Lloyd's Law Reports

Bill of lading - Arbitration clause - Incorporation - Stay of action - Plaintiffs not charterers of vessel - Bill of lading incorporated “all terms and conditions. . .and arbitration clause of the Charterparty” - Dispute between defendants and plaintiffs - Whether bill of lading incorporated arbitration clause - Whether defendants entitled to stay action.

Practice - Application to set aside - Stay of action - Plaintiffs claimed damages for conspiracy, moneys allegedly due under constructive trusts and damages for breaches of duties relating to four transactions - Whether plaintiffs’ claims should be tried - Application of arts. 16, 21, 22 and 27 of the Brussels Convention and R.S.C., O. 11 - Whether action should be stayed pursuant to arbitration clause.

Reinsurance - Lloyd’s litigation - Professional liability insurance - Interaction of limitation of liability clauses in both insurance and reinsurance contracts with the follow settlement clauses.

Practice - Writ - Validity - Application for extension - Plaintiff suffered personal injuries - Writ issued within three year limitation period - Plaintiffs’ advisers took view that statement of claim should be served with writ - Whether a good reason for extending validity of writ.

Sale of yacht - Misrepresentation - Rescission - Contract for sale of yacht in exchange for discotheque in Portugal - Plaintiff alleged that defendant’s fraudulent and negligent misrepresentation induced him to enter into contract - Whether contract should be rescinded - Whether plaintiff entitled to damages - Quantum.

Arbitration - Costs - Security - Application for security for costs - Contract for supply of crude oil - Alleged repudiation of contract accepted - Dispute referred to arbitration - Whether application for security for costs should be granted.

Reinsurance - Jurisdiction - Application to set aside - Plaintiffs alleged reinsurances void and unenforceable - Leave to serve out of jurisdiction granted - Whether plaintiff had good arguable case - Whether sufficient case on merits to warrant granting leave - Whether England more appropriate forum - Whether leave should be set aside.

Insurance (Marine) - Inchmaree clause - Insured peril - Fatigue cracks in legs of accommodation platform - Whether vessel sustained damage - Whether covered by inchmaree clause - Whether damage caused by insured peril - Whether assured could claim under sue and labour clause - Whether assured could recover survey costs and photocopying and stationery expenses.

Practice - Anti-suit injunctions - Jurisdiction - Proceedings in Montana - Action under Racketeering Influenced and Corrupt Organisations Act and for damages for fraud, breach of contract, negligence and secret profits - Whether action could only be brought in Montana - Whether England natural forum - Whether Montana proceedings vexatious and oppressive - Whether injustice caused to defendants if anti-suit injunctions granted.

Insurance (Theft) - Construction - Insuring clause 2 provided cover for loss of property by reason of theft committed by persons present on the assured’s premises - Plaintiffs handed over securities to employee of customer in exchange for undertaking to provide alternative securities - No alternative securities provided - Whether theft committed within policy cover.

Collision - Crossing vessels - Collision off Singapore - Collision occurred within traffic separation scheme - Liability for collision - Apportionment of liability.

Banking - Letter of credit - Rejection of documents - Sale of aluminium ingots - Bank rejected documents - Whether commercial invoice misdescribed goods - Whether packing list failed to describe or to identify goods - Whether certificate provided by plaintiffs not an original document - Whether bank entitled to reject documents.

Banking - Banking facilities - Withdrawal - Commodity contracts - Plaintiffs entered into substantial futures contracts as hedge for unmatched physical purchases - Plaintiffs alleged bank summarily withdrew its support for hedge - Whether bank in breach of contract or duty - Whether reasonable notice of withdrawal of support should have been given.

Banking - Export Credit Guarantee - Construction - Comprehensive bank guarantee and specific bank guarantee - Default of exporter - Bank claimed under guarantees in contract and tort - Allegations of misrepresentation and non-disclosure - Whether bank failed to verify validity and enforceability of bills of exchange - Duty of disclosure under contract of guarantee - Whether employee of ECGD had actual or ostensible authority to issue guarantees of bills of exchange - Breach of duty in relation to termination of insurance policy underlying CBG.

Sale of goods (f.o.b.) - Principal and agent - Non-delivery - Contract for sale of goods - Defendants failed to deliver - Whether contract between plaintiff and second defendants - Whether first defendant a party to contract either as principal or as agent - Whether first defendant personally liable.

Reinsurance - Non-disclosure - Lloyd’s litigation - Insurers’ liability reinsured - Allegation that insurers’ agents misappropriation of premiums received for benefit of insurers not disclosed to reinsurers - Whether reinsurers entitled to repudiate liability - Marine Insurance Act, 1906, ss. 18 and 19.

Reinsurance - Indemnity - Excess of Loss - “actually paid” - Construction - Reinsurance of whole account and aviation contracts - Losses arose on business underwritten by reinsured - Whether reinsurers liable to indemnify reinsured in respect of sums which reinsured had not yet paid, although amount of loss agreed.

Negligence - Breach of duty - Lloyd’s litigation - Application to strike out - Plaintiffs claimed damages from defendants for breach of duty as members’ agents - Plaintiffs party to Gooda Walker action against members’ agents - Whether defendants’ application to strike out on the ground that action vexatious and an abuse of process should be granted.

