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MANN AND HOLT v. LEXINGTON INSURANCE CO.

[2001] 1 Lloyd's Rep. 1

Reinsurance - “Per occurrence” - Construction - Civil unrest in Indonesia - Insured stores in Java damaged over period of two days by rioters - Whether riot damage constituted one occurrence or a number of occurrences.

THE “TYCHY” (No. 2)

[2001] 1 Lloyd's Rep. 10

Admiralty practice - Jurisdiction - Arrest of vessel - Application to set aside - Slot charter - Vessel arrested in respect of claimants’ claims - Defendants alleged that owners of arrested vessel not “relevant person” for purposes of s. 21 of the Supreme Court Act, 1981 - Whether defendant established novation - Whether defendants entitled to rectification - Issues as to revised slot price, containers in transit and indemnity.

HIH CASUALTY AND GENERAL INSURANCE LTD. AND OTHERS v. CHASE MANHATTAN BANK AND OTHERS

[2001] 1 Lloyd's Rep. 30

Insurance (Financial contingency) - Non-disclosure - Misrepresentation - Duty of utmost good faith - Contracts for and of insurance - Allegations of non-disclosure and misrepresentation - whether insurers entitled to avoid or rescind contract - Whether insurers entitled to damages for fraudulent and negligent misrepresentation - Whether breach of duty of utmost good faith.

GLOBAL MARINE DRILLING CO. v. TRITON HOLDINGS LTD. (THE “SOVEREIGN EXPLORER”)

[2001] 1 Lloyd's Rep. 60

Admiralty practice - Action in personam - Arrest of vessel - Guarantee - Sub-charter of semi-submersible, self-propelled drilling rig - Disputes under sub-charter - Mobile offshore drilling unit belonging to defenders arrested - Recall of arrestment on condition that defenders provide guarantee by company - Whether non-bank guarantee afforded acceptable alternative security in place of arrestment.

DUBAI ISLAMIC BANK PJSC v. PAYMENTECH MERCHANT SERVICES INC.

[2001] 1 Lloyd's Rep. 65

Arbitration - Jurisdiction - Seat of arbitration - Award - Appeal against appeal award - Whether seat of arbitration England - Whether Court had jurisdiction to exercise powers in ss. 67, 68 and 69 of Arbitration Act, 1996 - Whether application for extension of time should be granted - Arbitration Act, 1996, ss. 2, 3, 67, 68, 69, 80.

O.T. AFRICA LINE LTD. v. HIJAZY AND OTHERS (THE “KRIBI”)

[2001] 1 Lloyd's Rep. 76

Bill of lading - Exclusive jurisdiction clause - Article 17 - Construction - Alleged short delivery - Actions brought in Antwerp and England - Whether receiver parties bound by jurisdiction clause in bill of lading - Whether English Court bound to stay action - Whether jurisdiction clause fulfilled requirements of art. 17 - Whether claimants entitled to anti-suit and anti-arrest injunctions - Effect of Human Rights Act, 1998 - Civil Jurisdiction and Judgments Act, 1982, Schedule, art. 17.

KING v. BRISTOW HELICOPTERS LTD.

[2001] 1 Lloyd's Rep. 95

Carriage by air - Personal injury - Warsaw Convention - Art. 17 - Construction - Pursuer a passenger in defenders’ helicopter - Helicopter involved in accident - Pursuer claimed to suffer post traumatic stress disorder, a phobia of flying and chronic depression - Whether claims within art. 17 of Warsaw Convention - Whether pursuer entitled to damages.

WHISTLER INTERNATIONAL LTD. v. KAWASAKI KISEN KAISHA LTD. (THE “HILL HARMONY”)

[2001] 1 Lloyd's Rep. 147

Charter-party (Time) - Employment - Navigation - Charterers ordered vessel to follow great circle route - Master disregarded orders and followed more southerly route - Voyage took longer and more bunkers consumed - Whether charterers’ orders related to employment or navigation - Whether owners in breach of charter - Whether failure to proceed with utmost despatch.

KUWAIT AIRWAYS CORPORATION v. IRAQ AIRWAYS CO.

