Yong Jin: on the importance of back-to-back indemnities

The Commercial Court has dealt with the issue of whether a guarantee given by sub-charterers to the Master was given to and accepted by the Master in his capacity as a representative of the head owners or on behalf of the intermediate charterers.

The guarantee was intended as an indemnity against any damage caused by the vessel loading a cargo quantity on the basis of a maximum draft of 13.3m. The head owners brought a claim directly against the sub-charterers on the basis of an alleged grounding of the vessel.

The court held that the guarantee was given to and accepted by the Master on behalf of the intermediate charterers, not the head owners, with the result that the claim brought by the head owners failed. The judgment highlights the importance of obtaining any indemnities/guarantees on a back-to-back basis throughout the charterparty chain…

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

Briefings from Ince & Co

View more briefings from Ince & Co

Analysis from The Lawyer

Overview

International House
1 St Katharine's Way
London
E1W 1AY
UK
http://incelaw.com/

Turnover (£m): 86.70
Offices: 11
Qualified lawyers (firm wide): 273
Qualified lawyers (UK total): 140
Qualified lawyers outside London (international): 133