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AIC LTD v ITS TESTING SERVICES (UK) LTD

[2006] 1 Lloyd's Rep. 1

Contract - Sale of gasoline providing for independent inspection - Buyer entering into sub-sale with similar provision - Inspection company providing certificate stating “Fuel meets specification” - Doubts raised as to correctness of certificate - Inspection company standing by certificate - Buyer insisting that sub-buyer take delivery - Swiss courts subsequently holding certificate not correct - Whether inspection company in breach of contract and/or in breach of duty to buyer - Whether inspection company liable to buyer in deceit - Whether claims time-barred under Limitation Act 1980 - Whether inspection company deliberately concealed facts relevant to buyer’s right of action - Limitation Act 1980, section 32.

AIG CAPITAL PARTNERS INC CJSC TEMA REAL ESTATE CO LTD v THE REPUBLIC OF KAZAKHSTAN

[2006] 1 Lloyd's Rep. 45

Arbitration - Enforcement of award - Dispute arising between US company and Government of Kazakstan - Arbitration taking place under Bilateral Investment Treaty in accordance with Washington Convention on the Settlement of Investment Disputes (ICSID) - Company obtaining arbitration award - Whether award enforceable in England against assets held by third parties on behalf of National Bank of Kazakhstan - Validity of Third Party Debt Order and Charging Order - Effect of European Convention on Human Rights - Civil Procedure Rules, Part 72 - Charging Orders Act 1979 - State Immunity Act 1982, sections 13 and 14.

GERLING GENERAL INSURANCE CO ALLIANZ CORNHILL INSURANCE PLC ACE INSURANCE SA-NV ROYAL & SUN ALLIANCE INSURANCE PLC AXA GLOBAL RISKS (UK) LTD GREAT LAKES REINSURANCE v CANARY WHARF GROUP PLC

[2006] 1 Lloyd's Rep. 68

Insurance (construction all risks) - Collapse of crane causing death and personal injury - Two other cranes diverted from original use as a result - Whether loss covered by policy - Whether costs incurred were necessarily and reasonably incurred to prevent or minimise interference with construction works - Whether assured in breach of notification obligations.

NV PROCTER & GAMBLE INTERNATIONAL LTD AND OTHERS v GARTNER KG AND OTHERS

[2006] 1 Lloyd's Rep. 82

Practice - Claim form - Extension of time for service - Cargo interests obtaining orders extending time for service of claim form - Whether orders should be set aside.

R v AYLIFFE (BENJAMIN) AND OTHERS

[2006] 1 Lloyd's Rep. 86

Merchant Shipping Act 1995 - Allegation that defendants were Greenpeace protesters who used rigid inflatable boats to board foreign vessel approaching English port - Allegation that defendants endangered safety of vessel - Whether defendants fell within description of “a person who goes to sea in a ship without the consent of the master” - Sections 58 and 106(1). Criminal law - Indictment - Whether prosecution entitled to include in indictment charge previously dismissed at committal proceedings.

ANTON DURBECK GMBH v DEN NORSKE BANK ASA

[2006] 1 Lloyd's Rep. 93

Shipping - Vessel mortgaged to bank - Arrest of vessel by bank by way of enforcement of mortgage - Perishable cargo on board - Cargo deteriorating and thrown into the sea - Whether bank liable to cargo owners for wrongful interference with performance of bill of lading contract - Law applicable to alleged tort - Private International Law (Miscellaneous Provisions) Act 1995, sections 11 and 12 - Liability under Panamanian law - Liability under English law.

P&O NEDLLOYD BV v ARAB METALS CO AND OTHERS (THE “UB TIGER”)

[2006] 1 Lloyd's Rep. 111

Practice - Limitation of time - Application to amend particulars of claim to plead alternative case based on variation of or addition to original contract of carriage and to claim damages, indemnity, declaratory relief and specific performance - Whether new claims time-barred - Whether six-year limitation period for actions founded on contract applicable by analogy to new claim for specific performance - Whether new claims arose out of substantially the same facts as original claims - Limitation Act 1980, sections 5 and 36(1)(b), CPR 17.4(2).

