Agile Holdings Corporation v Essar Shipping Ltd [2018] EWHC 1055 (Comm) (11 May 2018)

Agile Holdings Corporation v Essar Shipping Ltd [2018] EWHC 1055 (Comm) (11 May 2018)

Clause 49 of the charterparty does not constitute a 'similar amendment' under clause (8)(b) of the ICA because it only transfers responsibility for stowage, not all aspects of cargo handling, to the owner/master. Therefore, the 50/50 apportionment does not apply and Essar is 100% liable for the cargo claim.

Source-derived case information.

Citation
[2018] EWHC 1055 (Comm)
Parties
Claimant: Agile Holdings Corporation; Defendant: Essar Shipping Ltd
Jurisdiction
England and Wales
Judgment Date
11 May 2018
Procedural Posture
Appeal Under S69 Arbitration Act 1996 / Judgment on Appeal From Arbitration Award
Outcome
Appeal allowed
Legal Topics
Interpretation of Inter Club Agreement, Charterparty Clauses, Apportionment of Liability for Cargo Claims, Effect of 'similar Amendment' in ICA
Arbitration Shipping Law Contract Law Interpretation of Inter Club Agreement Charterparty Clauses Apportionment of Liability for Cargo Claims Effect of 'similar Amendment' in ICA

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Parties

Agile Holdings Corporation

Claimant

Essar Shipping Ltd

Defendant

Procedural Posture

Appeal Under S69 Arbitration Act 1996 / Judgment on Appeal From Arbitration Award

  1. 1 Whether clause 49 of the charterparty constitutes a 'similar amendment' under clause (8)(b) of the Inter-Club Agreement, thereby triggering a 50/50 apportionment of liability for cargo claims
  2. 2 Whether a partial transfer of cargo handling responsibilities to the owner is sufficient to engage the 'similar amendment' proviso

Ratio Decidendi

Clause 49 of the charterparty does not constitute a 'similar amendment' under clause (8)(b) of the ICA because it only transfers responsibility for stowage, not all aspects of cargo handling, to the owner/master. Therefore, the 50/50 apportionment does not apply and Essar is 100% liable for the cargo claim.

Court Disposition

Appeal allowed

Orders

  • Arbitrators' finding of 50/50 apportionment set aside
  • Essar Shipping Ltd held 100% liable for the cargo claim under the ICA