Sixteenth Ocean GmbH & Co KG v Société Générale – QBD (Comm Ct) (Peter MacDonald Eggers QC, sitting as a Deputy Judge of the High Court) [2018] EWHC 1731 (Comm) – 6 July 2018

Practice – Limitation of time – Bank lending funds to enable construction and purchase of vessel by Iranian company – Bank concluding interest rate swap agreement with purchaser – Sanctions imposed preventing purchaser accessing loan funds – Shipbuilder terminating construction contract – Bank calling in sums due from purchaser on termination of loan and swap agreements – Purchaser paying sum under alleged economic duress – Purchaser bringing claim against bank claiming recovery of sum paid on grounds of unjust enrichment and/or as damages for breach of swap agreement – Whether claim time-barred – Whether purchaser entitled to rely on section 32(1)(a) or 32(1)(b) of Limitation Act 1980

The claimant (16th Ocean) was a subsidiary of the Islamic Republic of Iran Shipping Lines (IRISL). On 4 February 2005 it entered into a shipbuilding contract with Hyundai Heavy Industries Co Ltd (Hyundai) for the construction of a container carrier by Hyundai and its purchase by the IRISL subsidiary.