Dera Commercial Estate v Derya Inc [2018] EWHC 1673 (Comm) (13 July 2018)

Dera Commercial Estate v Derya Inc [2018] EWHC 1673 (Comm) (13 July 2018)

The Tribunal was entitled to strike out Dera's cargo claim for inordinate and inexcusable delay under s.41(3) of the Arbitration Act 1996, using the one-year contractual limitation as the relevant yardstick, and the one-year time bar under Article III Rule 6 of the Hague Rules applies even in cases of geographic deviation. The Tribunal applied the correct legal principles and burden/standard of proof. No serious irregularity under s.68 was established.

Citation
[2018] EWHC 1673 (Comm)
Parties
Claimant: Dera Commercial Estate; Defendant: Derya Inc
Jurisdiction
England and Wales
Judgment Date
13 July 2018
Procedural Posture
Arbitration Challenge and Appeal / High Court Judgment on S.68 and S.69 Arbitration Act 1996 Challenge and Appeal
Outcome
Claim dismissed
Legal Topics
Arbitration Act 1996 S.41(3), Limitation Periods, Hague Rules Article III Rule 6, Geographic Deviation, Serious Irregularity (s.68), Appeal on Point of Law (s.69)
Arbitration Commercial Law Shipping Law Arbitration Act 1996 S.41(3) Limitation Periods Hague Rules Article III Rule 6 Geographic Deviation Serious Irregularity (s.68) +1 more

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Parties

Dera Commercial Estate

Claimant

Derya Inc

Defendant

Procedural Posture

Arbitration Challenge and Appeal / High Court Judgment on S.68 and S.69 Arbitration Act 1996 Challenge and Appeal

Legal Issues

  1. 1 Whether a claim particularised within the statutory six-year limitation can be struck out for inordinate delay under s.41(3) where the contract provides a shorter period
  2. 2 Whether a geographic deviation precludes reliance on the one-year time bar under Article III Rule 6 of the Hague Rules
  3. 3 Whether the period between accrual of cause of action and expiry of contractual time limit is relevant to inordinate delay under s.41(3)

Ratio Decidendi

The Tribunal was entitled to strike out Dera's cargo claim for inordinate and inexcusable delay under s.41(3) of the Arbitration Act 1996, using the one-year contractual limitation as the relevant yardstick, and the one-year time bar under Article III Rule 6 of the Hague Rules applies even in cases of geographic deviation. The Tribunal applied the correct legal principles and burden/standard of proof. No serious irregularity under s.68 was established.

Court Disposition

Claim dismissed

Orders

  • Application under s.68 dismissed
  • Appeal under s.69 dismissed