Gard Marine & Energy Ltd and Another v China National Chartering Co Ltd and Another (The “Ocean Victory”) – UKSC 35 – 10 May 2017

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TIME CHARTER – SAFE PORT – CLAIM AGAINST DEMISE CHARTERERS – LIMITED LIABILITY

When a ship sank upon departing a port in a storm, the court was tasked with answering 3 questions.  1) Was there a breach of the safe port warranty? 2) If so, did provisions for joint insurance preclude owner from the right to recover losses covered by hull insurers?  3) If there was a breach, are losses by a sub-charterer limited to the losses incurred by it’s owner to head owner’s insurance company.

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