Tricon Energy Ltd v MTM Trading LLC [2020] EWHC 700 (Comm) (23 March 2020)

Tricon Energy Ltd v MTM Trading LLC [2020] EWHC 700 (Comm) (23 March 2020)

Where a charterparty requires demurrage to be calculated by reference to bill of lading quantities and contains a time bar requiring 'all supporting documents', failure to provide the bills of lading within the time bar period renders the entire demurrage claim time-barred, unless the bills are unavailable and a proper explanation is provided.

Citation
[2020] EWHC 700 (Comm)
Parties
Claimant/arbitration Respondent: Tricon Energy Ltd; Defendant/arbitration Claimant: MTM Trading LLC
Jurisdiction
England and Wales
Judgment Date
23 March 2020
Procedural Posture
Appeal Under Arbitration Act 1996, S.69 / Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed; arbitral award set aside.
Legal Topics
Demurrage Claims, Time Bar Clauses, Interpretation of Charterparty, Supporting Documents for Claims
Arbitration Shipping Law Commercial Law Demurrage Claims Time Bar Clauses Interpretation of Charterparty Supporting Documents for Claims

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Parties

Tricon Energy Ltd

Claimant/arbitration Respondent

MTM Trading LLC

Defendant/arbitration Claimant

Procedural Posture

Appeal Under Arbitration Act 1996, S.69 / Judgment on Appeal From Arbitral Award

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' within 90 days
  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 requiring 'all supporting documents', failure to provide the bills of lading within the time bar period renders the entire demurrage claim time-barred, unless the bills are unavailable and a proper explanation is provided.

Court Disposition

Appeal allowed; arbitral award set aside.

Orders

  • Demurrage claim by Owners is time-barred for failure to provide bills of lading within 90 days.
  • Award in favour of Owners is set aside.