Shipping Newsletter - August 2011, Issue 28

more+
less-

In this issue: The Effect of Insolvency on a Charterparty; The Bribery Act 2010; Federal Maritime Commission Eases Rate Filing Requirements; Update: Sanctions Regimes; Case Study: Refusal of Orders to proceed to Yemen; Case Notes; Welcome to…; and Q&As with David Handley.

Excerpt from 'The Effect of Insolvency...":

The insolvency of a party, the commencement of insolvency-related proceedings or the appointment of liquidators or receivers will not on its own amount to a repudiation or a renunciation of a contract subject to English law (see for example Re Agra Bank (1867) LR 5 Eq 160). There will, therefore, be no right to terminate a charterparty because of an event of insolvency affecting an owner or charterer. That is unless, of course, such an express right is reserved in the contract.

In order to have a right to terminate, the innocent party will either need to be able to show that the inevitable consequence of the event of insolvency is a repudiation of the charterparty, i.e. that there has been an anticipatory repudiatory breach, or that a liquidator (or similar officer or court) has stated clearly and unequivocally that a charter will not or cannot be performed in some respect going to the root of the contract i.e. there has been a renunciation (see Pacific and General Insurance Co. Ltd v. Hazell [1997] 1 L.R.L.R. 65 at 83).

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Bankruptcy Updates, General Business Updates, International Trade Updates, Maritime Updates, Transportation Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »