Ullises Shipping Corp v FAL Shipping Co Ltd Rev 1 [2006] EWHC 1729 (Comm) (14 July 2006)

Ullises Shipping Corp v FAL Shipping Co Ltd Rev 1 [2006] EWHC 1729 (Comm) (14 July 2006)

The court found that Fal's cargo operations, including loading oil purchased at auction and blending, exposed the vessel to risk of seizure by UAE authorities. The evidence established that the cargo transferred to the Greek Fighter originated from Palatex's auction purchase, and Fal's documentation was unreliable...

Source-derived case information.

Citation
[2006] EWHC 1729 (Comm)
Parties
Claimant: Ullises Shipping Corporation; Defendant: Fal Shipping Co Ltd
Jurisdiction
England and Wales
Judgment Date
14 July 2006
Procedural Posture
Commercial Claim for Damages and Indemnity Under Time Charter / Final Judgment After Trial
Outcome
Judgment for Claimant
Legal Topics
Time Charter, Safe Port Warranty, Implied Indemnity, Frustration of Contract, Off Hire Clause, Breach of Contract, UN Sanctions, Oil Smuggling
Maritime Law Contract Law International Trade Law Time Charter Safe Port Warranty Implied Indemnity Frustration of Contract Off Hire Clause +3 more

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Summary, issues, holding and outcome

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Parties

Ullises Shipping Corporation

Claimant

Fal Shipping Co Ltd

Defendant

Procedural Posture

Commercial Claim for Damages and Indemnity Under Time Charter / Final Judgment After Trial

Legal Issues

  1. 1 Whether Fal Shipping caused unlawful Iraqi oil to be loaded, resulting in vessel seizure
  2. 2 Whether Owners are entitled to damages or indemnity for vessel loss under charterparty
  3. 3 Whether safe port warranty was breached

Ratio Decidendi

The court found that Fal's cargo operations, including loading oil purchased at auction and blending, exposed the vessel to risk of seizure by UAE authorities. The evidence established that the cargo transferred to the Greek Fighter originated from Palatex's auction purchase, and Fal's documentation was unreliable and included forged signatures. The chain of causation between Fal's orders and vessel seizure was unbroken, engaging the indemnity. The safe port warranty was breached due to the UAE judicial system's inability to provide relief. The charter was not frustrated prior to vessel sale; off-hire clause did not apply as detention was brought about by Fal's acts. Owners were entitled...

Court Disposition

Judgment for Claimant

Orders

  • Fal Shipping Co Ltd to pay Ullises Shipping Corporation US$3,761,180 for vessel loss
  • Fal Shipping Co Ltd to pay US$2,539,256 for unpaid hire and related expenses