CL-2024-000292 - [2025] EWHC 1990 (Comm)

INTRODUCTION

This is an appeal brought under section 69 of the Arbitration Act 1996 by the Claimant, Sino East Transportation Ltd (“Charterers”) in respect of an arbitration award dated 26 April 2024 (the “Award”) in favour of the Defendant, Grand Amazon Shipping Ltd (“Owners”). The claim in the arbitration was heard by an experienced tribunal comprising Simon Gault, Christopher Hancock KC, and Stephen Hofmeyr KC (the “Tribunal”).

The Award concerned m.v. “Grand Amanda” (the “Vessel”). In summary, the Award concluded that Charterers were liable to pay US$6,030,603.53 by way of indemnity to Owners. Owners had incurred losses and expenses totalling that amount by reason of an adverse judgment against Owners by a court in the People’s Republic of China (the “PRC Judgment”) for US$5,374,756.66, and by way of recoverable costs of defending the claim in the PRC courts of US$655,846.87.

The central issue on the appeal is whether the implied indemnity against losses and expenses arising as a result of charterers’ orders extends to a situation where liability was imposed on owners by a court following carriage of a lawful, permitted cargo that was, however, affected by inherent vice. Charterers submit that the Tribunal erred in law in concluding that it did.

For the reasons set out below, I have concluded that the Tribunal was correct in its conclusions and made no error of law. The losses fell within the implied indemnity. The appeal must therefore be dismissed.