Practice - Stay of action - Limitation of liability - Collision in Singapore waters between defendants’ vessel and plaintiffs’ jetty - Differing limits of liability in England and Singapore - English law characterized limitation provisions of Singapore as procedural - Whether sufficient for plaintiffs to establish that act or omission complained of was actionable or tortious by lex loci delicti - Whether English limit should be applied - Whether action should be stayed - Merchant Shipping Act, 1894, ss. 503, 504 - Singapore Merchant Shipping Act, 1970, ss. 272, 273.

Charter-party (Time) - Limitation of time - Hague-Visby Rules - Incorporation - Time charter for carriage of sulphuric acid - Cargo outturned contaminated - Plaintiffs claimed damages for breach of contract and substitute tonnage - Whether Hague-Visby Rules incorporated - Whether plaintiffs’ claim time barred - Hague-Visby Rules, art. III, r. 6.

Lloyd’s litigation - Cash call - Summary judgment - Defendant appointed plaintiffs managing agent on terms of standard agreement - Managing agents made cash call on defendant pursuant to cl. 7 - Defendant pleaded art. 85 of Treaty of Rome - Whether cl. 7 prohibited as incompatible with common market - Whether defendant had arguable defence - Whether plaintiff entitled to summary judgment.

Sale of ship - Specific performance - Extension of time - Plaintiffs obtained order for specific performance of sale of ship - Defendants issued claused protocol of delivery and acceptance - Bank declined to advance funds for purchase of vessel - Plaintiffs obtained extension of time - Whether defendants had complied with order.

Reinsurance - Letters of credit - Injunction - Allegations of non-disclosure and misrepresentation - Whether reinsurance contracts avoided - Allegation that reinsurance contracts illegal - Whether letters of credit illegal - Whether plaintiffs entitled to injunction restraining defendants from presenting documents under letters of credit - Financial Services Act, 1986, s. 132.

Contract - Construction - “Sole judge” - Contract Regarding Supplement to Tanker Liability for Oil Pollution - Clause provided defendants to be “sole judge” of validity of claim made under it - Effect of words “sole judge” - Whether unchallengeable in English Courts.

Conflict of laws - Choice of law - Contract - Parties reached agreement for charter of two Panamax vessels with option to purchase - Whether parties agreed MOA to be subject to law of England as the country agreed as place of arbitration - Whether charter-party governed by English or Japanese law.

Banking - Guarantee - Limitation of time - Allegation that bank waived requirement of ECGD cover - Bank claimed under guarantee - Whether claim time barred - Whether guarantee void or unenforceable by reason of uncertainty - Whether defendant discharged from liability.

Sale of goods (C. & F.) - Rejection of documents - Bills of lading - Inspection of goods - Whether bills of lading should be on liner terms - Whether failure to provide bills of lading on liner terms entitled buyers to reject documents - Certificates of quality and condition showed inspection undertaken at shippers’ godown - Whether contractual requirements satisfied.

Negligence - Professional negligence - Application to strike out - Piper Alpha rig disaster - Plaintiff alleged he suffered serious psychiatric harm which caused him loss and damage - Claim against operators of rig failed - Whether legal representatives negligent in not including alternative claim for breach of statutory duty - Whether action should be struck out.

Damages - Personal injury - Breach of statutory duty - Breach of duty of care - Piper Alpha disaster - Support vessel went to assistance - Plaintiff on support vessel claimed to be suffering from symptoms of post traumatic stress syndrome - Whether defendant owners of Piper Alpha owed plaintiff duty of care - Whether defendants in breach of statutory duty - Offshore Installations (Operational Safety Health and Welfare) Regulations, 1976.

Practice - Jurisdiction - Failure to acknowledge service - Application by plaintiff for full trial - Whether Court had inherent jurisdiction to order trial on merits notwithstanding defendants’ failure to acknowledge service or serve defence.

Insurance (Marine) - Charterers’ liability - Demurrage cover - Non-disclosure - Insured obtained demurrage endorsements for voyages from Kharg Island and Constanza - Whether such cover only applied to risks of delay in loading and unloading - Allegations of non-disclosure of loss experience, adverse port characteristics and irrecoverability from third parties - Whether disclosure obligation waived - Whether terms of charter not “Asba 2 or similar” - Whether underwriters entitled to avoid endorsements.

Salvage - Remuneration - Special compensation - Salvage services rendered to vessel - Meaning of “fair rate” - Period for which salvors entitled to special compensation - Whether award should be set aside - Whether award on costs of the arbitration open to challenge - International Salvage Convention, 1989, arts. 13 and 14.

Bill of lading - Discharging costs - Ship’s rail - Goods sold under GAFTA 100 - Bill of lading issued - Buyers had to pay inter alia costs from holds to ship’s rail - Whether costs recoverable from sellers - Whether bill of lading a conforming bill for purposes of contract made under GAFTA 100.

