MUR Shipping BV v RTI Ltd [2022] EWHC 467 (Comm) (03 March 2022)

MUR Shipping BV v RTI Ltd [2022] EWHC 467 (Comm) (03 March 2022)

The tribunal erred in law by holding that reasonable endeavours required the Owners to accept payment in euros instead of the contractually agreed US dollars; the COA required payment in US dollars, and reasonable endeavours do not extend to accepting non-contractual performance.

Citation
[2022] EWHC 467 (Comm)
Parties
Claimant: MUR Shipping BV; Defendant: RTI Ltd
Jurisdiction
England and Wales
Judgment Date
03 March 2022
Procedural Posture
Appeal Under Section 69 Arbitration Act 1996 / Judgment on Appeal
Outcome
Appeal allowed; tribunal's award set aside to the extent challenged.
Legal Topics
Force Majeure, Sanctions, Payment Obligations, Reasonable Endeavours, Variation of Contract Terms
Commercial Law Arbitration Contract Law Force Majeure Sanctions Payment Obligations Reasonable Endeavours Variation of Contract Terms

Case Brief

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Parties

MUR Shipping BV

Claimant

RTI Ltd

Defendant

Procedural Posture

Appeal Under Section 69 Arbitration Act 1996 / Judgment on Appeal

Legal Issues

  1. 1 Does 'reasonable endeavours' in a force majeure clause require acceptance of non-contractual performance (payment in euros instead of US dollars)?
  2. 2 Was payment in euros contractually permissible under the COA?
  3. 3 Did the force majeure event prevent performance under the COA?

Ratio Decidendi

The tribunal erred in law by holding that reasonable endeavours required the Owners to accept payment in euros instead of the contractually agreed US dollars; the COA required payment in US dollars, and reasonable endeavours do not extend to accepting non-contractual performance.

Court Disposition

Appeal allowed; tribunal's award set aside to the extent challenged.

Orders

  • The Owners are not required to accept payment in euros under the force majeure clause.
  • The Charterers' claim for additional costs is not recoverable on the basis of the tribunal's reasoning.