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The New South Wales Consumer, Trader & Tenancy Tribunal’s recent decision in D V Kelly Pty Ltd v China Shipping (Australia) Agency Co Pty Ltd [2010] NSWCTTT 136 has caused considerable debate and cast doubt over the enforceability of container detention charges. The case concerned the distinction between liquidated damages and penalty clauses in contracts, and has already caused ripples throughout the entire Australian shipping industry.

When claiming a contractual lien and exercising a power of sale, you must not exceed the scope of the agreement.