Pacific Basin IHX Ltd v Bulkhandling Handymax AS

Pacific Basin IHX Ltd v Bulkhandling Handymax AS

The phrase 'exposed to War Risks' in Conwartime 1993 means a situation that is dangerous due to the likelihood and gravity of acts of piracy. The arbitrators, not the court, must determine on the evidence whether there was a real likelihood that the vessel would be exposed to acts of piracy, rendering the Gulf of Aden dangerous for the vessel.

Parties
Claimant: Pacific Basin IHX Limited; Defendant: Bulkhandling Handymax AS
Jurisdiction
England and Wales
Judgment Date
25 January 2012
Procedural Posture
Commercial Arbitration Appeal / Post Judgment Clarification and Order on Remission
Outcome
Award remitted to arbitrators for reconsideration
Legal Topics
Interpretation of Charterparty Clauses, War Risks, Piracy, Remission to Arbitrators
Commercial Law Maritime Law Interpretation of Charterparty Clauses War Risks Piracy Remission to Arbitrators

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Parties

Pacific Basin IHX Limited

Claimant

Bulkhandling Handymax AS

Defendant

Procedural Posture

Commercial Arbitration Appeal / Post Judgment Clarification and Order on Remission

Legal Issues

  1. 1 Proper construction of 'exposed to War Risks' in Conwartime 1993 clause
  2. 2 Whether remission to arbitrators is appropriate given the evidence

Ratio Decidendi

The phrase 'exposed to War Risks' in Conwartime 1993 means a situation that is dangerous due to the likelihood and gravity of acts of piracy. The arbitrators, not the court, must determine on the evidence whether there was a real likelihood that the vessel would be exposed to acts of piracy, rendering the Gulf of Aden dangerous for the vessel.

Court Disposition

Award remitted to arbitrators for reconsideration

Orders

  • The award is remitted to the arbitrators to reconsider, in light of the judgment and the evidence, whether in the reasonable judgment of Bulkhandling there was a real likelihood that the vessel would be exposed to acts of piracy in the Gulf of Aden.