THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL OOCL CHINA v. THE OWNERS AND/OR DEMISE CHARTERES OF THE SHIP OR VESSEL DARYA BHAKTI

THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL OOCL CHINA v. THE OWNERS AND/OR DEMISE CHARTERES OF THE SHIP OR VESSEL DARYA BHAKTI

The court held the plaintiffs failed to establish a claim against the defendants for transshipment costs because OOCL had neither incurred nor paid those costs and a binding arrangement at the time allocated liability to MISC; consequently the transshipment claim against the colliding ship was disallowed. The court accepted the loss of hire claim but reduced it by the saving OOCL achieved by not paying slot hire for containers carried on the substitute vessel, awarding US$771,156 for loss of hire and assessing total recoverable claims at US$5,158,561.16.

Citation
THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL OOCL CHINA v. THE OWNERS AND/OR DEMISE CHARTERES OF THE SHIP OR VESSEL DARYA BHAKTI
Parties
Plaintiff Owners And/or Demise Charterers of OOCL China: Newcontainer No.6 (Luxembourg) Shipping S.a.r.l and Orient Overseas Container Line Ltd (OOCL); Defendant Owners And/or Demise Charterers of Darya Bhakti: Owners and/or Demise Charterers of the ship or vessel Darya Bhakti
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 December 2012
Case Number
HCAJ218/2009
Procedural Posture
Admiralty Action in Rem (collision) / Assessment of Quantum (reference Before Court of First Instance)
Outcome
Transshipment claims against the defendants disallowed; loss of hire claim partly allowed with offset for slot hire saving; total assessment US$5,158,561.16 in favour of plaintiffs.
Legal Topics
Collision, Port of Refuge Expenses (transshipment), Loss of Hire, Time Charterparty Issues, General Average/contribution, Subrogation and Concurrent Claims
Source Language
EN
Admiralty/maritime Law Tort Contract Collision Port of Refuge Expenses (transshipment) Loss of Hire Time Charterparty Issues General Average/contribution +1 more

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Parties

Newcontainer No.6 (Luxembourg) Shipping S.a.r.l and Orient Overseas Container Line Ltd (OOCL)

Plaintiff Owners And/or Demise Charterers of OOCL China

Owners and/or Demise Charterers of the ship or vessel Darya Bhakti

Defendant Owners And/or Demise Charterers of Darya Bhakti

Procedural Posture

Admiralty Action in Rem (collision) / Assessment of Quantum (reference Before Court of First Instance)

Legal Issues

  1. 1 Whether plaintiffs can recover transshipment (port of refuge) costs from defendants
  2. 2 Whether the claim for transshipment costs is a recoverable proprietary/physical loss or an unrecoverable pure economic loss
  3. 3 Whether plaintiffs incurred or paid the transshipment costs so as to have a claim against defendants

Ratio Decidendi

The court held the plaintiffs failed to establish a claim against the defendants for transshipment costs because OOCL had neither incurred nor paid those costs and a binding arrangement at the time allocated liability to MISC; consequently the transshipment claim against the colliding ship was disallowed. The court accepted the loss of hire claim but reduced it by the saving OOCL achieved by not paying slot hire for containers carried on the substitute vessel, awarding US$771,156 for loss of hire and assessing total recoverable claims at US$5,158,561.16.

Court Disposition

Transshipment claims against the defendants disallowed; loss of hire claim partly allowed with offset for slot hire saving; total assessment US$5,158,561.16 in favour of plaintiffs.

Orders

  • Plaintiffs' claim for transshipment (port of refuge) costs against defendants dismissed
  • Assessment of plaintiffs' recoverable claims in the sum of US$5,158,561.16 (components detailed in judgment)