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Showing posts from May, 2016

Drilling Rig Hire Contract - Are wasted spread costs considered “consequential losses” within the context of a contractual exclusion clause?

Transocean Drilling UK Limited v Providence Resources PLC [2016] EWCA Civ 372. Transocean (Owner of the rig ‘GSF Arctic III’), entered into a drilling contract with Providence for the hire of a semi-submersible drilling rig. The contract was based on a standard industry agreement ‘LOGIC’ form, with agreed adaptions. There was a loss time of over 27 days due to defects in the rig and also a further 10 hour’s delay because of failure of a crew to tighten a blanking plug properly. Consequently, there were various disputes between the parties pertaining to remuneration payable to Transocean in respect of what became known as the ‘disputed period’. Providence claim against Transocean for spread costs, comprising the costs of personnel, equipment and services contracted from third parties, which it alleged were wasted as a result of the delay. At first instance, Mr Justice Popplewell (“the Judge”) held that Transocean was in breach of contract and that Providence was entitled to

Ship Construction - Defects Warranty - Plausible claim or a tabula in naufragio for Buyer who has not given notice?

“The prospect of some heads of [warranty] claim having a 12 month time limit, and other claims having no time limit at all, and uncertainty as to which category specific claims fell into would be a goldmine for lawyers - and far removed from what the parties stated in their shipbuilding contract and what would have reflected their reasonable and objective intentions . Per Messrs Mark Hamsher, Christopher Moss and Lindsay Gordon (Arbitrators). Neon Shipping Inc v Foreign Economic 7 Technical Corporation Co. of China & China Chang Jiang National Shipping Group Corporation Jinlin Shipyard [2016] EWHC 399 (Comm). Defective Cranes, Construction of Language, Time-bar, Sale of Goods Act - Implied Term - Fitness for Purpose. Facts: Shipbuilding contract for the design, build and supply of a 57,000 dwt bulk carrier governed by English law and containing an arbitration clause.  Clause 13 of the contractual Building Specification provided under “General Description of the