Laemthong International Lines Co Ltd v ARTIS and Ors - QBD (Com Ct) (Cooke J) - 8 November 2004

Contract - Letters of indemnity - Shipowners delivering cargo without production of original bills of lading - Vessel arrested by bank - Whether shipowners entitled to enforce letter of indemnity issued by receivers to charterers - Contracts (Rights of Third Parties) Act 1999 - Whether shipowners entitled to specific performance of obligations to provide security to enable vessel to be released

The claimant owners chartered their vessel Laemthong Glory to the first defendants ("the charterers") on an amended Sugar Charterparty 1999 form for a voyage from Santos to Aden carrying a cargo of bagged sugar. The charterparty envisaged that the bills of lading would be owners' bills and provided, by clause 42, that in the event of original bills of lading not being available at the discharge port on vessel's arrival, the owners would, if so required by the charterers, release the cargo to the receivers against a letter of indemnity (LOI).