Sembawang Corporation Ltd. v Pacific Ocean Shipping Corp & Anor [2000] EWHC 225 (Comm) (11 July 2000)

Sembawang Corporation Ltd. v Pacific Ocean Shipping Corp & Anor [2000] EWHC 225 (Comm) (11 July 2000)

The assessment under Article 37.1(e) must be made by reference to the contractual delivery date as extended by any disputed variation orders already issued at the time of assessment, and not by reference to possible future or anticipated variation orders. The Tribunal's restrictive construction is correct in law, provides commercial certainty, and is consistent with the contract as a whole.

Citation
[2000] EWHC 225 (Comm)
Parties
Claimant/respondent in the Arbitration: Sembawang Corporation Limited; Defendants/claimants in the Arbitration: Pacific Ocean Shipping Corporation Societe d'Exploitation du Solitaire SA
Jurisdiction
England and Wales
Judgment Date
11 July 2000
Procedural Posture
Arbitration Appeal / Judgment on Appeal From Arbitral Award
Outcome
Appeal dismissed
Legal Topics
Construction of Contract Terms, Arbitration Procedure, Shipbuilding Contracts, Variation Orders, Termination Rights
Commercial Law Arbitration Contract Law Construction of Contract Terms Arbitration Procedure Shipbuilding Contracts Variation Orders Termination Rights

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Parties

Sembawang Corporation Limited

Claimant/respondent in the Arbitration

Pacific Ocean Shipping Corporation Societe d'Exploitation du Solitaire SA

Defendants/claimants in the Arbitration

Procedural Posture

Arbitration Appeal / Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Proper construction of Article 37.1(e) of the contract regarding termination rights
  2. 2 Whether future or anticipated variation orders can extend the contractual delivery date for assessment under Article 37.1(e)
  3. 3 Effect of information provided by Owners about probable delivery dates of equipment

Ratio Decidendi

The assessment under Article 37.1(e) must be made by reference to the contractual delivery date as extended by any disputed variation orders already issued at the time of assessment, and not by reference to possible future or anticipated variation orders. The Tribunal's restrictive construction is correct in law, provides commercial certainty, and is consistent with the contract as a whole.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.