The Inter-Club Agreement (ICA) first came into force on 20 February It was revised in , in. and again in See 24 August , Standard. Under the Inter-Club NYPE Agreement , it was possible for a party to a Exchange Agreement (as amended September ). raised regarding common Inter-Club Agreement (ICA) incorporation clauses. The recent decision of the Commercial Court in the “Genius Star 1” .
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This clause shall take precedence over any other clause or clauses in this charterparty purporting to incorporate any other version of the Inter-Club New York Produce Exchange Agreement into this charterparty”. In turn, the disponent owners provided counter security to the head owners on the basis of Clause 9 of the ICA which provides a reciprocal obligation for provision of security by a party to a charterparty once security in respect of a cargo claim is provided agreemnet its counter-party.
Login Register Follow on Twitter Search. Share Facebook Twitter Linked In. When the disponent owners sought counter-security from their own charterers, this was denied on the basis that the charterparty clause was not apt to also incorporate the provisions of the ICA relating to the provision of security.
The first in was to meet one particular shortcoming relating to the time limit for making claims.
Gard therefore recommends Members and clients to review charterparty cargo handling clauses carefully, to ensure the ICA is clearly incorporated in its entirety. This is because the relevant wording is commonly used in fixtures and some parties including their liability insurers may be caught by surprise argeement they realise that there is a risk that some provisions of the ICA are 211 applicable.
The information is timely, helpful and easy to navigate. If the latter, it would be recommended that explicit reference to the relevant provisions is made for the avoidance of confusion and caution is also paid as to the interaction of those provisions with other provisions of the charterparty relating to liability. All member Clubs of the International Group have issued a similar circular.
Facts The relevant facts were quite straightforward. The charterers refused to provide security to owners on the basis that the wording of the charterparty clause restricted the application of the ICA to address only liabilityapportionment and settlement of cargo claims, not provision of security.
Although this conclusion was reached in arbitration and is therefore not a legally binding precedent, this may prompt others to challenge security requests on similar grounds. Under this new provision once one of the parties to a charterparty has put up security in respect of a cargo claim, provided the time limits set out in clause 6 of the agreement have been complied with, there is an entitlement to security on the basis of reciprocity. The relevant facts were quite straightforward.
Head owners chartered their vessel to the claimant disponent owners who, ahreement turn, chartered to the respondent charterers. However, one of the main purposes of the ICA revision was to ensure the parties to a cargo claim would be able inetrclub secure themselves against their contractual counterparts without unnecessary difficulty. Thomas Miller Group Website. The ICA, since its inception, has been amended on two occasions. It took the form of re-arranging the text in a more logical way and:.
Popular articles from this firm Should an employer delay its disciplinary process pending criminal charges? The arbitrators arrived to the conclusion that specific words of incorporation would be required to incorporate the entire ICA in the charterparty and that in the absence of such words, certain provisions of the ICA would not be applicable.
Accordingly in the absence of payment, no accrued cause of action crystallises and there is therefore no right, prior to payment, for the party sued in respect of a Cargo Claim to require that the other party to the charterparty, provide security which could be sought, by, for example, arresting or threatening to arrest a vessel or other property. Owners and operators should review the wording of their existing charterparties after a recent LMAA arbitration tribunal found that the Inter-Club Agreement in its entirety was not properly incorporated in an NYPE charterparty.
Incorporation of Inter-Club Agreement in charterparties. Commentary This is a significant decision perhaps more so because leave to appeal was refused which may have considerable consequences.
In the meantime, Members or clients having any questions or requiring assistance are encouraged to contact Gard. If you need to call our offices out of hours and at weekends, click After Office hours for a up to date list of the names of the Duty Executives and their mobile phone numbers. However, a recent London arbitration finding has given the International Group cause for concern, with the tribunal finding that the charterparty clause only incorporated the liability provisions of the ICA and not the requirement to provide security as contained agreemetn clause 9 of the Interflub.
As will be seen, it has also been necessary to make a number of additional consequential but not substantive amendments to the Agreement. The tribunal in this case considered that the decision did not undermine the intent of the ICA because the main purpose, swift apportionment of liability for cargo claims, was not affected.
Permission to appeal was refused by the High Court. Some pages or content may fail to load. Instead, only the provisions relating to the apportionment of liability were effectively incorporated. This Ship Finder is updated on a daily basis.
A cookie is a small piece of data that websites store on your computer and we use them to provide you with a better user experience on our website. The Group believes that this situation is unsatisfactory and has led to unnecessary, wasteful and costly disputes between Clubs.
The Security Provision has been incorporated into the Agreement as clause 9. Share this article on facebook Share this article on Twitter Share this article on Linkedin Share this article by email Print this page. Register now for your free, tailored, daily legal newsfeed service. This is a significant decision perhaps more so because leave to appeal was refused which may have considerable consequences.
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On the other hand, the disponent owners argued that the relevant clause made it clear that the full terms of the ICA applied in respect of liability for cargo claims and therefore the entire relevant provisions were incorporated including those relating to provision of security. The tribunal found that a commonly used clause in charterparties which provided that liability in respect of cargo claims was to be apportioned as specified by the ICA was not sufficient to also incorporate the provisions of the ICA relating to the provision of security and counter-security.
The amended clause for recommendation is as follows: The above recent arbitration decision calls for caution on the wording of clauses which owners and charterers include in their charterparties when they aim to incorporate the provisions of the Inter Club Agreement ICA.
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United Kingdom August 28 As a result, intervlub International Group has amended the recommended Charterparty clause wording issued in in order to take account of this recent finding and to encompass the Agreement requirement for security to be provided.
As the new agreement takes effect from 1st Septemberwe recommend its incorporation into all NYPE and Asbatime charterparties agreemen forward. Inter-Club Agreement as amended 1 September Thank you for offering it and please continue it indefinitely!!