Great Elephant Corporation v Trafigura Beheer BV & Ors [2012] EWHC 1745 (Comm) (27 June 2012)

Great Elephant Corporation v Trafigura Beheer BV & Ors [2012] EWHC 1745 (Comm) (27 June 2012)

The vessel was delayed due to waiting for cargo documentation after loading at the AKPO terminal. The delay was caused by the Nigerian authorities' refusal to issue documents following procedural irregularities, but no criminal offence was committed under Nigerian law. The actions of the Nigerian authorities in detaining the vessel and requiring a fine were arbitrary and not justified by law. Under the charterparty, demurrage was payable by the charterer for the period of delay, and the 'restraint of princes' exception did not apply because the delay was not outside the reasonable control of the charterer or caused by an excepted peril. Full demurrage was therefore due for the period in...

Citation
[2012] EWHC 1745 (Comm)
Parties
Claimant: Great Elephant Corporation; Defendant: Trafigura Beheer BV; Third Party: Vitol S.A.; Fourth Party: Vitol Asia Pte Limited; Fifth Party: China Offshore Oil (Singapore) International Pte Limited
Jurisdiction
England and Wales
Judgment Date
27 June 2012
Procedural Posture
Commercial Court Claim for Demurrage and Related Sums Under Charterparty and Sale Contracts / Judgment After Trial
Outcome
Claim allowed; demurrage awarded to the Claimant against the Defendant; consequential orders for indemnities down the contractual chain as appropriate.
Legal Topics
Demurrage, Charterparty Interpretation, Restraint of Princes, Nigerian Oil Export Regulations, Liability for Delay, Force Majeure
Shipping Commercial Law International Trade Demurrage Charterparty Interpretation Restraint of Princes Nigerian Oil Export Regulations Liability for Delay +1 more

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Parties

Great Elephant Corporation

Claimant

Trafigura Beheer BV

Defendant

Vitol S.A.

Third Party

Vitol Asia Pte Limited

Fourth Party

China Offshore Oil (Singapore) International Pte Limited

Fifth Party

Procedural Posture

Commercial Court Claim for Demurrage and Related Sums Under Charterparty and Sale Contracts / Judgment After Trial

Legal Issues

  1. 1 Whether the vessel CRUDESKY was unlawfully detained in Nigeria and if so, by whom liability for delay falls under the charterparty and sale contracts
  2. 2 Whether breaches of Nigerian law or procedure occurred and their effect on contractual liability
  3. 3 Whether the delay constituted 'restraint of princes' under the charterparty

Ratio Decidendi

The vessel was delayed due to waiting for cargo documentation after loading at the AKPO terminal. The delay was caused by the Nigerian authorities' refusal to issue documents following procedural irregularities, but no criminal offence was committed under Nigerian law. The actions of the Nigerian authorities in detaining the vessel and requiring a fine were arbitrary and not justified by law. Under the charterparty, demurrage was payable by the charterer for the period of delay, and the 'restraint of princes' exception did not apply because the delay was not outside the reasonable control of the charterer or caused by an excepted peril. Full demurrage was therefore due for the period in...

Court Disposition

Claim allowed; demurrage awarded to the Claimant against the Defendant; consequential orders for indemnities down the contractual chain as appropriate.

Orders

  • Defendant to pay full demurrage to Claimant for the period from 0919 on 3 September 2009 to 0954 on 16 October 2009.
  • Consequential orders for indemnities between Defendant and Third, Fourth, and Fifth Parties as per contractual terms.