PETROMEC INC PETRO-DEEP SOCIETA ARMAMENTO NAVI APPOGGIO SPA v PETROLEO BRASILEIRO SA

[2006] 1 Lloyd's Rep. 121

Insurance (marine) - Agreement between numerous parties to upgrade semi-submersible oil production platform - Platform lost following explosion and fire - Allocation of insurance proceeds amongst interested parties - Whether costs of upgrading platform included element for profit.

TAJIK ALUMINIUM PLANT v HYDRO ALUMINIUM AS ABDUKADIR GANIEVICH ERMATOV ALEXANDER SHUSHKO AVAZ NAZAROV ASHTON INVESTMENTS LTD

[2006] 1 Lloyd's Rep. 155

Arbitration - Dispute as to binding effect of barter agreement - Allegation that agreement unenforceable by reason of the fraud of third parties - Witness summonses made by court against third party requiring production of documents - Whether documents sufficiently identified - Whether summonses should be set aside - Arbitration Act 1996, section 43 - CPR, Parts 31.17 and 34.

SHV GAS SUPPLY & TRADING SAS v NAFTOMAR SHIPPING & TRADING CO LTD INC (THE “AZUR GAZ”)

[2006] 1 Lloyd's Rep. 163

Sale of goods (cif) - Sale contract containing “Laycan” period - Loading of goods delayed by reason of bad weather at loadport - Buyers cancelling contract - Whether cancellation justified - Whether “Laycan” period to be construed as shipment period - Whether sellers in breach of implied term that goods would be shipped within reasonable time - Whether discharge port ETAs given on reasonable grounds.

SVENSKA PETROLEUM EXPLORATION AB v GOVERNMENT OF THE REPUBLIC OF LITHUANIA (NO 2)

[2006] 1 Lloyd's Rep. 181

Arbitration - Sovereign immunity - Enforcement of foreign arbitration award against sovereign state - Claimant obtaining arbitration award against Lithuania in Denmark - Lithuania contesting jurisdiction of arbitrators - Whether Lithuania entitled to state immunity from enforcement of award - Arbitration Act 1996, section 103 - State Immunity Act 1978, sections 1, 2, 3 and 9.

TRADIGRAIN SA v STATE TRADING CORPORATION OF INDIA

[2006] 1 Lloyd's Rep. 216

Banking - Performance bond - Sale of goods (c&f) - Buyers alleging breach of contract - Buyers making call under performance bond in amount exceeding buyers’ true loss - Sellers suffering no actual loss resulting from buyers’ call - Whether seller entitled to immediate repayment of amount overpaid.

BARLOW CLOWES INTERNATIONAL V EUROTRUST INTERNATIONAL LTD

[2006] 1 Lloyd's Rep. 225

Misappropriation of investment funds - Liability for knowing assistance with breach of fiduciary duty - Whether evidence supported finding of dishonesty.

DEEP VEIN THROMBOSIS AND AIR TRAVEL GROUP LITIGATION

[2006] 1 Lloyd's Rep. 231

Carriage by air - Warsaw Convention - Passengers suffering serious injury from deep vein thrombosis during normal flight - Whether “accident” within meaning of article 17 - Carriage by Air Act 1961.

ET PLUS SA v WELTER

[2006] 1 Lloyd's Rep. 251

Conflict of laws - Arbitration - Stay of proceedings - Arbitration in Paris concerning alleged breach of distribution agreement - Claims brought in England in respect of breach of the agreement and against individual employees - Scope of arbitration clause - Whether court had jurisdiction over claims against individual employees domiciled outside England and within the EU - Whether claims should be stayed pending arbitration on case management grounds - Arbitration Act 1996, section 9, Council Regulation 44/2001, article 6, Treaty of Rome, article 81.

