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ABB AG v (1) HOCHTIEF AIRPORT GMBH (2) ATHENS INTERNATIONAL AIRPORT SA

[2006] 2 Lloyd's Rep. 1

Arbitration - Serious irregularity - Substantial injustice - Arbitrators finding that applicant guilty of bad faith in negotiations with respondent - Arbitrators concluding that respondent not itself guilty of bad faith in refusing to accept transfer of shares by applicant to third party - Whether conclusion tainted by serious irregularity - Whether Greek applicable law disregarded - Whether refusal to order disclosure of documents amounted to serious irregularity - Arbitration Act 1996, section 68.

GALAXY SPECIAL MARITIME ENTERPRISE v PRIMA CEYLON LTD (THE “OLYMPIC GALAXY”)

[2006] 2 Lloyd's Rep. 27

Practice - Proceedings served out of jurisdiction - Application to set aside or stay - General average - Claim by owners against Australian cargo interests under Lloyd’s Average Bond following grounding and salving of vessel off Sri Lanka - Action previously brought in Sri Lanka by cargo interests against owners for declaration that grounding due to conduct of owners - No contract of carriage between cargo interests and owners - Whether English proceedings should be set aside.

HEESENS YACHT BUILDERS BV v COX SYNDICATE MANAGEMENT LTD MUNICH RE CAPITAL LTD (THE “RED SAPPHIRE”)

[2006] 2 Lloyd's Rep. 35

Insurance (liability) - Assured shipyard insured against liability on guarantees given by it in respect of two vessels built by it for claimants - Whether policy applied to guarantees on vessels delivered during currency of policy or to guarantees on vessels whose construction commenced during currency of policy.

HORN LINIE GMBH & CO v PANAMERICANA FORMAS E IMPRESOS SA AND ANOTHER (THE “HORNBAY”)

[2006] 2 Lloyd's Rep. 44

Conflict of laws - Carriage of goods by sea - Bill of lading providing for English law and exclusive jurisdiction - Proceedings issued in Colombia by cargo owners - Proceedings simultaneously issued in England by carriers seeking declaration of non-liability - Whether valid choice of law - Whether consent to clause - Whether anti-suit injunction should be granted - Rome Convention 1980, articles 3 and 8.

SUKUMAN LTD v COMMONWEALTH SECRETARIAT

[2006] 2 Lloyd's Rep. 53

Arbitration - Error of law - Exclusion of right of appeal - Exclusion agreement appearing in another document incorporated into arbitration clause - Whether valid exclusion - Whether right to appeal preserved by European Convention on Human Rights - Arbitration Act 1996, section 69.

BARCLAYS BANK PLC v KINGSTON

[2006] 2 Lloyd's Rep. 59

Banking - Guarantee - Defendants guaranteeing liabilities of football club - Club going into administration-Bank selling assets of club - Guarantors arguing that sale was at undervalue - Whether bank owed duty of care to guarantors in selling assets of debtor.

COMPANIA SUD AMERICAN VAPORES v MS ER HAMBURG SCHIFFAHRTSGESELLSCHAFT MBH & CO KG

[2006] 2 Lloyd's Rep. 66

Charter-party (Time) - Claim by owners of vessel against charterers for explosion on board allegedly caused by loading a container of chemicals - Charter-party placing responsibility for stowage on charterers - Whether owners owed a duty to charterers to supervise loading - Effect of heating of bunkers by owners - Whether heating related to running of ship or care of cargo - Whether arbitrators’ award should be overturned - Arbitration Act 1996, section 69.

HALPERN AND OTHERS v HALPERN AND OTHERS

[2006] 2 Lloyd's Rep. 83

Arbitration - Dispute arising under will - Arbitration agreed to be governed by Jewish law - Parties reaching a settlement embodied in award - Whether settlement agreement valid - Law applicable to settlement agreement - Law applicable to arbitration agreement and to the procedure of the arbitration.

POSEIDON CHARTERING BV v MARIANNE ZEESCHIP VOF

[2006] 2 Lloyd's Rep. 105

Agency - Meaning of “commercial agent” - Entitlement of agent to commission - Claim for indemnity after termination of agency - Commercial Agents Directive, Council Directive 86/653/EEC, articles 1(2), 7(1) and 17.

ROYAL & SUN ALLIANCE INSURANCE PLC AND ANOTHER v MK DIGITAL FZE (CYPRUS) LTD AND OTHERS

[2006] 2 Lloyd's Rep. 110

Conflict of laws - Jurisdiction - Carriage of goods by road - Consignment of mobile phones stolen en route from Paris to Calais for subsequent export - Application by carrier and liability insurers for declaration that dispute governed by jurisdictional rules in CMR Convention, article 31 - Whether contract one for international carriage of goods by road - Whether English court first seised of proceedings - Jurisdiction under Brussels Convention 1968, articles 2, 5 and 53 - Carriage of Goods by Road Act 1965 - Civil Jurisdiction and Judgments Act 1982, section 42.

ABSALOM v TCRU LTD

[2006] 2 Lloyd's Rep. 129

Reinsurance - Broker - Entitlement to commission - Premium paid by way of deposit premium with subsequent payments based on adjustment - Broker’s entitlment to commission “15% applicable to deposit premium and minimum rate” - Whether broker entitled to commission on both deposit premium and on adjusted premium.

ARGO FUND LTD, THE v ESSAR STEEL LTD

[2006] 2 Lloyd's Rep. 134

Banking - Banks entering into syndicated loan facility agreement with borrower - Investment company purchasing debt on secondary debt market - Purchaser alleging borrower in breach of facility agreement by failing to repay debt on date due - Whether purchaser entitled to claim under facility agreement as transferee or assignee of debt.

SEA TRADE MARITIME CORPORATION v HELLENIC MUTUAL WAR RISKS ASSOCIATION (BERMUDA) LTD (THE “ATHENA”)

[2006] 2 Lloyd's Rep. 147

Arbitration - Arbitrators issuing award on substantive issues and reserving award on costs - Second award subsequently made on costs - Validity of costs award - Whether arbitrators failing to deal with costs so that time limits for supplementary award applied - Whether arbitrators entitled to reserve costs award and to make award at any later date - Arbitration Act 1996, sections 47 and 57.

BONNER AND OTHERS v COX AND OTHERS

[2006] 2 Lloyd's Rep. 152

Reinsurance - Energy risks insured under Open Cover - Reinsurance issued as standing offer to subscribers to Open Cover - Whether brokers’ knowledge of loss prior to acceptance of reinsurance cover was a material fact - Whether reinsurers induced - Whether misrepresentations made to reinsurers as to duration and nature of direct risks under Open Cover - Whether implied term that reinsured would not “write against” the reinsurance - Nature of terms to be implied into a reinsurance agreement - Whether reinsurance covered long-term risks re-signed into the period of coverage.

HYUNDAI MERCHANT MARINE CO LTD v FURNACE WITHY (AUSTRALIA) PTY THE “DORIC PRIDE”

[2006] 2 Lloyd's Rep. 175

Charter-party (time) - Off-hire - Vessel chartered for trip from US Gulf to South Korea - Charterers directed vessel to load at New Orleans - Vessel ordered by US Coast Guard to await security clearance before entering Mississippi river - Whether vessel “detained” within meaning of off-hire clause - Whether delay caused by USCG - Whether delay “occasioned by calling port of trading under this charter”.

NORTH STAR SHIPPING LTD v SPHERE DRAKE INSURANCE PLC

[2006] 2 Lloyd's Rep. 183

Insurance (marine war risks) - Vessel destroyed by explosive device - Misrepresentation and non- disclosure - Whether outstanding criminal and civil proceedings a material fact - Whether impecuniosity of assured a material fact - Whether overvaluation of vessel a material fact - Marine Insurance Act 1906, section 18(2).

