Golden President Shipping Corporation v Bocimar NV

Golden President Shipping Corporation v Bocimar NV

Clause 98(6) expressly provides that profit sharing applies to the optional years declared by the Charterers, but such years are to be considered separately from the netting off of profits and losses in the basic 5-year period. The Arbitrators erred in excluding the 6th and 7th years from profit sharing.

Parties
Claimant/applicant: Golden President Shipping Corporation; Defendant/respondent: Bocimar NV
Jurisdiction
England and Wales
Judgment Date
31 January 2008
Procedural Posture
Commercial Arbitration Appeal / Appeal Under Section 69 of the Arbitration Act 1996
Outcome
Appeal allowed; Arbitration Award varied
Legal Topics
Charter Party Interpretation, Profit Sharing Clauses, Arbitration Award Challenge
Commercial Law Arbitration Charter Party Interpretation Profit Sharing Clauses Arbitration Award Challenge

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Parties

Golden President Shipping Corporation

Claimant/applicant

Bocimar NV

Defendant/respondent

Procedural Posture

Commercial Arbitration Appeal / Appeal Under Section 69 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether profit sharing under clause 98 of the Charter Party applies to the 6th and 7th optional years and final 2 months
  2. 2 Proper construction of clause 98, especially paragraph 6, in the context of the Charter Party

Ratio Decidendi

Clause 98(6) expressly provides that profit sharing applies to the optional years declared by the Charterers, but such years are to be considered separately from the netting off of profits and losses in the basic 5-year period. The Arbitrators erred in excluding the 6th and 7th years from profit sharing.

Court Disposition

Appeal allowed; Arbitration Award varied

Orders

  • Owners entitled to $14,679,557.84 plus interest and costs of the appeal; any balance to be determined by Arbitrators
  • Parties to attempt agreement on interest and ancillary matters, failing which the court will determine at formal hand down