BANQUE SAUDI FRANSI v LEAR SIEGLER SERVICES INC

[2006] 1 Lloyd's Rep. 273

Guarantee - Subsidiary of defendant arranged with bank for issue of performance bond - Defendant guaranteed subsidiary’s liability to bank in event of payment - Claim under the bond paid by bank - Defendant refused to honour guarantee - Whether claim under performance bond fraudulent.

DATEC ELECTRONIC HOLDINGS LTD AND ANOTHER v UNITED PARCELS SERVICE LTD

[2006] 1 Lloyd's Rep. 279

Carriage of goods by road - Consignment of goods to be carried from England to The Netherlands - Goods failing to arrive - Claim against carriers - Amount of liability - Whether US$50,000 restriction on damages incorporated into contract - Whether loss caused by wilful misconduct of carriers’ employee - Convention on the Contract for the International Carriage of Goods by Road (CMR), articles 17 and 23.

VIKING LINE ABP AND ANOTHER v INTERNATIONAL TRANSPORT WORKERS FEDERATION AND ANOTHER

[2006] 1 Lloyd's Rep. 303

European Community law - Decision by claimant to reflag vessel - Strike action threatened by defendant unions - Whether strike action unlawful under free movement of workers and freedom of establishment rules of the Treaty of Rome, article 43 - Whether reference for preliminary ruling should be made to ECJ - Whether interim measures should be granted.

AMB GENERALI HOLDING AG MANCHES SPRECHER GRIER HALBERSTAM PORTNER & JASKEL v SEB TRYGG LIV HOLDING AKTIEBOLAG MERRIFIELD

[2006] 1 Lloyd's Rep. 318

Arbitration - Sale of shares in insurance company - Disputes to be referred to arbitration - Seller merging and changing name - Alleged default by buyer - Arbitration proceedings commenced by solicitors in seller’s original name - Counterclaim by buyer - Whether arbitration proceedings a nullity - Whether there was express, implied or ostensible authority for the commencement of proceedings - Whether participation in proceedings ratified by new company - Whether solicitors liable for breach of warranty - Costs.

GE COMMERCIAL FINANCE LTD v GEE

[2006] 1 Lloyd's Rep. 337

Deceit - Conspiracy to injure by use of unlawful means - Claimants buying debts by reason of statements made by defendants - Whether statements false and fraudulently made - Measure of damages.

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

[2006] 1 Lloyd's Rep. 353

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.

HSBC RAIL (UK) LTD v NETWORK RAIL INFRASTRUCTURE LTD

[2006] 1 Lloyd's Rep. 358

Negligence - Rolling stock damaged as result of Hatfield crash - Rolling stock leased by owner to train operating company at time of crash - Insurer paying for repairs and bringing subrogated proceedings in name of owner of rolling stock - Owner of rolling stock having reversionary interest only - Whether owner entitled to sue - Whether damage to rolling stock constituted permanent injury - Whether insurer entitled to sue in reversioner’s name by way of subrogation.

FUJITSU COMPUTER PRODUCTS CORPORATION v BAX GLOBAL INC

[2006] 1 Lloyd's Rep. 367

Carriage of goods by air - Goods lost in transit - Whether carrier entitled to limit liability - Whether air waybill contained valid notice drawing attention to limitation of liability - Warsaw Convention (as amended by Hague Protocol), articles 8, 9 and 22 - Carriage of Goods by Air Act 1961.

ASM SHIPPING LTD OF INDIA v TTMI LTD OF ENGLAND

[2006] 1 Lloyd's Rep. 375

Arbitration - Application to set aside award - QC appointed as arbitrator - QC in earlier separate proceedings applied to court for disclosure order against key witness in arbitration - Arbitral panel subsequently refusing adjournment of proceedings when leading counsel unable to appear on scheduled date - Whether QC arbitrator potentially biased - Whether refusal of application amounting to actual bias - Whether bias waived - Arbitration Act 1996, sections 68 and 73.

