Standard Chartered Bank v Dorchester Lng (2) Ltd Re: MT ERIN SCHULTE [2013] EWHC 808 (Comm) (18 April 2013)

Standard Chartered Bank v Dorchester Lng (2) Ltd Re: MT ERIN SCHULTE [2013] EWHC 808 (Comm) (18 April 2013)

SCB became the lawful holder of the bills of lading upon delivery and indorsement on 4 June 2010, entitling it to sue under COGSA 1992. The Shipowner breached the contract of carriage by delivering the cargo without production of the bills. SCB suffered loss equal to the value of the cargo, as its security interest as pledgee was undermined.

Citation
[2013] EWHC 808 (Comm)
Parties
Claimant: Standard Chartered Bank; Defendant: Dorchester LNG (2) Limited
Jurisdiction
England and Wales
Judgment Date
18 April 2013
Procedural Posture
Commercial Claim for Damages (misdelivery/conversion Under Bills of Lading) / High Court (admiralty Court) Judgment
Outcome
Judgment for the Claimant (Standard Chartered Bank)
Legal Topics
Bills of Lading, Carriage of Goods by Sea Act 1992, Letters of Credit, Title to Sue, Misdelivery of Cargo, Bank Security Interests
Commercial Law Shipping Law Banking Law Bills of Lading Carriage of Goods by Sea Act 1992 Letters of Credit Title to Sue Misdelivery of Cargo +1 more

Case Brief

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Parties

Standard Chartered Bank

Claimant

Dorchester LNG (2) Limited

Defendant

Procedural Posture

Commercial Claim for Damages (misdelivery/conversion Under Bills of Lading) / High Court (admiralty Court) Judgment

Legal Issues

  1. 1 Whether Standard Chartered Bank (SCB) had title to sue as lawful holder of the bills of lading under COGSA 1992
  2. 2 Whether delivery of cargo without production of bills of lading was a breach of contract by the Shipowner
  3. 3 Whether SCB suffered loss as a result of the Shipowner's breach

Ratio Decidendi

SCB became the lawful holder of the bills of lading upon delivery and indorsement on 4 June 2010, entitling it to sue under COGSA 1992. The Shipowner breached the contract of carriage by delivering the cargo without production of the bills. SCB suffered loss equal to the value of the cargo, as its security interest as pledgee was undermined.

Court Disposition

Judgment for the Claimant (Standard Chartered Bank)

Orders

  • Defendant to pay SCB US$6,132,355.74 in damages
  • Defendant to pay interest and costs