Dera Commercial Estate v. Derya Inc [2018] EWHC 1673

In Dera Commercial Estate v. Derya Inc [2018] EWHC 1673, the Commercial Court considered several issues of interest arising out of Article III Rule 6 of the Hague Rules ( “Article III Rule 6”), in the context of a bill of lading for the carriage of maize destined for Jordan which, on arrival, was not allowed into the country by the Jordanian customs authorities, due to damage and “apparent fungus”.  Although, after various efforts to reverse the decision of the customs authorities, the local court gave permission to fumigate the cargo on board the vessel in the hope of preserving its condition, the vessel nevertheless sailed to Turkey, where the cargo was ultimately discharged and sold pursuant to a judicial sale order. In the meantime, the cargo interests had brought proceedings in Jordan.  Owners then commenced arbitration proceedings in London (as the bills of lading incorporated the arbitration clause from the charterparty) and obtained an…

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