HiHonor lawyers acting for Owner of MV “KHARIS PEGASUS”, settled alleged Cargo Suit US$1.5million at 10% of Claimed Amount via Court Mediation.

The case No. (2019) E 72 Minchu 745 was filed by the Plaintiff Guangfang Bank Zhanjiang Branch, as lawful holder of Original Bs/L, VS. Defendant disport Ship Agent Zhenjiang Everrich Shipping Co Ltd, VS /against Defendant the port company Zhenjiang Port Group Co., Ltd, and VS/ against Defendant owner of MV “KHARIS PEGASUS”.  The Plaintiff claimed for cargo losses including unpaid cargo value plus bank interest and costs at totality around US$1.5million (around RMB10million).

We acting for the Defendant vessel owner, raised points of defense, applied court to add TCT timer charterer CMP as 3^rd party to join the PRC WMC proceedings; well attended court hearing held in headquarter of Wuhan Maritime Court (WMC) in June 2021 and held online in April 2022; we submitted good supplementary evidence, supplementary defense and legal opinions based on new finding/evidence. And we argued that following assignment of right from the Plaintiff Bank to a 3^rd party Guangzhou Asset Management Company Ltd, the Plaintiff’s Title to Sue as well as time bar are arguable.  

Identity of Carrier

Based on recent years PRC Supreme court released cases and Hubei Province High People’s Court released judgment, we argued that it was time charterer CMP that appointed ship agents at both loadport and disport, the time charterer should be identified as carrier of the B/Ls.  While the court adopted strict conservative view under circumstance when a Master’s B/L was signed (B/L was signed by loadport agent on vessel Master’s behalf), inclined that although time charterer furnished LOI to vessel owner asking for discharge cargo into port storage without Presentation of Original Bs/L, cargo should remain at port, under the control of the owner/carrier/its agent. 

Nevertheless, our acting on owner’s behalf, timely submission of comprehensive opinions, citing typical cases, seeking recovery/recourse from tort-feasors in separate PRC proceedings and our key arguments attached Wuhan Maritime Court attention on this matter.  In particular we explained to claimant side on the chance of getting enforcement from potential ship arrest or judicial sale would be rather slim.  Via pragmatic consideration of parties concerned, via effort and good communication of Wuhan Maritime Court judge, the case was finally mediated at RMB1million around US$150,000.00, approximately10% of total claims; and Court Fee was reduced to half, to be borne at 50:50% by both sides.  

The vessel owner’s potential liability was greatly reduced from lawsuit claims amount US$1.5million to final court mediation amount around US$150,000, reduced substantial liability of 90%.  Before closing files, HiHonor lawyer received kind words from honorable WMC judge, praised HiHonor lawyers’ professionalism, dedication, and flexible mode of thinking.  

The whole PRC proceedings lasted over three years since May 2019 till conclusion in end Aug. 2022. During which we were impressed by Wuhan Maritime Court’s persistence to due process, impartiality and harmony. The judge’s conscience and unbiased mind impressed not only Chinese domestic parties, but also gave the foreign owner positive impression of PRC maritime trial.