Minerva Navigation Inc v Oceana Shipping AG

Minerva Navigation Inc v Oceana Shipping AG

The vessel was off-hire for the period of 10.9416 days during which the Master failed to comply with charterers’ instructions, as time was lost in relation to the service immediately required of her, and the off-hire clause operates independently of any breach of contract by owners. The judge’s approach to net loss of time to the chartered service overall was incorrect and unsupported by the wording of the clause and binding authority.

Parties
Respondent: Minerva Navigation Inc; Defendant: Oceana Shipping AG; Appellant: Transatlantica Commodities SA
Jurisdiction
England and Wales
Judgment Date
23 October 2013
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed; arbitrators’ decision restored.
Legal Topics
Time Charterparty, Off Hire Clause Interpretation, Default of Master, Hire Payment Suspension
Maritime Law Contract Law Time Charterparty Off Hire Clause Interpretation Default of Master Hire Payment Suspension

Case Brief

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Parties

Minerva Navigation Inc

Respondent

Oceana Shipping AG

Defendant

Transatlantica Commodities SA

Appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Interpretation of 'loss of time', 'time thereby lost', and 'time so lost' in Clause 15 of NYPE charterparty
  2. 2 Whether vessel was off-hire during period of drifting contrary to charterers' orders
  3. 3 Calculation of time lost for purposes of off-hire clause

Ratio Decidendi

The vessel was off-hire for the period of 10.9416 days during which the Master failed to comply with charterers’ instructions, as time was lost in relation to the service immediately required of her, and the off-hire clause operates independently of any breach of contract by owners. The judge’s approach to net loss of time to the chartered service overall was incorrect and unsupported by the wording of the clause and binding authority.

Court Disposition

Appeal allowed; arbitrators’ decision restored.

Orders

  • Vessel declared off-hire for 10.9416 days during drifting period.
  • Hire paid in respect of drifting period recoverable by charterers.