Owneast Shipping Ltd v Qatar Navigation QSC

Owneast Shipping Ltd v Qatar Navigation QSC

The word 'intention' in clause 62 of the charterparty does not include recklessness; only a deliberate or wilful failure to make punctual and regular payment excludes the protection of the anti-technicality clause. Further, an intention to make a payment with an objectively unjustifiable deduction does not amount to an intention to fail to make payment as set out unless the deduction is made in bad faith.

Parties
Claimant: Owneast Shipping Limited; Defendant: Qatar Navigation QSC
Jurisdiction
England and Wales
Judgment Date
07 July 2010
Procedural Posture
Commercial Appeal From Arbitral Award / Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Charterparty, Withdrawal of Vessel, Anti Technicality Clause, Interpretation of Intention, Forfeiture Clauses
Commercial Law Arbitration Shipping Law Charterparty Withdrawal of Vessel Anti Technicality Clause Interpretation of Intention Forfeiture Clauses

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Parties

Owneast Shipping Limited

Claimant

Qatar Navigation QSC

Defendant

Procedural Posture

Commercial Appeal From Arbitral Award / Judgment on Appeal

Legal Issues

  1. 1 Does recklessness suffice to exclude the protection of an anti-technicality clause (clause 62) in a charterparty?
  2. 2 Does an intention to make an objectively unjustifiable deduction from hire amount to an intention to fail to make payment as set out, thus excluding the protection of clause 62?

Ratio Decidendi

The word 'intention' in clause 62 of the charterparty does not include recklessness; only a deliberate or wilful failure to make punctual and regular payment excludes the protection of the anti-technicality clause. Further, an intention to make a payment with an objectively unjustifiable deduction does not amount to an intention to fail to make payment as set out unless the deduction is made in bad faith.

Court Disposition

Appeal dismissed