Dry Bulk Handy Holding Inc & Compania Sud Americana De Vapores SA v Fayette International Holdings Ltd

Dry Bulk Handy Holding Inc & Compania Sud Americana De Vapores SA v Fayette International Holdings Ltd

A shipowner is entitled to require payment of bill of lading freight to himself, even where the bill stipulates payment to another party, provided the demand is made before payment is effected. The notices served were sufficient to require payment to the owners, and the communications from Fayette constituted an...

Source-derived case information.

Parties
Respondent: Dry Bulk Handy Holding Inc; Respondent: Compania Sud Americana de Vapores SA; Appellant: Fayette International Holdings Limited; Appellant: Metinvest International SA
Jurisdiction
England and Wales
Judgment Date
14 March 2013
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Bills of Lading, Lien on Sub Freights, Charterparty Interpretation, Freight Payment, Contractual Agency
Commercial Law Shipping Law Bills of Lading Lien on Sub Freights Charterparty Interpretation Freight Payment Contractual Agency

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Summary, issues, holding and outcome

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Parties

Dry Bulk Handy Holding Inc

Respondent

Compania Sud Americana de Vapores SA

Respondent

Fayette International Holdings Limited

Appellant

Metinvest International SA

Appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a shipowner can demand payment of freight to himself under a bill of lading stipulating payment to another party, provided demand is made before payment to that party
  2. 2 Whether notices given by shipowners to shippers and bill of lading holders were effective to require payment of freight to shipowners rather than disponent owners
  3. 3 Whether messages from disponent owners amounted to an express or implied request to shipowners to complete the voyage, generating an obligation to pay reasonable remuneration

Ratio Decidendi

A shipowner is entitled to require payment of bill of lading freight to himself, even where the bill stipulates payment to another party, provided the demand is made before payment is effected. The notices served were sufficient to require payment to the owners, and the communications from Fayette constituted an implied request for continued services, entitling owners to reasonable remuneration.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.