222. Aktieselskabet Reidar v Arcos Ltd (1926) 25 L.l.L. Rep. 30; (1926) 25 L.l.L Rep 513

Voyage charterparty – damages for dead freight awarded in addition to demurrage

The facts

The vessel was chartered to load timber at Mesane, Norway, for ports in England, Scotland and the continent.

The demurrage clause read as follows:

“Steamship to be reckoned as a four-hatch steamship and the cargo to be loaded at the rate of 80 standards per weather working day for deals and batons and 60 standards for other goods on the steamship having four winches… Should the steamer be detained beyond the time stipulated as above for loading and or discharging, demurrage shall be paid at 25 pounds sterling per day and pro rata for any part thereof.”

The vessel did not load at the required rate and became liable for demurrage.

In addition and because of the delay, the vessel was prohibited by law from loading up to her full summer loading line. This resulted in a loss of freight.

Findings

Greer J at first instance and Court of Appeal (Bankes, Atkin and and Sargant LJJ) found for the owners.

Commentary

The outcome is consistent with the principle of full indemnification and there was no duplication of losses.

DB Somervell and Sir Robert Aske appeared as junior counsel on either side.

This content is restricted to site members. If you are an existing user, please login. New users may register below.

Existing Users Log In
   
New User Registration
* Please indicate that you agree to the Terms of Service
*Required field