#contract #frustration #law

Maritime National Fish Ltd v Ocean Trawlers Ltd [1935] AC 524

The plaintiffs chartered a steam trawler, the St Cuthbert, to the defendant, which was useless for fishing unless fitted with an otter trawl. Such a trawl could only be fitted if a licence had been obtained to do so, a fact of which both parties were aware. The defendant applied for five licences for the five trawlers they operated, including the St Cuthbert. It was indicated that they would only be granted three licences and they were asked to nominate the three trawlers to which the licences would attach. The three named trawlers did not include the St Cuthbert. The plaintiffs sued for the charter hire (i.e. the price the defendants had agreed to pay for hiring the vessel) and the defendants argued that the charterparty was frustrated because it was impossible to perform. It was held that the charterparty was not frustrated because it was the defendant's own act which prevented the St Cuthbert from being licensed for fishing with an otter trawl. The defendants were liable for the hire.