Regulus Ship Services PTE Ltd v Lundin Services BV & Anor [2016] EWHC 2674 (Comm) (27 October 2016)

Regulus Ship Services PTE Ltd v Lundin Services BV & Anor [2016] EWHC 2674 (Comm) (27 October 2016)

Lundin was in breach of contract by failing to provide the IKDAM in 'light ballast condition' as required by the Towcon, both at departure and after partial deballasting. The contractual meaning of 'light ballast condition' is the minimum ballast necessary for safe and seaworthy passage, not what is required by class or marine warranty surveyors. However, Regulus failed to prove that the excess ballast was the cause of the full extent of the delay and additional costs claimed. The parties' conduct at Singapore amounted to mutual repudiation and acceptance, lawfully terminating the Towcon. Damages were awarded to both parties on a net basis, reflecting proven losses and contractual...

Citation
[2016] EWHC 2674 (Comm)
Parties
Claimant: Regulus Ship Services Pte Ltd; Defendant: Lundin Services BV; Defendant: Ikdam Production SA
Jurisdiction
England and Wales
Judgment Date
27 October 2016
Procedural Posture
Commercial Contract Dispute / High Court Trial Judgment
Outcome
Judgment for both parties in part; net award to Regulus after set-off of counterclaims.
Legal Topics
Ocean Towage Contract, Interpretation of 'light Ballast Condition', Breach of Contract, Delay and Demurrage, Counterclaim for Breach, Lien Over Vessel, Repudiation and Termination, Damages Calculation

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Parties

Regulus Ship Services Pte Ltd

Claimant

Lundin Services BV

Defendant

Ikdam Production SA

Defendant

Procedural Posture

Commercial Contract Dispute / High Court Trial Judgment

  1. 1 What is the contractual meaning of 'light ballast condition'?
  2. 2 Did Lundin provide the IKDAM in 'light ballast condition' as required?
  3. 3 Did excess ballast cause delay and additional costs?

Ratio Decidendi

Lundin was in breach of contract by failing to provide the IKDAM in 'light ballast condition' as required by the Towcon, both at departure and after partial deballasting. The contractual meaning of 'light ballast condition' is the minimum ballast necessary for safe and seaworthy passage, not what is required by class or marine warranty surveyors. However, Regulus failed to prove that the excess ballast was the cause of the full extent of the delay and additional costs claimed. The parties' conduct at Singapore amounted to mutual repudiation and acceptance, lawfully terminating the Towcon. Damages were awarded to both parties on a net basis, reflecting proven losses and contractual...

Court Disposition

Judgment for both parties in part; net award to Regulus after set-off of counterclaims.

Orders

  • Lundin to pay Regulus delay payments for period of breach prior to deballasting, as calculated by the court.
  • Regulus to pay Lundin for fuel supplied and costs of substitute towage, as calculated by the court.