Caselaw Digest
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Smart Gain Shipping Co Ltd v Langlois Enterprises Ltd

5 July 2023
[2023] EWHC 1683 (Comm)
High Court
A ship was returned dirty. The contract said the person renting the ship ('Charterers') always pays for cleaning time, no matter when it happens. The court agreed, even though cleaning happened after the ship was returned, the Charterers still owed money for the cleaning time.

Key Facts

  • •Appeal against a partial final award in an arbitration concerning a charterparty for the M/V GLOBE DANAE.
  • •Dispute centered on Clause 86, which addressed hull fouling and underwater cleaning.
  • •Clause 86 stated that underwater cleaning 'to be done at first workable opportunity and always at Charterers’ time and expense'.
  • •Cleaning occurred after redelivery of the vessel.
  • •Owners claimed hire rate for cleaning time; Charterers argued for damages only.
  • •The arbitration tribunal found for the Owners.
  • •The appeal concerned whether Clause 86 created a claim in debt for cleaning time after redelivery, or only a claim for damages.

Legal Principles

Contractual interpretation involves ascertaining the objective meaning of the language used, considering the contract as a whole and the available background knowledge.

The Ocean Neptune [2018] 1 Lloyd’s Rep 654, [8]; The Eleni P [2019] 2 Lloyd’s Rep 365, [10]

In a charterparty, if a clause allocates liability for repair time to the charterer, the owners do not have to prove actual loss of time; the claim is in debt.

The Nicki R [1984] 2 Lloyd’s LR 186

Outcomes

Charterers' appeal dismissed.

The court upheld the tribunal's finding that Clause 86 created a claim in debt for cleaning time, even after redelivery. The phrase 'always at Charterers’ time' was interpreted to mean the Charterers are always liable for the time spent on cleaning, regardless of whether it occurred before or after redelivery. The court emphasized that if the parties intended a claim for 'loss of time', the clause would have stated so explicitly.

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