Defence Bulletin, August 2016

This Special Edition follows on from our bulletin in October and the articles that follow give a flavour of the types of issues and disputes that we have been dealing with over recent months.

Timebars for maritime claims in the United States – the equitable doctrine of laches. 
We are often asked by our colleagues in other offices: ‘What is the statute of limitations for maritime claims in the United States?’ Our colleagues are surprised when we tell them there is no one-line answer. In this article, we attempt to provide some clarity as to why this is.

The compensatory principle maintained – The Glory Wealth

With freight rates continuing to drop, this decision is a reminder as to the importance afforded to the compensatory damages principle established in The Golden Victory.

Update: benefitting from a breach – The New Flamenco
The English Court of Appeal has issued its judgment in The New Flamenco regarding whether benefits obtained from a breach of contract should be taken into account when assessing damages. This article explores the case and what can be learned from it. 

The English courts continue to uphold arbitration agreements
A recent decision of the English High Court reinforces the court’s desire to uphold arbitration agreements wherever possible, even where the very existence of the arbitration agreement is disputed. 

The Global Santosh – what is a charterer’s agent? UK Supreme Court hands down the final say
The Global Santosh concerns the interpretation of a commonly used off-hire provision in time charters.
The case provides clarification on the concept of vicarious liability under English law, setting out which third parties are likely to be considered to be a charterer’s agent and providing insight on the extent of such agency.

What is the timebar for outstanding hire claims?
When does a claim made by an owner for outstanding hire become timebarred? A recent London arbitration decision has handed down some useful guidance in this area. 

How well do you know the origin of the cargo you carry?
This article covers the successful defence of a potential United States cabotage violation.

The Wehr Trave
The English High Court has recently provided guidance as to the meaning and nature of a ‘time charter trip’. 

OW Bunker – The Res Cogitans decision
A recent decision by the English Supreme Court has surprised many in the maritime industry. This article looks at this test case in the OW Bunker saga and discusses how this may affect other owners and time charterers facing competing claims for bunker supply payment.

OW Bunker – last stand in the United States for owners and charterers?
The OW Bunker bankruptcy has had ramifications worldwide. This article looks at the United States and
how interpleader actions there have, for the time being at least, been protecting debtors from paying twice. 

Clause paramounts revisited
As club managers, we often receive queries from our members as to whether a clause paramount should be included in the subject voyage or time charter. Our general answer is ‘yes’. This article aims to explain why.

We hope this special edition is of interest. For any further advice or clarification, members should feel free to contact the authors, or their usual club contact.