Trafigura Maritime Logistics Pte Ltd v Clearlake Shipping Pte Ltd

Trafigura Maritime Logistics Pte Ltd v Clearlake Shipping Pte Ltd

The court held that the charterparty clauses, despite defective drafting and failure to provide LOI wording before charter became unconditional, resulted in enforceable deemed indemnities on International Group P&I Club terms, subject to charterparty qualifications. Clearlake entities were found to have an implied internal indemnity, enabling liabilities to pass down the charter chain. Losses recoverable under the indemnity were limited to profits lost from the cancelled P66 Fixture, less profits earned under the Traf CP during the relevant period, plus arrest expenses, but not hypothetical follow-on fixture profits.

Parties
Claimant: Trafigura Maritime Logistics Pte Ltd; Defendant: Clearlake Shipping Pte Ltd; Claimant: Clearlake Chartering USA Inc; Defendant: Petroleo Brasileiro SA
Jurisdiction
England and Wales
Judgment Date
03 October 2022
Procedural Posture
Commercial Claim / Final Judgment After Trial
Outcome
Claims by Trafigura against CSPL and by CUSA against PBSA succeed in part.
Legal Topics
Indemnity, Charterparty, Bills of Lading, Mis Delivery, Arrest of Vessel, Damages, Novation, Implied Contract
Maritime Law Contract Law Commercial Law Indemnity Charterparty Bills of Lading Mis Delivery Arrest of Vessel +3 more

Case Brief

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Parties

Trafigura Maritime Logistics Pte Ltd

Claimant

Clearlake Shipping Pte Ltd

Defendant

Clearlake Chartering USA Inc

Claimant

Petroleo Brasileiro SA

Defendant

Procedural Posture

Commercial Claim / Final Judgment After Trial

Legal Issues

  1. 1 Construction and enforceability of maritime indemnity clauses
  2. 2 Effect of failure to provide LOI wording before charter became unconditional
  3. 3 Whether discharge orders constituted delivery

Ratio Decidendi

The court held that the charterparty clauses, despite defective drafting and failure to provide LOI wording before charter became unconditional, resulted in enforceable deemed indemnities on International Group P&I Club terms, subject to charterparty qualifications. Clearlake entities were found to have an implied internal indemnity, enabling liabilities to pass down the charter chain. Losses recoverable under the indemnity were limited to profits lost from the cancelled P66 Fixture, less profits earned under the Traf CP during the relevant period, plus arrest expenses, but not hypothetical follow-on fixture profits.

Court Disposition

Claims by Trafigura against CSPL and by CUSA against PBSA succeed in part.

Orders

  • CSPL and PBSA are liable to indemnify Trafigura and CUSA respectively for losses as quantified in the judgment.
  • Quantum to be calculated by agreement or further hearing if disputed.