QUEEN'S BENCH DIVISION
COMMERCIAL COURT
Strand, London, WC2A 2LL |
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B e f o r e :
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VITOL S.A. |
Claimant |
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- and - |
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CONOIL PLC |
Defendant |
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The Defendant was not represented
Hearing dates: 20 May 2009
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Crown Copyright ©
Mr. Justice Teare :
Liability
"Payment to be secured by a fully operative and workable irrevocable documentary letter of credit…………….
Without prejudice to time being of the essence and seller's other rights generally, seller shall not be required to discharge the mother vessel prior to receipt of such letter of credit………
In case the letter of credit is not made operational to sellers satisfaction on or before 8 August 2008[1] at seller's option seller has the right to (1) terminate the contract and claim damages ……."
Damages
First contract: 33,000mt x ($1217-$636.50) | = $19,156,500 |
Second contract: 33,000mt x ($1092-$636.50) | = $15,031,500 |
The first October tranche: 8,500mt x $44 | = $ 374,000 |
The second October tranche: 22,500 x $44 | = $ 990,000 |
November tranche: 31,000 x $44 | = $1,364,000 |
December tranche: 31,000 x $44 | = $1,364,000 |
January tranche: 31,000 x $44 | = $1,364,000 |
"In case of delay in taking delivery from mother vessel by daughter vessel and if full contractual quantity not lifted in agreed dates, without prejudice to all seller's other rights and without prejudice to time being of the essence, seller has the right to claim the security deposit[2] (at seller's absolute discretion) USD 0.50 (fifty US cents) per metric ton per day of delay commencing three days after the last day of delivery date/window….."
The first contract:
Third tranche: from 09/09/08 to 31/10/08: 53 days x $0.50 x 16,500mt | = $437,250 |
Fourth tranche: from 17/09/08 to 31/10/08: 44 days x $0.50 x 16,500mt | = $363,000 |
The second contract: from 13/10/08 to 31/10/08: 19 days x $0.50 x 33,000mt | = $313,500 |
The fourth contract: from 10/10/08 to 31/10/08: 22 days x $0.50 x 8,500mt | = $93,500.[3] |
The anti-suit injunction
Note 1 This is the date in the first contract. It is a later date in the subsequent contracts. [Back] Note 2 Another set of terms referred also to the letter of credit but that difference is not material. [Back] Note 3 No penalty is claimed in respect of the balance of the third contract. [Back]