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The critical Clause 49 read: “Should the vessel be captured or seizured (sic) or detained or arrested by any authority or by any legal process during the currency of this Charter Party, the payment of hire shall be suspended until the time of her release, unless such capture or seizure or detention or arrest is occasioned by any personal act or omission or default of the Charterers or their agents…”
The Court of Appeal upheld the decision of Mr Justice Field at first instance, finding that the proviso to Clause 49 could apply in the circumstances of this case (with the result that the vessel’s arrest might not put her off-hire), and remitting the factual decision to the Tribunal. However, unlike Field J, the Court of Appeal did not limit the proviso to Clause 49 to acts or omissions occurring during the delegate’s performance of the delegated task. For the note on Field J’s decision at[2013] EWHC 30 (Comm), click here[[http://www.onlinedmc.co.uk/index.php/NYK_Bulkship_(Atlantic)_v_Cargill_International_-_The_Global_Santosh]].
This note has been contributed by Justin Gan Boon Eng, LLB (Hons) (NUS), a Registered Foreign Lawyer (Singapore) in Hong Kong
