Reed Smith Shipping Group Monthly Bulletin - May 2011


In This Issue:


Commercial Court confirms that the court’s power under s.66 Arbitration Act 1996 to enforce an arbitration award extends to declaratory awards...3

Court of Appeal considers whether monies paid into court by a Claimant in support of a freezing injunction should be paid out to the Claimant or Defendant on discontinuance of that injunction...3

Commercial Court considers the effect of the late payment of outstanding fees owed to an arbitration appeal board following notification of a final interim award...4


BIMCO launches radiation clause for time charterparties...6


Supreme Court considers the meaning of “subsidiary” where a contract incorporates the definition in the Companies Act 1985...7


Court makes wasted costs and non-party costs orders against a solicitor acting for one of the parties...8

Court of Appeal sets down guidance on costs following discontinuance by a Claimant...9


Court of Appeal considers the admissibility of evidence where a party has failed to take the correct procedural steps to admit that evidence...10


Court of Appeal finds that a clause providing that an indemnity will cease on a company’s insolvency is invalid...11


Commercial Court considers whether it is appropriate to grant

a default judgment where decisions are pending on related issues...12


Supreme Court grants leave to appeal decision that legal professional privilege does not apply to any professional other than a qualified lawyer...13


Iran (Asset-Freezing) Regulations 2011...14

Libya (Restrictive Measures) (Overseas Territories) Order 2011...14

Ivory Coast (Asset-Freezing) Regulations 2011...14


Commercial Court sets aside an order for service out of the jurisdiction where the original pleadings disclosed no reasonable prospect of success, and where amendments made after service put the case on a new legal basis...15

Commercial Court sets out the test to be applied when considering the jurisdictional gateways for service of proceedings concerning contractual claims out of the jurisdiction...15


Commercial Court considers which party should bear the burden of proof under the Hague Rules in establishing the cause of cargo damage...17

Commercial Court considers delays under a shipbuilding contract, and whether as a result of such delays the buyer was entitled to rescind the contract and recover instalments paid...17

Commercial Court considers which sums a party must take into account when calculating its loss on the early termination of forward freight agreements...18

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