Conflict of law - Proper law - Performance bond, advance payment guarantee and counter guarantee given in respect of contracts for supply of equipment and spares to Libya - Claim on counter guarantee - Whether proper law of counter guarantee Libyan law - Whether defendants entitled to leave to defend - R.S.C., O. 14.

Carriage by sea - Unseaworthiness - Damage to cargo - Fire on board vessel damaged plaintiffs’ cargo - Whether welding operations carried out on deck - Whether vessel unseaworthy - Whether fire caused with actual fault or privity of owners - Whether owners in breach of art. III, rr. 1, 2 of Hague-Visby Rules - Whether owners could rely on art. IV, r. 2.

Arbitration - Award - Registration - Application to set aside - Plaintiff obtained arbitration award - Award made enforceable as a judgment by French Court - Judgment registered in England - Whether judgment on an award excluded from provisions of Brussels Convention - Whether registration should be set aside - Civil Jurisdiction and Judgments Act, 1982.

Banking -- Counter indemnity - Guarantee and counter indemnity issued for supply of plant to Kuwait - Iraq invaded Kuwait and contract terminated - Bank claimed under counter indemnity - Whether bank entitled to call for deposit - Whether bank entitled to raise rate of commission - Whether bank entitled to charge interest on unpaid deposit - Whether bank entitled to block credit balance funds.

Sale of goods (c.i.f.) - Stay of proceedings - Short delivery - Proceedings commenced by defendants in Italy - Plaintiffs applied for declaratory and injunctive relief - Whether application for stay should be granted - Whether Brussels Convention applied - Civil Jurisdiction and Judgments Act, 1982, Schedule, arts. 17, 21, 22.

Insurance (Commercial Mortgage Indemnity) - Co-lender clause - Construction - Avoidance of policies - Allegations of material non-disclosure and misrepresentation - Whether insured in breach of co-lender clause - Whether insurers entitled to avoid policy - Issues as to waiver, estoppel and affirmation.

Practice - Concurrent writ - Application to strike out - Abuse of process - Dispute between shipowners and charterers - Shipowners’ appeal pending - Charterers issued and served concurrent second writ out of jurisdiction - Whether writ an abuse of process of Court - Whether affidavit defective - Whether leave to serve out of the jurisdiction should not have been granted.

Cargo - Dangerous cargo - Shipper’s liability - Carriage by sea - Cargo of ground-nuts shipped at Dakar infested with Khapra beetle - Cargo jettisoned at sea - Whether infestation originated in ground-nut cargo shipped under charter - Whether Khapra beetle already on board vessel when ground-nut cargo shipped - Whether cargo dangerous by reason of presence of Khapra beetle - Whether shippers liable - Bills of Lading Act 1855, s. 1.

Principal and agent - Secret commission - Bribe - Contract for construction of plaintiffs’ building - Plaintiffs alleged that contractors paid agents a bribe - Whether plaintiffs entitled to restitution or damages.

Insurance (Business Interruption) - Consequential loss - Insurable interest - Development of building - Architects’ plans and drawings destroyed by fire - Plaintiffs claimed costs of reproducing plans and revenue lost by delay in completion - Whether plaintiffs had insurable interest - Whether plaintiffs could recover under the policy.

Insurance (Fire) - Warranty - Breach - Plaintiff’s premises insured against fire - Plaintiff answered question in proposal form that premises protected by security alarm - Premises damaged by fire - Security alarm inoperative at time of fire - Whether plaintiff in breach of warranty - Whether insurers discharged from liability.

Insurance (Personal Accident) - Bodily injury - Construction - Insured found dead - Blood/alcohol concentration in body showed high level - Whether death resulted from bodily injury - Whether bodily injury caused by accidental means - Whether insurers liable.

Bill of lading - Short delivery - Prima facie evidence - Bills of lading recorded “weight. . .number unknown” - Shortfall in delivery - Whether bill of lading prima facie evidence - Whether tally documents admissible evidence of weight - Whether plaintiffs had proved any particular number or any particular weight discharged from ship - Title to sue.

Contract - Jurisdiction - Articles 21 and 22 - Plaintiffs agreed to sell to defendants its paper business - Plaintiffs alleged defendants’ misstatements induced it to enter into contract - Proceedings brought in Spain and England - Issues as to appropriateness of jurisdiction at common law - Whether English actions should be dismissed or stayed under arts. 21 and/or 22 of Brussels Convention - Civil Jurisdiction and Judgments Act, 1982.

Insurance (Aviation) - War-risks - Allied perils - Iraq invaded Kuwait - Iraq removed Kuwaiti aircraft and spares - Plaintiffs claimed under insurance - Maximum sum insured in respect of ground risks U.S.$300 m. - Whether ground limit qualified by “any one occurrence any one location” - Whether maximum ground limit included spares - Whether loss of aircraft constituted “any one occurrence” - Perils by which aircraft and spares lost - Whether spares extension cover applicable - Whether spares lost from one or more locations - Issues as to sue and labour and subrogation.

Contract - Settlement - Rescission - Negotiations for settlement of claim in dollars - Defendants offered amount in sterling - Plaintiffs accepted offer - Defendants alleged settlement should have been in dollars - Whether settlement should be rescinded.