Metall Market OOO v Vitorio Shipping Co Ltd (The “Lehmann Timber”) – QBD (Com Ct)(Popplewell J) – 4 April 2012

General average – Lien – Owners exercising lien over cargo for general average contribution – Owners accepting insurers’ guarantee in respect of one portion of cargo – Cargo receivers refusing to provide general average bond – Whether owners’ acceptance of insurers’ guarantee had effect to discharge lien – Whether owners entitled to recover costs of storing liened cargo

Following the capture of the vessel Lehmann Timber by Somali pirates and subsequent breakdown of the main engine after the vessel was released on payment of a ransom, the owners declared general average and appointed average adjusters, who attempted to collect general average security from cargo interests. Security was sought in the form of a general average bond backed by an insurers’ guarantee, or alternatively a cash deposit.