Portolana Compania Naviera Ltd v Vitol SA Inc & Anor

Portolana Compania Naviera Ltd v Vitol SA Inc & Anor

The delay was caused by a breakdown of equipment in or about the plant of the consignee within the meaning of clause 8 of the charterparty, so only half demurrage was payable for the relevant period. Clause 9 did not apply because the vessel was not shifted from one berth to another, but merely ordered off the berth for repairs, so the charterers were not liable for additional agency fees and expenses.

Parties
Claimant/respondent: Portolana Compania Naviera Limited; Defendant/appellant: Vitol SA Inc; Defendant/appellant: Vitol SA of Switzerland
Jurisdiction
England and Wales
Judgment Date
09 July 2004
Procedural Posture
Civil Appeal (charterparty Dispute) / Court of Appeal Judgment
Outcome
appeal allowed
Legal Topics
Voyage Charterparty, Demurrage, Breakdown of Equipment, Agency Fees, Interpretation of Charterparty Clauses
Commercial Law Maritime Law Contract Law Voyage Charterparty Demurrage Breakdown of Equipment Agency Fees Interpretation of Charterparty Clauses

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Parties

Portolana Compania Naviera Limited

Claimant/respondent

Vitol SA Inc

Defendant/appellant

Vitol SA of Switzerland

Defendant/appellant

Procedural Posture

Civil Appeal (charterparty Dispute) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the delay was caused by a 'breakdown of equipment in or about the plant of the consignee' within the meaning of clause 8 of the charterparty, entitling owners only to half demurrage.
  2. 2 Whether the charterers are liable for additional agency fees and expenses under clause 9 of the charterparty or otherwise.

Ratio Decidendi

The delay was caused by a breakdown of equipment in or about the plant of the consignee within the meaning of clause 8 of the charterparty, so only half demurrage was payable for the relevant period. Clause 9 did not apply because the vessel was not shifted from one berth to another, but merely ordered off the berth for repairs, so the charterers were not liable for additional agency fees and expenses.

Court Disposition

appeal allowed

Orders

  • Owners entitled only to half demurrage for the relevant period of delay.
  • Charterers not liable for additional agency fees and expenses under clause 9 or otherwise.