TALBOT UNDERWRITING LTD v NAUSCH, HOGAN & MURRAY INC (THE “JASCON 5”) [2006] EWCA Civ 889

[2006] 2 Lloyd's Rep. 195

Insurance (marine construction risks) - Brokers instructed by owners to take out insurance covering repair of vessel with repairers as co-assured - Slip policy not naming repairers - Whether repairers parties to insurance under insuring clause or by reason of doctrine of undisclosed principal - Whether trust of policy in favour of repairers - Whether existence of undisclosed principal a material fact requiring disclosure - Whether insurers induced - Whether duty of disclosure or breach of duty waived - Whether assured and repairers suffering loss by reason of any breach of duty by brokers - Whether loss proximately caused by delay or by insured peril - Marine Insurance Act 1906, section 55(2)(b).

KAMILLA HANS-PETER ECKHOFF KG v A C OERSSLEFF’S EFTF A/B (THE “KAMILLA”) [2006] EWHC 509 (Comm)

[2006] 2 Lloyd's Rep. 238

Charter-party (Time) - Inter-Club Agreement - Construction - Cargo partially damaged due to unseaworthiness of vessel - Port authorities refusing to allow cargo to be discharged - Owners alleging that port authorities’ decision irrational and unforeseeable - Arbitrators holding that unseaworthiness caused loss - Whether arbitrators erred in law - Arbitration Act 1996, section 69.

MEHTA v J PEREIRA FERNANDES SA [2006] EWHC 813 (Ch)

[2006] 2 Lloyd's Rep. 244

Guarantee - Director of company giving guarantee by e-mail of company debts to secure withdrawal of winding up petition - Action on guarantee - Whether e-mail a sufficient note or memorandum - Whether guarantee signed - Statute of Frauds 1677, section 4.

TIDEBROOK MARITIME CORPORATION v VITOL SA (THE “FRONT COMMANDER”)

[2006] 2 Lloyd's Rep. 251

Charter-party (Voyage) - Laytime - Calculation - Charter providing that laytime should not commence before earliest layday unless charterer consented in writing - Charterer instructing vessel to tender NOR and berth prior to earliest layday - Whether charterers consented to laytime commencing early.

HARPER VERSICHERUNGS AG v INDEMNITY MARINE ASSURANCE CO LTD

[2006] 2 Lloyd's Rep. 263

Arbitration - Jurisdiction - Business of insurance companies transferred to third party - Disputes arising under reinsurance agreement - Arbitration proceedings against reinsurers commenced in name of insurance companies rather than that of third party - Whether proceedings a nullity.

RAVENNAVI SPA v NEW CENTURY SHIPBUILDING CO LTD)

[2006] 2 Lloyd's Rep. 280

Contract - Option agreement - Buyer having option to purchase two vessels from shipbuilders - Option agreement providing for vessels to be delivered by specified dates with earlier delivery if possible - Options exercised under shipbuilding contracts containing “entire agreement” clause - Buyer contending that shipyard was in breach of its obligation to make earlier delivery - Shipyard contending that obligation to make earlier delivery lapsed on exercise of option - Determination of preliminary issues on construction of option agreement and shipbuilding contracts.

RIYAD BANK v AHLI UNITED BANK PLC

[2006] 2 Lloyd's Rep. 292

Banking - Defendant bank agreeing to provide technical services to claimant bank in establishing investment fund which did not contravene Islamic lending principles (“Sharia-compliant”) - Fund established by claimant in England based on model of defendant’s own fund - Investors in fund able to invest in equipment leases - Claimant’s fund subsequently suspended following poor performance - Whether defendant owed a duty of care to claimant - Whether defendant had assumed responsibility towards claimant - Measure of damages.

ANDROMEDA MARINE SA v O W BUNKER & TRADING A/S (THE “MANA”)

[2006] 2 Lloyd's Rep. 319

Conflict of laws - Jurisdiction - Defendants supplied bunkers to time-charterers - Defendants asserting maritime lien over vessel - Shipowners bringing proceedings for negative declaratory relief relying on exclusive English jurisdiction clause in bunker supply contract - Whether shipowners agreed to be bound by jurisdiction clause - Brussels Convention 1968, article 17.

