AS Klaveness Chartering v Pioneer Freight Futures Co Ltd and Anr – QBD (Com Ct)(Christopher Clarke J) – 18 December 2009

Contract - Forward freight agreements – Claimants terminating agreements and claiming contractual “Losses” following alleged non-payment by defendants on settlement date – Whether any sum due by defendants on settlement date

Between 2006 and June 2008 the claimant (“Klaveness”) concluded a number of forward freight agreements (“FFA contracts”) between it and the first defendant (“PFF”). Each contract was subject to the 1992 version of the Master Agreement of the International Swap Dealers Association Inc (“the Master Agreement”). Baumarine A/S, a related company to Klaveness, entered into a single FFA contract with PFF. The second defendant, Pioneer Metals Ltd (“PM”), guaranteed to Klaveness PFF’s performance of the FFA contracts up to US$10 million.