First Turkish limitation fund court decision: intent or no intent?

Turkey’s legal practice has improved considerably in recent times. The new Turkish Commercial Code, No 6102 (TCC) was enacted and came into force on 1 July 2012. Up to that point, Turkish judicial practice had been struggling with the application of international conventions due to some poor interpretations and a lack of profound and precise legal construction.

Liability, Regulation

Insurance law reform and marine insurance

On 17 and 29 July 2014 the Insurance Bill, over which the Law Commission of England and Wales has laboured since 2006, had its first and second readings in the House of Lords. The intention is that it should undergo a special speeded-up procedure and be enacted by March 2015. Although entry into force is likely to be at least a year later, an early decision is necessary if the Act is to enter into force within our lifetimes.

Insurance, Regulation

Nairobi Wreck Removal Convention to enter into force

After 46 years of negotiations within the International Maritime Organization (IMO), and with the Nairobi International Convention on the Removal of Wrecks, agreed in Nairobi in 2007, entering into force on 14 April 2015, the issue of wreck removal will finally become regulated at an international level.

Pollution & Salvage, Regulation

Wilful, reckless and uninsurable?

Was it wilful? Was it misconduct? The recent Canadian Supreme Court Decision in Peracomo Inc and Others v TELUS Communications Co and Others (The Realice) restores order on the limitation issue: the Supreme Court reversed the Court of Appeal’s decision to break limitation on the basis that Mr Vallée had not had the requisite intent to cause the damage that resulted (“recklessly and with knowledge that such loss would probably result”).

Liability, Regulation

The Rena – still incurring costs

When do freight costs become payable? The MV Rena disaster is one of the most significant and worst maritime environmental disasters for New Zealand. On 5 October 2011 the cargo ship grounded on the Astrolabe Reef in the Bay of Plenty causing huge losses both environmentally and economically. The environmental clean-up cost alone was approximately NZ$47 million. Some two and a half years later there are still unresolved issues and losses resulting from Rena’s grounding.

Carriage of Goods, Pollution & Salvage, Contracts

Assuranceforeningen Gard Gjensidig v The International Oil Pollution Compensation Fund [2014] EWHC 1394 (Comm)

Oil pollution – P&I Club – International Oil Pollution Convention Fund – Freezing injunction – Fund’s immunity from freezing injunction

Pollution & Salvage, Regulation

Fulton Shipping Inc of Panama v Globalia Business Travel SAU (formerly Travelplan SAU) of Spain (The “New Flamenco”) [2014] EWHC 1547 (Comm)

Damages – Charterparty – Early redelivery of vessel permitting profitable sale – Whether credit should be given

Shipping, Contracts

Law Commissions’ reform proposals on marine and commercial insurance – “yay” or “nay”?

In April 2013, a symposium organised by the Institute of International Shipping and Trade Law, Swansea University, on the recent Law Commissions’ reform proposals on business insurance, shed some light on the views of the main stakeholders in the market, and what direction the Law Commissions are likely to take.

Commercial, Insurance, Regulation

P&I Clubs and competition law

In August 2010 (IP/10/1072), the Commission initiated a market investigation with shipowners, brokers and commercial insurers on the basis of Regulation (EC) No 1/2003 and Commission Regulation (EC) No 773/2004. The object of scrutiny of the investigation were certain provisions accompanying claim-sharing and joint reinsurance agreements of P&I Clubs in the marine insurance sector.

Insurance, Regulation

Falkonera Shipping Co v Arcadia Energy Pte Ltd (The “Falkonera”), [2012] EWHC 3678 (Comm); [2014] EWCA Civ 713

Charterparty BPVOY4 – Approval of vessel for STS transfer withheld by owners – Whether unreasonable


Mar-Train Heavy Haulage Ltd v Shipping.Dk Chartering A/S (t/a Franck & Tobiesen A/S) and Others [2014] EWHC 355 (Comm)

Subcontracting jurisdiction

Freight forwarding framework agreement – Subcontractors – Agency – Unilateral consent to jurisdiction – Brussels I Regulation (EC) No 44/2001, article 23

Contracts, Practice and Policy, Jurisdiction, Regulation

Sun United Maritime Ltd v Kasteli Marine Inc (The “Imme”) [2014] EWHC 1476 (Comm)

Arbitration Act 1996, section 67 – Scope – Challenging an arbitral award for lack of substantive jurisdiction – Disputed settlement on costs.


Hasan v Shell International Shipping Services (Pte) Ltd and Others [2014] UK EAT/0242/13/SM

Employment – Seafarer employed on ship registered abroad – Whether jurisdiction to hear unfair dismissal, discrimination and breach of contract claims.

Shipping, Practice and Policy, Jurisdiction