COMMISSIONERS OF CUSTOMS AND EXCISE v BARCLAYS BANK

[2006] 2 Lloyd's Rep. 327

Banking - Duty of care owed by bank - Commissioners obtaining freezing injunction against bank’s customer in respect of unpaid VAT - Bank paying sums out of account despite injunction - Test for duty of care - Whether bank assumed responsibility to Commissioners - Whether duty arose from court’s order.

DADOURIAN GROUP INTERNATIONAL INC v SIMMS

[2006] 2 Lloyd's Rep. 354

Worldwide freezing orders (ex Mareva injunctions) - Guidelines for enforcement of worldwide freezing orders - Civil Procedure Rules, Part 25 Practice Direction.

THE REPUBLIC OF KAZAKHSTAN v ISTIL GROUP INC

[2006] 2 Lloyd's Rep. 370

Arbitration - Jurisdiction - Arbitrators issuing partial award determining tribunal had substantive jurisdiction - Arbitrators subsequently issuing final award declaring previous award a nullity but confirming substantive jurisdiction - Whether arbitrators precluded from reconsidering issue of jurisdiction - Whether previous award a nullity - Whether respondent was original party to arbitration agreement - Whether respondent was liable by succession - Issue estoppel - Effect of earlier judicial proceedings - Whether parties entering into ad hoc agreement - Whether tribunal had substantive jurisdiction.

ABU DHABI INVESTMENT CO v H CLARKSON & CO LTD

[2006] 2 Lloyd's Rep. 381

Arbitration - Stay of proceedings - Action for breach of shareholders’ agreement governed by law of UAE - Whether arbitration clause enforceable under law of UAE.

EXFIN SHIPPING LTD v TOLANI SHIPPING CO LTD

[2006] 2 Lloyd's Rep. 389

Arbitration - Jurisdiction - Charterers admitting liability for demurrage but refusing to make immediate payment - Owners obtaining arbitration award - Charterers challenging substantive jurisdiction of arbitrator - Whether a “dispute” existed between the parties following admission of liability - Arbitration Act 1996, section 67 - Indemnity costs.

FORREST v GLASSER

[2006] 2 Lloyd's Rep. 392

Contract for sale and purchase of shares - Time-bar clause - Claims to be notified within three years of completion date - Letter written by solicitors giving notice of intention to make a claim - Whether letter satisfied time-bar clause - Whether court could take account of correspondence prior to letter.

GOLD COAST LTD v NAVAL GIJON SA

[2006] 2 Lloyd's Rep. 400

Arbitration - Award - Arbitrator asked to correct error in award - Arbitrator asserting no error - Further award issued in which error admitted - Time limits for application to arbitrator under slip rule expired - Whether court should extend time for application under slip rule - Arbitration Act 1996, sections 57 and 79.

HABIB BANK LTD v CENTRAL BANK OF SUDAN

[2006] 2 Lloyd's Rep. 412

Banking - Letters of credit - Payment made under letters of credit by issuing bank - Failure by confirming bank to provide indemnity - Jurisdiction of English court - Service outside the jurisdiction - Whether service valid - Whether agreement governed by English law - CPR Parts 6.20 and 6.24 - Whether claim time barred - Whether debt acknowledged - Limitation Act 1980, sections 5 and 29 - Rate of interest.

ECONET SATELLITE SERVICES LTD v VEE NETWORKS LTD

[2006] 2 Lloyd's Rep. 423

Arbitration - Transaction set-off - Disputes arising under main agreement to go to arbitration in Denmark - Disputes under later agreement to go to arbitration in England - Arbitration commenced in England - Whether arbitrators had jurisdiction to hear set-off defence under main agreement - UNCITRAL Rules, article 19 - Arbitration Act 1996, section 67.

