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Clyde & Co Caracas Office and Expertise in Shipping, Insurance, and Commercial Law

Discover Clyde & Co, a renowned law firm established in 1933, with offices worldwide, including Caracas. With expertise in shipping, insurance, and commercial law, our team of attorneys is dedicated to providing excellent legal services.

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Clyde & Co Caracas Office and Expertise in Shipping, Insurance, and Commercial Law

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  1. Caracas, October 2003

  2. The Firm • Clyde & Co was originally established in the City of London in 1933. • Currently the Firm has offices in London, Guildford, Cardiff, Paris, Belgrade, Piraeus, St. Petersburg, Dubai, Singapore, Hong Kong, Caracas and associations in Rio de Janeiro and Baghdad. • The Firm has over 300 case handlers with a team of foreign lawyers and English solicitors qualified in more than 20 jurisdictions and fluent in over 27 different languages and correspondents in over a hundred jurisdictions.

  3. Offices Worldwide Belgrade

  4. Our Expertise • The Firm is known for its shipping and insurance expertise, and one of the top in the world in theses areas. However it has expanded the areas of its practice to offer a wide range of services, including: • Corporate, Commercial and Energy. • International Trade, Commodities and asset Finance. • Employment. • Commercial and Corporate Dispute Resolution.

  5. The Caracas Office • Clyde&Co was the first European firm to open in South America. • The Office was opened in 1992, since then we have been recognized for the excellence of our commercial, shipping an insurance work. • We have successfully represented the interests of multinational corporations in the energy, transport and insurance sector.

  6. Our Attorneys • Jorge Faroh Cano: Admitted in 1982. Master in Law 1989. Arbitration, Head of Litigation, Contracts, Negotiation. • Aurelio Fernández-Concheso: Admitted in 1983. Master at Laws in Admiralty, Tulane University, 1983. Marine, Insurance, Aviation, International, Commercial. • John Richard Prados: Admitted in 1993. Masters of Law in Maritime Law, University of Southampton, 2001. Marine, Insurance, Aviation, Commercial.

  7. Our Attorneys Cont... • Victoria Chollet: Admitted in 1994. Master in International Maritime Trade, 1998. Tax, Commercial. • Laura Curiel:Admitted in 1997. Litigation. • María del Carmén Mosquera:Admitted in 1998. Master in Commercial Litigation, 2002. Litigation. • Frederick Cabrerar Conde: Admitted in 1997. Masters degree in Labour Law. Labour.

  8. The Osca Dispute • Background • On 15th August 1999 Schlumberger Venezuela (SLB) entered into agreement with Bioproducts and Services for the lease, and operation by Bioproducts (drilling fluids and transportation in Lake Maracaibo) of the Barge Osca/Hollywood 830. • The agreed daily rate was US$ 850 a day. • The barge was in fact owned by Osca Venezuela (OSCA) who had leased it to Bioproducts, presumably for the SLB sub-lease and services.

  9. The Osca Dispute • Background • On 30th March 99 SLB had entered a towing services agreement with Tricomar. • Pursuant to the SLB-Tricomar towing agreement, Tricomar’s tugs were used, to tow the OSCA between different point of Lake Maracaibo under the Bioproducts operation. • On 21st October 1999, while being towed by the Tricomar Tug Rossana 21, the Osca/Hollywood 830 sank in Lake Maracaibo.

  10. The Osca Dispute • Background • On 28th October 1999 SLB hired Salvors Premeca Precision Mecanica C.A. (Premeca) to salvage the barge for US$ 341.880. • Premeca’s offer provided Salvors would not be liable for structural damages. • The Agreement with Premeca also had • A safe port clause • A hold harmless clause • A liability insurance clause

  11. The Osca Dispute • Premeca refloated the barge and transferred it to a berth in Lake Maracaibo’s Premeca lot. • As a result of the refloating operation, the barge suffered strong structural damage rendering it a total loss.

  12. Summary of Contractual Relations Osca Venezuela | Lease agreement Bioproducts | Sub-lease and operation services agreement SLB | | TricomarPremeca Services Towing Salvage Agreement Agreement

  13. Claims & Legal Proceedings • SLB claimed from Tricomar the salvage costs. • On 20th December 2000 Tricomar (its P&I Club) and SLB settled this claim for US$ 178,047.66. • On 10th October 2000 Osca filed a claim before a Court in Maracaibo for US$ 566,000.oo against Tricomar and Premeca for the loss of the barge.

  14. Claims & Legal Proceedings Tricomar Osca Premeca

  15. Claims & Legal Proceedings • Tricomar answered complaint on the merits claiming barge unseaworthy by hidden structural defects. • Premeca answered with preliminary motions to dismiss, which decision is pending. • At the beginning of or Premeca claimed from SLB 1/2 costs or hold harmless basis, approx. Bs. 70.000.000,oo (at the time approx. US$ 70.000) SLB refused.

