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SEACONSAR FAR EAST LTD. v. BANK MARKAZI JOMHOURI ISLAMI IRAN

Banking - Letter of credit - Bank alleged discrepancies in shipping documents - Bank rejected documents - Whether documents conformed to letter of credit - Whether rejection in time - Whether plaintiffs had good arguable case on the merits - Whether leave to serve out of jurisdiction should be set aside.

[1994] 1 Lloyd's Rep. 1

KNOWLES v. LIVERPOOL CITY COUNCIL

Negligence - Personal injury - Employers’ liability - Workman injured finger on flagstone - Whether employers liable - Whether flagstone equipment - Employer’s Liability (Defective Equipment) Act, 1969, s. 1(1).

[1994] 1 Lloyd's Rep. 11

MCFARLANE v. E.E. CALEDONIA LTD.

Negligence - Personal injury - Duty of care - Defendants operators of Piper Alpha Rig - Fire broke out on rig - Plaintiff suffered psychiatric injury - Whether defendants owed plaintiff a duty to exercise reasonable care to avoid causing him injury.

[1994] 1 Lloyd's Rep. 16

COBELFRET N.V. v. CYCLADES SHIPPING CO. LTD. (THE “LINARDOS”)

Charter-party (Voyage) - Notice of readiness - Validity - Vessel gave notice of readiness - No loading berth available but vessel not ready to load because holds insufficiently clean - Whether notice of readiness valid - Whether award should be remitted.

[1994] 1 Lloyd's Rep. 28

WAVERLEY S.F. LTD. v. CARNAUD METALBOX ENGINEERING PLC.

Arbitration - Section 5 application - Contract between plaintiffs and defendants for installation of ducting - Plaintiffs claimed moneys allegedly due under contract - Dispute referred to arbitration - Plaintiffs alleged defendants failed to comply with arbitrators’ directions in respect of discovery and expert evidence - Whether s. 5 application should be granted - Arbitration Act, 1979 s. 5.

[1994] 1 Lloyd's Rep. 38

SUMITOMO HEAVY INDUSTRIES LTD. v. OIL AND NATURAL GAS COMMISSION

Arbitration - Section 5 application - Jurisdiction - Forum non conveniens - Orders made in aid of arbitration commenced in London between plaintiffs and defendants - Application to set aside - Allegations of non-disclosure of material facts - Whether England more appropriate forum - Whether orders should be set aside - Indian Arbitration Act, 1940, s. 33 - Arbitration Act, 1979, s. 5

[1994] 1 Lloyd's Rep. 45

SEABOARD OFFSHORE LTD. v. SECRETARY OF STATE FOR TRANSPORT (THE “SAFE CARRIER”)

Ship’s management - Safe operation of vessel - Vessel sailed before chief engineer familiar with machinery - Engines broke down and vessel taken in tow - Whether managers liable for failing to secure that vessel operated in a safe manner - Whether managers vicariously liable - Merchant Shipping Act, 1988, s. 31.

[1994] 1 Lloyd's Rep. 75

NEWBURY INTERNATIONAL LTD. v. RELIANCE NATIONAL INSURANCE CO. (U.K.) LTD. AND TYSER SPECIAL RISKS LTD.

Insurance (Prize Indemnity) - Non-disclosure - Repudiation - Plaintiffs through brokers insured risk of racing driver achieving top three series position in New Zealand International Formula Ford series - Insurers alleged non-disclosure of material facts relating to racing drivers’ past performance - Whether insurers entitled to repudiate policy. Insurance brokers - Prize indemnity insurance - Wagering contracts - Plaintiffs through brokers insured risk of racing driver achieving top three series position in Formula Ford series - Insurers repudiated policies for non-disclosure - Whether policies wagering contracts - Whether insured had insurable interest - Whether brokers liable.

[1994] 1 Lloyd's Rep. 83

CEFETRA B.V. v. ALFRED C TOEPFER INTERNATIONAL G.m.b.H.

Sale of goods (c.i.f.) - Samples - Costs of appointing independent superintendent at discharge port - Sale of corn gluten feed pellets - Contract provided for analysis to be declared on tender - Buyers appointed superintendents for taking of samples at port of discharge - Whether costs recoverable from sellers.

