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ARTICLE · 04 JUNE 1999

Exercise Of Due Diligence

Norton Rose Fulbright
Norton Rose Fulbright
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United KingdomTransport

Poseidon Schiffahrt GmbH v Nomadic Navigation

Co Ltd ("The Trade Nomad")

Court of Appeal (Civil Division)

Hirst LJ, Mummery LJ, Buxton LJ - 18.02.99

The plaintiff chartered the "TRADE NOMAD" from the defendant owners on a Shelltime 4 charter, clause 3(i) provided that owners were to exercise due diligence so as to maintain or restore the vessel to the conditions stipulated in the charter, including the provision of crude oil washing facilities. A failure to comply with clause 3(i) in 30 days would result in the Vessel being off-hire. Some months after commencement of the charter, the charterers discovered that the crude oil washing system was in an unsatisfactory condition and gave notice to the owners calling on them to remedy specific defects. The owners failed to do so within 30 days; and the charterers sought a reduction in hire. The arbitrator found for the owners on the basis that clause 3(i) had no application to defects existing at the time of delivery. Colman J ([1997]

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