Griffon Shipping LLC v Firodi Shipping Ltd

Griffon Shipping LLC v Firodi Shipping Ltd

Where the deposit under the NSF 1993/MOA has fallen due before the contract is terminated, the seller is entitled to recover the deposit as a debt, as clause 13 does not expressly or impliedly exclude this right. The right to the deposit is an accrued right and is not displaced by the remedies in clause 13, which are additional.

Parties
Claimant: Griffon Shipping LLC; Defendant: Firodi Shipping Limited
Jurisdiction
England and Wales
Judgment Date
21 March 2013
Procedural Posture
Arbitration Appeal / Judgment on Appeal From Arbitration Award
Outcome
Appeal allowed
Legal Topics
Ship Sale Agreements, Deposits, Repudiation, Damages, Interpretation of Contractual Clauses
Contract Law Commercial Law Arbitration Ship Sale Agreements Deposits Repudiation Damages Interpretation of Contractual Clauses

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Parties

Griffon Shipping LLC

Claimant

Firodi Shipping Limited

Defendant

Procedural Posture

Arbitration Appeal / Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 Whether the seller is entitled to recover the deposit as a debt or only claim damages when the buyer fails to pay the deposit under the Norwegian Saleform 1993 (NSF 1993) and the MOA is terminated after the deposit falls due.

Ratio Decidendi

Where the deposit under the NSF 1993/MOA has fallen due before the contract is terminated, the seller is entitled to recover the deposit as a debt, as clause 13 does not expressly or impliedly exclude this right. The right to the deposit is an accrued right and is not displaced by the remedies in clause 13, which are additional.

Court Disposition

Appeal allowed

Orders

  • The arbitration tribunal's decision is set aside.
  • The answer to the preliminary issue is Yes: the Sellers may recover the amount of the deposit as a debt or by way of damages.