London Arbitration 4/11

(2011) 826 LMLN 2

Charterparty - Speed and consumption warranty - Whether charterers entitled to raise equitable set-off - Whether vessel off-hire - Whether owners in breach of performance warranty

The vessel was chartered on the NYPE form. Disputes arose under the charter. The owners claimed a balance of hire. The charterers originally said that they were entitled to withhold the hire in question on the basis that the vessel was off-hire. In the arbitration, the charterers additionally relied, in the alternative, on a defence of equitable set-off, on the basis that they had a counterclaim for damages in respect of the owners’ breach of their speed and consumption warranties.