Court of Appeal ruling on payment of hire clauses and renunciation of charterparty

Following a drawn-out battle with Chinese guarantors, members of our London-based team instructed by the shipowners, were successful in the Court of Appeal in the case of Spar Shipping AS v Grand China Logistics Holding (Group) Co Limited.

There were two main issues arising out of a non-payment of hire under three charterparties: (i) whether or not the term in the time charterparty requiring punctual payment of hire was a condition or an innominate term and (ii) whether the charterers’ conduct resulted in a renunciation of the charterparties.

We provided specialist advice throughout this matter on time charterparties and contractual construction.