[1994] 1 Lloyd's Rep. 93

FAKIH BROTHERS v. A. P. MOLLER (COPENHAGEN) LTD AND OTHERS

Practice - Mareva injunction - Carriage by sea - Plaintiffs alleged short delivery - Club guarantee given - In contravention of guarantee plaintiffs arrested vessel and commenced proceedings in Sierra Leone - Defendants obtained Mareva injunction - Whether injunction should be discharged or varied. Practice - Notice of discontinuance - Carriage by sea - Plaintiffs alleged short delivery - Writ issued - Club guarantee given - In contravention of guarantee plaintiffs arrested vessel and commenced proceedings in Sierra Leone - Plaintiffs served notice of discontinuance - Whether notice should be set aside as an abuse of process of Court.

[1994] 1 Lloyd's Rep. 103

A. CO. LTD. v. REPUBLIC OF X AND COMMISSION OF THE EUROPEAN COMMUNITIES

Practice - Garnishee order - Intervenors - Amount in “SIP” account subject to order - Order to be made absolute - Intervention by EC Commission - Whether amount in account subject to trust or equitable interest - Whether Community law precluded order from being made absolute - Whether a proper exercise of discretion if order made absolute.

[1994] 1 Lloyd's Rep. 111

SARIS v. WESMINSTER TRANSPORTS S.A. AND KESTREL MARINE LTD.

Practice - Writ - Extension of validity of writ - Application to set aside - Dispute under bills of lading - Concurrent writ not served on second defendants within time - Writ against first defendants extended - Effect of order was writ extended against second defendants - Failure to disclose material facts in affidavit - Whether extension of validity writ should be set aside.

[1994] 1 Lloyd's Rep. 115

ACKMAN AND OTHERS AND SCHER AND OTHERS v. THE POLICYHOLDERS PROTECTION BOARD, ROYAL INSURANCE (U.K.) LTD. AND NEW HAMPSHIRE INSURANCE CO. (NO. 2)

Insurance (Professional Liability) - Policyholders Protection Board - Professional individuals and professional corporations in New York and Canada insured against professional negligence - Insurers insolvent - Whether policies United Kingdom policies - Whether plaintiffs private policyholders - Meaning of “liability” - Whether plaintiffs could claim against board - Policyholders Protection Act, 1975, ss. 4, 6(7), 8(2) - Insurance Companies Act, 1982, s. 96.

[1994] 1 Lloyd's Rep. 121

THE “CENTURY DAWN” AND “ASIAN ENERGY”

Collision - Crossing vessels - Collision off Singapore - Collision occurred within traffic separation scheme - Liability for collision - Apportionment of liability.

[1994] 1 Lloyd's Rep. 138

INTERNATIONAL FINA SERVICES A.G. v. KATRINA SHIPPING LTD. AND TONEN TANKER KABUSHIKI KAISHA (THE “FINA SAMCO”)

Charter-party (Time) - Duty to maintain clause - Indemnity - Off-hire - Eleven stoppages of discharge due to boiler trouble - Vessel ordered off berth due to deteriorating weather conditions - Seawater found to have entered boiler through crack in condenser - Whether owners failed to comply with duty to maintain obligation - Whether vessel off-hire - Whether charterers entitled to be indemnified for loss of time.

[1994] 1 Lloyd's Rep. 153

PETREDEC LTD. v. TOKUMARU KAIUN CO. LTD. (THE “SARGASSO”)

Arbitration - Limitation of time - Ad hoc arbitration agreement - Dispute under charter-party - Whether agreement to refer disputes to arbitration - Whether arbitration proceedings commenced in time - Discretion of Court to appoint arbitrator.

[1994] 1 Lloyd's Rep. 162

L’OFFICE CHERIFIEN DES PHOSPHATES AND UNITRAMP S.A. v. YAMASHITA-SHINNIHON STEAMSHIP CO. LTD. (THE “BOUCRAA”)

Arbitration - Delay in prosecution - Dispute under charter referred to arbitration - Power conferred by s. 13A of Arbitration Act 1950 to dismiss claim on ground of claimant’s inordinate or inexcusable delay in pursuing arbitration - Arbitrator exercised power dismissing claim - Delay occurred before s. 13A in force - Whether s. 13A had retrospective effect.

