St.Maximus Shipping Co.Ltd. v A.P. Moller-Maersk A/S
2014
COMMERCIAL COURT
United Kingdom
CORAM
- MR JUSTICE HAMBLEN
Areas of Law
- Contract Law
- Maritime Law
2014
COMMERCIAL COURT
United Kingdom
CORAM
AI Generated Summary
The case involves Owners enforcing an LOU against Maersk for General Average contributions following the grounding of the vessel 'Maersk Neuchatel.' Key issues included the interpretation of the LOU, estoppel by representation, potential rectification of the LOU, and Maersk's obligations under the Adjustment. The court ruled in favor of Owners on the primary issue, stating that Maersk is obligated to pay the amounts determined by the Average Adjusters. Claims for estoppel and rectification were denied.
Judgment
Mr Justice Hamblen :
This is the trial of preliminary issues concerning the claim of the Claimant (“Owners”) to enforce the terms of a Letter of Undertaking, dated 6 September 2007 ("the LOU"), which was provided by the Defendant (“Maersk”) to the Owners on 25 September 2007 by way of security for the potential liability of cargo interests in General Average.
The essential issue between the parties is whether, as the Owners contend, Maersk is liable to pay the sum ascertained to be due from cargo interests in a General Average Adjustment prepared by the Average Adjusters appointed by the Owners or whether, as Maersk contends, its only liability is to pay the sum which is properly and legally due from cargo interests.
Factual background
The Owners were at all material times the demise charterers of the vessel “Maersk Neuchatel” (“the vessel”), but can for all relevant purposes be treated as the vessel owner.
Maersk was the time charterer of the vessel from the Owners pursuant to a time charter dated 16 August 2004. In relation to General Average and General Average security the time charter provided as follows:
“14.(c) General Average: General average shall be adjusted at the place as indicated in Box 33 according to the York-Antwerp Rules 1994 or any amendment thereto by an adjuster appointed by the owners. In the event of general average or salvage, the Charterers shall provide an acceptable temporary security covering all goods and containers to avoid delay and secure their release so that transit/delivery may continue. The owners agree that the Charterers temporary guarantee may be exchanged in due course for a full set of securities from the appropriate interested parties covering all goods and containers. The Charterers agree to co-operate with the Owners and the Owners’ appointed adjusters, to assist by supplying manifest and other information and, where required, to endeavour to secure the assistance of the Charterers’ local agents in the collection of security, at the Owners’ expense.”
Pursuant to the time charter the vessel was operating in the liner trade, calling at various ports in South East Asia, South Africa and West Africa under the Maersk Lines banner. As is common on such services, the bills of lading for the containers and goods carried were issued by the liner operators – here Maersk and SCL – and identified those operators as the contractual carriers.
On 20 July 2007, whilst on a laden run from South East Asia to vari