American Overseas Marine Corp v Golar Commodities Ltd [2014] EWHC 1347 (Comm) (07 May 2014)

American Overseas Marine Corp v Golar Commodities Ltd [2014] EWHC 1347 (Comm) (07 May 2014)

The court held that the cargo loaded at Cameron Terminal was not 'injurious to the vessel' within the meaning of clause 30 because there was no evidence of physical damage to the vessel, its tanks, or pumps. The repairs and cleaning undertaken were precautionary and not necessitated by actual injury. Therefore, the claimant was not entitled to recover the sums claimed under clause 30.

Citation
[2014] EWHC 1347 (Comm)
Parties
Claimant: American Overseas Marine Corporation; Defendant: Golar Commodities Limited
Jurisdiction
England and Wales
Judgment Date
07 May 2014
Procedural Posture
Commercial Claim (charterparty Dispute) / High Court Judgment After Trial
Outcome
Claim dismissed; counterclaim allowed for agreed sum.
Legal Topics
Charterparty Interpretation, Injurious Cargoes, Damages for Breach of Charter, Indemnity Clauses

Case Brief

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Parties

American Overseas Marine Corporation

Claimant

Golar Commodities Limited

Defendant

Procedural Posture

Commercial Claim (charterparty Dispute) / High Court Judgment After Trial

  1. 1 Whether the cargo loaded at Cameron Terminal was 'injurious to the vessel' under clause 30 of the charterparty
  2. 2 Whether the repairs and cleaning undertaken were reasonable and recoverable from the charterer
  3. 3 Whether the claimant is entitled to damages or indemnity for repair costs and time lost

Ratio Decidendi

The court held that the cargo loaded at Cameron Terminal was not 'injurious to the vessel' within the meaning of clause 30 because there was no evidence of physical damage to the vessel, its tanks, or pumps. The repairs and cleaning undertaken were precautionary and not necessitated by actual injury. Therefore, the claimant was not entitled to recover the sums claimed under clause 30.

Court Disposition

Claim dismissed; counterclaim allowed for agreed sum.

Orders

  • Claim by American Overseas Marine Corporation dismissed.
  • Golar Commodities Limited's counterclaim for $618,060.23 (plus statutory interest) allowed.