[2001] 1 Lloyd's Rep. 161

Conflict of laws - Title - RCC Resolution 369 - Invasion of Kuwait by Iraq - Resolution 369 purported to transfer Kuwaiti assets to Iraq - Iraq removed Kuwaiti aircraft to Iraq and Iran - Whether resolution effective to give Iraq title to Kuwaiti aircraft - Whether English Courts should recognize resolution. Conversion - Damages - “but for” test - Invasion of Kuwait by Iraq - Iraq wrongfully converted and usurped Kuwaiti aircraft - Whether claimants could show loss of aircraft would not have occurred but for usurpation - Whether claimants entitled to recover loss flowing directly and naturally from wrongful usurpation and conversion of Kuwaiti aircraft. Damages - Assessment - Invasion of Kuwait by Iraq - Iraq wrongfully converted and usurped Kuwaiti aircraft - Aircraft removed to Iraq and Iran - Claimants sought damages in respect of total loss of four aircraft in Iraq, detention of six aircraft in Iran and related costs, commercial financial loss and costs of purchasing new fleet of aircraft - Quantum.

R. DURTNELL AND SONS LTD. v. THE SECRETARY OF STATE FOR TRADE AND INDUSTRY

[2001] 1 Lloyd's Rep. 275

Arbitration - Arbitrator - Appointment - Section 18 - Dispute between parties under building contract to be referred to arbitration - Delay in request for arbitration - Whether Court had a discretion whether or not to appoint arbitrator - Extent of discretion - Whether discretion should be exercised in favour of claimants - Arbitration Act, 1996, s. 18.

GLENCORE INTERNATIONAL A.G. AND OTHERS v. METRO TRADING INTERNATIONAL INC.

[2001] 1 Lloyd's Rep. 284

Conflict of laws - Title - System of law - Defendants engaged in buying, blending, selling and storing oil in Fujairah - Contracts entered into with plaintiffs - Defendants insolvent - Claimants asserted proprietary claims to remaining oil in storage and proceeds of sale - Systems of law governing transfer of title to oil - Relevant rules of law of Fujairah and English law.

B.S. & N. LTD. (BVI) v. MICADO SHIPPING LTD. (MALTA) (THE “SEAFLOWER”)

[2001] 1 Lloyd's Rep. 341

Charter-party (Time) - Termination - Repudiatory breach - Majors approval clause - Owners to obtain approval for vessel from major oil companies - Whether owners’ failure to obtain Exxon approval a repudiatory breach - Whether owners entitled to damages for wrongful termination.

BULK TRADING CORPORATION LTD. v. ZENZIPER GRAINS AND FEEDSTUFFS

[2001] 1 Lloyd's Rep. 357

Sale of goods (f.o.t.) - Place of delivery - Nomination - Breach - Contract for sale of American corn for delivery free on truck - Dispute as to nomination of place of delivery - Whether sellers or buyers obliged to nominate place of delivery.

DOMANSA AND OTHERS v. DERIN SHIPPING AND TRADING CO. INC.

[2001] 1 Lloyd's Rep. 362

Practice - Domicile - Stay of action - Explosion on board defendants’ vessel - Three Polish seamen killed - Action brought by widows and other dependants - Whether defendants domiciled in England or had a place of business there - Whether claims within exclusive jurisdiction clause of contract of employment - Whether England a more appropriate forum - Whether action should be stayed.

KBC BANK v. INDUSTRIAL STEELS (U.K.) LTD.

[2001] 1 Lloyd's Rep. 370

Banking - Letter of credit - Non-compliance - Allegations of deceit - Documents rejected for non-compliance with terms of letter of credit - Allegation that statement in Beneficiary’s Certificate false - Whether defendants knew it was false or was reckless as to its truth - Whether defendants liable in damages.

HIH CASUALTY AND GENERAL INSURANCE LTD. v. NEW HAMPSHIRE INSURANCE CO. AND OTHERS

[2001] 1 Lloyd's Rep. 378

Reinsurance - Indemnity - Warranty - Allegations of breach - Reinsurers denied liability - Whether reinsurers correctly identified terms in underlying insurance contracts as warranties - Effect of “Disclosure and/or Waiver of rights” clause in underlying insurance contract - Whether clause incorporated into reinsurance contracts - Effect of clause in reinsurance contracts.

MANIFEST SHIPPING CO. LTD. v. UNI-POLARIS INSURANCE CO. LTD. AND LA RÉUNION EUROPÉENE (THE “STAR SEA”) [2001] UKHL/1

[2001] 1 Lloyd's Rep. 389

Insurance (Marine) - Unseaworthiness - Utmost good faith - Breach - Fire in vessel’s engineroom - Vessel constructive total loss - Claim under insurance - Whether vessel sent to sea in unseaworthy state with privity of assured - Whether plaintiffs in breach of duty of utmost good faith.

