Enron Mail

From:andrew.edison@enron.com
To:b..sanders@enron.com
Subject:FW: "SANTA CLARA"
Cc:
Bcc:
Date:Sun, 9 Sep 2001 10:55:54 -0700 (PDT)

Do you want to handle this, or do you want me to?
=20
-----Original Message-----
From: Davis, Britt=20
Sent: Monday, August 27, 2001 4:43 PM
To: Edison, Andrew
Cc: Lachner, George R.; Henking, Paul; Zikes, Becky; Dingeldein, Wietze
Subject: RE: "SANTA CLARA"


This is one of Richard's; you are not having a senior moment. I fi=
gured that it would probably get passed to you, and ask if you wouldn't min=
d checking on that with Richard. If you keep reading down this list of e-m=
ails, you will see my blurb on the facts.
=20
Parenthetically, I have been told by Bob Lachner today that Wietze=
Dingeldein, Enron's internal demurrage expert in the U.K., has at my reque=
st recently reviewed Clyde & Co.'s file. I assume he will be reporting in =
due course on his analysis. Bob has contacted Jackie Travis, who is still =
looking to see if there are any old files that may be of some use to Paul H=
enking. Parenthetically, for Paul's benefit, Andrew Bicknell of Clyde & Co=
. is in fact the U.K. solicitor in charge of the case.
=20
Please let me know if you will in fact be the person to whom I sho=
uld report.
=20
Britt

-----Original Message-----
From: Edison, Andrew=20
Sent: Saturday, August 25, 2001 5:29 PM
To: Davis, Britt
Subject: FW: "SANTA CLARA"


I am getting old. My memory has failed. What is this dispute? Have I hea=
rd of it before?

-----Original Message-----=20
From: Henking, Paul=20
Sent: Tue 8/21/2001 2:08 AM=20
To: Davis, Britt; Dingeldein, Wietze=20
Cc: Rogers, Daniel R.; Carrier, Lee; Sanders, Richard B.; Edison, Andrew; Z=
ikes, Becky; Carrier, Lee; Lachner, George R.=20
Subject: RE: "SANTA CLARA"




britt,=20

i do recall this incident but not in much detail. i think there was also a =
counter claim from enron based on the fact the ship could not have loaded t=
he cargo (ie, it was not capable of cooling the cargo - misrepresented by e=
xmar) as well as a claim for some excess tug charges (don't recall what tha=
t was about). in the end, the amounts of the two claims offset or almost of=
fset thus our position of dropping the matter.

seemed to recall we had a pretty fair arguement in our position but not sur=
e where all the docs are now. this was in legal for some time in that i thi=
nk shawn hall or marty penkwitz started the counter. think steve lovelady w=
as also involved and even seem to recall clyde and co were involved.

by copy, bob, would appreciate if you could check with jackie travis whethe=
r she has a listing of the files i sent to storage. there may be some info =
contained there that might help.=20

best i can do without reviewing the files to see if can recall more.=20

rgds=20


-----Original Message-----=20
From: Davis, Britt=20
Sent: 20 August 2001 22:30=20
To: Dingeldein, Wietze=20
Cc: Rogers, Daniel R.; Henking, Paul; Carrier, Lee; Sanders, Richard B.;=20
Edison, Andrew; Zikes, Becky; Carrier, Lee=20
Subject: RE: "SANTA CLARA"=20


Dear Wietze,=20

I greatly appreciate your help on this. I await your comments.=20

Britt=20

P.S. to Dan: given that Exmar's solicitors just got word that Exmar is not=
willing to do a drop-hands on this at this time, I am not inclined to go b=
ack to them unless, for instance, we get some new information from Wietze t=
hat really helps us. If, however, you believe that the business relationsh=
ip with Exmar, either now or in the future, is such that we need to strike =
while the iron is hot, please let me know.

P.S. to Paul: Can you e-mail me and let me know whether this matter rings =
a bell?=20







-----Original Message-----=20
From: Dingeldein, Wietze=20
Sent: Friday, August 17, 2001 8:07 AM=20
To: Davis, Britt=20
Subject: RE: "SANTA CLARA"=20


Dear Britt,=20

Just a short note to let you know that I will give Andrew a call on his ret=
urn to the office on Monday to make arrangements to go over his file. As so=
on as I have concluded my review, I will inform you of my findings.

