Case Note: Petroleo Brasileiro SA v ENE Kos 1 Ltd

In May 2012 the Supreme Court of the United Kingdom held – reversing the judgment of the Court of Appeal – that the owners of a time-chartered ship were entitled to payment for its continued use by a charterer after lawful withdrawal of the vessel for non-payment of hire. The central question, leading to the different outcome between the courts, was the effect of the decision to withdraw being at the owners’ own election and for commercial purposes.