Reed Smith Shipping Bulletin - April 2010

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In This Issue:

1. ARBITRATION...3

1.1 COURT HAS JURISDICTION TO GRANT DECLARATORY AND INJUNCTIVE RELIEF WHEN THERE IS NO INTENDED ARBITRATION...3

1.2 WHETHER ENGLISH COURT SHOULD REFUSE ENFORCEMENT OF ARBITRATION AWARD WHERE APPEAL PENDING IN FOREIGN COURT...4

1.3 ICC REVISES ITS ARBITRATION COSTS AND FEES...4

1.4 LCIA INDIA LAUNCHES NEW ARBITRATION RULES...4

2. COSTS...6

2.1 KEEPING YOUR CLIENT INFORMED OF COSTS...6

3. EU...7

3.1 SWITZERLAND TO RATIFY THE NEW LUGANO CONVENTION...7

3.2 ECHR HOLDS THAT INSTITUTING PROCEEDINGS FOR RECOGNITION OF A FOREIGN JUDGMENT INTERRUPTS LIMITATION PERIOD...7

3.3 EUROPEAN UNION COMMITTEE REPORTS ON COMBATING SOMALI PIRACY...7

4. INSURANCE...8

4.1 THIRD PARTIES (RIGHTS AGAINST INSURERS) ACT 2010...8

4.2 WHETHER NEGLIGENCE OF BROKER CAUSATIVE OF AVOIDANCE OF POLICY...8

4.3 INSURING IRANIAN SHIPS...10

4.4 WHETHER ON PROPER CONSTRUCTION ONLY ONE INSURANCE POLICY OR WHETHER DOUBLE INSURANCE...10

5. JURISDICTION...12

5.1 WHETHER GERMAN COURT HAD EXCLUSIVE JURISDICTION AND WHETHER ENGLISH COURT TO DECLINE JURISDICTION...12

5.2 WHETHER CLAIMANT DEMONSTRATED THAT CORRECT CHOICE OF LAW WAS ENGLISH LAW...13

6. MISCELLANEOUS...15

6.1 NO EXTENSION OF LIMITATION PERIOD ON BASIS THERE HAD BEEN AN EARLIER CONCEALED LOSS...15

6.2 CIRCUMSTANCES IN WHICH ATE INSURANCE CAN BE USED FOR SECURITY FOR COSTS...15

6.3 RENVOI DOES NOT APPLY TO CHOICE OF LAW RULE ON MOVABLES...16

6.4 WHETHER MARKET PRACTICE ADMISSIBLE AS AID TO CONTRACT CONSTRUCTION...17

7. PRACTICE...18

7.1 NEW PRACTICE DIRECTION ON E-WORKING COMES INTO FORCE...18

7.2 APPLICATION TO SET ASIDE SERVICE OUT OF THE JURISDICTION...18

7.3 JURISDICTION TO DISCHARGE FREEZING ORDER AGAINST ASSETS OF A THIRD PARTY...18

7.4 WHETHER REAL PROSPECT OF SUCCESS IN SUMMARY JUDGEMENT APPLICATION...20

7.5 NEED TO ESTABLISH CLAIM NO STRONGER THAN FANCIFUL TO SUCCEED IN STRIKE OUT APPLICATION...20

7.6 CONSEQUENCES OF NON-DISCLOSURE BY APPLICANT WHEN APPLYING FOR AN INJUNCTION...22

8. SHIPPING...23

8.1 WHETHER ON DECK STATEMENT IN BILL OF LADING SUFFICIENT TO EXCLUDE APPLICATION OF HAGUE VISBY RULES...23

8.2 WHETHER DEFENDANT IN BREACH OF CONTRACT BY FAILING TO SECURE APPROPRIATE INSURANCE COVER AND TO EXERCISE REASONABLE SKILL AND CARE IN FREIGHT FORWARDING ARRANGEMENTS...25

8.3 COURT FOUND NO AVAILABLE MARKET AT TIME OF REPUDIATION OF CHARTERPARTY AND NO PRESUMPTION THAT DAMAGES CALCULABLE BY REFERENCE TO ANY SUBSEQUENT AVAILABLE MARKET...26

8.4 WHETHER CHARTERER ENTITLED TO TERMINATE DRILLING CONTRACT FOR CONVENIENCE PRIOR TO COMMENCMENT DATE FOR DRILLING...28

8.5 INTERPRETATION OF CONTRACTS IN SALE AND LEASEBACK OF VESSELS...28

8.6 DEGREE OF DISCLOSURE REQUIRED ON AN APPLICATION FOR A WARRANT OF ARREST...29

8.7 WHETHER CHARTERER ENTITLED TO CLAIM TAX BENEFIT ON TERMINATION OF SHIP FINANCE LEASE...30

Please see full newsletter below for more information.

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