ECONET WIRELESS LTD v VEE NETWORKS LTD

[2006] 2 Lloyd's Rep. 428

Arbitration - Interim relief - Shareholders’ agreement incorporating right of pre-emption - Seat of arbitration in Nigeria - Without notice application to English court for temporary injunction to restrain sale of shares to third party - Failure to commence arbitration after granting of injunction - Whether applicant guilty of non-disclosure or misrepresentation on application for injunction - Whether injunction should have been granted - Arbitration Act 1996, section 44.

EURO LONDON APPOINTMENTS LTD v CLAESSENS INTERNATIONAL LTD

[2006] 2 Lloyd's Rep. 436

Agency - Employment introductions - Client entitled to refund of fee only if fee paid by client within seven days of invoice - Whether clause an unenforceable penalty.

KONKOLA COPPER MINES PLC v COROMIN LTD (NO 2)

[2006] 2 Lloyd's Rep. 446

Insurance - Jurisdiction - Claimant insured by Zambian insurers under policy subject to exclusive Zambian jurisdiction and by English insurers under policy subject to exclusive English jurisdiction - Whether Zambian insurers should be co-defendants to proceedings against English insurers - Whether exclusive jurisdiction clause overrode need to avoid fragmentation of proceedings.

TRAFIGURA BEHEER BV v KOOKMIN BANK CO

[2006] 2 Lloyd's Rep. 455

Banking - Letter of credit - Issuing bank commencing proceedings against seller in Korea for breach of duty - Seller seeking declaration of non-liability and anti-suit injunction in England - Law governing claim by issuing bank against seller - Whether claim “relating to tort” - Place where most significant elements constituting the tort occurred - Whether claim more closely connected with some other jurisdiction - Private International Law (Miscellaneous Provisions) Act 1995, sections 9, 11 and 12.

DORNOCH LTD v MAURITIUS UNION ASSURANCE CO LTD

[2006] 2 Lloyd's Rep. 475

Reinsurance - Conflict of laws - Direct bankers’ blanket policy governed by law of Mauritius - Reinsurance governed by English law - Proceedings for negative declaration issued by reinsurers in England - Reinsurers then joined to action by assured against insurers in Mauritius - Whether reinsurance incorporated an exclusive jurisdiction clause - Law applicable to reinsurance - Rome Convention 1980, articles 2 and 3 - Whether England the most convenient forum for action - Action in tort by reinsurers for fraudulent misrepresentation - Law applicable to tort claim - Private International Law (Miscellaneous Provisions) Act 1995, sections 11 and 12.

NORBROOK LABORATORIES LTD v TANK

[2006] 2 Lloyd's Rep. 485

Arbitration - Removal of arbitrator and setting aside awards - Serious irregularity - Arbitrator contacting potential witnesses and not disclosing their evidence - Arbitrator having unilateral conversations with each party - Arbitrator showing antagonism towards applicant’s solicitors - Award on costs unreasoned - Arbitration Act 1996, sections 24 and 68.

PEEKAY INTERMARK LTD AND ANOTHER v AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

[2006] 2 Lloyd's Rep. 511

Misrepresentation - Bank making false statements to investor regarding nature of potential investment - Whether investor relied on statements - Whether statements corrected by the terms of the contract before investment made.

ST MICROELECTRONICS NV v CONDOR INSURANCE LTD

[2006] 2 Lloyd's Rep. 525

Guarantee by defendants of sums due under supply contracts - Debtor agreeing to make early payment of part of principal debt in order to secure continuity of supplies - Whether agreement amounting to variation of terms of debt - Whether guarantor discharged from liability.

WESTERNGECO LTD v ATP OIL & GAS (UK) LTD

[2006] 2 Lloyd's Rep. 535

Contract - Construction - Contractor performing seismic survey work for offshore oil company - Damage caused to third party’s wellhead installation by contractor’s negligence - Whether contract entitled contractor to indemnity from company to extent that contractor’s liability to third party exceeded payments received by contractor for work performed under the contract.

