BYATT INTERNATIONAL SA v CANWORLD SHIPPING CO LTD AND ANOTHER (THE “MV LOYALTY”)

[2013] Lloyd's Rep Plus 89

COURT OF APPEAL FOR BRITISH COLUMBIA

Before Justice Donald Justice Neilson and Justice Hinkson

Charterparty (Time) – Lien on sub-freights – Charterers failing to pay hire – Owners and charterers concluding compromise involving payment of agreed sum by charterers to owners – Owners exercising lien on sub-hires and claiming to intercept bill of lading freight – Shippers paying freight into trust and interpleading – Whether inequitable for owners to exercise rights of recovery – Whether freight interception validly exercised.