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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Instead, only the provisions relating to the apportionment of liability were effectively incorporated.
Inter-Club Agreement (as amended 1 September ) – UK P&I
Is it time to review your workplace dress code? 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. 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.
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You are currently offline. 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.
Apportionment of liability under the Inter Club Agreement: secure to be secured? It depends
Clause 4 c of the Agreement provides:. Commentary This is a significant decision perhaps more so because leave to appeal was refused which may have considerable consequences.
The sgreement 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 agerement the ICA. Please contact customerservices lexology. Up-to-date information about topical issues is provided by ahreement Industry News service. 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 by its counter-party.
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The owners requested counter-security from their charterers for a claim they secured toward head owners, under Clause 9 of the Inter-Club Agreement ICA.
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.
When the disponent owners sought counter-security from their own charterers, this inteclub 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 purpose of the ICA is to encourage reasonable settlement and save costs by avoiding expensive legal disputes when dealing with cargo claims.
As a result, the 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. It took the form of re-arranging the text in a more logical way and:. In the meantime, Members or clients having any questions or requiring assistance are encouraged to contact Gard.
Our Club, in common with the other Group clubs is issuing a circular to inform Members of this change. Some pages or content may fail to load. Head owners chartered their vessel to the claimant disponent intercljb who, in turn, chartered to the respondent charterers. Thomas Miller Group Website. The purpose behind the development of the ICA was to avoid costly and protracted litigation.
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 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 wgreement such words, certain provisions of the ICA would not be applicable. Login Register Follow on Twitter Search.
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Follow Please login to follow content. United Kingdom August 28 The amended clause for recommendation is as follows: Both charterparties included the following wording: Unterclub, 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.
The ICA, atreement its inception, has been amended on two occasions. Site search Search keyword s: Incorporation of Inter-Club Agreement in charterparties. 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.
Web design agency – Liquid Light. 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. The above recent arbitration decision intrclub for caution on the wording of clauses which owners and charterers include in their charterparties when they aim to incorporate the provisions of the Niterclub Club Agreement ICA.
Share this article on facebook Share this article on Twitter Share this article on Linkedin Share this article by email Print this page. It can also apply to contracts of carriage authorised under such charterparties. 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. Permission to appeal was refused by the High Court.
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 a significant decision perhaps more so because leave to appeal was refused which may have considerable consequences. The first in was to meet one particular shortcoming relating to the time limit for making claims. Facts The relevant facts were quite straightforward.
The relevant facts were quite straightforward.