Korea Shipbuilding & Offshore Engineering Co, Ltd & Anor v Whale Corporation TMT Co Ltd

Korea Shipbuilding & Offshore Engineering Co, Ltd & Anor v Whale Corporation TMT Co Ltd

Defendants are liable for the outstanding deferred contract price and CINO payments under the shipbuilding contracts and guarantees, as the agreements and amendments were valid and enforceable, demands for payment were validly made, limitation periods were observed for most claims, and US Chapter XI proceedings did...

Source-derived case information.

Parties
Claimant: Korea Shipbuilding & Offshore Engineering Co., Ltd; Claimant: Hyundai Heavy Industries Co., Ltd; Claimant: Hyundai Samho Heavy Industries Co., Ltd; Defendant: F Whale Corporation; Defendant: TMT Co., Ltd; Defendant: B Ladybug Corporation; Defendant: E Elephant Inc; Defendant: Iron Monger 2 Co., Ltd; Defendant: F Duckling Corporation; Defendant: Estable Shipping S.A.; Defendant: Admirar Vista Shipping S.A.; Defendant: A Max Corporation; Defendant: Iron Monger 8 Co., Ltd
Jurisdiction
England and Wales
Judgment Date
19 March 2020
Procedural Posture
Commercial Claim (shipbuilding Contracts, Guarantees, Deferred Payments) / Final Judgment After Trial (defendants Unrepresented, Judgment in Default of Appearance)
Outcome
Judgment for the Claimants (in part); certain claims dismissed as time-barred or compromised; quantum to be finalised by counsel's draft order.
Legal Topics
Shipbuilding Contracts, Guarantees, Deferred Payments, Limitation of Actions, Bankruptcy and Insolvency, Enforcement of Security, Interpretation of Contracts
Commercial Law Contract Law Banking and Finance Maritime Law Shipbuilding Contracts Guarantees Deferred Payments Limitation of Actions +3 more

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Summary, issues, holding and outcome

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Parties

Korea Shipbuilding & Offshore Engineering Co., Ltd

Claimant

Hyundai Heavy Industries Co., Ltd

Claimant

Hyundai Samho Heavy Industries Co., Ltd

Claimant

F Whale Corporation

Defendant

TMT Co., Ltd

Defendant

B Ladybug Corporation

Defendant

E Elephant Inc

Defendant

Iron Monger 2 Co., Ltd

Defendant

F Duckling Corporation

Defendant

Estable Shipping S.A.

Defendant

Admirar Vista Shipping S.A.

Defendant

A Max Corporation

Defendant

Iron Monger 8 Co., Ltd

Defendant

Procedural Posture

Commercial Claim (shipbuilding Contracts, Guarantees, Deferred Payments) / Final Judgment After Trial (defendants Unrepresented, Judgment in Default of Appearance)

Legal Issues

  1. 1 Whether the Defendants are liable for deferred payments and CINO claims under shipbuilding contracts and guarantees
  2. 2 Whether demands for payment under guarantees were valid
  3. 3 Whether claims are time-barred under limitation law

Ratio Decidendi

Defendants are liable for the outstanding deferred contract price and CINO payments under the shipbuilding contracts and guarantees, as the agreements and amendments were valid and enforceable, demands for payment were validly made, limitation periods were observed for most claims, and US Chapter XI proceedings did not compromise the liability of guarantors under English law.

Court Disposition

Judgment for the Claimants (in part); certain claims dismissed as time-barred or compromised; quantum to be finalised by counsel's draft order.

Orders

  • Defendants (variously TMT, buyer companies, and guarantors) to pay specified sums in USD as set out in the judgment for each vessel and contract, plus interest at agreed rates.
  • Certain claims dismissed as time-barred or compromised by bankruptcy proceedings; counsel to identify precise sums due and interest calculations in draft order.