ENE 1 Kos Ltd v Petroleo Brasileiro SA (“The Kos”) – Supreme Court (Lord Phillips PSC, Lord Walker, Lord Mance, Lord Clarke and Lord Sumption JJSC) – 2 May 2012

Charterparty – Withdrawal of vessel for non-payment of hire – Owners subsequently discharging cargo at loadport – Whether owners entitled to be paid for service of vessel during period of detention and for bunkers consumed – Employment and indemnity clause – Bailment

The VLCC Kos was chartered on the Shelltime 3 form for 36 months (plus or minus 15 days at charterers’ option). Clause 13 provided that the master should be under the orders and directions of the charterers and that the charterers should indemnify the owners against all consequences or liabilities that might arise from the master complying with charterers’ orders.