Italmare Shipping Co. v. Ocean Tanker Co. Inc. (The Rio Sun) - Q.B.D. (Com.Ct.) (Parker J.) - 11 November 1981

Charterparty anti-technicality clause - Whether charterers waived their right to 48 hours’ notice before withdrawal

Ocean Tanker Co. were disponent owners of the Rio Sun which they chartered to Italmare on an NYPE form. The charter contained the usual clause providing for punctual and regular payments of hire, in default of which the owners should be at liberty to withdraw the vessel. An 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 to the charterers’ brokers informing them that payment was due and requesting information as to the position. On the same day, the charterers replied by telex claiming to make deductions amounting to 100% of the hire payment. On 29 May the owners withdrew the vessel from the charterers’ service.