ERG RAFFINERIE MEDITERRANEE SPA v CHEVRON USA INC (THE “LUXMAR”)

[2006] 2 Lloyd's Rep. 543

Sale of goods (fob) - Construction - Nominated vessel arriving within laycan period - Delay by sellers in loading vessel - Buyers terminating contract for repudiatory breach - Whether termination lawful - Whether buyers entitled to general damages for late delivery.

HEATH LAMBERT LTD v SOCIEDAD DE CORRETAJE DE SEGUROS (NO 2)

[2006] 2 Lloyd's Rep. 551

Reinsurance (marine) - Placing broker paying premium on marine reinsurance policy - Placing broker not indemnified by producing broker or reinsured - Whether placing broker had lien over proceeds of claim to satisfy outstanding premium - Marine Insurance Act 1906, section 53.

INTERNATIONAL TRANSPORTATION SERVICE INC v THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL “CONVENIENCE CONTAINER”

[2006] 2 Lloyd's Rep. 556

Admiralty practice - Jurisdiction - Arrest of vessels - Shipowners went into liquidation prior to issue of writs in rem - Whether liquidation divested shipowners of beneficial ownership of vessels so as to preclude exercise of admiralty jurisdiction - High Court Ordinance, section 12B(4)(i).

K LTD v NATIONAL WESTMINSTER BANK PLC HM REVENUE AND CUSTOMS (intervening party) SERIOUS ORGANISED CRIME AGENCY (intervening party)

[2006] 2 Lloyd's Rep. 569

Banking - Money laundering - Bank refusing to obey client’s instructions on suspicion that criminal offence had been committed - Procedure to be adopted by bank - Proceeds of Crime Act 2002, sections 328 and 335.

R (ON THE APPLICATION OF FOGG AND ANOTHER) v SECRETARY OF STATE FOR DEFENCE

[2006] 2 Lloyd's Rep. 576

Administrative law - Judicial review - Armed merchant vessel sunk by enemy action whilst in convoy - Secretary of State refusing to designate ship for protection against interference - Whether vessel “in service with” or being used “for the purposes of” the armed forces of the United Kingdom at time of sinking - Protection of Military Remains Act 1986, section 9(2)(a).

GASTRONOME (UK) LTD v ANGLO DUTCH MEATS (UK) LTD

[2006] 2 Lloyd's Rep. 587

Guarantee - Supply of goods by claimant to debtor - Guarantee provided by claimant - Whether claimant beneficiary of guarantee - Admissibility of extrinsic evidence.

VERTEX DATA SCIENCE LTD v POWERGEN RETAIL LTD

[2006] 2 Lloyd's Rep. 591

Practice - Injunction - Outsourcing agreement - Arbitrator having no power to grant injunctive relief - Parties entitled to apply to court where dispute not capable of being referred to arbitration - Application for interim injunction - Whether application precluded by arbitration clause - Whether criteria for interim injunction fulfilled.

WPP HOLDINGS ITALY SRL v BENATTI

[2006] 2 Lloyd's Rep. 610

Jurisdiction - Claims brought by claimants in England and by defendant in Italy - Whether English courts first seised of proceedings - Whether exclusive jurisdiction clause valid - Whether contract one of employment - Council Regulation 44/2001/EC, articles 19, 23 and 27 - Council Regulation 1348/2000/EC, article 14.

BALMORAL GROUP LTD v BOREALIS [UK] LTD BOREALIS AS BOREALIS A/S

[2006] 2 Lloyd's Rep. 629

Sale of goods - Polyethylene supplied for manufacture of tanks - Tanks made using polyethylene failed - Whether seller in breach of implied terms of suitability and fitness for purpose - Whether contracts made on seller’s or buyer’s terms - Whether exclusion clauses in sale contracts reasonable - Application of English law in absence of proof of content of foreign law - Whether contracts constituted international supply contracts - Measure of damages - Sale of Goods Act 1979, sections 14(2) and 14(3) - Unfair Contract Terms Act 1977, sections 6, 11, 26 and 27, and schedule 2.

Lloyd's Law Reports