February 2, 2021
Greg Blanchard QC was recently instructed to act for Berge Bulk Shipping Pte Limited in a dispute with TPT Shipping Limited over a Letter of Indemnity in a shipping dispute. Berge Bulk sought an injunction against TPT to require it to provide security pursuant to the indemnity to secure the release of a vessel and to secure sufficient funds to defend any proceedings brought against Berge Bulk in connection with a cargo claim. TPT appeared under protest to jurisdiction.
The Court held that it was in the interests of justice that it determine the matter and that the purpose of the letter of indemnity would be undermined if the Court did not order immediate compliance with the terms of the letter.
This is the first time this issue has been argued in New Zealand and the case has already become a leading precedent in the area. Read judgment.