Global Maritime Investments Ltd v STX Pan Ocean Co Ltd

Global Maritime Investments Ltd v STX Pan Ocean Co Ltd

Clause 112 of the charterparty entitles an owner to reimbursement from its immediate charterer only for USGTT levied on income attributable to transportation under that specific charterparty. It does not entitle disponent owners to reimbursement for tax paid by higher parties in the chain or for reimbursement of reimbursement. Alternative clauses and implied indemnity do not provide a basis for recovery where clause 112 specifically allocates the risk.

Parties
Claimant: Global Maritime Investments Limited; Defendant: STX Pan Ocean Co. Limited; Claimant/defendant: Navios International Inc.; Defendant: Sangamon Transportation Group
Jurisdiction
England and Wales
Judgment Date
08 August 2012
Procedural Posture
Arbitration Appeal (commercial) / Judgment on Appeal From Arbitration Awards
Outcome
Appeal of Global Maritime in respect of the Pan Ocean arbitration allowed; appeals of Global Maritime and Navios in the Global Maritime and Navios arbitrations dismissed.
Legal Topics
Charterparty Construction, Tax Liability Allocation, US Gross Transportation Tax (usgtt), Contract Interpretation
Commercial Law Maritime Law Charterparty Construction Tax Liability Allocation US Gross Transportation Tax (usgtt) Contract Interpretation

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Parties

Global Maritime Investments Limited

Claimant

STX Pan Ocean Co. Limited

Defendant

Navios International Inc.

Claimant/defendant

Sangamon Transportation Group

Defendant

Procedural Posture

Arbitration Appeal (commercial) / Judgment on Appeal From Arbitration Awards

Legal Issues

  1. 1 Which charterer in a chain of charters is liable to bear the cost of US Gross Transportation Tax (USGTT)?
  2. 2 Does clause 112 of the charterparty entitle disponent owners to reimbursement down the chain for USGTT paid up the chain?
  3. 3 Are alternative clauses (2, 8, 111) or implied indemnity available for recovery of USGTT?

Ratio Decidendi

Clause 112 of the charterparty entitles an owner to reimbursement from its immediate charterer only for USGTT levied on income attributable to transportation under that specific charterparty. It does not entitle disponent owners to reimbursement for tax paid by higher parties in the chain or for reimbursement of reimbursement. Alternative clauses and implied indemnity do not provide a basis for recovery where clause 112 specifically allocates the risk.

Court Disposition

Appeal of Global Maritime in respect of the Pan Ocean arbitration allowed; appeals of Global Maritime and Navios in the Global Maritime and Navios arbitrations dismissed.

Orders

  • Counsel to consider and propose the form of order to give effect to the judgment.