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Reefer and General Shipping Co. v. Great White Fleet, Ltd.

922 F. Supp. 2d 935 (1996)

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Reefer and General Shipping Co. v. Great White Fleet, Ltd.

United States District Court for the Southern District of New York
922 F. Supp. 2d 935 (1996)

AR

Facts

Great White Fleet, Ltd. (Great) (defendant) chartered a vessel from Reefer and General Shipping Co. (Reefer) (plaintiff). Due to problems with another vessel, Great required its time-charter agreement with Reefer to include a breakdown clause. The clause stated that the agreement would terminate if the vessel or its refrigeration equipment had a “breakdown” three times within one year. The vessel experienced a number of problems in 1992 and 1993, including equipment and engine failure, although it continued to sail. Great terminated the agreement based on the breakdown clause. Reefer sued Great, arguing that a breakdown was an event that fully frustrated the vessel’s ability to undertake voyages.

Rule of Law

Issue

Holding and Reasoning (Kram, J.)

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