Tricon Energy Ltd v MTM Trading LLC

Tricon Energy Ltd v MTM Trading LLC

Where a charterparty requires demurrage to be calculated by reference to bill of lading quantities and contains a time bar clause requiring 'all supporting documents', failure to provide the bills of lading time-bars the entire demurrage claim, unless the bills are genuinely unavailable and this is properly explained.

Parties
Claimant/arbitration Respondent: Tricon Energy Ltd; Defendant/arbitration Claimant: MTM Trading LLC
Jurisdiction
England and Wales
Judgment Date
23 March 2020
Procedural Posture
Arbitration Appeal / Judgment on Appeal Under Section 69 of the Arbitration Act 1996
Outcome
Appeal allowed; demurrage claim time-barred for failure to provide bills of lading.
Legal Topics
Demurrage, Time Bar Clauses, Documentary Requirements, Charterparty Interpretation
Commercial Law Arbitration Shipping Law Demurrage Time Bar Clauses Documentary Requirements Charterparty Interpretation

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Parties

Tricon Energy Ltd

Claimant/arbitration Respondent

MTM Trading LLC

Defendant/arbitration Claimant

Procedural Posture

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

Legal Issues

  1. 1 Whether failure to provide bills of lading with a demurrage claim time-bars the claim under a charterparty requiring 'all supporting documents'
  2. 2 Interpretation of 'all supporting documents' in the context of demurrage time bar clauses

Ratio Decidendi

Where a charterparty requires demurrage to be calculated by reference to bill of lading quantities and contains a time bar clause requiring 'all supporting documents', failure to provide the bills of lading time-bars the entire demurrage claim, unless the bills are genuinely unavailable and this is properly explained.

Court Disposition

Appeal allowed; demurrage claim time-barred for failure to provide bills of lading.

Orders

  • The Owners' demurrage claim is barred for failure to comply with clause 38 of the Charterparty.