BOVIS CONSTRUCTION LTD. AND ANOTHER v. COMMERCIAL UNION ASSURANCE CO. PLC

[2001] 1 Lloyd's Rep. 416

Insurance (Public Liability) - Double insurance - Contribution - Claimants insured under public liability policy - Project work insured by defendants - Claim in respect of project work - Defendants denied liability - Liability insurers paid claimants in full in respect of claim - Whether liability insurers could claim indemnity or contribution from defendants.

WHITE SEA AND ONEGA SHIPPING CO. LTD. v. INTERNATIONAL TRANSPORT WORKERS’ FEDERATION (THE “AMUR-2528” AND “PYALMA”)

[2001] 1 Lloyd's Rep. 421

Practice - Trade union dispute - Injunction - Claimants alleged unlawful boycott action brought about by ITF and their local representative in Denmark - Whether claimants had a seriously arguable case - Whether injunction should be granted.

THE “BRIJ”

[2001] 1 Lloyd's Rep. 431

Bill of lading - Misdelivery - Straight bills - Bills of lading issued in respect of goods shipped from Hong Kong to South America- Plaintiffs alleged misdelivery - Whether bills of lading non-negotiable direct consignment bills or straight bills - Whether plaintiffs party to these bills - Whether plaintiff entitled to damages for misdelivery.

HOMBURG HOUTIMPORT B.V. v. AGROSIN PRIVATE LTD. AND OTHERS (THE “STARSIN”) [2001] EWCA Civ 56

[2001] 1 Lloyd's Rep. 437

Bill of lading - Shipowner’s or charterer’s bill - Damage to cargo - Bills issued in respect of carriage of cargo - Bills signed as agent for carrier - Whether shipowners parties to bills of lading - Whether bills in terms entered into with shipowners’ authority - Liability of shipowners in tort in absence of contract - Whether shipowners entitled to rely on Himalaya clause - Whether claim-ants had cause of action in tort in respect of damage to cargo - Passing of title - Extent to which bad stowage caused damage sustained after title passed.

RELIANCE NATIONAL INSURANCE CO. (EUROPE) LTD. AND ANOTHER v. ROPNER INSURANCE SERVICES

[2001] 1 Lloyd's Rep. 477

Practice - Stay of action - CPR 51 PD-019 - Action between claimant and defendant - Action to be stayed if no proceedings came before Judge “at a hearing or on paper” - Whether letter to Court by one party only “proceedings on paper” - Whether action stayed automatically under CPR 51 PD-019.

KUWAIT AIRWAYS CORPORATION v. IRAQI AIRWAYS COMPANY AND REPUBLIC OF IRAQ

[2001] 1 Lloyd's Rep. 485

Conflict of laws - Sovereign immunity - Application to vary order - Invasion of Kuwait by Iraq - Defendants instructed to fly Kuwait aircraft to Iraq - House of Lords held sovereign immunity could not be claimed for acts done after Resolution 369 came into force - Whether immunity could be claimed for period when aircraft arrived in Iraq until Resolution 369 came into force - Whether House of Lords order should be varied.

ANDREA MERZARIO LTD. v. INTERNATIONALE SPEDITION LEITNER GESELLSCHAFT G.m.b.H. [2001] EWCA Civ 61

[2001] 1 Lloyd's Rep. 490

Carriage by road - CMR - Article 31 - Construction - Claimant contracting carrier for carriage of consignment of whisky from Scotland to Vienna - Defendant claimant’s sub-contractors - Whisky stolen - Claimant sought indemnity or contribution from defendant - Defendant brought proceedings in Austria for declaration of non-liability - Whether art. 31 barred claimant’s English action - Whether Austrian action “pending”.

GALAXY ENERGY INTERNATIONAL LTD. v. BAYOIL S.A. (THE “AMA ULGEN”)

[2001] 1 Lloyd's Rep. 512

Sale of goods (c.i.f.) - Demurrage - Construction - Interest on demurrage - Contract provided for demurrage as per charter but recoverable to the extent that same can be recoverable from terminal - Whether “can be recovered” should be construed as “is recovered” - Whether interest should be awarded on demurrage.

DODSON v. PETER H. DODSON INSURANCE SERVICES

[2001] 1 Lloyd's Rep. 520

Insurance (Motor) - Indemnity - Construction - Claimant sold insured car - Claimant involved in accident while driving car with owner’s consent - Claimant’s insurers denied liability - Whether claimant remained covered during policy period despite sale of claimant’s car.

