liability to Ease Faith, subject to set-off for interest due to Cloudfree (US$505.45)