Italmare Shipping Co. v. Ocean Tanker Co. Inc. (The Rio Sun) - Court of Appeal (Lord Denning M.R. Shaw and Griffiths L.JJ.) - 31 July 1981

Arbitration award - Court of Appeal affirms judge’s decision to give leave to appeal

Disponent owners time-chartered their vessel Rio Sun to the charterers on an NYPE form. The charter contained the usual clause for payment of hire and withdrawal. A typed “anti-technicality” clause was added, requiring the owners to give 48 hours notice before withdrawal. Hire was payable semi-monthly in advance but the charterers failed to pay the instalment due on 22 May 1980. On 27 May 1980 the owners’ brokers sent a telex [the terms of which were not disclosed in the judgment] to the charterers’ brokers. The same day, charterers sent the owners a telex claiming to make deductions amounting to 100% of the hire payment. On 29 May the owners withdrew the vessel from the charterers’ service.