[1994] 1 Lloyd's Rep. 251

CAMBRIDGE WATER CO. v. EASTERN COUNTIES LEATHER PLC

Negligence - Strict liability - Rule in Rylands v. Fletcher - Contamination of water caused by solvent PCE used by defendants - Whether defendants liable on rule in Rylands v. Fletcher - Whether reasonably foreseen that PCE would contaminate water used by plaintiffs - Whether use by defendants of its land a natural use.

[1994] 1 Lloyd's Rep. 261

KUWAIT AIRWAYS CORPORATION v. IRAQ AIRWAYS COMPANY AND REPUBLIC OF IRAQ

Conflict of laws - Sovereign immunity - Jurisdiction - Invasion of Kuwait by Iraq - Defendants instructed to bring Kuwaiti fleet to Iraq - Whether defendants immune from jurisdiction of English Courts - Whether immunity lost by submitting to jurisdiction - State Immunity Act, 1978 ss. 2, 14(2).

[1994] 1 Lloyd's Rep. 276

THE “ANNA H”

Admiralty practice - Action in rem - Arrest of vessel - Jurisdiction - Damage to cargo - Defendants domiciled in Contracting State - Præcipe for caveat against arrest issued - Vessel arrested but released immediately - Bail bond given - Whether vessel arrested to secure maritime claim - Whether arrest within meaning of Arrest Convention - Whether præcipe and bail bond submission to jurisdiction - Civil Jurisdiction and Judgments Act, 1982 s. 26, arts. 2, 57 - Arrest Convention 1952 art. 7.

[1994] 1 Lloyd's Rep. 287

HUYTON S.A. v. INTER OPERATORS S.A. (THE “STAINLESS EMPEROR”)

Charter-party (Voyage) - Demurrage - “Used laytime” - Dispute as to calculation of laytime - Charterers failed to have complete cargo available on arrival of vessel at loading port - Whether delay caused to count as used laytime - Whether holiday exception applied - Whether award should be remitted.

[1994] 1 Lloyd's Rep. 298

TOPRAK ENERJI SANAYI A.S. v. SALE TILNEY TECHNOLOGY PLC.

Practice - Procedure - Substitution of plaintiffs - Dispute between Turkish plaintiffs and English defendants on sale contract - Defendants made two payments into Court - Plaintiffs merged and absorbed by third party - Whether Court had power to substitute third party for plaintiffs - Whether power could be exercised after expiry of limitation period - Whether limitation period had expired - Whether Court should exercise its discretion and substitute third party for plaintiffs - Whether defendants could withdraw money paid into Court.

[1994] 1 Lloyd's Rep. 303

MARK EDMUND DENBY AND OTHERS v. THE HELLENIC MEDITERRANEAN LINES CO. LTD.

Practice - Jurisdiction - Stay of action - Marine insurance - Defendants insured against cancellation on ferries - Clause provided “this insurance is subject to English jurisdiction” - Dispute between insured and underwriters - Whether clause an exclusive jurisdiction clause - Whether action should be stayed - Civil Jurisdiction and Judgments Act, 1982 art. 17.

[1994] 1 Lloyd's Rep. 320

GULF BANK K.S.C. v. MITSUBISHI HEAVY INDUSTRIES LTD.

Practice - Contract - Jurisdiction - Stay of action - Advance payment guarantee and counter indemnity issued in respect of supply of plant to Ministry in Kuwait - Negotiations for resumption of contract after Iraq evicted from Kuwait failed - Ministry advised plaintiffs guarantee would be invoked - Defendants repudiated counter-indemnity - Whether plaintiffs’ claim within R.S.C., O. 11, r. 1(1)(d) - Whether leave to serve out of jurisdiction should be set aside - Whether defendants entitled to a stay.

[1994] 1 Lloyd's Rep. 323

AMOCO (U.K.) EXPLORATION CO. AND OTHERS v. AMERADA HESS LTD. AND OTHERS

Practice - Stay of action - Determination by expert - Parties licensees of Scott Oil Field - Dispute resolution procedure - No legal proceedings to be brought on matters referred to expert - Plaintiffs sought determination of Court on data or material parties might refer to in submissions to expert - Whether action should be stayed.

