MITSUI OSK LINES LTD V SALGAOCAR MINING LTD (THE "UNTA")

[2015] EWHC 565 (Comm), High Court of Justice, Commercial Division, Mr Justice Eder, 16 February 2015

Contracts - Guarantee - Guarantee in respect of performance of charterparty - Wrongful repudiation of charterparty - Authority of brokers to bind guarantor - Whether guarantee made by email in written form and signed - Quantum of damages - Statute of Frauds 1667

The claimant Japanese shipping company had in June 2005 contracted with OSCL, a Japanese shipyard, to build Unta with delivery due in August 2009. A charterparty was entered into between Mitsui and TS on 6 February 2006 and allegedly guaranteed by the defendant. These proceedings were for damages under the guarantee. The damages were in respect of TS's alleged wrongful repudiation of the time charter in early 2013. The defendant had not acknowledged service or taken part in the proceedings. Five questions arose. (1) Did the defendant agree with the claimant to guarantee the performance of TS's obligations under the charterparty? (2) Does the guarantee satisfy the requirements and the Statute of Frauds? (3) Is the defendant in breach of the guarantee? (4) What is the quantum of the claimant’s claim against the defendant? (5) Is the claimant entitled to a declaration that the English court has jurisdiction over its claim against the defendant?