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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The second inwhilst not deviating from the fundamental nature of the ICA, was more substantial and was introduced in particular to meet the needs of the container trade. This Ship Finder is updated on a daily basis. The relevant facts were quite straightforward. 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.
United Kingdom August 28 The amended clause for recommendation is as follows: However, one of the main purposes of the ICA revision was to ensure the parties to a cargo claim would be able to secure themselves against their contractual counterparts without unnecessary difficulty.
In the meantime, Members or clients having any questions or requiring assistance are encouraged to contact Gard. The disponent owners commenced arbitration proceedings against the charterers and made an application under Section 48 5 b of the Arbitration Act asking the tribunal to order the charterers to put up security pursuant to the relevant section of the ICA.
The first in was to meet one particular shortcoming relating to the time limit for making claims. Head owners chartered their vessel to the claimant disponent owners who, in turn, chartered to the respondent charterers. Follow Please login to follow content. 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.
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 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.
New charterparty clause promoting the use of the Inter-Club Agreement – Skuld
The Group has taken the view, which Counsel has confirmed, that this provision makes payment of a Cargo Claim as defined under clause 3 of the Agreement a condition precedent to a right to indemnity. As will be seen, it has also been necessary to make a number of additional consequential but not substantive amendments to the Agreement. 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.
This may therefore lead to some uncertainty which will however be limited to clauses of the same or similar wording. Industry News Up-to-date information about topical issues is provided by the Industry News service.
Inter-Club New York Produce Exchange Agreement (As Amended September )
In turn, the disponent owners provided counter security to the head owners on the basis of Clause 9 intfrclub 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 by its counter-party. Both charterparties included the following wording: 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 in clause 9 of the Agreement.
This is because the relevant wording is commonly used in fixtures and some parties including their liability insurers may be caught by surprise if they realise that there is a risk that some provisions of the ICA are not applicable. This clause shall take precedence over any other clause or clauses in this charterparty purporting to incorporate any other version agreement the Inter-Club New York Produce Exchange Agreement into this charterparty”.
The Group has therefore taken a decision to incorporate a new provision into the Agreement, which creates an entitlement to security on the basis of reciprocity, once one of the parties to a charterparty has put up security in respect of a Cargo Claim, provided that the time limits set out in clause 6 of the Agreement have been complied with the Security Provision.
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.
The afreement of the ICA is to encourage reasonable settlement and save costs by avoiding expensive legal disputes when dealing with areement claims. Site search Search keyword s: Members who need to advise the Club of updates to their recorded ships’ details should advise their usual underwriting contact.
Is it time to review your workplace dress code? Some pages or content may fail to load. The information is timely, helpful and easy to navigate. Instead, only the provisions relating to the apportionment of liability were effectively incorporated. We’ve updated our Cookies Policy.
Apportionment of liability under the Inter Club Agreement: secure to be secured? It depends
It can also apply to contracts of carriage authorised under such charterparties. Apportionment of liability under the Inter Club Agreement: Share Facebook Twitter Linked In. As a result, avreement 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.
Our Club, in common with the other Group clubs is issuing a circular to inform Members of this change. Permission to appeal was refused by the High Court.
Thank you for offering it and please continue it indefinitely!! Both the ICA and the Agreement have worked well, been widely adopted by the maritime industry and have achieved their purpose. My saved default Read later Folders shared with you.
Incorporation of Inter-Club Agreement in charterparties. Facts The relevant facts were quite straightforward. 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.
Thomas Miller Group Website.
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.