Compangnie Commerciale Andre SA v Artibell Shipping Co Ltd & Anor [2001] ScotCS 42 (21 February 2001)

Compangnie Commerciale Andre SA v Artibell Shipping Co Ltd & Anor [2001] ScotCS 42 (21 February 2001)

The Bank of Scotland received the advance freight as banker for the shipowner and not for its own account; the assignment was in security, not absolute. The bank was not unjustly enriched, as any benefit derived was pursuant to its contractual rights under the loan documentation, and the pursuers' remedy for repayment of advance freight lies in contract against the shipowner, not in restitution against the bank.

Citation
[2001] ScotCS 42
Parties
Pursuer: Compagnie Commerciale Andre S.A.; First Defender: Artibell Shipping Company Limited; Second Defender: The Governor and Company of the Bank of Scotland
Jurisdiction
Scotland
Judgment Date
21 February 2001
Procedural Posture
Commercial Contract / Shipping Dispute / Judgment After Proof (trial)
Outcome
Decree of absolvitor (dismissal) in favour of the Bank of Scotland (second defenders) on the claims for repayment of advance freight and unjust enrichment.
Legal Topics
Charterparty, Advance Freight, Assignment of Receivables, Unjust Enrichment, Banker Customer Relationship, Security Assignment, Restitutionary Remedies
Commercial Law Banking Law Shipping Law Restitution/unjust Enrichment Charterparty Advance Freight Assignment of Receivables Unjust Enrichment +3 more

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Parties

Compagnie Commerciale Andre S.A.

Pursuer

Artibell Shipping Company Limited

First Defender

The Governor and Company of the Bank of Scotland

Second Defender

Procedural Posture

Commercial Contract / Shipping Dispute / Judgment After Proof (trial)

Legal Issues

  1. 1 Whether the Bank of Scotland, as assignee and banker, is liable to repay advance freight to the charterer when the voyage failed and the shipowner is in default.
  2. 2 Whether the assignment of earnings to the bank was absolute or in security only, and its effect on the right to restitution.
  3. 3 Whether the bank was unjustly enriched by receipt of the advance freight.

Ratio Decidendi

The Bank of Scotland received the advance freight as banker for the shipowner and not for its own account; the assignment was in security, not absolute. The bank was not unjustly enriched, as any benefit derived was pursuant to its contractual rights under the loan documentation, and the pursuers' remedy for repayment of advance freight lies in contract against the shipowner, not in restitution against the bank.

Court Disposition

Decree of absolvitor (dismissal) in favour of the Bank of Scotland (second defenders) on the claims for repayment of advance freight and unjust enrichment.

Orders

  • Decree of absolvitor granted to the second defenders (Bank of Scotland) in respect of the third, fourth, sixth, and eighth conclusions.