[1994] 1 Lloyd's Rep. 330

PAN OCEAN SHIPPING CO. LTD. v. CREDITCORP LTD. (THE “TRIDENT BEAUTY”)

Charter-party (Time) - Hire - Hire payable in advance - Shipowners assigned freight receivables to bank - Vessel off-hire - Charterers paid hire in advance to bank - Vessel failed to comply with charterers’ orders - Charterers treated charter as repudiated and claimed return of hire payment - Whether advance payment not having been earned repayable - Whether bank could resist claim by showing that after payment they altered their position or acted to their detriment.

[1994] 1 Lloyd's Rep. 365

THE “MALOJA II”

Collision - Crossing vessels - Collision off the coast of Newfoundland - Both vessels failed to comply with the Collision Regulations 1972 - Faults in navigation - Apportionment of liability.

[1994] 1 Lloyd's Rep. 374

HAMED EL CHIATY & CO. (T/A TRAVCO NILE CRUISE LINES) v. THE THOMAS COOK GROUP LTD. (THE “NILE RHAPSODY”)

Charter-party (Time - Stay of action - Jurisdiction - Forum non conveniens - Plaintiffs claimed damages under the contract - Charters prescribed Egyptian law as property law of contract but silent as to jurisdiction - Whether parties orally agreed contracts subject to exclusive jurisdiction of Egyptian Courts - Whether Egypt more appropriate forum - Whether action should be stayed.

[1994] 1 Lloyd's Rep. 382

THE “HAMBURG STAR”

Carriage by sea - Jurisdiction - Application to strike out - Stay of action - Bills of lading issued by plaintiffs in respect of all but three containers - Loss of containers - Whether plaintiffs had sufficient interest to sue in negligence or for alleged breach of shipowners duties - Whether claims for contribution and indemnity outside Admiralty jurisdiction - Whether claims should be struck out - Whether action should be stayed. Admiralty practice - Stay of action - Loss of containers - Plaintiffs commenced proceedings in Cyprus - Defendants commenced limitation proceedings in Cyprus - Whether Cyprus more appropriate forum - Whether action should be stayed.

[1994] 1 Lloyd's Rep. 399

STARGAS S.p.A v. PETREDEC LTD. (THE “SARGASSO”)

Charter-party (Time) - Indemnity - Measure of damages - Contamination of cargo - Voyage charterers awarded damages for breach of voyage charter against time charterers - Whether disponent owners exercised reasonable care over carriage and discharge of cargo - Whether time charterers entitled to be indemnified by disponent owners - Measure of damages - Shortage claims - Counterclaim for hire or damages during period vessel off hire.

[1994] 1 Lloyd's Rep. 412

ACADA CHEMICALS LTD. v. EMPRESA NACIONAL PESQUERA S.A.

Carriage by sea - Limitation of time - Sale of fish-meal on c & f terms - Sellers claimed discharge port demurrage - Buyers ignored debit note and reminders - Sellers brought arbitration proceedings - Whether sellers’ claims time barred.

[1994] 1 Lloyd's Rep. 428

GAMLESTADEN PLC v. CASA DE SUECIA S.A. AND HANS THULIN

Practice - Jurisdiction - Loan agreement between English plaintiffs and Spanish defendants - Dispute under agreement - Whether English Court had jurisdiction - Whether Spanish Court first seised - Whether defendants entitled to amend summons - Whether application to set aside proceedings should be granted - Civil Jurisdiction and Judgments Act 1982, arts. 5(1), 17, 21 - R.S.C. O. 12, r. 8.

[1994] 1 Lloyd's Rep. 433

NESTE PRODUCTION LTD. AND ANOTHER v. SHELL UK LTD AND OTHERS

Practice - Expert - North Sea exploration - Agreement for determination of parties’ equitable share in the venture - Discussion to amend clause in agreement - Whether expert or Court should determine whether clause varied.

[1994] 1 Lloyd's Rep. 447

ROEBUCK v. MUNGOVIN

Practice - Application to strike out - Want of prosecution - Plaintiff injured in road accident - Action brought against defendant - Plaintiff guilty of inordinate and inexcusable delay in prosecuting claim - Defendants took steps in the action - Whether defendants debarred from applying to strike out action.

