Hyundai Merchant Marine Co Ltd v Dartbrook Coal (Sales) Pty Ltd [2006] FCA 1324

FEDERAL COURT OF AUSTRALIA

Hyundai Merchant Marine Co Ltd v Dartbrook Coal (Sales) Pty Ltd [2006] FCA 1324 ADMIRALTY & MARITIME JURISDICTION – carriage of goods by sea - contract for cargo - whether binding contract - correspondence of offer and acceptance of terms - whether charterparty conditional upon existence of cargo contract - whether wrongful repudiation of charterparty ADMIRALTY & MARITIME JURISDICTION - Meaning of force majeure event - Whether force majeure event existed due to non performance of a contract by another party – whether impractability of performance amounts to prevention of performance DAMAGES - The measure of damage - modern rule where cargo not delivered - shipowner's obligations - whether duty to mitigate loss - whether shipowner obliged to seek alternative employment for vessel - circumstances in which rule operates - onus of proof DAMAGES - Quantum of damages – cost of hire and voyage expenses including contingencies – cargo leg of the voyage COSTS - Entitlement to indemnity – whether agent personally liable – whether agent entitled to be indemnified – meaning of wilful misconduct – distribution of costs Aitken Lilburn v Ernsthausen [1894] 1 QB 773 cited Basma v Weekes [1950] AC 441 cited Cobelfret (UK) Ltd v Austin and Butta (Sales) Pty Ltd (unreported, Supreme Court of New South Wales, Brownie J, 24 February 1988) distinguished Cobelfret (UK) Ltd and Anor v Austen and Butta (Sales) Pty Ltd (unreported, Supreme Court of New South Wales Court of Appeal, Kirby P, Priestley JA, Meagher JA, 5 April 1991) distinguished Golden Strait Corporation v Nippon Yusen Kubishika Kaisha (The Golden Victory) [2005] 1 Lloyd's Law Rep 443; [2005] 2 Lloyd's Law Rep 747 applied Hensley v Reschke (1914) 18 CLR 452 cited Johnson v Perez (1988) 166 CLR 351 cited Jones v Barkley (1781) 1 Dougl. 684; 99 E.R. 434 referred to Koch Marine Inc v D'Amica Societa Di Navigazione A.R.L (The Elena B'Amico) [1980] 1 Lloyd's Law Rep 75 cited Lebeaupin v Richard Crispin and Co [1920] 2 KB 714 cited Mahoney v Lindsay (1981) 55 ALJR 118 cited Masters v Cameron (1954) 91 CLR 353 cited Peter Turnbull and Co Pty Ltd v Mundus Trading Co (Australasia) Pty Ltd (1954) 90 CLR 235 cited PJ van der Zijden Wildhandel N.V. v Tucker [1975] 2 Lloyd's Rep 240 considered Rheinoel v Huron Liberian Co.(The Concordia C) [1985] 2 Lloyd's Rep 55 considered SIB International v Metallgesellschaft Corp. (The Noel Bay) [1989] 1 Lloyd's Rep 361 considered Smith v M'Guire (1858) 3 H&N 554; 157 E.R. 589 considered Sotiros Shipping Inc v Sameiet Solholt (The Solholt) [1983] 1 Lloyd's Rep 605 considered Stanley Yeung Kai Yung v Hong Kong and Shanghai Banking Corporation [1981] AC 787 cited Tudor Marine Ltd v Tradax Export S.A. (The Virgo) [1976] 2 Lloyd's Rep 135 cited Universal Steam, Navigation Co v James McKelvie and Co [1923] AC 492 considered Wallems Rederij A/S v Muller [1927] 2 KB 99 cited Carter on Contract, Vol 2, Butterworths at par 41-380 E McKendrick, Force Majeure and Frustration of Contract, 2nd edn, LLP, London, 1995 at pp 8, 24-25 G Treitel, Frustration and Force Majeure, Sweet and Maxwell, London, 1994 at pars. 6-020 – 6-021, 12-017, 12-019 G Treitel, The Law of Contract, 11th edn, Sweet and Maxwell, London, 2003 at pp 727 and 977 J Cooke et a., Voyage Charters', 2nd edn, LLP, London, 2001 at par. 1.23 L D'Arcy, Schmitthoff's Export Trade: The Law and Practice of International Trade, 9th edn, Sweet and Maxwell, London, 1990 at p 199 McGregor on Damages, 15th edn, Sweet and Maxwell, London, 1988 at pars 172-3, 179-96 McGregor on Damages, 17th edn, Sweet and Maxwell, London, 2003 at pars 27-062 – 27-066 Scrutton on Charterparties, 19th edn, Sweet and Maxwell, London, 1984 at pp 395-396 Scrutton on Charterparties, 20th edn, Sweet and Maxwell, London, 1996 at pp 388-389, 394 HYUNDAI MERCHANT MARINE CO LTD v DARTBROOK COAL (SALES) PTY LTD & ORS QUD 190 OF 2004 KIEFEL J 11 OCTOBER 2006 BRISBANE