Lorand Shipping Ltd v Davof Trading (Africa) BV MV "Ocean Glory" [2014] EWHC 3521 (Comm) (30 October 2014)

Lorand Shipping Ltd v Davof Trading (Africa) BV MV "Ocean Glory" [2014] EWHC 3521 (Comm) (30 October 2014)

The tribunal committed a serious irregularity under s68 of the Arbitration Act 1996 by adopting a course of action not advocated by either party and without giving the parties an opportunity to address it, specifically by refusing to reserve jurisdiction or finally determine the Owners' indemnity claims. This failure caused substantial injustice to the Owners, as they were shut out from pursuing further claims due to the contractual time bar, and the tribunal might realistically have reached a different conclusion if the parties had been heard.

Citation
[2014] EWHC 3521 (Comm)
Parties
Applicant/owner: Lorand Shipping Limited; Respondent/charterer: Davof Trading (Africa) B.V. MV 'Ocean Glory'
Jurisdiction
England and Wales
Judgment Date
30 October 2014
Procedural Posture
Commercial Court Application Under Arbitration Act 1996 S68 / Judgment on Application to Set Aside Part of Arbitration Award and Remit to Tribunal
Outcome
Application under s68 Arbitration Act 1996 allowed; paragraphs 30-31 of the Award set aside; matter remitted to the tribunal; costs awarded to Owners.
Legal Topics
Serious Irregularity Under S68 Arbitration Act 1996, Arbitral Procedure, Time Bar Clauses in Charterparties, Partial Vs Final Awards, Jurisdiction of Arbitral Tribunal
Arbitration Shipping Law Commercial Law Serious Irregularity Under S68 Arbitration Act 1996 Arbitral Procedure Time Bar Clauses in Charterparties Partial Vs Final Awards Jurisdiction of Arbitral Tribunal

Case Brief

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Parties

Lorand Shipping Limited

Applicant/owner

Davof Trading (Africa) B.V. MV 'Ocean Glory'

Respondent/charterer

Procedural Posture

Commercial Court Application Under Arbitration Act 1996 S68 / Judgment on Application to Set Aside Part of Arbitration Award and Remit to Tribunal

Legal Issues

  1. 1 Whether the arbitral tribunal committed a serious irregularity under s68 of the Arbitration Act 1996 by failing to give parties an opportunity to address the course of action it adopted regarding unquantified indemnity claims
  2. 2 Whether the tribunal's failure caused substantial injustice to the Owners by shutting out further claims due to the time bar in the charterparty

Ratio Decidendi

The tribunal committed a serious irregularity under s68 of the Arbitration Act 1996 by adopting a course of action not advocated by either party and without giving the parties an opportunity to address it, specifically by refusing to reserve jurisdiction or finally determine the Owners' indemnity claims. This failure caused substantial injustice to the Owners, as they were shut out from pursuing further claims due to the contractual time bar, and the tribunal might realistically have reached a different conclusion if the parties had been heard.

Court Disposition

Application under s68 Arbitration Act 1996 allowed; paragraphs 30-31 of the Award set aside; matter remitted to the tribunal; costs awarded to Owners.

Orders

  • Paragraphs 30-31 of the arbitration award set aside and declared of no effect.
  • Matter remitted to the arbitral tribunal for reconsideration in accordance with the judgment.