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Undisclosed principal requires actual authority: Court of Appeal (England and Wales) rejects estoppel-based 'fictional' authority; jurisdiction challenge in shipping letters of indemnity upheld; CPR 6.33(2B)(b) unresolved

Published on: 16 July 2025

Published by a LexisNexis Dispute Resolution expert
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Article summary

Berge Bulk Shipping PTE v Taumata Plantations [2025] EWCA Civ 876

The facts

Three New Zealand timber companies (the Exporters) were pursued in the High Court of England and Wales by a disponent shipowner, Berge Bulk, for in excess of US$4.4m together with certain unquantified indemnities and costs. Berge Bulk said the Exporters were undisclosed principals to letters of indemnity issued in its favour but left entirely unpaid by the insolvent charterer, TPT Shipping. The letters of indemnity contained an express English jurisdiction clause. In particular, Berge Bulk maintained that the Exporters had engaged TPT Forests as agent; TPT Forests then in turn appointed TPT Shipping as sub‑agent; and TPT Shipping, acting as agent, issued the letters of indemnity. It was common ground that TPT Forests acted for the Exporters. The live question ultimately concerned the capacity in which TPT Shipping had acted.

The Exporters’ jurisdictional challenge

The Exporters squarely disputed the court’s jurisdiction to properly adjudicate the claims against them within these English court proceedings. At first instance they argued there was no good arguable case at all that they were TPT Shipping’s undisclosed principals, with the consequence that Berge Bulk could not rely on the jurisdiction clause vis‑à‑vis...

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