IMT Shipping & Chartering GmbH v Chansung Shipping Company Ltd, Owners of the "Zenovia"

IMT Shipping & Chartering GmbH v Chansung Shipping Company Ltd, Owners of the "Zenovia"

The arbitrators erred in finding promissory estoppel and an implied term constraining charterers after giving a notice of approximate redelivery; the notice, qualified by 'without guarantee' and other reservations, did not amount to a clear and unequivocal promise or contractual obligation. No estoppel or implied term arose, and the owners were not entitled to treat the vessel as redelivered before the contractual date. The award was set aside and damages awarded to IMT.

Parties
Claimant/appellant: IMT Shipping and Chartering GmbH; Defendant/respondent: Chansung Shipping Company Limited
Jurisdiction
England and Wales
Judgment Date
08 April 2009
Procedural Posture
Appeal Under Arbitration Act 1996 / Judgment on Appeal From Arbitration Award
Outcome
award set aside; judgment substituted
Legal Topics
Time Charter, Redelivery Notice, Promissory Estoppel, Implied Terms, Estoppel by Convention, Waiver by Election
Commercial Law Shipping Law Arbitration Time Charter Redelivery Notice Promissory Estoppel Implied Terms Estoppel by Convention +1 more

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Parties

IMT Shipping and Chartering GmbH

Claimant/appellant

Chansung Shipping Company Limited

Defendant/respondent

Procedural Posture

Appeal Under Arbitration Act 1996 / Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 Whether a notice of approximate redelivery date and intended port given by a time charterer is binding and prevents revision of plans
  2. 2 Whether promissory estoppel or implied terms constrain charterers after giving such notice
  3. 3 Admissibility of communications and evidence in consolidated arbitration

Ratio Decidendi

The arbitrators erred in finding promissory estoppel and an implied term constraining charterers after giving a notice of approximate redelivery; the notice, qualified by 'without guarantee' and other reservations, did not amount to a clear and unequivocal promise or contractual obligation. No estoppel or implied term arose, and the owners were not entitled to treat the vessel as redelivered before the contractual date. The award was set aside and damages awarded to IMT.

Court Disposition

award set aside; judgment substituted

Orders

  • US$741,194.55 awarded to IMT
  • Owners to pay charterers’ costs of the reference