The maritime industry has risen to prominence in recent years with the boom in international trade following the economic growth of emerging countries and the execution of free trade agreements by Korea. The maritime industry constitutes a critical component of the international shipping of goods, which remains the leading mode of shipping to this date. In Korea, which is surrounded by sea on three sides and relies heavily on international trade, the maritime industry also presents a particularly critical component of the national economy and is a business sector that demands the highest levels of expertise and efficiency from legal service providers because of the industry’s complex customary practices, contacts with multiple jurisdictions and fast-changing environment.

Since its establishment, the Maritime & Shipping Practice Group at Lee & Ko has handled cases in virtually every area of maritime law, ranging from bill of lading (B/L) disputes, cargo claims, charter party disputes, hull & machinery insurance, vessel arrests, vessel collisions, pollution, etc., for countless domestic and overseas clients. With its unsurpassed industry knowledge and strong relationships of trust with key players, the Group continues to set market-leading standards in maritime law. We are proud to note that, with the insights gained from specializing in this practice area for more than 20 years, Lee & Ko is regarded as the most professional and reliable law firm of choice for maritime industry participants in Korea and overseas.

Expertise

Bills of Lading (B/L)

Along with time charter party documentation, bills of lading (B/L) constitute an important form of documentary evidence for maritime transport of goods. Related legal issues concern a large number of diverse matters such as classification of bills of lading (B/L), transfer by endorsement, time bar, point of time in delivery of cargo, bank guarantee and unknown clause, etc.

Cargo Claims (including subrogation claim by the marine cargo insurance policy holder)

We handle a wide array of cargo claims. Sometimes, representing the cargo interests such as marine cargo insurance policy holders, we have pursued claims against domestic and overseas shipping companies and have arrested vessels owned by such shipping companies calling at a Korean port to preserve the relevant claims. However, in most cases of cargo claims, we have represented the domestic and foreign ship owners and P&I Club, and defended their interests based on (1) claused B/L, (2) “Said to Contain” clause, (3) “CY to CY” clause and (4) “Identity of Carrier” clause (e.g. not identified as a carrier).

Charter Party Dispute

We have successfully represented our clients in countless disputes pertaining to various issues (assignment of hire claims, off-hire, repudiatory breach and anti-technicality notice, etc.) arising under bareboat charter, finance lease agreement, time charter and voyage charter, etc.

Hull & Machinery Insurance Cases

We have provided legal advice relating to insurance claims based on the grounding or sinking of vessels during voyage and have represented a number of domestic and overseas hull & machinery insurers in relation to claims filed for hull & machinery insurance proceeds. In connection with such cases, we have successfully handled cases by actively asserting and proving that, among other things, the claimants (1) violated the implied warranty of seaworthiness in reference to the relevant vessel classification, etc. or (2) intentionally stranded the vessel and caused it to sink. As a result of asserting such defences, hull & machinery insurers were exempted from liability in many cases.

Vessel Arrests

There are two major types of vessel arrest. The first deals with imposing a provisional attachment on a vessel pursuant to a general commercial claim against the shipowner. The second pertains to (1) arresting a vessel pursuant to a mortgage or a maritime lien over such vessel, regardless of whether the owner and the obligor are identical and (2) applying for a judicial auction.

Our firm has provided legal advice to overseas clients with respect to (1) vessel arrest procedures under Korean law and (2) whether a particular claim constitutes a maritime lien. We have handled thousands of cases in domestic and foreign courts relating to provisional attachments and judicial auctions of vessels.

Casualty Cases–Collision/Oil Pollution/General Average/Abduction, etc.

We have mainly represented shipowners, P&I Club and IOPC fund with respect to casualty accidents such as vessel collisions, oil pollution, vessel abductions and general average, etc caused by risks from sea. Recently, we have represented the shipowner of the crane barge in the case known as the largest oil pollution accident in Asia (case involving MV Hebei Spirit collision with Crane Barge called Samsung No 1). We provided a full range of professional service on issues pertaining to oil pollution, clean-up procedures, limitation of liability procedures and criminal litigation, etc.

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Major Cases

Bills of Lading (B/L)

B/L Non-production Dispute: We have handled scores of B/L non-production cases on behalf of numerous major foreign and domestic shipping companies.
B/L Endorsement Dispute: In one case, we raised a successful defence that the plaintiff was not the “rightful” B/L holder because of the original holder’s failure to endorse the bill of lading (B/L) properly and eventually led the dispute to a settlement with the terms favourable to our client.
Delivery of Liquid Cargo (the leading precedent for liquid cargo matters): Our argument persuaded the court to make a precedent that, for fuel and oil cargo, the point of the cargo delivery is at the time when the fuel and oil cargo enters “the oil tank located within the bonded area” rather than when such cargo exits the bonded warehouse unlike types of cargo such as container cargo.
Petaco Petroleum case.
Back-dated B/L matters.

