Phillips J handed down judgment on 27 October 2016 in the above matter in which Counsel from Quadrant Chambers represented both parties. Nevil Phillips and Christopher Jay appeared for the successful Defendants (Lundin), while Yash Kulkarni and Koye Akoni represented the Claimants (Regulus)

Phillips J clarifies the meaning of "light ballast condition" further to the earlier decision of Andrew Smith J in Ease Faith Ltd v Leonis Marine Management Ltd (The Kent Reliant) [2006] 1 Lloyd’s Rep 673, and defines the scope and effect of Clause 17(a)(ii) of the Towcon form.

The issues

The Light Ballast Condition Point

            "… that light ballast condition is concerned with ensuring physical fitness, primarily stability, for the tow’s voyage …"

The Clause 17(a)(ii) Point

A copy of the judgment can be found here.

The dispute concerned inter alia two issues: (i) what is the meaning of a requirement for a tow to be “in light ballast condition” for the purposes of a towage operation; (ii) what is the scope and effect of Clause 17(a)(ii) of the Towcon form as regards the entitlement (on the part of the tug) to contractual delay payments.

Phillips J rejected the suggestion that, in order to be in “in light ballast condition”, a tow must inter alia be legally fit for the towage (i.e. in a condition that meets with the requirements of a marine warranty surveyor, including whatever ballast condition (draughts and displacement) that surveyor deems necessary, and within the vessel’s Class). He concluded (at [74]) that the effect of the decision of Andrew Smith J in the Ease Faith“in light ballast condition” is):

Phillips J concluded that the Clause is triggered only by a deliberate decision by a tug to slow steam etc because it reasonably considers that the tow cannot be towed at the originally contemplated speed. The Clause does not operate where, for other reasons, the tug does not deploy all of its resources to tow (or attempt to tow) at the contemplated speed, or where the tow can in fact be performed at that speed (if all such resources are deployed, or otherwise).