[1994] 1 Lloyd's Rep. 481

NIOBE MARTIME CORPORATION v. TRADAX OCEAN TRANSPORTATION S.A. (THE “NIOBE”)

Sale of ship - Norwegian Saleform - Construction of cl. 11 - Sellers sold vessel to buyers - Dispute as to condition of vessel on delivery - Whether sellers under obligation to notify classification society prior to delivery of matters affecting class which came to their knowledge as from contract date, last survey date or some other date.

[1994] 1 Lloyd's Rep. 487

MARC RICH & CO. A.G. AND OTHERS v. BISHOP ROCK MARINE CO. LTD. BETHMARINE CO. LTD. AND NIPPON KAIJI KYOKAI (THE “NICHOLAS H”)

Negligence - Duty of care - Classification society - Vessel developed cracks in hull - Classification society surveyor recommended vessel continue on voyage to discharge port - Total loss of vessel and cargo - Cargo-owners claimed against classification society - Whether classification society owed duty of care to cargo-owners. Cargo - Classification society - Vessel developed cracks in hull - Surveyor recommended vessel continue to discharge port - Total loss of vessel and cargo - Whether classification society owed duty of care to cargo-owners.

[1994] 1 Lloyd's Rep. 492

CONTINENTAL BANK N.A. v. AEAKOS COMPANIA NAVIERA S.A. And OTHERS

Banking - Stay of action - Jurisdiction clause - Loan agreements contained English jurisdiction clause - Default in payment - Borrowers brought action in Greece - Whether borrowers in breach of contract by suing in Greece - Whether English Courts required to stay English proceedings brought by bank - Civil Jurisdiction and Judgments Act, 1982, arts. 17, 21 and 22.

[1994] 1 Lloyd's Rep. 505

TOOMEY v. EAGLE STAR INSURANCE CO. LTD.

Reinsurance - Agreement - Construction - Reinsurers to pay all claims and other outgoings in respect of run-off of syndicates’ 1965 underwriting year of account - Huge increase in claims - Reinsurers refused to pay claims - Whether reinsurers obliged to reimburse syndicates regardless of whether syndicates under an antecedent liability to pay amount of claims to their assured - Whether agreement could be rectified.

[1994] 1 Lloyd's Rep. 516

GRANIT S.A. v. BENSHIP INTERNATIONAL INC.

Charter-party (Voyage) - Subject to detail - Oral negotiations - Negotiations conducted by parties’ brokers - Whether expressly agreed fixture “subject to details” - Whether binding agreement reached.

[1994] 1 Lloyd's Rep. 526

THARROS SHIPPING CO. LTD. AND DEN NORSKE BANK PLC v. BIAS SHIPPING LTD., BULK SHIPPING A.G. AND BULK OIL A.G. BULK SHIPPING A.G. AND BULK OIL A.G. v. THARROS SHIPPING CO. LTD., DEN NORSKE BANK PLC AND THEODORE HALKEDIS (THE “GRIPARION”) (No. 2)

Charter-party (Bareboat) - Repudiation - Quantum - Costs - Condition of vessels tanks rendered vessel unseaworthy - Vessel prematurely redelivered - Vessel not in fit condition to trade until repaired - Whether owners could claim damages for balance of charter-period - Whether owners acted reasonably in not repairing vessel - Whether costs should be on indemnity basis.

[1994] 1 Lloyd's Rep. 533

FORT STERLING LTD. AND ANOTHER v. SOUTH ATLANTIC CARGO SHIPPING N.V. AND OTHERS (THE “FINNROSE”)

Carriage by sea - Application to strike out - Want of prosecution - Damage to cargo - Delay in prosecuting claim - Whether delay inordinate and inexcusable - Whether delay likely to cause serious prejudice to defendants - Whether application to strike out for want of prosecution should be granted. Carriage by sea - Limitation of time - Damage to cargo - Action brought within limitation period - Delay in prosecution of action - Limitation period unexpired - Whether application to strike out for want of prosecution should be granted.

[1994] 1 Lloyd's Rep. 559

THARROS SHIPPING CO. LTD. AND ANOTHER v. BIAS SHIPPING LTD. AND OTHERS

Practice - Mareva injunction - Undertaking as to damages - Plaintiffs alleged third party’s dollar and sterling account subject to injunction - Bank forced sale of dollars in dollar account - Whether third party entitled to damages for loss and damage incurred by sale.

