STX Pan Ocean v Ugland Bulk Transport
Available on BAILII @ http://www.bailii.org/ew/cases/EWHC/Comm/2007/1317.html
David Davies (instructed by Clyde & Co) for the Claimant, STX Pan Ocean
Timothy Young QC and Sudhanshu Swaroop (instructed by Stephenson Harwood) for the Defendant, Ugland Bulk
TIME CHARTERPARTY: SAFE PORT WARRANTY: TRADING EXCLUSIONS CLAUSE: ICE DAMAGE TO VESSEL: PROPER INTERPRETATION OF CONTRACT
Echoing the decision in AIC Ltd v Marine Pilot Ltd1, the court found that a charterparty providing for "one time charter trip via St Petersburg..." combined with a trading exclusion containing the words "trading to be worldwide between safe ports, safe berths and anchorages and places..." did contain an express warranty as to the safety of St Petersburg.
DMC Category Rating: Confirmed
This case note is based on an Article in the June 2007 Edition of the ‘Shipping Offshore and Transport Bulletin’, published by the international firm of lawyers,DLA Piper. DLA Piper is an International Contributor to this website.
Sailing under that charter, the Livanita ("the vessel") sailed from St Petersburg to Dunkirk in January 2003 and was damaged by ice. The shipowner claimed for the damage to the vessel’s hull, alleging breach by the charterer of the safe ports clauses in the charter.
As the arbitration tribunal had pointed out, it did not matter that the safe port warranty fell within a provision dealing (also) with trading exclusions or that the standard warranty in the original form had in this case been deleted. The words in the typed in clause ("trading to be worldwide between safe ports…) were clear and consistent with the other terms, and effect could be given to them.
The judge confirmed that he had read the decision in AIC Ltd v Marine Pilot Ltd1 and agreed with it.
  EWHC 1182 Comm
Arbitration and Procedure
In the main hearing, Langley J also highlighted the need to ensure that all possible grounds for appeal from an award have been raised before the arbitrators. He indicated that an additional ground, which was spelled out by Tomlinson J in permitting leave to appeal but which had not been expressly raised before the arbitrators, could not be raised on appeal.
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