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Law Report: Ship Owners Right to Check Orders: Kuwait Petroleum Corporation V I & D Oil Carriers Ltd (the Houda) - Court of Appeal (Lord Justice Neill, Lord Justice Leggatt and Lord Justice Millett), 21 July 1994

By: Paul Magrath, Barrister. | The Independent (London, England), August 17, 1994 | Article details

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Law Report: Ship Owners Right to Check Orders: Kuwait Petroleum Corporation V I & D Oil Carriers Ltd (the Houda) - Court of Appeal (Lord Justice Neill, Lord Justice Leggatt and Lord Justice Millett), 21 July 1994


Paul Magrath, Barrister., The Independent (London, England)


In a war situation, the owners of a ship might be entitled or even obliged to delay obeying the charterers' instructions for a reasonable time in order to check the source and validity of those orders.

The Court of Appeal allowed an appeal by I & D Oil Carriers Ltd, owners of the Houda, against a decision of Mr Justice Phillips ({1993} 1 Lloyd's Rep 333), granting the charterers, Kuwait Petroleum Corporation, a declaration that the ship was off-hire for a substantial period between 8 August and 27 September 1990.

The charterers had chartered the Houda under a time charterparty dated 2 April 1990 on the Shelltime 4 form. On 2 August 1990, Iraq invaded Kuwait. The …

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