Primetrade AG v Ythan Ltd

Primetrade AG v Ythan Ltd

Primetrade did not become the lawful holder of the bills of lading under section 5(2)(c) of the Carriage of Goods by Sea Act 1992, as the transaction by which it obtained possession was not effected in pursuance of a contractual or other arrangement made before the right to possession ceased. Alternatively, even if it became the lawful holder, no rights of suit were transferred under section 2(2). Consequently, Primetrade could not be subject to liabilities under section 3(1)(b), and did not make a claim under the contract of carriage. Therefore, the arbitrators lacked jurisdiction over the Owners’ claim against Primetrade.

Parties
Claimant/respondent in the Arbitration: Primetrade A.G.; Defendant/claimant in the Arbitration: Ythan Limited
Jurisdiction
England and Wales
Judgment Date
01 November 2005
Procedural Posture
Commercial Arbitration Appeal / Judgment on Appeal Under Section 67 of the Arbitration Act 1996
Outcome
Appeal allowed; arbitrators have no jurisdiction over Owners’ claim against Primetrade.
Legal Topics
Jurisdiction of Arbitral Tribunal, Holder of Bill of Lading, Transfer of Rights of Suit, Making a Claim Under Contract of Carriage, Section 67 Arbitration Act 1996, Section 73 Arbitration Act 1996, Carriage of Goods by Sea Act 1992
Arbitration Carriage of Goods by Sea Conflict of Laws Jurisdiction of Arbitral Tribunal Holder of Bill of Lading Transfer of Rights of Suit Making a Claim Under Contract of Carriage Section 67 Arbitration Act 1996 +2 more

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Parties

Primetrade A.G.

Claimant/respondent in the Arbitration

Ythan Limited

Defendant/claimant in the Arbitration

Procedural Posture

Commercial Arbitration Appeal / Judgment on Appeal Under Section 67 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether Primetrade became the 'lawful holder' of the bills of lading under the Carriage of Goods by Sea Act 1992
  2. 2 Whether Primetrade had rights of suit transferred to it under section 2(1) of COGSA 1992
  3. 3 Whether Primetrade 'made a claim' under the contract of carriage within section 3(1)(b) of COGSA 1992

Ratio Decidendi

Primetrade did not become the lawful holder of the bills of lading under section 5(2)(c) of the Carriage of Goods by Sea Act 1992, as the transaction by which it obtained possession was not effected in pursuance of a contractual or other arrangement made before the right to possession ceased. Alternatively, even if it became the lawful holder, no rights of suit were transferred under section 2(2). Consequently, Primetrade could not be subject to liabilities under section 3(1)(b), and did not make a claim under the contract of carriage. Therefore, the arbitrators lacked jurisdiction over the Owners’ claim against Primetrade.

Court Disposition

Appeal allowed; arbitrators have no jurisdiction over Owners’ claim against Primetrade.

Orders

  • Award of arbitrators set aside for want of jurisdiction.