Conclusions
Discussion and conclusion in the relation to the Time Bar Clause
For the first and second reasons advanced by the Claimant, I accept that the Claimant’s non-demurrage claim here is not time-barred.
In my judgment there is an ambiguity in the wording of the clause as to whether the words “OTHER CLAIMS” were intended by the parties to apply all claims of whatsoever nature, including claims for renunciation of the Charterparty or claims arising in circumstances where nothing is carried under the Charterparty. The clause does not refer to “any other claims howsoever arising”. That ambiguity should be resolved in favour of the Claimant.
Secondly if I am wrong and “OTHER CLAIMS” include the damages claim brought by the Claimant for repudiatory breach, there is an ambiguity as to when the 90 day period should start to run i.e. from the date of completion of the discharge, or the date of accrual of the cause of action. There is no time bar case which has been referred to by the Defendant which indicates that time runs from the accrual of the cause of action. If it only starts from the date of completion of discharge of the cargo, it never commenced. This rather suggests that it was not intended by the parties to deal with the present situation. Given there is this ambiguity, it should be resolved in favour of the Claimant and thus the Time Bar Clause does not prevent the Claimant validly presenting its claim.
For completeness, I should indicate that I reject Mr Coldrick’s third point. If the Time Bar Clause was effective, the wording of the Claimant’s email dated 24 November was insufficient to satisfy the requirements of the Time Bar Clause.
Had the Claimant’s claim otherwise succeeded, it would not have been time-barred.
The Counterclaim
The Defendant has a counterclaim for damages suffered by the cancellation of the Charterparty. The details are set out at paragraphs 40-41 of the Counterclaim, namely
“ 41. By way of mitigation, Charterers shipped the Neftisa Cargo on the vessel "ZUMA", at a freight rate of US$14.018/MT (Worldscale 90.00) ("the Zuma Charter")with a bill of lading date of 19 November 2021.
42. The freight rate in the Charterparty was US$11.68/MT (Worldscale 75.00), so by shipping the Neftisa Cargo under the Zuma Charter Charterers suffered a loss of US$2.336/MT, or a total on 100,000MT ofUS$233,600.”
Given my earlier findings, the Counterclaim succeeds in the sum of US$233,600 and statutory interest.
There is, however, a further complication, namely that the Defendant in this matter has been added to the UK Sanctions List from 17 December 2024.
I will hear the parties as to the effect of this on my judgment and its enforcement on 31 July at 2pm when the judgment is handed down and consequential matters are considered. I would ask Counsel to prepare and endeavour to agree a draft form of Order.
It only remains for me to thank both Counsel once again for their considerable assistance in this matter and to apologise sincerely for the delay in getting this judgment to the parties. This was because of a serious illness and the subsequent death of a family member in the period following the hearing.
- Heading
- Mr ANDREW HOCHHAUSER KC
- The Hearing, representation and the evidence
- The Expert Evidence
- The Relevant Factual Background
- The Issues
- The EPS Sanctions Clause
- The Claimant’s submissions on the proper construction of the EPS Sanctions Clause
- The Claimant’s submissions on “reasonable judgment” and the burden of proof
- The Claimant’s submissions on the evidence that can be considered when determining reasonableness of the Claimant’s decision
- The Defendant’s submissions on the proper construction of the EPS Sanctions Clause
- The Defendant’s submissions on sub-clause (C) of the EPS Sanctions Clause
- The Defendant’s submissions on “reasonable judgment” and the burden of proof
- The Defendant’s submissions on the evidence that can be considered when determining reasonableness of the Claimant’s decision
- Discussion and conclusion in relation to the proper construction of the EPS Sanctions Clause and burden of proof
- Discussion and conclusion on the evidence that can be considered when determining reasonableness of the Claimant’s decision
- On the facts did the Claimant satisfy the provisions of sub-clause (C) of the EPS Sanctions Clause i.e. did the Claimant make an objectively reasonable judgment that there was an exposure to sanctions
- EU Sanctions Laws
- The EU Regulations
- The EU Best Practices Guidance
- The UK Sanctions Laws
- The UK provisions in relation to control
- The case law on control
- The Evidence
- The letter on Neftisa headed paper dated 16 November 2021
- The Kommersant Newspaper article dated 22 July 2021
- The Three Legal Opinions drafted by Herbert Smith and Baker and McKenzie which the Defendant provided to the Claimant in November 2021 (the “Legal Opinions”)
- Discussion and conclusion in relation to whether the Claimant made an objectively reasonable judgment that there was an exposure to sanctions, in that the listed persons were subject to the risk of sa
- The ECJ Decision
- Conclusion on the Claimant’s Claim
- Is the Claimant’s Claim time barred?
- The Claimants’ submissions on the Time Bar Clause
- The Defendant’s submissions on the Time Bar Clause
- Conclusions
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