UR Power GmbH v Kuok Oils and Grains Pte Ltd [2009] EWHC 1940 (Comm) (31 July 2009)

UR Power GmbH v Kuok Oils and Grains Pte Ltd [2009] EWHC 1940 (Comm) (31 July 2009)

The obligation to open a letter of credit was not a condition precedent to the formation of a binding contract; it was a promissory condition. The Board of Appeal had substantive jurisdiction. No serious irregularity under s.68 was established. None of the alleged errors of law were 'obviously wrong' or merited leave to appeal. The FOSFA Default Clause did not cap damages as URP contended. The contract was terminated on 20 December 2006.

Citation
[2009] EWHC 1940 (Comm)
Parties
Claimant (2008 Folio No 1327), Respondent (2009 Folio No 28): U. R. POWER GmbH; Respondent (2008 Folio No 1327), Claimant (2009 Folio No 28): KUOK OILS AND GRAINS PTE LTD
Jurisdiction
England and Wales
Judgment Date
31 July 2009
Procedural Posture
Commercial Arbitration Challenge (high Court, Commercial Court, Queen's Bench Division) / Judgment on Applications Under Ss. 67, 68, and 69 Arbitration Act 1996
Outcome
All challenges by both parties dismissed. The appeal award stands.
Legal Topics
Arbitration Agreement Jurisdiction, Serious Irregularity in Arbitration, Leave to Appeal on Point of Law, Condition Precedent in Contract Formation, Separability of Arbitration Agreement, Quantum of Damages in Contract Breach
Arbitration Commercial Law Contract Law Arbitration Agreement Jurisdiction Serious Irregularity in Arbitration Leave to Appeal on Point of Law Condition Precedent in Contract Formation Separability of Arbitration Agreement +1 more

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Parties

U. R. POWER GmbH

Claimant (2008 Folio No 1327), Respondent (2009 Folio No 28)

KUOK OILS AND GRAINS PTE LTD

Respondent (2008 Folio No 1327), Claimant (2009 Folio No 28)

Procedural Posture

Commercial Arbitration Challenge (high Court, Commercial Court, Queen's Bench Division) / Judgment on Applications Under Ss. 67, 68, and 69 Arbitration Act 1996

Legal Issues

  1. 1 Whether the Board of Appeal had substantive jurisdiction under s.67 Arbitration Act 1996
  2. 2 Whether the obligation to open a letter of credit was a condition precedent to contract formation
  3. 3 Whether there was a serious irregularity under s.68 affecting the award

Ratio Decidendi

The obligation to open a letter of credit was not a condition precedent to the formation of a binding contract; it was a promissory condition. The Board of Appeal had substantive jurisdiction. No serious irregularity under s.68 was established. None of the alleged errors of law were 'obviously wrong' or merited leave to appeal. The FOSFA Default Clause did not cap damages as URP contended. The contract was terminated on 20 December 2006.

Court Disposition

All challenges by both parties dismissed. The appeal award stands.