Re The Laemthong Glory (No. 2) [2005] EWCA Civ 519

A allowed B to charter his boat, who in turn allowed C to charter it. C wrote B a letter of indemnity, offering to indemnify B, B’s agents and servants etc. all bail, securities etc. should the boat be arrested.

A tried to sue C to gain the costs of bailing the boat after it had been arrested.

CA held that the owners were the agents of the charter parties and could therefore claim under s.1(1) B of the 1999 act.

S.1(2) doesn’t apply since there is no evidence that the parties did not intend A to be able to sue and the fact that both parties envisaged that it would be the owners who actually delivered the cargo shows C must have known that it was A who would take advantage of the letter of indemnity.