Golden President Shipping Corporation v Bocimar NV [2008] EWHC 130 (Comm) (31 January 2008)

Golden President Shipping Corporation v Bocimar NV [2008] EWHC 130 (Comm) (31 January 2008)

Clause 98 paragraph 6 expressly provides that profit sharing applies to the optional years if declared, but those years are to be considered separately from the netting off process applicable to the basic 5 year period. The Arbitrators erred in holding that profit sharing did not apply to the optional years.

Citation
[2008] EWHC 130 (Comm)
Parties
Claimant/applicant: Golden President Shipping Corporation; Defendant/respondent: Bocimar NV
Jurisdiction
England and Wales
Judgment Date
31 January 2008
Procedural Posture
Appeal Under Section 69 of the Arbitration Act 1996 / Judgment on Appeal From Arbitration Award
Outcome
Appeal allowed; arbitration award varied
Legal Topics
Charterparty Interpretation, Profit Sharing Clauses, Arbitration Appeals, Contract Construction
Commercial Law Arbitration Charterparty Interpretation Profit Sharing Clauses Arbitration Appeals Contract Construction

Case Brief

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Parties

Golden President Shipping Corporation

Claimant/applicant

Bocimar NV

Defendant/respondent

Procedural Posture

Appeal Under Section 69 of the Arbitration Act 1996 / Judgment on Appeal From Arbitration Award

Legal Issues

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

Ratio Decidendi

Clause 98 paragraph 6 expressly provides that profit sharing applies to the optional years if declared, but those years are to be considered separately from the netting off process applicable to the basic 5 year period. The Arbitrators erred in holding that profit sharing did not apply to the optional years.

Court Disposition

Appeal allowed; arbitration award varied

Orders

  • Owners entitled to $14,679,557.84 plus interest and costs of the appeal
  • Any balance and ancillary matters to be determined by the Arbitrators or by the court if not agreed