UK's Supreme Court confirms one-year time bar for all misdelivery claims

The UK Supreme Court's recent ruling in FIMBank PLC v. KCH Shipping has significant implications for the shipping and trade finance sectors. The court affirmed that the one-year time limit for claims under the Hague-Visby Rules applies to misdelivery cases, even when the misdelivery occurs after the cargo has been discharged.

This decision arose from a dispute involving a coal shipment transported by KCH Shipping. FIMBank, which financed the cargo, initiated arbitration proceedings against KCH Shipping over two years after the cargo's discharge, alleging misdelivery. KCH Shipping contended that the claim was time-barred under the Hague-Visby Rules' one-year limitation period. The Supreme Court upheld this position, emphasizing that the time bar applies regardless of whether the misdelivery occurs during or after discharge.

This ruling underscores the necessity for trade finance banks and cargo interests to act promptly when pursuing misdelivery claims. The one-year limitation period is now clearly applicable to all such claims, irrespective of the timing of the misdelivery. As noted by Reed Smith LLP, the law firm representing KCH Shipping, this decision provides clarity and reinforces the importance of adhering to the established timeframes for initiating claims.

For a comprehensive analysis of this ruling and its implications, refer to the detailed article by Reed Smith LLP.

This landmark decision highlights the critical importance of timely action in the shipping and trade finance industries, ensuring that all parties are aware of and adhere to the established legal timeframes for claims.

Supreme Court confirms one-year time bar for all misdelivery claims | Perspectives | Reed Smith LLP