Ullises Shipping Corp v FAL Shipping Co Ltd Rev 1

Ullises Shipping Corp v FAL Shipping Co Ltd Rev 1

Fal Shipping breached the time charter by causing the loading of contraband Iraqi oil from the Gulf Prince, exposing the vessel to seizure and confiscation. Fal is liable for damages and indemnity under the charter, including vessel value, expenses, and loss of hire. The safe port warranty was not breached as Khorfakkan was not prospectively unsafe at contract inception. Owners did not fail to mitigate their loss. Hire agreements do not bar damages claims.

Parties
Claimant: Ullises Shipping Corporation; Defendant: Fal Shipping Co Ltd
Jurisdiction
England and Wales
Judgment Date
14 July 2006
Procedural Posture
Commercial Dispute / Final Judgment
Outcome
Judgment for Claimant
Legal Topics
Time Charter, Safe Port Warranty, UN Sanctions, Indemnity, Frustration, Breach of Contract, Cargo Origin, Mitigation of Loss
Maritime Law Contract Law International Law Time Charter Safe Port Warranty UN Sanctions Indemnity Frustration +3 more

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Parties

Ullises Shipping Corporation

Claimant

Fal Shipping Co Ltd

Defendant

Procedural Posture

Commercial Dispute / Final Judgment

Legal Issues

  1. 1 Whether Fal Shipping breached the time charter by loading contraband Iraqi oil
  2. 2 Whether Fal Shipping is liable for damages and indemnity under the charter
  3. 3 Whether the vessel's detention and confiscation were caused by Fal's actions

Ratio Decidendi

Fal Shipping breached the time charter by causing the loading of contraband Iraqi oil from the Gulf Prince, exposing the vessel to seizure and confiscation. Fal is liable for damages and indemnity under the charter, including vessel value, expenses, and loss of hire. The safe port warranty was not breached as Khorfakkan was not prospectively unsafe at contract inception. Owners did not fail to mitigate their loss. Hire agreements do not bar damages claims.

Court Disposition

Judgment for Claimant

Orders

  • Fal Shipping to pay Ullises Shipping Corporation US$3,761,180 for vessel loss
  • Fal Shipping to pay unpaid hire and damages as calculated up to redelivery and thereafter at US$8,000 per day until vessel sale