Bulk & Metal Transport (UK) Llp v Voc Bulk Ultra Handymax Pool Llc

Bulk & Metal Transport (UK) Llp v Voc Bulk Ultra Handymax Pool Llc

The message of 2 November 2006, when construed broadly and flexibly, objectively indicated the intention to commence arbitration and required the Charterers to take steps to appoint an arbitrator or agree to the appointment of a sole arbitrator. This satisfied the requirements of section 14(4) of the Arbitration Act 1996, and thus arbitration was validly commenced within time.

Parties
Appellant (charterers): Bulk & Metal Transport (UK) LLP; Respondent (owners): VOC Bulk Ultra Handymax Pool LLC
Jurisdiction
England and Wales
Judgment Date
20 February 2009
Procedural Posture
Arbitration Appeal / Judgment on Appeal From Arbitral Tribunal's Interim Award
Outcome
Appeal allowed
Legal Topics
Commencement of Arbitration Proceedings, Interpretation of Arbitration Clauses, Time Bar Under Hague Rules, Section 14 Arbitration Act 1996
Arbitration Commercial Law Shipping Commencement of Arbitration Proceedings Interpretation of Arbitration Clauses Time Bar Under Hague Rules Section 14 Arbitration Act 1996

Case Brief

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Parties

Bulk & Metal Transport (UK) LLP

Appellant (charterers)

VOC Bulk Ultra Handymax Pool LLC

Respondent (owners)

Procedural Posture

Arbitration Appeal / Judgment on Appeal From Arbitral Tribunal's Interim Award

Legal Issues

  1. 1 Whether the message of 2 November 2006 constituted valid commencement of arbitration under section 14(4) of the Arbitration Act 1996
  2. 2 Whether Charterers are barred from relying on their claims in defence of Owners’ claims

Ratio Decidendi

The message of 2 November 2006, when construed broadly and flexibly, objectively indicated the intention to commence arbitration and required the Charterers to take steps to appoint an arbitrator or agree to the appointment of a sole arbitrator. This satisfied the requirements of section 14(4) of the Arbitration Act 1996, and thus arbitration was validly commenced within time.

Court Disposition

Appeal allowed

Orders

  • The appeal is allowed; the answer to both questions of law is 'yes'.
  • Costs determined and assessed.