London and Edinburgh Shipping Co., Ltd v. Commissioners for Executing Office of Lord High Admiral of United Kingdom of Great Britain and Ireland [1920] ScotLR 252 (21 February 1920)

London and Edinburgh Shipping Co., Ltd v. Commissioners for Executing Office of Lord High Admiral of United Kingdom of Great Britain and Ireland [1920] ScotLR 252 (21 February 1920)

The contract of hire terminated on 9th September 1917, when the vessel became a total loss, as admitted by both parties. The obligation to pay hire ceased at that date, regardless of whether the loss was due to the lessee's fault. Notice provisions in the charter-party did not extend the hire period beyond the date of total loss. Any claim for damages due to fault must be pursued separately and is not part of this action for hire.

Citation
[1920] ScotLR 252
Parties
Pursuer: London and Edinburgh Shipping Company, Limited; Defender: Commissioners for Executing Office of Lord High Admiral of United Kingdom of Great Britain and Ireland
Jurisdiction
Scotland
Judgment Date
21 February 1920
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary
Outcome
Appeal allowed; interlocutor of Lord Ordinary recalled; defenders assoilzied (absolved) from action except for hire due up to 9th September 1917.
Legal Topics
Termination of Hire, Rei Interitus, Total Loss of Ship, Notice of Loss, Fault in Contract Performance
Contract Law Maritime Law Termination of Hire Rei Interitus Total Loss of Ship Notice of Loss Fault in Contract Performance

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Parties

London and Edinburgh Shipping Company, Limited

Pursuer

Commissioners for Executing Office of Lord High Admiral of United Kingdom of Great Britain and Ireland

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary

Legal Issues

  1. 1 Whether contract of hire terminates upon total loss of the vessel
  2. 2 Whether notice is required to terminate hire when loss is due to lessee's fault
  3. 3 Interpretation of 'total loss' in context of charter-party

Ratio Decidendi

The contract of hire terminated on 9th September 1917, when the vessel became a total loss, as admitted by both parties. The obligation to pay hire ceased at that date, regardless of whether the loss was due to the lessee's fault. Notice provisions in the charter-party did not extend the hire period beyond the date of total loss. Any claim for damages due to fault must be pursued separately and is not part of this action for hire.

Court Disposition

Appeal allowed; interlocutor of Lord Ordinary recalled; defenders assoilzied (absolved) from action except for hire due up to 9th September 1917.

Orders

  • Defenders to pay hire for two days (8th and 9th September 1917)
  • Defenders assoilzied from further liability for hire