St.Maximus Shipping Co.Ltd. v A.P. Moller-Maersk A/S

St.Maximus Shipping Co.Ltd. v A.P. Moller-Maersk A/S

The Letter of Undertaking obliges Maersk to pay the sum ascertained to be due in the Adjustment prepared by the Average Adjusters; Maersk is bound by the Adjustment and the determinations therein, including the Adjusters’ fees and sums due under the Non-Separation Agreement. There is no estoppel by representation, and no basis for rectification for common mistake.

Parties
Claimant: St. Maximus Shipping Co. Ltd; Defendant: A. P. Moller-Maersk A/S
Jurisdiction
England and Wales
Judgment Date
22 May 2014
Procedural Posture
Commercial Dispute / Trial of Preliminary Issues
Outcome
Preliminary issues determined in favour of the Claimant on construction and binding effect of the Adjustment; no estoppel or rectification.
Legal Topics
General Average, Letters of Undertaking, Contract Construction, Estoppel, Rectification
Maritime Law Contract Law General Average Letters of Undertaking Contract Construction Estoppel Rectification

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Parties

St. Maximus Shipping Co. Ltd

Claimant

A. P. Moller-Maersk A/S

Defendant

Procedural Posture

Commercial Dispute / Trial of Preliminary Issues

Legal Issues

  1. 1 Whether the defendant is bound, on a proper construction of the Letter of Undertaking, to pay the proportion of any general average and/or special charges as ascertained in the Adjustment
  2. 2 Whether the claimant is estopped by representation from asserting the defendant is so bound
  3. 3 Whether the Letter of Undertaking should be rectified for common mistake

Ratio Decidendi

The Letter of Undertaking obliges Maersk to pay the sum ascertained to be due in the Adjustment prepared by the Average Adjusters; Maersk is bound by the Adjustment and the determinations therein, including the Adjusters’ fees and sums due under the Non-Separation Agreement. There is no estoppel by representation, and no basis for rectification for common mistake.

Court Disposition

Preliminary issues determined in favour of the Claimant on construction and binding effect of the Adjustment; no estoppel or rectification.

Orders

  • Maersk is obliged to pay the sum ascertained to be due in the Adjustment.
  • Maersk is bound by the Adjusters’ determinations, including their fees and sums due under the Non-Separation Agreement.