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Showing posts from May, 2012

Shipbuilding Contract - Prevention Principle

Adyard agreed to construct two 50m Moorings and Special Operations Support Vessels, Hulls 10 and 11 (“the vessels”) for SDMS. SDMS rescinded the two shipbuilding contracts as the vessels could not meet their respective sea trials dates. Adyard claimed that SDMS was not entitled to rescind because (a) it was prevented from completing the vessels for sea trials by SDMS’s acts and/or (b) it was entitled to an extension of time to the sea trials date for both vessels and (c) it was delayed by various new design items which were imposed by the UK Maritime Coastguard Agency (“MCA”) or instructed by SDMS.  SDMS counterclaimed and disputed Adyard’s claim.     By the end of the trial, Adyard’s case rested solely on the prevention principle.  Its entitlement to do so as a matter of law turned on whether or not the contract provided for an extension of time in respect of the relevant event.  Mr Justice Hamblen summarized the prevention principle with reference to the judgment of Jac