Osmium Shipping Corp v Cargill International SA

Osmium Shipping Corp v Cargill International SA

The wording, structure, and punctuation of clause 56 make 'capture/seizure' a separate, unqualified off-hire event, covering seizure by pirates; the Conwartime clause does not negate the operation of the off-hire clause.

Source-derived case information.

Parties
Claimant: Osmium Shipping Corporation; Defendant: Cargill International SA
Jurisdiction
England and Wales
Judgment Date
13 March 2012
Procedural Posture
Appeal From Arbitration Award / Judgment
Outcome
Appeal dismissed
Legal Topics
Charterparty Interpretation, Off Hire Clauses, Piracy, Allocation of Risk
Maritime Law Contract Law Charterparty Interpretation Off Hire Clauses Piracy Allocation of Risk

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Parties

Osmium Shipping Corporation

Claimant

Cargill International SA

Defendant

Procedural Posture

Appeal From Arbitration Award / Judgment

Legal Issues

  1. 1 Whether hijacking by pirates constitutes an off-hire event under clause 56 of the charterparty
  2. 2 Construction of 'capture/seizure' in clause 56
  3. 3 Effect of Conwartime 2004 clause on allocation of piracy risk

Ratio Decidendi

The wording, structure, and punctuation of clause 56 make 'capture/seizure' a separate, unqualified off-hire event, covering seizure by pirates; the Conwartime clause does not negate the operation of the off-hire clause.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs unless parties wish to address peculiar issues of costs