MASRI v CONSOLIDATED CONTRACTORS GROUP SAL (HOLDING COMPANY) AND OTHERS

[2006] 1 Lloyd's Rep. 391

Conflict of laws - Jurisdiction - Two sets of proceedings commenced by claimant in England against different defendants but raising the same issues - Whether third parties could be joined to second action - Risk of conflicting judgments if no joinder - Brussels Regulation 44/2001, article 6.1.

TTMI LTD OF ENGLAND v ASM SHIPPING LTD OF INDIA

[2006] 1 Lloyd's Rep. 401

Shipping - Arbitration - Order made on application to enforce freight award - Whether order should have deducted sums ordered by way of security for costs - Freezing order - Whether risk that award would go unsatisfied.

KONKOLA COPPER MINES PLC AND OTHERS v COROMIN LTD AND OTHERS

[2006] 1 Lloyd's Rep. 410

Reinsurance - Conflict of laws - Jurisdiction - Whether reinsurance incorporated exclusive jurisdiction clause nominating Zambia - Whether English court should hear action despite clause - Burden of proving existence of clause - Standard of proof.

ROSEWOOD TRUCKING LTD v BRIAN BALAAM

[2006] 1 Lloyd's Rep. 429

Carriage of goods by road - Consignment of goods lost by ultimate carrier - Action by intermediate carrier against ultimate carrier for indemnity - Convention on the Contract for the International Carriage of Goods by Road (CMR), articles 36 and 37 - Carriage of Goods by Road Act 1965.

R v GOODWIN

[2006] 1 Lloyd's Rep. 432

Criminal law - Defendant causing personal injury while riding a jet ski off Weymouth - Prosecution under Merchant Shipping Act 1995, section 58(2)(a) - Whether jet ski a “sea-going” “ship” “used in navigation” - Whether person riding a jet ski the “master” of a ship - Merchant Shipping Act 1999, sections 49 and 313.

THAMES VALLEY POWER LTD v TOTAL GAS & POWER LTD

[2006] 1 Lloyd's Rep. 441

Contract for supply of gas to Heathrow Airport - Force majeure clause releasing party unable to perform from obligations - Disputes to be referred to expert determination - Supplier serving notice of force majeure - Whether dispute between the parties - Whether judicial proceedings should be stayed - Whether claim for force majeure well founded.

PRIMETRADE AG v YTHAN LTD (THE “YTHAN”)

[2006] 1 Lloyd's Rep. 457

Arbitration - Jurisdiction of arbitrators - Charter-party - Identity of holder of bills of lading - Carriage of Goods by Sea Act 1992, sections 2 and 3 - Whether party challenging jurisdiction of arbitrators can raise new objections during judicial challenge - Arbitration Act 1996, sections 67 and 73.

ABOU-RAHMAH AND OTHERS v ABACHA AND OTHERS

[2006] 1 Lloyd's Rep. 484

Banking - Claimants induced by fraud to pay money into bank account - Bank passing money to fraudsters - Whether bank liable - Whether claimants debarred from seeking remedy by reason of illegality - Whether bank guilty of knowing assistance of breach of trust - Whether bank owed duty of care - Whether money subject to resulting or Quistclose trust - Action for money had and received - Defence of change of position.

ENTERPRISE OIL LTD v STRAND INSURANCE CO LTD

[2006] 1 Lloyd's Rep. 500

Insurance (liability) - Settlement reached by assured in respect of proceedings in Texas - Claim against liability insurers - Whether insurers’ liability based on proof of assured’s actual liability or proof that Texas could reasonably have reached a finding of liability - Whether assured faced liability in tort under Texas law - Whether coverage of policy for contractual liability extended to settlements - Whether settlement had to allocate losses as between the various claims made against the assured - Whether assured could recover defence costs.

