CANMER INTERNATIONAL INC v UK MUTUAL STEAMSHIP ASSURANCE ASSOCIATION (BERMUDA) LTD (THE “RAYS”)

[2005] 2 Lloyd's Rep. 479

QUEEN’S BENCH DIVISION (COMMERCIAL COURT )

Before Mrs Justice Gloster

Letter of undertaking - Three arbitrations heard concurrently to determine claims between cargo owners, voyage charterers, time-charterers and shipowners - Award in favour of time-charterers against shipowners requiring payment of principal sum in addition to indemnity - Time-charterers arresting vessel after shipowners’ failure to pay principal sum - P&I Club giving undertaking to procure release of vessel - Whether undertaking limited to payment of costs - Whether time-charterers precluded by estoppel, collateral contract or rectification from making demand on Club for principal sum - Whether any sum in fact due from shipowners to time-charterers.