  16. Claims & Legal Proceedings • On November 5th 2002 Premeca came back with an extra-judicial claim against SLB in approx. US$ 750.000 for berthing dues. • SLB refused on basis that: • Bound to take possession of barge. Never tendered it. • Should have established in advance. • Should have addressed the owners. • Has withholding rights. • Non authorised port constructions cannot charge costs on that basis. • Premeca has threatened legal action against SLB direct or as second defendant in Maracaibo proceedings.

  17. Direct Legal Actions against SLB • On 28th May 2003, Osca Venezuela filed suit before a court in Caracas against SLB for USS$ 1,121,600 for sublease payments due since beginning of the contract. • On 20th June 2003 Bioproducts filed suit in Maracaibo against SLB for US$ 1,155,362.36 for lease payments due form beginning of the Contract.

  18. Initial Strategic Objectives • Procedures under the Maritime Procedural Law. Specialised procedure Specialised judges Pro-charterer mentality Open evidence Oral

  19. Schedule of Current Judicial Proceedings Maracaibo Osca Tricomar Damages (Owners) (Tug) Premeca (Salvors) Bioproducts SLB unpaid lease amounts

  20. Schedule of Current Judicial Proceedings Caracas Osca SLB unpaid lease amounts Service of Process on SLB Maracaibo 11th August 2003 Caracas 9th July 2003

  21. Procedural Strategic Objectives • Accumulation to Caracas • Unified defences • Cost effective • Less unreliable jurisdiction

  22. Current State of Proceedings • Caracas: • Maritime Procedure accepted • Preliminary motion to dismiss on grounds of lack of evidence, filed. Decision pending.

  23. Current State of Proceedings • Maracaibo: • Maritime Procedure petition filed. Plaintiffs have conferred ruling pending. • Preliminary motion to dismiss filed requesting: • Accumulation • Lack of documentation

  24. Tactical Aspects (Merits) Main Defences: 1) Time bar: - Civil Code lease payments: 3 years. - Charter hire Commercial Code: 6 months. - Maritime law freight: 1 year. 2) Structural hidden defects. 3) Charterers – Operator’s (Bioproducts) duty to keep barge seaworthy. 4) Quantum.

  25. SLB Exposure Worst case scenario exposure a) Maracaibo claim US$ 1,121,600 b) Caracas claim US$ 1,155,362 c) Premeca claim US$ 760,000 d) Osca claim (damages) US$ 570,000 e) 10% per annum interest plus 30% costs and fees Total : US$ 5,000,000

  26. SLB Exposure Conservative case scenario: 50% combined a) & b) US$ 1,120,000 33% wharfage US$ 250,000 70% damages US$ 400,000 Plus: 10% per annum 30% costs Total US$ 3,220,000

  27. SLB Exposure • Mid point scenario • Combined a) & b) July – Oct. 99: 90 days x US$ 800 US$ 72,000 • Actual damages Direct barge cost say US$ 300,000 • Loss of income 3 years: 50% of 800 US$ 438,000 • 8% per annum – 40% US$ 250,000 • 20% Costs Total US$ 1,920,000

  28. SLB Exposure • Likely scenario on Plaintiffs success • Combined a) & b) US$ 72,000 • Actual damages US$ 260,000 • Loss of income 30% of US$ 800 US$ 86,400 • Wharfage at US$ 250 day US$ 250,000 • 8% per annum • 20% costs US$ 1,122,912 Less Tricomar contribution say 40% US$ 675,000

  29. Sugessted Reserve • Mid point less 20% US$ 1,600,00

  30. Possible Settlement Levels • Further procedures • Test at Arbitration proposal • 50% of LSPS: US$ 561,000

  31. Cost Fees • First Instance • 20 to 30 h. strategy and analysis • 30 h. answer complaint • 100 h. daily review • 50 h. in evidence stage • 30 h. preparation of conclusions • 30 h. control & miscellaneous • Approx.: 250 h.

  32. Cost Fees • Appellate Court • 40 h. control • 20 to 30 h. conclusions • 20 h. review and receipt • Approx.: 90 h.

  33. Cost Fees • Supreme Court • Strategy, arguments, summary, interaction with counsel 40 to 50 h. • Total estimated hours • 380 to 400 h.

  34. Costs • General and evidence • US$ 8,000 • Supreme Court counsel • US$ 10,000 to 15,000 • Average hour rate • US$ 210

  35. Total Estimated • Costs and Fees up to • US$ 110,000 1 trial to • US$ 180,000 2 trials to • US$ 220,000 3 trials

  36. Total Estimated • Incurred Costs and Fees Approx. US$ 17,000

  37. Total Estimated Time • Approx. 6 years.

  38. Caracas, October 2003

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