HBC Hamburg Bulk Carriers GmbH & Co KG v Huyton Inc

HBC Hamburg Bulk Carriers GmbH & Co KG v Huyton Inc

The cost of transiting the Suez Canal was an expense arising from the charterers’ failure to discharge at Djibouti and was required only for the amended voyage to Damietta, not the original voyage. The indemnity clause in addendum no.1 covers such expenses, and the tribunal erred in limiting indemnity to only 'additional' expenses not otherwise incurred under the head charter.

Parties
Claimant: HBC Hamburg Bulk Carriers GmbH & Co KG; Respondent: Huyton Inc
Jurisdiction
England and Wales
Judgment Date
12 December 2014
Procedural Posture
Arbitration Appeal / Judgment on Appeal From Arbitration Award
Outcome
appeal allowed
Legal Topics
Charterparty Construction, Indemnity for Expenses, Voyage Amendment, Arbitration Appeal
Commercial Law Maritime Law Arbitration Charterparty Construction Indemnity for Expenses Voyage Amendment Arbitration Appeal

Case Brief

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Parties

HBC Hamburg Bulk Carriers GmbH & Co KG

Claimant

Huyton Inc

Respondent

Procedural Posture

Arbitration Appeal / Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 Whether charterers are liable to indemnify disponent owners for Suez Canal transit costs under addendum to charterparty after change of discharge port
  2. 2 Proper construction of indemnity clause in addendum no.1

Ratio Decidendi

The cost of transiting the Suez Canal was an expense arising from the charterers’ failure to discharge at Djibouti and was required only for the amended voyage to Damietta, not the original voyage. The indemnity clause in addendum no.1 covers such expenses, and the tribunal erred in limiting indemnity to only 'additional' expenses not otherwise incurred under the head charter.

Court Disposition

appeal allowed

Orders

  • Tribunal's decision set aside; charterers held liable to indemnify disponent owners for Suez Canal transit costs.