SCA vs. Evergreen

ADSERO Writing Competition 2021 Winner

Abstract

In this paper, we examine various legal aspects regarding the SCA vs. Evergreen matter, as if no settlement has been reached. Preliminarily, despite that Ever Given’s owner and charterer are foreign entities, the Ismailia Economic Court is internationally and locally competent to examine the dispute. Since the ship is faced with a number of maritime claims, the Court duly ordered its conservatory seizure.

The parties may proceed to international commercial arbitration instead of litigation, as the subject-matter is arbitrable, and the SCA does not need to obtain the Prime Minister’s prior-approval. In either proceeding, the Egyptian Cabinet cannot be forced to join this case, as it is regarded as a third-party. Moreover, Egyptian law shall govern the dispute, notably as the passage contract is governed by the Navigation Rules, an Egyptian law document. In accordance with these rules, Ever Given’s owner and charterer waived their right to benefit of any limitation of liabilities. Therefore, the SCA is entitled to obtain full compensation for all damage, including its financial losses due to the Canal’s obstruction.

Finally, the SCA cannot benefit of the insurance coverage made by the UK P&I Club, due to the “Pay to be paid” standard clause.