Charter Parties
The following are digests and case links to
Circuit Court Admiralty Cases that have as an issue charter parties:
Federal
Marine Terminals v. Worcester Peat Co.
First Circuit Court of Appeals
August 27, 2001
Charter Parties/Demurrage: Since courts
have been reluctant to impose demurrage liability on a party that is neither
a signatory, successor nor possessor of a document that expressly or by
incorporation refers to demurrage, the loading stevedore who was not in
privity will not be liable for demurrage that the shipper was required
to pay the vessel due to the delays in loading the cargo of peat moss.
Carriage
of Goods: The loading stevedore is further not liable for the loss
of any peat moss since the shipper failed to provide any reliable evidence
of how much peat moss was lost during loading and failed to establish that
the amount lost was beyond what was anticipated for this type of cargo.
Louis
Dreyfus v. Blystad Shipping & Trading Inc.
Second Circuit Court of Appeals
June 7, 2001
Arbitration/Charter Parties: The charter's
New York arbitration clause, which provided that any "dispute arising from
the making, performance or termination of this Charter Party" be arbitrated,
was a broad arbitration clause. Thus, by implicating the rights of Owner
and the duties of Charterer under the charter party, Owner's claims under
collateral letters of indemnity given by Charterer in return for discharging
cargo without presentation of the bills of lading were within the scope
of the broad arbitration clause and were subject to New York arbitration.
U.S.
Titan Inc. v. Guangzhou Zhen Hua Shipping
Second Circuit Court of Appeals
February 15, 2001
Arbitration/Charter Parties: The district
court correctly held that the parties did not enter into an "ad hoc" agreement
to arbitrate whether they had formed a charter party, but that they had
formed a charter party that included an arbitration clause requiring London
arbitration. Foreign Sovereign Immunity: Although defendant vessel
owner was a Chinese state-owned company, it was not immune from petitioner's
action to compel arbitration in London in view of the Foreign Sovereign
Immunity Act's arbitration exception.
Bank
One Louisiana v. M/V Mr Dean
Fifth Circuit Court of Appeals
June 10, 2002
Maritime Liens/Charter Parties: A maritime
lien for breach of a charter attaches when the owner places the vessel
at the charterer's disposal and remains inchoate until perfected by a breach
or discharged by the undisturbed end of the charter. Thus the charterer's
maritime lien for breach of the charter had priority over the bank's preferred
ship mortgage since the the vessel was placed at the charterer's disposal
before the mortgage was recorded, although the owner's breach of the charter
occurred after the mortgage was recorded.
Dahlen
v. Gulf Crews, Inc.
Fifth Circuit Court of Appeals
February 4, 2002
Longshore & Harbor Workers' Act/Charter
Parties: The standard of care owed a longshore worker by a vessel owner
as articulated in Scindia and
Howlett does not explicitly
apply to time charterers. But, as no other case articulating the duty owed
by a time charterer in such a situation could be found, the district court
did not abuse its discretion by issuing a jury instruction that applied
Scindia
to the time charterer. Indemnity: The vessel owner did not owe the
time charterer an indemnity under the charter's indemnity and insurance
clause since the injury to Plaintiff did not arise out of or relate to
the performance of the vessel during the charter. Admiralty Jurisdiction/Outer
Continental Shelf Lands Act ("OCSLA"): The district court erred in
applying the Admiralty Extension Act, 46 U.S.C. § 740, and maritime
law since Plaintiff's alleged injury was not caused by the defective appurtenance
of a ship on navigable waters and, furthermore, the OCSLA specifically
regards the artificial islands on the OCS as areas where state law should
apply unless there is a conflict with federal law.
Canal
Barge Co. v. Torco Oil Co.
Fifth Circuit Court of Appeals
July 20, 2000
Charter Parties: Charterer and cargo
supplier held jointly and severally liable to barge owner for failure to
pay for the clean-up costs arising from loading a cargo of spent lube oil
that left a four inch residue of heavy, tar-like slug. Maritime Torts:
The liability of the cargo supplier to the barge owner was not based on
contract, but was based on the negligent loading of shore tank bottom residue
into the barge. Demurrage/Loss of Use: Charterer and cargo supplier
were jointly and severally liable for 76 days of demurrage at the charter
party rate of $480 per day due to the loss of use of the barge during clean-up
operations.
Armit
v. Eleni Intl Shipping
Fifth Circuit Court of Appeals
January 21, 2000
Charter Parties: The agent of the vessel's
time charterer had no actual or apparent authority to bind the vessel's
owner or operator/manager to a dock tariff.
Arkansas
State Highways Comm. v. Arkansas River Co.
Eighth Circuit Court of Appeals
October 16, 2001
Seaworthiness/Casualties/Charter Parties:
Because the United States Army Corps of Engineers ("Corps"), the owner
of the barge, tendered the barge to the tug's captain with a boom that
was unobviously raised such that it could not pass safely under a Mississippi
River bridge, the barge was unseaworthy on delivery and the Corps was 100%
liable for the resulting damages.
Rodriquez
v. Bowhead Transportation Co.
Ninth Circuit Court of Appeals
October 26, 2001
Longshore & Harbor Workers' Act/Charter
Parties: The time charterer of the vessel did not violate any of the
Scindia
duties owed by a vessel to a longshore worker and thus was not liable for
the injuries suffered by the injured worker. Further, the terminal services
agreement between the time charterer and the stevedore employer plainly
did not obligate the time charterer to supervise the manner in which the
stevedore's employees loaded the cargo.
NATCO
Ltd. v. Moran Towing
Eleventh Circuit Court of Appeals
September 28, 2001
Indemnity/Charter Parties: The towage
contract's indemnity provision provided that the tug owner would be held
harmless from "any and all loss, damage or liability", which allowed the
indemnitee tug owner to recover its attorneys fees from the indemnitor
cargo owner, including both defense fees and fees expended in pursuing
a counter-claim against a third party. |