Stellar Shipping Co Llc v Hudson Shipping Lines

Stellar Shipping Co Llc v Hudson Shipping Lines

Stellar, by expressly agreeing to guarantee Phiniqia’s obligations and to endorse the COA, entered into a contract of guarantee with Hudson that included the arbitration clause. This endorsement constituted an express agreement to arbitrate disputes arising out of the guarantee, and the arbitral tribunal had substantive jurisdiction over Stellar.

Parties
Claimant: Stellar Shipping Co LLC; Defendant: Hudson Shipping Lines
Jurisdiction
England and Wales
Judgment Date
18 November 2010
Procedural Posture
Commercial Arbitration Challenge / Judgment on Application Under Section 67 of the Arbitration Act 1996
Outcome
Application dismissed
Legal Topics
Arbitration Agreement, Jurisdiction of Arbitral Tribunal, Guarantee Contracts, Incorporation of Arbitration Clauses, Contract Formation

Case Brief

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Parties

Stellar Shipping Co LLC

Claimant

Hudson Shipping Lines

Defendant

Procedural Posture

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

  1. 1 Whether Stellar entered into an arbitration agreement with Hudson in respect of the alleged contract of guarantee
  2. 2 Whether the arbitral tribunal had substantive jurisdiction over Stellar

Ratio Decidendi

Stellar, by expressly agreeing to guarantee Phiniqia’s obligations and to endorse the COA, entered into a contract of guarantee with Hudson that included the arbitration clause. This endorsement constituted an express agreement to arbitrate disputes arising out of the guarantee, and the arbitral tribunal had substantive jurisdiction over Stellar.

Court Disposition

Application dismissed

Orders

  • Stellar’s application to challenge the jurisdiction of the Tribunal is dismissed.