Standard Chartered Bank v Dorchester Lng (2) Ltd Re: MT ERIN SCHULTE

Standard Chartered Bank v Dorchester Lng (2) Ltd Re: MT ERIN SCHULTE

SCB became the lawful holder of the bills of lading upon their delivery and indorsement on 4 June 2010, entitling it to sue under the contract of carriage. The Shipowner breached the contract by delivering the cargo without production of the bills. SCB suffered loss as it was deprived of its security interest and the value of the cargo, which it could have realised by sale.

Parties
Claimant: Standard Chartered Bank; Defendant: Dorchester LNG (2) Limited
Jurisdiction
England and Wales
Judgment Date
18 April 2013
Procedural Posture
Commercial Admiralty Claim / Judgment After Trial
Outcome
Judgment for the Claimant (SCB)
Legal Topics
Bills of Lading, Letters of Credit, Title to Sue, Misdelivery of Cargo, Conversion, Security Interests
Commercial Law Admiralty Law Banking Law Bills of Lading Letters of Credit Title to Sue Misdelivery of Cargo Conversion +1 more

Case Brief

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Parties

Standard Chartered Bank

Claimant

Dorchester LNG (2) Limited

Defendant

Procedural Posture

Commercial Admiralty Claim / Judgment After Trial

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 the Shipowner committed a breach of contract by discharging cargo without production of the bills of lading
  3. 3 Whether SCB suffered loss as a result of the Shipowner's actions

Ratio Decidendi

SCB became the lawful holder of the bills of lading upon their delivery and indorsement on 4 June 2010, entitling it to sue under the contract of carriage. The Shipowner breached the contract by delivering the cargo without production of the bills. SCB suffered loss as it was deprived of its security interest and the value of the cargo, which it could have realised by sale.

Court Disposition

Judgment for the Claimant (SCB)

Orders

  • The Shipowner shall pay SCB the sum of US$6,132,355.74, together with interest and costs.