Carboex SA v Louis Dreyfus Commodities Suisse SA [2011] EWHC 1165 (Comm) (12 May 2011)

Carboex SA v Louis Dreyfus Commodities Suisse SA [2011] EWHC 1165 (Comm) (12 May 2011)

On their ordinary meaning, the words in clause 9 of the COA cover delay in discharging caused by congestion due to the after-effects of a strike that has ended, and also cover delay where the vessel arrives after the strike has ended. The arbitral tribunal erred in law in deciding otherwise, as the strike exception applies to such delays. WIBON provisions do not affect the construction of the exceptions clause, which is to be construed as a free-standing provision. The answers to the preliminary issues are 'Yes': clause 9 applies to such delays.

Citation
[2011] EWHC 1165 (Comm)
Parties
Claimant/appellant: Carboex SA; Defendant/respondent: Louis Dreyfus Commodities Suisse SA
Jurisdiction
England and Wales
Judgment Date
12 May 2011
Procedural Posture
Arbitration Appeal / High Court (commercial Court) Judgment on Appeal Under S. 69 Arbitration Act 1996
Outcome
Appeal allowed; arbitral award set aside.
Legal Topics
Demurrage, Laytime, Charterparty Interpretation, Strike Exceptions, Contra Proferentem, WIBON Provisions
Arbitration Shipping Law Commercial Law Demurrage Laytime Charterparty Interpretation Strike Exceptions Contra Proferentem +1 more

Case Brief

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Parties

Carboex SA

Claimant/appellant

Louis Dreyfus Commodities Suisse SA

Defendant/respondent

Procedural Posture

Arbitration Appeal / High Court (commercial Court) Judgment on Appeal Under S. 69 Arbitration Act 1996

Legal Issues

  1. 1 Whether clause 9 of the COA applies to vessels delayed by after-effects of a strike that has ended
  2. 2 Whether clause 9 applies to vessels arriving after a strike has ended
  3. 3 Whether the strike exception in clause 9 applies to vessels unable to berth due to congestion caused by a strike

Ratio Decidendi

On their ordinary meaning, the words in clause 9 of the COA cover delay in discharging caused by congestion due to the after-effects of a strike that has ended, and also cover delay where the vessel arrives after the strike has ended. The arbitral tribunal erred in law in deciding otherwise, as the strike exception applies to such delays. WIBON provisions do not affect the construction of the exceptions clause, which is to be construed as a free-standing provision. The answers to the preliminary issues are 'Yes': clause 9 applies to such delays.

Court Disposition

Appeal allowed; arbitral award set aside.

Orders

  • The tribunal's award is set aside.
  • Consequential orders to be determined after further argument.