Singapore: Court orders Maersk Tankers to pay UOB USD 39 million over Winson Oil gasoil cargo

Maersk Tankers Singapore Pte Ltd (Maersk) on 4 November was ordered to pay UOB USD 39 million for the misdelivery of a gasoil cargo sold to Hin Leong Trading (Pte) Ltd (Hin Leong) by Winson Oil Trading Pte Ltd (Winson).

The present case was amongst affairs stemming from the collapse of Hin Leong in 2020.

Here, UOB claimed itself as holders of certain bills of lading for gasoil cargoes carried onboard Maersk Princess in accordance with a voyage charterparty between Maersk as owners and Winson as charterers.

Maersk Princess was carrying a total shipment of 752,870 barrels (bbl) of 10ppm sulphur gasoil cargo that was on-sold by Winson to Hin Leong following a sale contract dated 12 February 2020.

UOB was interested in two, out of the four parcels, which the gasoil cargo was split into.

Specifically, the bank was claiming for Parcel ‘A’ comprising 330,000 bbl purchased by Winson from BP Singapore Pte Limited and Parcel ‘C’ comprising 330,000 bbl purchased by Winson from China Aviation Oil (Singapore) Corporation Ltd (the Cargoes).

UOB argued Maersk discharged and delivered the Cargoes to Hin Leong without presenting the original bills of lading (OBLs) for both Parcel ‘A’ and ‘C’; as such its liability for misdelivery is allegedly settled.

“While admitting that Maersk discharged and delivered the cargo without original bills of lading having been presented, the Defendants [Maersk and Winson] have advanced a number of defences against liability for misdelivery,” stated Justice S. Mohan of the High Court of the Republic of Singapore.

“Most of them are bonded together by the overarching assertion that UOB ‘never looked to the bills of lading as security’.”

According to Justice Mohan, defendants Maersk and Winson presented several defences against UOB’s claim; they are:

• Contractual Defence
• Consent-Based Defences
• Rights of Suit Defences
• Causation Defence

“To summarise, none of the defences advanced by the Defendants have been made out. I am satisfied that UOB, as lawful holders of the OBLs, has established its claim against Maersk for breach of contract by reason of the latter having discharged and delivered the Cargo without the presentation of the OBLs,” he wrote.

“Having allowed this claim in contract, it is unnecessary for me to consider UOB’s alternative claims in conversion, bailment and negligence.

“Accordingly, I grant judgment in favour of UOB against Maersk in the sum of US$39,372,300.00, together with interest thereon at 5.33% per annum from the date of the writ to the date of judgment.”

Editor’s note: The original 104-page judgement document of Justice S. Mohan can be downloaded from the High Court of the Republic of Singapore website here.

Related: Maersk Tankers Singapore applies for USD 41 million court injunction against Winson Oil Trading

Photo credit: Manifold Times
Published: 18 November 2024