BAYOIL S.A. v. SEAWIND TANKERS CORPORATION (THE “LEONIDAS”)

[2001] 1 Lloyd's Rep. 533

Charter-party (Voyage) - Speed warranty - Clause paramount - Vessel on voyage from Arabian Gulf to U.S. Gulf - Vessel suffered main engine breakdown - Vessel unable to perform remainder of voyage at speed warranted in charter - Whether breach of warranty - Whether clause paramount (Hague Rules exceptions) provided defence to claim for breach of express warranty.

STOCZNIA GDANSKA S.A. v. LATVIAN SHIPPING CO. LATREEFER INC. AND OTHERS.

[2001] 1 Lloyd's Rep. 537

Shipbuilding contracts - Damages - Assessment - Contract for building six ships - Buyers failed to pay second instalment - Yard exercised right to rescind contracts and claim damages - Damages to be assessed in accordance with contractual terms - Construction of cl. 5.05 - Whether yard entitled to leave to amend pleadings to allege repudiatory breach - Claims in respect of inducing breach of contract, conspiracy and unlawful interference with yard’s contractual relations.

MAMIDOIL-JETOIL GREEK PETROLEUM S.A. v. OKTA CRUDE OIL REFINERY AD (NO. 2)

[2001] 1 Lloyd's Rep. 591

Practice - Procedure - New issue - Dispute between parties - Preliminary issues ordered to be tried - Judgment given on issues - Claimants applied to raise new point on preliminary issue - Whether application should be granted.

RAIFFEISEN ZENTRALBANK OSTERREICH A.G. v. FIVE STAR GENERAL TRADING L.L.C. AND OTHERS (THE “MOUNT I”) [2001] EWCA CIV 68

[2001] 1 Lloyd's Rep. 597

Conflict of laws - Insurance (Marine) - Assignment - Vessel insured with French insurers - First defendants assigned insurance on vessel to claimant bank - Notice of assignment not given in accordance with French law - Vessel in collision with cargo carrying vessel - Vessel arrested and sold through Malaysian Court - Cargo-owners obtained attachments in France of insurance and their proceeds - Whether assignment governed by English law - Effect of art. 12 of Rome Convention.

ACE INSURANCE S.A.-N.V. (formerly CIGNA INSURANCE CO. OF EUROPE S.A.-N.V.) v. ZURICH INSURANCE CO. AND ZURICH AMERICAN INSURANCE CO. [2001] EWCA Civ. 173

[2001] 1 Lloyd's Rep. 618

Practice - Stay of action - Jurisdiction - Forum non conveniens - Dispute under reinsurance contract - Reinsurers brought action in England - Reinsured commenced action in Texas - Whether Texas more appropriate forum - Reinsured domiciled in Convention country - Whether jurisdiction to stay action - Civil Jurisdiction and Judgments Act, 1982, Schedule, art. 2

WALKINSHAW AND OTHERS v. DINIZ

[2001] 1 Lloyd's Rep. 632

Contract - Termination - Damages - Defendant a Formula One driver for claimants - Agreement between claimants and defendant - Defendant alleged breach of cl. 7.3 and gave notice terminating contract - Claimants alleged notice given under cl. 9.5 and claimed damages - Whether defendant in repudiatory breach of contract - Whether defendant entitled to terminate contract - Whether claimant suffered loss in consequence of early termination.

BOREALIS A.B. v. STARGAS LTD. AND OTHERS (THE “BERGE SISAR”) [2001] UKHL/17

[2001] 1 Lloyd's Rep. 663

Practice - Joinder - Jurisdiction - Application to set aside - Necessary and proper party to action - Sale of cargo of propane - Dispute as to contractual quality of propane - Buyers claimed against sellers - Buyers obtained leave to join shippers as second defendants and serve concurrent writ out of jurisdiction - Whether shippers necessary and proper party - Whether affidavit defective - Whether case not a proper one for service out of jurisdiction. Bill of lading - Section 3 - Construction - Holder of bill of lading endorsed bill to third party - Whether holder remained liable - Carriage of Goods by Sea Act, 1992, s. 3.

WHITE v. WHITE AND THE MOTOR INSURERS BUREAU [2001] UKHL/9

[2001] 1 Lloyd's Rep. 679

Insurance (Motor) - Exception clause - MIB agreement - Construction - Claimant passenger in car driven by brother - Brother uninsured and unlicensed - Claimant seriously injured - Claimant claimed against MIB - Whether claimant ought to have known brother uninsured - Whether MIB entitled to rely on exception in cl. 6(1)(e) of MIB agreement.