Cargo Claims (including subrogation claim by the marine cargo insurance policy holder)

Subrogation claims under marine cargo insurance on behalf of several domestic and foreign insurance companies.
Case involving MV VAJA.
Case involving the destruction of the engine of a large vessel imported by the heavy industries and construction company formerly known as Han Kook Heavy Industries & Construction Co., Ltd.
A number of cases involving marine cargo insurance.

Charter Party Dispute

Represented the charterer in a dispute over a finance lease of MV Bright Sun.
Represented a charterer in a dispute relating to MV Donna V passing down the charter chains.
Represented the charterer in an arbitration in England relating to a time charter dispute on MV Ocean President.
Represented the owner in a dispute over a voyage charter relating to MV Fareast Star and MV Tyson 4.
Handled a number of charter disputes risen in connection with the insolvency and bankruptcy application by a major domestic shipping company.
Represented various domestic and foreign shipping companies in charter disputes with a major shipping company under rehabilitation in relation to 14 TC-in/out vessels including MV Tigris, MV Saphire Seas, MV Nicolas A, MV Common Progress, MV African Zebra and MV Jinchuan, etc.
Represented the charterer (the largest steel company in Korea) in a demurrage dispute against pending in the Korean Arbitration filed by a Taiwanese shipowner.

Hull & Machinery Insurance Cases

Case involving the sinking of Dongchang 3.
Case involving MV Jang Yung 8, MV Jang Yung 17, MV Marine Dove and MV Arizona.
Case involving the fire on MV Hanjin Pusan.
Case involving the stranding of MV Hanjin Spirit.
Case involving the sinking of MV Hera.
Case involving MV Moscow Senator.

Vessel Arrests

Provisional Attachment on Vessel

Provisional attachment on MV Samsun Veritas.
Provisional attachment on MV Taurus.
Cancellation of the provisional attachment on MV Yuan Geng:
MV KC Rainbow: On behalf of the Korean shipowner, we caused the provisional attachment by Chinese court to be lifted.
Lifting of the provisional attachment on MV Captain Kharlamov.
Lifting of the provisional attachment by Chinese court on MV Halla Ace.

Judicial Auction

MV Donna V: On behalf of the mortgagee of vessel, we applied for arrest and judicial auction of the vessel in Singapore and enforced the claim.
MV Chem Orchid: We assisted in persuading the Chinese court to lift the arrest on the vessel placed by it upon mutual agreement by the parties.
MV Golden Emerald and Sister Vessel: Based on the Panamanian maritime lien, we arrested the vessels at Yeosu port and Busan port and initiated judicial auction procedures.
MV Dolphin Ulsan (passenger ship): Based on the vessel kun-mortgage, we arrested the vessel at Busan port.
Fleet Vessel such as MV Mare Ionia, etc: On behalf of a US bank, we assisted in the enforcement in Korea of the Panamanian mortgage established in favor of the bank over the said vessels. On behalf of the said mortgagee, we applied to the Korean court for the judicial auction of the said vessels and successfully recovered the loan repayment amount applicable to each vessel.
Russian Troll Fishing Fleet: On behalf of a Russian mortgagee bank, we arrested these vessels at Busan port and proceeded with judicial auction procedures.

Casualty Cases – Collision/Oil Pollution/General Average/Abduction, etc.

Collision and Oil Pollution

MV Hebei Spirit’s collision with Samsung No 1: In this biggest oil spill case in Asia, we represented the shipowner of the crane barge (Samsung No.1) in connection with the collision and pollution liability issues and provided general consulting services pertaining to the civil and criminal procedures as well as the marine safety investigation proceeding.
MV Surf cw MV CHS Star: This case involved a collision at Ningbo port, China. We handled transhipment-related matters on behalf of the consignor of the cargo on board of MV Surf.
Collision between MV Qingdao Express cw and MV Hua Kun.
Collision between MV Sea Sparkle cw and MV Korex Inchon.
Collision between MV Arktis Sirius cw and Yusung 15.
Fuel oil spill by MV Yukong Commander.
Stranding and oil pollution by MV Sea Prince: We represented IOPC Fund.
Oil pollution due to sinking of MV Samsung Finder.
Oil spill by MV Almujeeb.
Oil spill by MV Bella.
Approximately 60 other cases involving collision and oil pollution by vessels.

Other Casualty Cases

Seizure of MV Bright Ruby by Somali Pirates: On behalf of the shipowner, we provided intensive professional advices in relation to (1) coverage of hull insurance, (2) off-hire issue under time charter party, (3) general average issue and (4) lien exercise on the cargo to secure general average contribution claims, etc.
General Average on MV Magdelana: The shipowner during the voyage declared general average and entered an overseas ship repair yard. On behalf of the consignor, we proceeded with transhipment arrangements.
Typhoon Maemi: The case involved damages sustained by the containers and the cargos therein which were waiting to be loaded onto the vessels of a major Korean shipping company when Typhoon Maemi struck. With respect to various claims raised by consignors, we successfully protected the interest of the shipowners based on Force Majeure defenses.