Schele and Others v. Lumsden & Co. [1916] ScotLR 581 (23 May 1916)

Schele and Others v. Lumsden & Co. [1916] ScotLR 581 (23 May 1916)

The strike clause in the charter-party was solely for the benefit of the shipowners and did not excuse the charterers from their absolute obligation to discharge the cargo within the stipulated time. Even if the clause applied, the delay caused by increased coal prices due to a remote colliery strike did not fall within its scope. The charterers could have avoided the delay by supplying coal at reasonable expense.

Citation
[1916] ScotLR 581
Parties
Pursuers: Th. Schele, ship broker, Halmstad, Sweden, and others, registered owners of the sailing vessel 'Atlantic', of Halmstad; Defenders: Lumsden & Company, pitwood merchants and timber importers, Bo'ness
Jurisdiction
Scotland
Judgment Date
23 May 1916
Procedural Posture
Civil Appeal / Appeal From Sheriff Court Judgment
Outcome
appeal dismissed; judgment for pursuers
Legal Topics
Charter Party, Demurrage, Contract Interpretation, Exceptions Clauses, Custom of Port
Shipping Commercial Law Charter Party Demurrage Contract Interpretation Exceptions Clauses Custom of Port

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Th. Schele, ship broker, Halmstad, Sweden, and others, registered owners of the sailing vessel 'Atlantic', of Halmstad

Pursuers

Lumsden & Company, pitwood merchants and timber importers, Bo'ness

Defenders

Procedural Posture

Civil Appeal / Appeal From Sheriff Court Judgment

Legal Issues

  1. 1 Whether the strike clause in the charter-party excused the charterers from liability for demurrage
  2. 2 Whether the strike clause applied to the charterers or only to the shipowners
  3. 3 Whether the delay in discharge was covered by the exceptions clause

Ratio Decidendi

The strike clause in the charter-party was solely for the benefit of the shipowners and did not excuse the charterers from their absolute obligation to discharge the cargo within the stipulated time. Even if the clause applied, the delay caused by increased coal prices due to a remote colliery strike did not fall within its scope. The charterers could have avoided the delay by supplying coal at reasonable expense.

Court Disposition

appeal dismissed; judgment for pursuers

Orders

  • Defenders to pay pursuers £75 for demurrage