Hyundai Merchant Marine Company Ltd v Trafigura Beheer BV

Hyundai Merchant Marine Company Ltd v Trafigura Beheer BV

On proper construction, Clause 24 (as supplemented by Additional Clause 42) creates an all weather speed and consumption warranty, calculated over all sea passages and the whole period the vessel is on hire, regardless of weather. The words 'Otherwise as per Gas Form C' only supplement matters not expressly dealt with in Clause 42. Any conflict between Gas Form C and Clause 24 is resolved by the express provision that Clause 24 prevails. Thus, the charter contains an all weather warranty as contended by the charterers.

Parties
Claimant: Hyundai Merchant Marine Company Limited; Defendant: Trafigura Beheer B.V.
Jurisdiction
England and Wales
Judgment Date
29 November 2011
Procedural Posture
Commercial Contract Dispute (charterparty) / Judgment on Preliminary Issue
Outcome
Preliminary issue determined in favour of the claimant (charterers).
Legal Topics
Charterparty Construction, Speed and Consumption Warranties, Interpretation of Contractual Terms, Inconsistency Clauses
Commercial Law Maritime Law Contract Law Charterparty Construction Speed and Consumption Warranties Interpretation of Contractual Terms Inconsistency Clauses

Case Brief

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Parties

Hyundai Merchant Marine Company Limited

Claimant

Trafigura Beheer B.V.

Defendant

Procedural Posture

Commercial Contract Dispute (charterparty) / Judgment on Preliminary Issue

Legal Issues

  1. 1 Whether the charterparty contained an all weather warranty or a warranty limited to weather conditions up to Beaufort Force 4
  2. 2 Proper construction of the relevant charterparty provisions (Clause 24, Additional Clause 42, Gas Form C)

Ratio Decidendi

On proper construction, Clause 24 (as supplemented by Additional Clause 42) creates an all weather speed and consumption warranty, calculated over all sea passages and the whole period the vessel is on hire, regardless of weather. The words 'Otherwise as per Gas Form C' only supplement matters not expressly dealt with in Clause 42. Any conflict between Gas Form C and Clause 24 is resolved by the express provision that Clause 24 prevails. Thus, the charter contains an all weather warranty as contended by the charterers.

Court Disposition

Preliminary issue determined in favour of the claimant (charterers).

Orders

  • It is declared that the charter contained an all weather warranty as contended by the charterers.