AET Inc Ltd v Arcadia Petroleum Ltd

AET Inc Ltd v Arcadia Petroleum Ltd

The court held that, under the proper construction of SAC 22, the original NOR at Escravos was not invalidated because free pratique was granted before berthing and the delay was not the fault of the owners. The special provisions in SAC 22 ([22.5] and [22.6]) applied, meaning the NOR remained valid and laytime commenced 6 hours after the original NOR. Owners' alternative claims based on the 16 January 2007 emails were time-barred as the necessary supporting documents were not provided within the 90-day contractual period.

Parties
Claimant: AET INC LIMITED; Defendant: ARCADIA PETROLEUM LIMITED
Jurisdiction
England and Wales
Judgment Date
08 October 2009
Procedural Posture
Commercial Contract Dispute (voyage Charterparty) / Judgment After Trial
Outcome
Judgment for the claimant (owners succeed on their primary case)
Legal Topics
Demurrage, Voyage Charterparty, Interpretation of Contracts, Implied Terms, Laytime, Notice of Readiness, Time Bar Clauses
Commercial Law Shipping Law Demurrage Voyage Charterparty Interpretation of Contracts Implied Terms Laytime Notice of Readiness +1 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 3 Authorities cited 15 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

AET INC LIMITED

Claimant

ARCADIA PETROLEUM LIMITED

Defendant

Procedural Posture

Commercial Contract Dispute (voyage Charterparty) / Judgment After Trial

Legal Issues

  1. 1 When did laytime commence at Escravos under the charterparty?
  2. 2 Was the original Notice of Readiness (NOR) invalidated by failure to obtain free pratique within 6 hours?
  3. 3 Did the emails of 16 January 2007 constitute valid NORs?

Ratio Decidendi

The court held that, under the proper construction of SAC 22, the original NOR at Escravos was not invalidated because free pratique was granted before berthing and the delay was not the fault of the owners. The special provisions in SAC 22 ([22.5] and [22.6]) applied, meaning the NOR remained valid and laytime commenced 6 hours after the original NOR. Owners' alternative claims based on the 16 January 2007 emails were time-barred as the necessary supporting documents were not provided within the 90-day contractual period.

Court Disposition

Judgment for the claimant (owners succeed on their primary case)

Orders

  • Laytime at Escravos commenced 6 hours after the original NOR tendered at 1148 hours on 15 January 2007.
  • Charterers are liable for demurrage for the period in dispute.