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Admiralty Law

Admiralty Law. Chapter 9: Charter Parties Chapter 11 : Pilotage. A. CONTRACT FORMATION AND TERMS. §9-1 Charter Party Forms/Functions What is a Charter Party? 3 forms of CP’s Governance of CP’s. §9-2 CP Fixtures: Formation of K. Term sheet “fixed” Usual terms Becomes binding.

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Admiralty Law

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  1. Admiralty Law Chapter 9: Charter Parties Chapter 11: Pilotage

  2. A. CONTRACT FORMATION AND TERMS • §9-1 Charter Party Forms/Functions • What is a Charter Party? • 3 forms of CP’s • Governance of CP’s

  3. §9-2 CP Fixtures: Formation of K • Term sheet “fixed” • Usual terms • Becomes binding

  4. §9-3 Demise/Bareboat Charter • What is? • Legal title vs. pro hac vice • Owner’s fundamental obligation • Demise charterer’s basic obligation • Charterer’s responsibilities

  5. §9-4 Voyage Charter • What is? • Standardized forms • Important clauses (p.677)

  6. §9-5 Time Charter • What is? • Forms • Distinctive clauses (p.679)

  7. B. BILLS OF LADING UNDER CHARTER PARTIES • §9-6 What is K of Carriage? • Is charter or BOL the K of carriage? • COGSA? • Incorporation/conditions • Production Steel case (1968) • Midland Tar Distillers case (1973)

  8. §9-7 Who is the Carrier? • Is K with charterer or shipowner? • COGSA “carrier” • Demise charterer • Time/Voyage charter party • If COGSA applies …

  9. c. MAJOR CHARTER PARTY ISSUES & PROBLEMS • §9-8 Obligation to Provide Seaworthy Vessel Ready to Load • Shipowner’s fundamental obligation • Seaworthiness • Ready to Load • Cancelling & Withdrawal

  10. §9-9 Care of Ship and Redelivery • Shipowner may refuse to load cargo that is dangerous or injurious to ship. • Charterer is responsible for damage to vessel from its negligence, but not for “ordinary wear and tear” • At end of charter term, charterer must redeliver vessel at time/place in charter party. Reasonable ‘underlap/overlap’ (a day or two early/late) is ok.

  11. §9-10 Safe Port and Safe Berth Clauses • General rule / modification • Refusal to proceed to port • Poor weather • Master’s negligence

  12. §9-11 Freight, Hire, and the Off-Hire Clause • “Charter hire” • Payment terms • Charter party forms • Off-Hire Clause

  13. §9-12 Charterer’s Recovery for Loss of Use of Vessel • Robins Dry Dock case (1927) • Effect of Robins • Exception ot Robins • Bareboat/demise charters

  14. §9-13 Liability for Cargo Damage • Free contract • Affreightment / bailment • Mutually accepted perils clause • Affreightment duties of shipower

  15. §9-14 Prosecution of the Voyage • Carrier must prosecute voyage reasonable dispatch and /wo unreasonable deviation. • Carrier held to strictly liability for unreasonable deviation.

  16. §9-15 Loading and Discharge: Lay Time, Demurrage, and Detention • “laytime” • Delay liability • Dispatch • Laytime commencement/cease • Demmurage

  17. §9-16 Frustration and Commercial Impracticability • Doctrine • Elements (3) • E.g. • End of charter party

  18. §9-17 Remedies and Liens • Breach of charter party • Warranty • Condition • Damages • Liens • “Cesser Clause”

  19. §9-18 Indemnity and Responsibilities to Third Parties • Freedom of contract • Demise/bareboat charter • Time/voyage charter • Liability for personal injury to 3P • §9-19 Arbitration

  20. Ch.11: Pilotage • §11-1 The Pilot • Definition • Functions • Employer • Licensing • Federal regulation • State regulation

  21. §11-2 Government Regulation of Pilotage • Pilot categories • Licensing by Coast Guard • State law retention of power • Great Lakes • Dual licensing

  22. §11-3 Pilot’s Rights Against the Ship • Pilot has right against ship for fees under statute/regulation • Ship operator liable in personam, and maritime lien against ship • Pilot covered for injury under Jones or Longshore Acts, or general maritime law. • Ship owes pilot duty of due care while aboard vessel, and safe transit to/from vessel.

  23. §11-4 Liability of Pilots and Their Employers • High standard • Failure to exercise due care • Exculpation • Pilot employed by authority

  24. §11-5 Pilot’s Associations • Voluntary non-profit corps that keep roster of pilots for rotating duty and collects fees and remits to members. • Pilot associations immune to vicarious liability for members’ torts. (not employers/no control)

  25. §11-6 Liability of Owner and Vessel to Third Parties • Where negligent pilotage injurs 3P/3P property. Vessel owner liable in personam, since pilot is servant of owner. • If pilot aboard by law, shipowner not liable in personam. Vessel liable in rem. From The China case.

  26. §11-7 “Borrowed servant” doctrine and “Pilotage Clause” • Employee of pilot company • Pilotage Clause • IWWP • Scope of pilotage clause

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