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Showing posts from April, 2013

Shipbuilding Agreement - Time limit for Arbitration

A shipbuilding contract provided that Buyer could cancel the contract if delivery was delayed beyond the permitted contractual limits. If Seller disputes such cancellation, it must institute arbitration within thirty (30) days of Buyer’s cancellation and may not refund the installments advanced by Buyer until an arbitration award is handed down. Buyers cancelled the contract because of delays in delivery. Seller disputed Buyer’s entitlement but failed to commence arbitration within the stipulated time frame. The Judge agreed with Buyer’s contention that Seller’s right to dispute the cancellation is barred as it failed to meet the 30 days deadline. Read more …

Oil Spill – Shipbuilder and oil company’s liability revisit

Oil company and shipbuilder held jointly and severally liable for pollution damages and clean up costs due to an oil spill. Extract Astilleros may have been a reputable shipbuilder, but the fact remains that it built the AMOCO CADIZ with certain defects. Fully aware of these deficiencies, Amoco failed to correct them purely for economic advantage. The fact that the ABS repeatedly vouched for the AMOCO CADIZ's seaworthiness does not relieve Amoco of liability either. When a shipowner has prior knowledge of its vessel's defects, certification by a classification society does not establish the seaworthiness of a ship or the lack of negligence on the part of a shipowner.” The evidence establishes that the grounding of the AMOCO CADIZ was a disaster waiting to happen. Amoco was aware of the ship's various problems -- any one of which could have led to the failure of the steering system -- yet chose to do nothing. The ship's high pressure hydraulic system neede