Glencore Energy (UK) Ltd v Sonol Israel Ltd (Rev 1) [2011] EWHC 2756 (Comm) (26 October 2011)

Glencore Energy (UK) Ltd v Sonol Israel Ltd (Rev 1) [2011] EWHC 2756 (Comm) (26 October 2011)

The demurrage provisions in the sale contracts create an independent obligation to pay demurrage, accruing day by day from the expiry of laytime, not upon presentation of an invoice. The claim was brought after the six-year limitation period expired and is therefore time-barred.

Citation
[2011] EWHC 2756 (Comm)
Parties
Claimant: Glencore Energy (UK) Ltd; Defendant: Sonol Israel Ltd
Jurisdiction
England and Wales
Judgment Date
26 October 2011
Procedural Posture
Commercial Claim (demurrage Under Sale Contract) / Application to Strike Out Claim
Outcome
Claim struck out as time-barred
Legal Topics
Demurrage, Limitation Periods, Sale of Goods, Incorporation of Charter Party Terms
Commercial Law Contract Law Demurrage Limitation Periods Sale of Goods Incorporation of Charter Party Terms

Case Brief

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Parties

Glencore Energy (UK) Ltd

Claimant

Sonol Israel Ltd

Defendant

Procedural Posture

Commercial Claim (demurrage Under Sale Contract) / Application to Strike Out Claim

Legal Issues

  1. 1 Whether the claim for demurrage under the sale contracts is time-barred under the Limitation Act 1980
  2. 2 Whether the demurrage provisions in the sale contracts create an independent obligation or an indemnity
  3. 3 When the cause of action for demurrage accrues under the sale contracts

Ratio Decidendi

The demurrage provisions in the sale contracts create an independent obligation to pay demurrage, accruing day by day from the expiry of laytime, not upon presentation of an invoice. The claim was brought after the six-year limitation period expired and is therefore time-barred.

Court Disposition

Claim struck out as time-barred

Orders

  • The defendant's application to strike out the claim is granted.
  • The claim by Glencore Energy (UK) Ltd is struck out.