High Court clarifies and updates the law on misrepresentation, affirmation and reservation of rights (SK Shipping Europe plc v Capital VLCC 3 Corp)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Dispute Resolution analysis: In SK Shipping v Capital (The C Challenger), the High Court has provided a helpful review and restatement of the law on what constitutes actionable misrepresentation, affirmation in the context of rescission and termination, reservation of rights, remedies and liability under a guarantee. In doing so, the court found, among other things, that SK Shipping, the claimant and owner, had not misrepresented the speed and consumption characteristics of the vessel, The C Challenger, and therefore did not entitle rescission of the charterparty or that it was in breach of it by Capital, the defendant and charterer. Written by Sandip Patel, managing partner at Aliant Law.