Hyundai Engineering v Sembawang Kimtrans: Charterparty Insurance & Arbitration Appeal

Hyundai Engineering and Construction Co Ltd chartered a dumb barge from Sembawang Kimtrans (S) Pte Ltd. A dispute arose regarding liability for damage to the barge and unpaid charter-hire. The arbitrator ruled against Hyundai Engineering. Hyundai Engineering sought leave to appeal the arbitrator's decision to the High Court of Singapore, but the application was dismissed.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiffs' application dismissed.

1.3 Case Type

Admiralty

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding liability for barge damage and unpaid charter-hire. The court dismissed the appeal, upholding the arbitrator's decision.

1.7 Decision Date

29 December 2000

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
Hyundai Engineering and Construction Co Ltd	Plaintiff	Corporation	Application Dismissed	Lost	C.R. Rajah SC of Edmund Hendrick & Partners Edmund A Hendrick of Edmund Hendrick & Partners
Sembawang Kimtrans (S) Pte Ltd	Respondent	Corporation	Application Upheld	Won	Yang Lih Shyng of Khattar Wong & Partners Yeo Hui Leng of Khattar Wong & Partners

3. Judges

Judge Name	Title	Delivered Judgment
Tan Lee Meng	Judge	Yes

4. Counsels

Counsel Name	Organization
C.R. Rajah SC	Edmund Hendrick & Partners
Edmund A Hendrick	Edmund Hendrick & Partners
Yang Lih Shyng	Khattar Wong & Partners
Yeo Hui Leng	Khattar Wong & Partners

4. Facts

Plaintiffs chartered a dumb barge from the defendants.
The charterparty was on a bareboat basis for three months.
Defendants effected an insurance policy with AGF Insurance.
The barge ran aground and was damaged.
Insurers repudiated liability because the barge was chartered on a bareboat basis.
Plaintiffs denied liability for the damage, claiming it was caused by perils of the sea.
The arbitrator found the damage was partly caused by the plaintiffs' negligence.

5. Formal Citations

Hyundai Engineering and Construction Co Ltd v Sembawang Kimtrans (S) Pte Ltd, OM 8006/2000, [2000] SGHC 282

6. Timeline

Date	Event
1996-10-30	Charterparty commenced for three months.
1996-12-25	Barge ran aground and was damaged.
1997-01-31	Plaintiffs asserted charter hire ceased.
1997-03-06	Proposal made in Singapore office regarding towing charges.
1997-03-07	Plaintiffs sent fax regarding towing charges and termination of contract.
1997-03-08	Defendants replied to plaintiffs' fax.
1997-04-15	Barge redelivered to the defendants.
2000-12-30	Decision Date

7. Legal Issues

Duty of shipowners to insure vessel
- Outcome: The court held that the shipowners were not obliged to effect a policy that benefited both the shipowners and the charterers.
- Category: Substantive
- Sub-Issues:
  - Scope of insurance coverage
  - Beneficiary of insurance policy
  - Waiver of subrogation
Interpretation of 'one-off' clauses
- Outcome: The court applied the principle that leave to appeal should not be granted unless the arbitrator's meaning is obviously wrong.
- Category: Procedural
- Sub-Issues:
  - Applicable principles for granting leave to appeal
  - Standard of review for arbitrator's decision
Arbitrator's decision on question of fact
- Outcome: The court held that there could be no appeal to the High Court.
- Category: Procedural
- Sub-Issues:
  - Whether arbitrator's decision was obviously wrong
  - Whether appeal against decision may be lodged

8. Remedies Sought

Compensation for damage to the barge
Unpaid charter hire

9. Cause of Actions

Negligence
Breach of Contract

10. Practice Areas

Admiralty
Shipping
Arbitration
Commercial Litigation

11. Industries

Shipping

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
The Nema; Pioneer Shipping v BTP Tioxide	unknown	Yes	[1982] AC 724	England and Wales	Cited for the principle that leave to appeal should not be granted unless the arbitrator's meaning is obviously wrong.
Walter Wright Mammoet (Singapore) Pte Ltd v Resources Development Corporation Ltd	Court of Appeal	Yes	[1995] 1 SLR 528	Singapore	Cited to show that an obligation to provide insurance is not sufficient to imply that the insurance was intended to enure to the benefit of both contracting parties.
Penguin Engineering & Construction Pte Ltd v Titan Logistics (S) Pte Ltd	unknown	Yes	[1997] 2 SLR 126	Singapore	Cited as a case where Walter Wright was distinguished due to the presence of a waiver of subrogation clause.
Invar Realty Pte Ltd v JDC Corp	unknown	Yes	[1988] SLR 414	Singapore	Cited for the principle that an appeal may not be lodged against the decision of the arbitrator.
American Home Assurance Co v Hong Lam Marine Pte Ltd	unknown	Yes	[1999] 3 SLR 682	Singapore	Cited for the principle that an error must be demonstrated quickly and easily.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute Name	Jurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

Charterparty
Bareboat charter
Insurance policy
Subrogation
Arbitration
One-off clauses
Charter hire
Redelivery

15.2 Keywords

Charterparty
Arbitration
Insurance
Shipping
Admiralty

17. Areas of Law

Area Name	Relevance Score
Arbitration	95
Charterparty Disputes	90
Admiralty and Maritime Law	85
Shipping Law	85
Contract Law	70

16. Subjects

Admiralty
Shipping
Arbitration