THE “BALTIC CARRIER” AND “FLINTERDAM”

[2001] 1 Lloyd's Rep. 689

Practice - Collision - Personal injury - CPR 7.6 - Application to set aside - Vessels in collision - Claimant seaman claimed damages for personal injury - Whether claimant took reasonable steps to serve claim within period of its validity - Whether claimant applied promptly to extend period of validity of claim form - Whether period should be extended - Merchant Shipping Act, 1995, s. 190.

CHINA OFFSHORE OIL (SINGAPORE) INTERNATIONAL PTE. LTD. v. GIANT SHIPPING LTD. (THE “POSIDON”)

[2001] 1 Lloyd's Rep. 697

Charter-party (Voyage) - Breach - Full and complete cargo - Loading obligations - Weather at loading port bad and expected to deteriorate - Vessel only loaded 400,000 barrels of crude oil before being disconnected - Charterers ordered vessel to discharge port - Whether owners in breach of obligation to load full and complete cargo.

THE “DELOS”

[2001] 1 Lloyd's Rep. 703

Bill of lading - Arbitration clause - Incorporation - Congen bills of lading issued expressly incorporating arbitration clause of charter-party - Ocean bills of lading provided all the terms whatsoever of the charter-party applied - Whether arbitration clause incorporated - Whether action brought by claimants should be stayed.

CUFLET CHARTERING v. CAROUSEL SHIPPING CO. LTD. AND ANOTHER (THE “MARIE H”)

[2001] 1 Lloyd's Rep. 707

Arbitration - Award - Application to set aside - Serious irregularity contrary to public policy - Dispute under charter referred to arbitration - Parties continued to negotiate to reach amicable solution - Arbitrator made final and peremptory order for defence - Time extended for negotiation - No notice of defence served - Award issued in favour of owners - Whether charterers could challenge award on ground of serious irregularity and procured contrary to public policy.

PROFILATI ITALIA S.r.L. v. PAINEWEBBER INC. AND ANOTHER

[2001] 1 Lloyd's Rep. 715

Arbitration - Award - Application to set aside - Allegations award procured contrary to public policy - Contract for sale and purchase of call options and futures - Dispute referred to arbitration - Arbitrators found in favour of respondents - Applicants challenged award alleging respondents wrongly failed to disclose material documents - Whether award should be set aside or remitted as being improperly procured.

PROFILATI ITALIA S.r.L. v. PAINEWEBBER INC. AND ANOTHER

[2001] 1 Lloyd's Rep. 725

GULF AZOV SHIPPING CO. LTD. AND ANOTHER v. IDISI AND OTHERS [2001] EWCA Civ 491

[2001] 1 Lloyd's Rep. 727

Admiralty practice - Arrest of vessel - Detention of crew - Defendants’ drilling rig carried from India to Nigeria - Defendants alleged part of cargo loaded on deck missing - Claimant carriers denied liability - Vessel arrested in Nigeria - Whether arrest unlawful - Whether crew wrongly detained - Whether agreement to pay U.S.$3 m. to defendants to allow vessel to leave avoided for duress.

VOADEN v. CHAMPION (THE “BALTIC SURVEYOR” AND “TIMBUKTU”)

[2001] 1 Lloyd's Rep. 739

Damages - Quantum - Negligent mooring of defendants’ vessel caused total loss to plaintiff’s vessel and pontoon - Value of plaintiff’s vessel at time of loss - Whether plaintiff could recover damages for loss of chartering income, loss of private use of vessel and loss of pontoon and mooring - Quantum of damages.

GLENCORE GRAIN LTD. v. FLACKER SHIPPING LTD. (THE “HAPPY DAY”)

[2001] 1 Lloyd's Rep. 754

Charter-party (Voyage) - Laytime - Commencement - Invalid notice of readiness - Vessel completed discharge over extended period - Substantial demurrage incurred if notice valid - Whether laytime could commence if no valid notice of readiness given - Whether charterers could claim despatch.

LINEA NAVIERA PARAMACONI S.A. v. ABNORMAL LOAD ENGINEERING LTD.

[2001] 1 Lloyd's Rep. 763

Bill of lading - Counterclaim - Limitation of time - Claimants agreed to transport on their barge two specialized cranes - During voyage fire broke out damaging barge and parts of crane collapsed - Claimants claimed demurrage and damages for damage to and detention of barge - Defendants counterclaimed alleging barge unseaworthy and losses incurred while repairs undertaken - Whether defendants’ claim time barred - Whether contractual extension of time limit granted by claimants to defendants.

Lloyd's Law Reports