High Cost of English Litigation for Shipbrokers

Posted by Michelle Howard
Thursday, April 03, 2014

A survey of London solicitors by ITIC has highlighted the high cost of litigation for shipbrokers and others seeking judgment in the English courts.



ITIC gave a panel of London solicitors – all of whom had previously been instructed on cases involving ITIC members – a hypothetical claim scenario involving a broker which had been cut out of commission. The solicitors were asked to estimate the costs that the broker would have to pay to take the matter to court. The average estimate of the costs was £177,163.



The claim scenario given to the solicitors was based on actual cases financed by ITIC under its debt collection cover. It involved a sale and purchase broker which claimed that it had introduced principals and performed the original groundwork for the deal. The broker claimed that it had then been cut out at the last minute and replaced by another broker which had simply ‘tied up the loose ends.” The sellers denied that they had any commitment to the broker.



ITIC said, “A dispute of this nature is likely to involve no more than a couple of witnesses and an expert giving evidence on each side. If, at £177,163, the cost of winning was expensive, then losing would be even more so. Under the English legal system, a losing party is responsible for its opponent’s costs. The solicitors estimated that the likely additional liability if the broker lost would have amounted to £139,687. This would have brought the total costs liability faced by the broker to £316,850.”



ITIC said that, although few cases proceed all the way to trial, and many will settle at an early stage, often without the need for formal legal proceedings, it is important that brokers have a sufficient level of cover to fund the matter going to litigation. ITIC’s debt collection cover pays not only for the broker’s own costs but also for the potential liability to opponents.

 

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Houthis: Additional US Warships off Yemen Tightens Seige

A senior official in the Iran-allied Houthi movement said the movement of more U.S. warships into waters off Yemen escalates Washington's role in a Saudi-led campaign

Philippines: China Intimidating Its Fishing Boats

Filipino activists denounced China's coast guard on Tuesday for turning water cannon on Philippine fishing boats in disputed waters, near where hundreds of Filipino

UN: EU Should Do More in Med Migrant Crisis

UN refugee agency calls for intra-European solidarity. The U.N. refugee agency on Tuesday urged European leaders to do more to help Greece and Italy cope with

Finance

ConocoPhillips Weighs Sale of North Sea Assets in Norway

ConocoPhillips Inc is weighing sale of some of its North Sea assets in Norway which may fetch as much as $1 billion, Bloomberg reported, citing sources familiar with the matter.

Gulf Oil Spill Restoration Projects Proposed

Deepwater Horizon trustees announce agreement in principle for 10 Gulf early restoration projects   The trustees and BP have identified approximately $134 million

Oil Majors Push Offshore Players for 30% Cuts

Smart players leverage low debt, adjust work schedules, seek spot gigs and new markets 30%That’s the minimum level of capital expenditure cuts facing owners and operators of offshore rigs,

News

ConocoPhillips Weighs Sale of North Sea Assets in Norway

ConocoPhillips Inc is weighing sale of some of its North Sea assets in Norway which may fetch as much as $1 billion, Bloomberg reported, citing sources familiar with the matter.

FMC Chairman Addresses PEMA Ports Program

U.S. Federal Maritime Commission (FMC) Chairman Mario Cordero addressed the Professional Environmental Management Association (PEMA) at its Annual Ports Program held in Seal Beach, California.

UN Security Council Concerned by Mediterranean Migrant Smuggling

The United Nations Security Council expressed grave concern on Tuesday at the growth in people smuggling in the Mediterranean Sea and deplored Sunday's deadly shipwreck

Vessels

Iranian Flotilla a Factor in US Warship Deployment off Yemen

The Pentagon said on Tuesday the presence of a large convoy of Iranian cargo ships in the Arabian Sea was one factor in the U.S. decision to deploy additional warships

White House Says US Ship Near Yemen to Ensure Commerce

The White House said on Tuesday that the presence of a U.S. aircraft carrier near Yemen is intended to ensure freedom of navigation and commerce in the area.   White

MacArtney Connectivity for Navy Bow Sonar Systems

MacArtney delivers connectivity for Thales FREMM frigate bow sonar systems    MacArtney Underwater Technology supplied SubConn underwater connectivity solutions

Insurance

Logistics and Warehouse Insurance: Understanding its Complexity

In October 2013, a fire blazed through Brazil’s Santos port, destroying six warehouses and the 180,000 tons of raw sugar inside Sugar Company Copersucar’s terminal.

Risk & Reputation in the age of Disruption

Risks faced by today’s global businesses represent a combination of traditional concerns and newer threats that reflect changing times. The 2015 Allianz Risk Barometer,

Transboundary Oil Pollution Debated in IMO

A working group led by Denmark and Indonesia met in the IMO to consider the need to regulate the issue of transboundary oil pollution, on 13 April, 33 countries

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2805 sec (4 req/sec)