Lia Oil SA v ERG Petroli SPA

Lia Oil SA v ERG Petroli SPA

The claim for demurrage on the LIANO was time-barred as there was no open acknowledgment of liability by ERG within the meaning of section 29(5) of the Limitation Act 1980. The claim for demurrage on the KOGALYM succeeded as the telexes did not vary the laytime provisions of the Frame Contract, and no term could be implied to delay the commencement of laytime.

Parties
Claimant: Lia Oil S. A.; Defendant: ERG Petroli S. P. A.
Jurisdiction
England and Wales
Judgment Date
13 March 2007
Procedural Posture
Commercial / Judgment After Trial
Outcome
Claim for LIANO dismissed as time-barred; claim for KOGALYM succeeds for principal and interest, costs reserved.
Legal Topics
Demurrage, Laytime, Limitation of Actions, Contract Variation, Interpretation of Commercial Contracts
Contract Law Commercial Law Demurrage Laytime Limitation of Actions Contract Variation Interpretation of Commercial Contracts

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Parties

Lia Oil S. A.

Claimant

ERG Petroli S. P. A.

Defendant

Procedural Posture

Commercial / Judgment After Trial

Legal Issues

  1. 1 Whether the claim for demurrage on the MT LIANO is time-barred under the Limitation Act 1980 or contractually barred for lack of supporting documents.
  2. 2 Whether the telexes exchanged between the parties varied the laytime provisions of the Frame Contract for the KOGALYM shipment.

Ratio Decidendi

The claim for demurrage on the LIANO was time-barred as there was no open acknowledgment of liability by ERG within the meaning of section 29(5) of the Limitation Act 1980. The claim for demurrage on the KOGALYM succeeded as the telexes did not vary the laytime provisions of the Frame Contract, and no term could be implied to delay the commencement of laytime.

Court Disposition

Claim for LIANO dismissed as time-barred; claim for KOGALYM succeeds for principal and interest, costs reserved.

Orders

  • Claim for US$9,505.21 in respect of the LIANO dismissed.
  • Claim for US$63,035.07 in respect of the KOGALYM succeeds with interest to be determined.