DS -Rendite-Fonds Nr106 VLCC & Ors v Titan Maritime SA & Ors

DS -Rendite-Fonds Nr106 VLCC & Ors v Titan Maritime SA & Ors

The CRA, as drafted, allowed semi-annual adjustments to reduce hire below the Floor Rate, but rectification is granted because both parties had a common continuing intention that the Floor Rate (US$22,000 per day per vessel) would always be payable and not deferred. After termination of sub-charters, Article 2 applies, including the Floor Rate and semi-annual adjustments. Charterers' off-hire claims fail as they do not meet the contractual requirements. Owners are entitled to monetary judgment for sums due.

Parties
Claimant: DS-Rendite-Fonds Nr.106 VLCC Titan Glory GmbH & Co. Tankschiff KG and others; Defendant: Titan Maritime S.A and others
Jurisdiction
England and Wales
Judgment Date
13 November 2013
Procedural Posture
Commercial Contract Dispute / Final Judgment After Trial
Outcome
Judgment for Claimants; CRA rectified; monetary judgment granted.
Legal Topics
Rectification, Contract Interpretation, Charterparty, Hire Payment, Off Hire, Quantum
Commercial Law Contract Law Rectification Contract Interpretation Charterparty Hire Payment Off Hire Quantum

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 11 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

DS-Rendite-Fonds Nr.106 VLCC Titan Glory GmbH & Co. Tankschiff KG and others

Claimant

Titan Maritime S.A and others

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment After Trial

Legal Issues

  1. 1 Proper construction of Charter Restructuring Agreement (CRA)
  2. 2 Rectification of CRA for common mistake
  3. 3 Rate of hire after termination of sub-charters

Ratio Decidendi

The CRA, as drafted, allowed semi-annual adjustments to reduce hire below the Floor Rate, but rectification is granted because both parties had a common continuing intention that the Floor Rate (US$22,000 per day per vessel) would always be payable and not deferred. After termination of sub-charters, Article 2 applies, including the Floor Rate and semi-annual adjustments. Charterers' off-hire claims fail as they do not meet the contractual requirements. Owners are entitled to monetary judgment for sums due.

Court Disposition

Judgment for Claimants; CRA rectified; monetary judgment granted.

Orders

  • CRA to be rectified so Article 2.4.1 and 2.4.2 refer to 'Market Rates or Floor Rate as applicable'.
  • Declaration that after termination of sub-charters, Article 2 applies to Time Chartered Vessels.