Bernhard Schulte Shipmanagement (Bermuda) Ltd Partnership v BP Shipping Ltd

Bernhard Schulte Shipmanagement (Bermuda) Ltd Partnership v BP Shipping Ltd

The 2006 side letter substituted for half the 'monthly lumpsum payment' a reference to half the paragraph 4.1 fees, namely US$1,500,000 and £1,067,000, so that on termination, compensation equal to half the annual fee is payable. This construction is supported by the wording of the side letter and the commercial context.

Parties
Claimant: Bernhard Schulte Shipmanagement (Bermuda) Ltd Partnership; Defendant: BP Shipping Ltd
Jurisdiction
England and Wales
Judgment Date
29 January 2009
Procedural Posture
Commercial Contract Dispute / Judgment After Trial
Outcome
Claim allowed
Legal Topics
Interpretation of Contract Terms, Termination Provisions, Compensation on Termination
Contract Law Commercial Law Interpretation of Contract Terms Termination Provisions Compensation on Termination

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Parties

Bernhard Schulte Shipmanagement (Bermuda) Ltd Partnership

Claimant

BP Shipping Ltd

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether the 2006 side letter amended the termination compensation provisions so that half the annual fee was payable or only half a monthly instalment of the annual fee

Ratio Decidendi

The 2006 side letter substituted for half the 'monthly lumpsum payment' a reference to half the paragraph 4.1 fees, namely US$1,500,000 and £1,067,000, so that on termination, compensation equal to half the annual fee is payable. This construction is supported by the wording of the side letter and the commercial context.

Court Disposition

Claim allowed

Orders

  • BP Shipping Ltd to pay Bernhard Schulte Shipmanagement (Bermuda) Ltd Partnership compensation equal to half the annual fee as specified in the contract.