Scope of LOI and LOU given to port for damaged vessel and containers
Analysis of the Yilport Konteyner Terminali Ve Liman Isletmeleri AS v Buxcliff KG and others case, which underlines the importance of careful drafting in the wording of documents creating obligations, such as letters of undertaking or indemnities.
The dispute in this case arose following a collision that caused damage to a vessel and a number of its containers while it was en route to Turkey. The vessel interests were required to, and gave, a letter of undertaking (LOU) and a letter of indemnity (LOI) to the Turkish discharge port authorities in view of the condition of the vessel and containers, but the parties subsequently disagreed as to the scope of both the LOI and the LOU. Given the frequency with which LOUs and LOIs are given in a shipping context and the tight timeframe within which they are normally negotiated and issued, this decision highlights the importance of giving careful consideration to the wording used to ensure that they achieve the effect intended by the parties and that they do not expose the party giving the LOI or LOU to any greater liability than originally expected…
If you are registered and logged in to the site, click on the link below to read the rest of the Ince & Co briefing. If not, please register or sign in with your details below.
News from Ince & Co
News from The Lawyer
Briefings from Ince & Co
Ince & Co provides an overview of the contractual issues that may arise should matters escalate in Ukraine.
The recent case of Astipalaia v Hanjin Shenzhen  EWHC 120 (Admlty) has revisited the existing case law on assessment of damages following a collision.