[1994] 1 Lloyd's Rep. 577

SEABOARD OFFSHORE LTD. v. SECRETARY OF STATE FOR TRANSPORT (THE “SAFE CARRIER”)

Ship’s management - Safe operation of vessel - Vessel sailed before chief engineer familiar with machinery - Engines broke down and vessel taken in tow - Whether managers liable for failing to secure that vessel operated in a safe manner - Whether managers vicariously liable - Merchant Shipping Act, 1988, s. 31.

[1994] 1 Lloyd's Rep. 589

THE “K. H. ENTERPRISE”

Bill of lading - Jurisdiction clause - Bailment - Stay of action - Goods sub-bailed to shipowners - Vessel and cargo sank in collision off coast of Taiwan - Cargo-owners brought action in Hong Kong - Whether shipowners could rely on exclusive jurisdiction clause in bills of lading - Whether Taiwan more appropriate forum - Whether action in Hong Kong should be stayed.

[1994] 1 Lloyd's Rep. 593

MOTOR AND GENERAL INSURANCE CO. LTD. v. JOHN PAVY

Insurance (Motor) - Construction - Damage to property - Third party suffered damage through fault of insured driver - Insured in breach of policy after accident - Whether third party had right to recover direct from insurers in respect of claim for damage to property - Trinidad and Tobago Motor Vehicles Insurance (Third Party Risks) Act, 1974 ss. 4(1)(b), 4(5), 8 and 10(1).

[1994] 1 Lloyd's Rep. 607

SIU YIN KWAN AND ANOTHER v. EASTERN INSURANCE CO. LTD.

Insurance (Workmen’s Compensation) - Third Party liability - Vessel hit by typhoon - Employees lost their lives - Personal representatives claimed compensation - Employers wound up by order of Court - Whether representatives could claim against employers’ insurers - Third Parties (Rights Against Insurers) Ordinance, s. 2(1) - Life Assurance Act 1774, s. 2

[1994] 1 Lloyd's Rep. 616

FAMOSA SHIPPING CO. LTD. v. ARMADA BULK CARRIERS LTD. (THE “FANIS”)

Charter-party (Time) - Damages - Bunker profits - Owners in breach of charter - Substitute vessel chartered - Charterers made profit by selling bunkers on redelivery of substitute vessel - Whether such profits should be taken into account in charterers’ claim for damages.

[1994] 1 Lloyd's Rep. 633

KUWAIT SUPPLY CO. v. OYSTER MARINE MANAGEMENT INC (THE “SAFEER”)

Charter-party (Voyage) - Frustration - War Risks clauses - Iraqi invasion of Kuwait - Iraq ordered vessel to complete discharge - Owners claimed demurrage - Whether charter-party frustrated by reason of Iraqi orders and/or seizure of the cargo.

[1994] 1 Lloyd's Rep. 637

CEVAL INTERNATIONAL LTD. v. CEFETRA BV. CEFETRA BV. v. SOULES CAF

Bill of lading - Discharging costs - Ship’s rail - Goods sold under GAFTA 100 - Bill of lading issued - Buyers had to pay inter alia costs from holds to ship’s rail - Whether costs recoverable from sellers - Whether bill of lading a conforming bill for purposes of contract made under GAFTA 100.

[1994] 1 Lloyd's Rep. 651

Z BANK v. D1 AND OTHERS

Banking - Mareva injunction - Contempt - Notice of injunction given to plaintiff bank - Plaintiffs continued to operate account - Plaintiff under impression that injunction only applied if bank named in order or bank served with order - Whether plaintiffs in contempt. Practice - Mareva injunction - Contempt - Plaintiffs continued to operate bank account after notice of Mareva injunction given - Whether plaintiffs in contempt.

[1994] 1 Lloyd's Rep. 656

AQUALON (UK) LTD. AND ANOTHER v. VALLANA SHIPPING CORPORATION AND OTHERS

Carriage by road - CMR - CMR carrier - Plaintiffs contracted with second defendants for carriage of goods from Holland to Warrington - Goods carried by sixth defendants - Goods lost or damaged - Whether second defendants CMR carrier - Whether second defendants acted as forwarding agents only - Whether plaintiffs entitled to claim damages.

[1994] 1 Lloyd's Rep. 669