pi_circular Insurance & claims Skuld
The Inter-Club Agreement (“ICA”) is incorporated in a great many NYPE (including ASBATIME) C/Ps. The ICA allocates liability differently, depending on if it is a shortage claim or a claim arising out of loading, storing, discharge. To allocate a claim correctly under the ICA, it is therefore necessary to know the type of claim and how it was caused. Skuld recently handled a matter where our members were time-charterers under an amended ASBATIME that was subject to English law and London arbitration, including LMAA small claims procedure for claims under 50,000 USD. The ICA “as amended from time to time” was also incorporated. The dispute concerned a cargo claim under the ICA incorporated in a C/P and the obligation to disclose the evidence and documentation available when presenting such a claim to an owner or a charterer as the case may be. The vessel was loaded with a cargo of rice, which was discharged at Dakar in July 2005. A claim for damaged cargo as well as a shortage was presented by cargo underwriters to Owners of the vessel. The claim was at that point estimated to roughly USD 60,000 plus 25% interest and costs. Owners, at the time, had a survey carried out. Shortly after, Owners advised Skuld that the claim should not exceed USD 9,500.00. We agreed that an amicable settlement should be made with cargo interests, but informed Owners that neither claims documents nor survey reports had so far been received. Owners reported the causes to be torn bags, stained bags and (other) shortage. The claim was ultimately settled by owners for EUR 6,865.59 in addition to incurred costs of EUR 6,468.57. Between the claim being settled in 2004 and when the claims submissions were filed with a London arbitrator in 2010, Skuld maintained that it would be necessary to see the survey report upon which owners based their claim in its entirety. This was maintained throughout the period since 2004. Owners took the position that this could not be demanded and that it was against
Disclosure of available evidence under the Inter-Club Agreement
Skuld
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