BERNUTH LINES LTD v HIGH SEAS SHIPPING LTD (THE “EASTERN NAVIGATOR”)

[2006] 1 Lloyd's Rep. 537

Arbitration - Notice of arbitration - Whether validly served - Notice of arbitration sent by e-mail - Whether notice sent to correct e-mail address - Ground of challenge - Arbitration Act 1996, sections 14(4), 67, 68, 69, 72 and 76 - LMAA Small Claims Procedure - Whether counterclaim in excess of SCP limits permitted use of SCP.

BP PLC v AON LTD

[2006] 1 Lloyd's Rep. 549

Insurance (construction) - Action against brokers - Non-exclusive jurisdiction clause in favour of Illinois - Contract with brokers governed by Illinois law - Whether pleadings could be amended to add action for breach of contract - Jurisdiction of English court - Whether England the most appropriate forum - Whether amended claim time-barred under Illinois law - Foreign Limitation Periods Act 1984 - Limitation Act 1980, section 35 - CPR 17.4(2).

CADRE SA v ASTRA ASIGURARI SA

[2006] 1 Lloyd's Rep. 560

Insurance - Conflict of laws - Anti-suit injunction - Ruling by English court that England was the most appropriate forum for the resolution of the dispute - Defendants disregarding ruling and maintaining action in Romania - Whether conduct unconscionable and justifying grant of anti-suit injunction.

GOSHAWK DEDICATED LTD AND OTHERS v TYSER & CO LTD AND ANOTHER

[2006] 1 Lloyd's Rep. 566

Insurance brokers - Placing, claims and accounting documents in possession of brokers - Whether underwriters legal or equitable owners of documents - Whether implied obligation on assureds to disclose documents to underwriters - Whether implied contract between brokers and undewriters that brokers would provide documents on behalf of assureds - Effect of Terms of Business Agreements 2001.

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

[2006] 1 Lloyd's Rep. 579

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, any of the armed forces of the United Kingdom” at time of sinking - Protection of Military Remains Act 1986, section 9(2)(a).

DALKIA UTILITIES SERVICES PLC v CELTECH INTERNATIONAL LTD

[2006] 1 Lloyd's Rep. 599

Contract - Utilities - Long-term contract for provision of energy services to paper mill - Whether supplier entitled to serve contractual notice terminating contract on ground of customer’s “material breach” in failing to pay monthly charges - Amount of money payable by customer on termination - Whether contract to be rectified by construction - Whether obligation on customer to pay sum on termination was a penalty - Whether customer in repudiatory breach - Whether supplier’s notice of termination constituted acceptance of repudiatory breach - Whether supplier’s notice of termination constituted repudiatory breach.

GROVIT v DE NEDERLANDSCHE BANK

[2006] 1 Lloyd's Rep. 636

Conflict of laws - Jurisdiction - Action for libel against Dutch bank - Whether bank a separate entity entitled to state immunity - State Immunity Act 1978, section 14 - Whether state immunity can be pleaded as defence to jurisdiction under Council Regulation 44/2001 - Whether action a civil or commercial matter - Council Regulation 44/2001, articles 1 and 5(3) - Effect of Human Rights Act 1998.

PARSONS CORPORATION AND OTHERS v CV SCHEEPVAARTONDERNEMING HAPPY RANGER THE “HAPPY RANGER”

[2006] 1 Lloyd's Rep. 649

Carriage of goods by sea - Cargo damaged when crane hook broke while lifting cargo for loading - Liability of carrier for defects in vessel - Whether carriers exercised due diligence to make vessel seaworthy - Hague-Visby Rules, article III, rules 1 and 2.

PENTONVILLE SHIPPING LTD v TRANSFIELD SHIPPING INC THE “JOHNNY K”

[2006] 1 Lloyd's Rep. 666

Arbitration - Appeal against award - Claim by owners for deadfreight or damages - Whether charterers responsible for ordering vessel to sail without loading full cargo - Whether arbitrators made appropriate findings - Whether award should be remitted to arbitrators - Arbitration Act 1996, section 69.

