Ince & Co looks at passing costs liability down a charterparty chain
The judgment in Occidental Chartering Inc v Progress Bulk Carriers Ltd (The Chada Naree)  EWHC 3515 (Comm) deals with the recoverability of the costs of an arbitration as damages in a series of arbitration references, notwithstanding the absence of an arbitration reference for one of the links in the charterparty chain.
The Commercial Court, on appeal from an arbitration award, held that where there was a claim being passed down through a chain of charterparties and there was a break in the arbitration references, this would not necessarily prevent the liability from being passed on through the chain. The decision is significant because of the frequency with which charterparty chain disputes arise in maritime arbitration.
The vessel, Chada Naree, was the subject of a string of charterparties. Precious Garnets Ltd were the registered owners and they time-chartered her to Occidental Services Corporation…
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Swallowfalls v Monaco Yachting provides further support for the construction of contracts in the manner most consistent with ‘commercial common sense’.
Instances of vessels making contact with and damaging a berth are fairly common. Disputed claims on liability are much rarer.