Nissin Shipping Co Ltd v Cleaves & Co Ltd [2004] 1 Lloyd’s Rep 38

• Plaintiff brokered deals for Defendant and the clause in each of the contracts between Defendant and their customers which referred to their commission for each clause brokered was worded “A commission of two per cent. for equal division is payable by the vessel and owners to Messrs Ifchor S.A. Lausanne and Messrs Cleaves and Company Ltd., London on hire earned and paid under this Charter”.

• QBD said that under s.1 of the 1999 act (see above) the clause did purport to confer on the named parties (P) a right to enforce it.

• QBD also said that the position was NO LONGER that established in Leopold Walford: that in cases of brokering parties, the charter party was held to be the agent of the brokering party so that the broker relied on the charter party accepting the role as trustee. This is a “cumbrous fiction”.

  • INSTEAD the 1999 act recognises that in reality the broker is a 3rd party and can claim nevertheless.

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