Pacific Basin IHX Ltd v Bulkhandling Handymax AS [2012] EWHC 70 (Comm) (25 January 2012)

Pacific Basin IHX Ltd v Bulkhandling Handymax AS [2012] EWHC 70 (Comm) (25 January 2012)

'Exposed to War Risks' in Conwartime 1993 should be construed as referring to a situation which is 'dangerous', considering both the likelihood of the peril (piracy) and the gravity of its consequences. The arbitrators must determine, on the evidence, whether there was a real likelihood that the vessel would be exposed to acts of piracy in the Gulf of Aden, rendering it dangerous.

Citation
[2012] EWHC 70 (Comm)
Parties
Claimant: Pacific Basin IHX Limited; Defendant: Bulkhandling Handymax AS
Jurisdiction
England and Wales
Judgment Date
25 January 2012
Procedural Posture
Commercial Court Application (remission of Arbitration Award) / Post Judgment Clarification and Order on Remission
Outcome
Award remitted to arbitrators for reconsideration.
Legal Topics
Interpretation of War Risks Clauses, Remission to Arbitrators, Piracy Risks, Charterparty Terms
Commercial Law Arbitration Shipping Law Interpretation of War Risks Clauses Remission to Arbitrators Piracy Risks Charterparty Terms

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Parties

Pacific Basin IHX Limited

Claimant

Bulkhandling Handymax AS

Defendant

Procedural Posture

Commercial Court Application (remission of Arbitration Award) / 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 factual dispute

Ratio Decidendi

'Exposed to War Risks' in Conwartime 1993 should be construed as referring to a situation which is 'dangerous', considering both the likelihood of the peril (piracy) and the gravity of its consequences. The arbitrators must determine, on the evidence, whether there was a real likelihood that the vessel would be exposed to acts of piracy in the Gulf of Aden, rendering it dangerous.

Court Disposition

Award remitted to arbitrators for reconsideration.

Orders

  • The award is remitted to the arbitrators to reconsider, in light of the judgment and 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.