Mena Energy DMCC v Hascol Petroleum Ltd

Mena Energy DMCC v Hascol Petroleum Ltd

The 21 November 2014 telephone agreement constituted a final settlement of all existing claims regarding the first fuel oil shipment, with Mena undertaking to use best endeavours to return the vessel by 26 November 2014, Hascol agreeing to contribute up to US $150,000 to the return voyage cost via a price increase in the gasoil contract, and the price for the first fuel oil shipment to be calculated by reference to the existing bills of lading. Hascol was obliged to open letters of credit for the second fuel oil shipment and gasoil contract; a binding gasoil contract was concluded. Hascol’s counterclaims, including for short delivery, fail.

Parties
Claimant: MENA ENERGY DMCC; Defendant: HASCOL PETROLEUM LTD
Jurisdiction
England and Wales
Judgment Date
16 February 2017
Procedural Posture
Commercial Contract Dispute / Judgment on Liability Only
Outcome
Judgment for claimant on liability; counterclaims dismissed.
Legal Topics
Sale of Goods, Letters of Credit, Quality and Description of Goods, Repudiatory Breach, Settlement Agreements
Contract Law International Trade Law Sale of Goods Letters of Credit Quality and Description of Goods Repudiatory Breach Settlement Agreements

Case Brief

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Parties

MENA ENERGY DMCC

Claimant

HASCOL PETROLEUM LTD

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment on Liability Only

Legal Issues

  1. 1 Whether the 21 November 2014 telephone agreement constituted a final settlement of all claims regarding the first fuel oil shipment
  2. 2 Whether Mena was obliged to return the vessel by 26 November 2014 as an absolute obligation or on a best endeavours basis
  3. 3 Whether Hascol agreed to contribute to the cost of the return voyage

Ratio Decidendi

The 21 November 2014 telephone agreement constituted a final settlement of all existing claims regarding the first fuel oil shipment, with Mena undertaking to use best endeavours to return the vessel by 26 November 2014, Hascol agreeing to contribute up to US $150,000 to the return voyage cost via a price increase in the gasoil contract, and the price for the first fuel oil shipment to be calculated by reference to the existing bills of lading. Hascol was obliged to open letters of credit for the second fuel oil shipment and gasoil contract; a binding gasoil contract was concluded. Hascol’s counterclaims, including for short delivery, fail.

Court Disposition

Judgment for claimant on liability; counterclaims dismissed.

Orders

  • Mena is entitled to judgment for damages to be assessed on its claims relating to the second fuel oil shipment and the gasoil contract.
  • Hascol’s counterclaims relating to the first fuel oil shipment are dismissed.