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Lloyd's Maritime Law Newsletter

Kulberg Finances Inc v Spark Trading DMCC and Ors – US District Court (SDNY) (Sweet DJ) – 18 June 2009

Admiralty jurisdiction – Claim for demurrage under contract for sale of barley – Plaintiff obtaining maritime attachment – Whether court had subject matter jurisdiction – Whether plaintiff stated valid maritime claim – Whether attachment should be vacated

The plaintiff seller (Kulberg) entered into a contract with the first defendant (“Spark”) for the sale to Spark of Ukrainian feed barley. Under the terms of the sale contract Kulberg was responsible for the delivery by cargo ship of the barley to Spark, who was then responsible for the timely discharge of the cargo. Demurrage was to be payable “as per Charter Party” and Kulberg was to present a copy of the charterparty to Spark upon request. The contract also incorporated GAFTA form 100 (which provided that the contract should be construed in accordance with English law), and provided for arbitration of disputes in London “as per GAFTA Nr 125”. The charterparty between Kulberg and the shipowners similarly provided that English law should govern any disputes, and contained a London arbitration clause.

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