Best regards, Wietze=20


-----Original Message-----=20
From: Davis, Britt=20
Sent: 06 August 2001 18:23=20
To: Wendy.Labuda@clyde.co.uk=20
Cc: Sanders, Richard B.; Edison, Andrew; Carrier, Lee; Zikes, Becky;=20
Rogers, Daniel R.; Henking, Paul; Dingeldein, Wietze=20
Subject: RE: "SANTA CLARA"=20


Dear Andrew:=20

Thanks for the information from Exmar. Wayne Perry, our chief business con=
tact with Exmar, recently went on consultant status. I will find out (Dan,=
can you help?) who the relationship contact will be going forward and see =
if that person has any cause for optimism.=20

You confirmed that no hearing had been set in this very old maritime arbitr=
ation, which arises out of the loading in Houston, Texas almost ten years a=
go of the SANTA CLARA. The ship had been chartered by ELFI from Exmar to l=
oad a cargo of propane. Loading was delayed and less than the full contrac=
tually-committed amount of propane could be loaded. We believe that this w=
as because the ship had to take so much time to cool off its tanks to compr=
ess the propane, even though the propane was delivered at the contractually=
-required temperature. Exmar apparently takes the position that this was c=
aused by the lack of back pressure from the shore tanks. In any case, Exma=
r reportedly billed ELFI about $165,000 in demurrage as a result. Part of t=
his was apparently deadfreight, a charge by the ship for ELFI not having av=
ailable all the product that the ship was supposed to load. To add insult =
to injury, ELFI also paid off another ship that was in line to get the SANT=
A CLARA's berth, so that the SANTA CLARA could continue loading and sail wi=
thin its window of opportunity. Based on the foregoing, I understand that =
ELFI has a counterclaim of about $150,000.

You advised that recoverable interest would probably increase the principal=
of both claims by about 70%.=20

You advised that you would send me information regarding your firm's time i=
n this case to date. You advised that you estimated ELFI spending an addit=
ional 25,000-30,000 pounds in this matter, assuming that the arbitration la=
sted two days, and that under the normal U.K. arbitration rules, the loser =
would be responsible for the arbitrators' fees and expenses and opposing co=
unsel's fees and expenses. You did not agree with Exmar's proposal to try =
this matter solely on the documents, given the fact issues as to what cause=
d the delay in loading, although this would reduce trial costs.

As I mentioned, I am by copy of this e-mail asking Wietze Dingeldein, Enron=
's U.K. demurrage expert, to give you a call upon your return August 20 and=
take a look at your file and give his comments as to the strength of the d=
emurrage claim (Wietze, I am thinking particularly about any time-bar argum=
ents, but any ammunition you can give us would be helpful). Both you and W=
ietze may want to consider whether the condition of the ship invalidates th=
e NOR under the Glencore Grain v. Flacker Shipping (HAPPY DAY) decision.

I am also asking Paul Henking, who now works in ENA's Singapore office, if =
he was involved in fixing this ship and remembers anything about it.

I appreciate your help.=20

Britt=20

P.S. to Richard/Andy E.: which of you should I be reporting to on this one=
?=20
-----Original Message-----=20
From: Wendy.Labuda@clyde.co.uk [ <mailto:Wendy.Labuda@clyde.co.uk<]=20
Sent: Monday, August 06, 2001 10:41 AM=20
To: Davis, Britt=20
Cc: Sanders, Richard B.; Edison, Andrew; Carrier, Lee; Zikes, Becky=20
Subject: "SANTA CLARA"=20


Dear Britt=20

"SANTA CLARA"=20

Thanks for your e-mail of 11th July and I apologise for the slow response.=
=20

As you know we have suggested to Exmar's lawyers, that in the light of the=
=20
underlying commercial relationship the parties should consider a=20
straightforward drop hands settlement.=20

We have recently finally heard from our opponents who say that whilst they=
=20
are keen to maintain a good commercial relationship with Enron "they=20
nevertheless do wish to obtain an award on this matter."=20

They have, however, suggested that in order to reduce costs, the parties=20
proceed with a documents only arbitration.=20

Whilst, Exmar's solicitors are correct in suggesting this would lead to a=
=20
significant saving in costs, I do not consider we should agree to this and=
=20
that we should have an oral hearing of about 2 days. I say this because I=
=20
think there is a much better prospect of explaining to the arbitrators that=
=20
this is not a straightforward demurrage dispute, if we present our evidence=
=20
by way of Counsel's submissions and expert evidence.=20

I would, however, welcome your views on this.=20

I will be out of the office from close of business today until 20th August=
=20
and I have arranged to discuss this matter further with Exmar's solicitors=
=20
on my return.=20

Kind regards.=20




ANDREW BICKNELL=20



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