Glencore Energy (UK) Ltd v Sonol Israel Ltd (Rev 1)

Glencore Energy (UK) Ltd v Sonol Israel Ltd (Rev 1)

The sale contracts contained their own laytime provisions and incorporated the charter-party demurrage terms, creating an independent obligation to pay demurrage. The cause of action accrued when laytime expired, not upon presentation of an invoice. As proceedings were commenced more than six years after laytime expired, the claim is time-barred under section 5 of the Limitation Act 1980.

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

Case Brief

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Parties

Glencore Energy (UK) Ltd

Claimant

Sonol Israel Ltd

Defendant

Procedural Posture

Commercial Claim / Application to Strike Out Claim

Legal Issues

  1. 1 Whether the claim for demurrage under the sale contracts is time-barred under section 5 of 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 sale contracts contained their own laytime provisions and incorporated the charter-party demurrage terms, creating an independent obligation to pay demurrage. The cause of action accrued when laytime expired, not upon presentation of an invoice. As proceedings were commenced more than six years after laytime expired, the claim is time-barred under section 5 of the Limitation Act 1980.

Court Disposition

claim struck out as time-barred

Orders

  • The defendant’s application to strike out the claim is granted.
  • The claim is struck out.