Lavender Shipmanagement Inc v Ibrahima Sory Affretement Trading S.A. & Ors

Lavender Shipmanagement Inc v Ibrahima Sory Affretement Trading S.A. & Ors

The Letter of Undertaking, construed objectively and in its commercial context, constituted an agreement to consolidate all claims in respect of the cargo into a single arbitration under clause 69 of the charterparty, and the notice of arbitration and extension of time were valid in respect of that consolidated arbitration.

Parties
Claimant: Lavender Shipmanagement Inc; Defendant: Ibrahima Sory Affretement Trading S.A.; Defendant: Louis Dreyfus Company Suisse S.A.; Defendant: AXA Corporate Solutions Assurance S.A.; Defendant: United American Insurance Company; Defendant: HDI Global SE; Defendant: AIG Europe Limited
Jurisdiction
England and Wales
Judgment Date
16 December 2020
Procedural Posture
Commercial Arbitration Challenge / Judgment on Applications Under Sections 67 and 69 of the Arbitration Act 1996
Outcome
Applications dismissed
Legal Topics
Arbitration Agreement Construction, Jurisdiction of Arbitral Tribunal, Consolidation of Claims, Extension of Time for Arbitration, Interpretation of Letters of Undertaking, Small Claims Procedure (lmaa)
Arbitration Commercial Law Shipping Law Arbitration Agreement Construction Jurisdiction of Arbitral Tribunal Consolidation of Claims Extension of Time for Arbitration Interpretation of Letters of Undertaking +1 more

Case Brief

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Parties

Lavender Shipmanagement Inc

Claimant

Ibrahima Sory Affretement Trading S.A.

Defendant

Louis Dreyfus Company Suisse S.A.

Defendant

AXA Corporate Solutions Assurance S.A.

Defendant

United American Insurance Company

Defendant

HDI Global SE

Defendant

AIG Europe Limited

Defendant

Procedural Posture

Commercial Arbitration Challenge / Judgment on Applications Under Sections 67 and 69 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether the Letter of Undertaking (LOU) constituted a new, consolidated arbitration agreement replacing the arbitration clauses in the bills of lading
  2. 2 Whether the arbitral tribunal was properly constituted under the LOU
  3. 3 Whether the notice of arbitration was valid under the LOU

Ratio Decidendi

The Letter of Undertaking, construed objectively and in its commercial context, constituted an agreement to consolidate all claims in respect of the cargo into a single arbitration under clause 69 of the charterparty, and the notice of arbitration and extension of time were valid in respect of that consolidated arbitration.

Court Disposition

Applications dismissed

Orders

  • Section 67 application dismissed
  • Permission to appeal under section 69 refused