A UK judge has ruled that a charterer was too late in claiming damages against Turkish owner Derya for a damaged bulker cargo.
Justice Sue Carr dismissed claimant Dera Commercial Estate's action after a dispute about the time limitations of the case.
Dera was contesting a 2017 tribunal award against it.
It alleged serious irregularity, claiming the tribunal failed to act fairly and impartially.
And it also argued that its contractual right to a six-year limitation period for claims should not be struck out for "inordinate delay" because the parties had contracted for a shorter period, in this case the 12-month limitation under Article III Rule 6 of the Hague Rules.
The row arose from a charter for the 28,000-dwt Sur (built 1985), operated by Varda Denizcilik, in February 2011.
It was fixed by Rika Global Impex, which had sold an 18,000-tonne cargo of Indian maize to Dera for $6m.
Jordan rejects cargo
The vessel was booked from India to Jordan.
The maize was loaded onto the vessel in two batches. On both occasions, rain caused delays and quantities of wet maize were rejected during loading.
The bulker arrived at Aqaba, Jordan, in August, where Jordanian customs authorities took samples of the cargo from the hold.
In September, having analysed those samples, the Jordanian authorities issued a letter indicating that the cargo would not be permitted to enter Jordan and must be returned to its country of origin.
This was on account of "broken percentage, foreign matters, impurities, damaged kernels…and apparent fungus", the ruling said.
Four days later, Dera issued proceedings against the owner in Jordan seeking damages of about $8m.
In October, the owner sought an English court injunction restraining Dera from taking further steps in the Jordanian proceedings on the basis that to do so would be in breach of the arbitration provisions in the charterparty.
Dera was then obliged to refer the cargo claim to arbitration in London. The Jordanian proceedings were subsequently struck out.
In November, the ship sailed to Turkey with the cargo on board, without the consent of Dera or the Jordanian customs authorities.
Legal wrangles continue
The cargo remained on board for five months at Mersin until it was discharged.
In April, 2012, the maize was sold by the Turkish court and the proceeds transferred to the owner in early 2013.
The owner claimed that its bulker had incurred demurrage while at Aqaba, during transit to Turkey and during discharge at Mersin.
It started legal action in Turkey to recover those sums from Dera.
Enforcement orders had been made against the cargo in December 2011 and May 2012.
These made clear that Dera had the right to raise an objection within seven days.
But it did not raise its objections until 16 January, 2013.
Its objections were based on allegations of defective service and were dismissed on the basis that they had been raised outside the seven-day time limit.
In June 2013, the owner sold the vessel for scrap.
Justice Carr said: "In my judgment it is clear on authority and principle that a claim which is particularised within the six-year period applicable to contractual claims pursuant to the Limitation Act 1980 can nevertheless be struck out for inordinate delay...because the parties have contracted for a shorter period.
"The answer is straightforward. The statutory limitation period is irrelevant in circumstances where, as here, the parties have contracted for something different."
