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Andino Chemical Shipping Co. v. Aectra Refining & Marketing

Award No. 2254 (1986)

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Andino Chemical Shipping Co. v. Aectra Refining & Marketing

Society of Maritime Arbitrators
Award No. 2254 (1986)

AR

Facts

Andino Chemical Shipping Co. (Andino) (plaintiff) sued Aectra Refining & Marketing (Aectra) (defendant) for failing to make good on a guaranty of arrival at port by June 30, which would have let Andino earn special credits from government authorities. Andino and Aectra entered a charter agreement to deliver petroleum products on a vessel owned by Aectra. Aectra’s vessel got a late start, and on June 25, when Andino realized that the vessel might not arrive by June 30, Andino entered into further discussions with Aectra. Andino claimed that Aectra orally made a guaranty of a June 30 arrival. However, during these discussions, the parties had used “guaranty” and “best efforts” interchangeably. There was no documentation stating that any guaranty existed and no indication that the parties had discussed a guaranty as a condition of the initial agreement.

Rule of Law

Issue

Holding and Reasoning (Gyory, Chairman)

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Casebooks

Admiralty

Key Terms