EASE FAITH LTD v LEONIS MARINE MANAGEMENT LTD

[2006] 1 Lloyd's Rep. 673

Towage - Claimant appointing defendant tug owner to tow vessel from Balboa to China - Defendant entering into agreement with Part 20 defendant tug owner - Vessel delayed in reaching China - Whether defendant in breach of obligation to carry out contract with proper despatch - Defendant denying liability and bringing Part 20 proceedings - Whether claim succeeded - Whether Part 20 defendant liable to defendant.

KANORIA AND OTHERS v GUINNESS

[2006] 1 Lloyd's Rep. 701

Arbitration - Enforcement of award - Allegation that respondent not given the opportunity to answer a charge of bad faith in the arbitration - Whether enforcement should be refused - Arbitration Act 1996, section 103.

NEWSAT HOLDINGS LTD AND OTHERS v ZANI

[2006] 1 Lloyd's Rep. 707

Practice - Service out of jurisdiction - Alleged false statements made in London to solicitors of Bermuda companies - Investment decisions made by claimants in London - Defendant domiciled in the Philippines - Whether English court had jurisdiction - CPR 6.20(8).

WEISSFISCH v JULIUS

[2006] 1 Lloyd's Rep. 716

Arbitration - Dispute arising between two brothers - Agreement for arbitration with its seat in Switzerland - Application for temporary injunction restraining arbitrator from ruling on his own jurisdiction - Whether English court should intervene.

BARBADOS TRUST COMPANY LTD v BANK OF ZAMBIA AND ANOTHER

[2006] 1 Lloyd's Rep. 723

Contract - Enforcement by third party - Claim for outstanding advances made to defendant - Validity of assignment of right to recover advances - Assignor declaring itself trustee of right of recovery - Validity of declaration of trust - Whether declaration of trust prohibited by terms of advances.

CARBOPEGO-ABASTECIMENTO DE COMBUSTIVEIS SA v AMCI EXPORT CORPORATION

[2006] 1 Lloyd's Rep. 736

Measure of damages for breach of contract - Agreement for supply of coal - Defendant wrongfully failed to deliver two shipments of coal - Whether claimant entitled to difference between contract price and market price on date of repudiation or on later date when the contract of sale was terminated for breach - Sale of Goods Act 1979, section 51(1).

COVINGTON MARINE CORP AND OTHERS v XIAMEN SHIPBUILDING INDUSTRY CO LTD

[2006] 1 Lloyd's Rep. 745

Arbitration - Shipbuilding - Claims by buyers for repudiation of contracts by builders - Builders denying that binding contracts entered into - Arbitrators ruling that contracts automatically rescinded by reason of conditions not being met - Buyers’ claim dismissed - Appeal under Arbitration Act 1996, section 69 - Whether arbitrators correct.

LONSDALE v HOWARD & HALLAM LTD

[2006] 1 Lloyd's Rep. 760

Agency - Termination of agency relationship following closure of principal’s business - Amount of agent’s entitlement to compensation - Whether agent entitled to recover compensation only for damage or whether compensation to be assessed on basis of what was fair and reasonable - Commercial Agents (Council Directive) Regulations 1993, regulation 17(6).

REPUBLIC OF ECUADOR v OCCIDENTAL EXPLORATION & PRODUCTION CO (NO 2)

[2006] 1 Lloyd's Rep. 773

Arbitration - Bilateral Investment Treaty between Ecuador and the US - US company commencing arbitration against Ecuador - Company obtaining award - Whether award in excess of arbitrator’s jurisdiction - Proper construction of BIT - Whether arbitrators guilty of serious irregularity by granting remedies based on international law - Arbitration Act 1996, sections 67 and 68.

Lloyd's Law Reports