Fimbank Plc v KCH Shipping Co Ltd

Fimbank Plc v KCH Shipping Co Ltd

Neither of the jurisdictional hurdles under s.12(3)(a) or (b) Arbitration Act 1996 was satisfied: the circumstances were not outside the reasonable contemplation of the parties, as the Bank's mistake was not materially different from ordinary negligence, and there was no causative conduct by KCH sufficient to make it unjust to enforce the time bar. The Bank's own failure to clarify the position after learning of the bareboat charter was the primary cause of missing the time limit.

Parties
Claimant: FIMBank PLC; Defendant: KCH Shipping Co Ltd
Jurisdiction
England and Wales
Judgment Date
03 July 2020
Procedural Posture
Commercial Court Application Under Arbitration Act 1996 S.12 / Judgment on Application to Extend Time for Commencing Arbitration
Outcome
Application dismissed
Legal Topics
Extension of Time for Arbitration, Time Bar Under Hague/hague Visby Rules, Authority of Agents in Granting Extensions, Misdelivery of Cargo, Interpretation of Arbitration Act 1996 S.12
Arbitration Shipping and Maritime Law Contract Extension of Time for Arbitration Time Bar Under Hague/hague Visby Rules Authority of Agents in Granting Extensions Misdelivery of Cargo Interpretation of Arbitration Act 1996 S.12

Case Brief

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Parties

FIMBank PLC

Claimant

KCH Shipping Co Ltd

Defendant

Procedural Posture

Commercial Court Application Under Arbitration Act 1996 S.12 / Judgment on Application to Extend Time for Commencing Arbitration

Legal Issues

  1. 1 Whether the court should extend time for commencing arbitration under s.12 Arbitration Act 1996
  2. 2 Whether circumstances were outside reasonable contemplation of parties under s.12(3)(a)
  3. 3 Whether conduct of respondent made it unjust to hold claimant to strict time bar under s.12(3)(b)

Ratio Decidendi

Neither of the jurisdictional hurdles under s.12(3)(a) or (b) Arbitration Act 1996 was satisfied: the circumstances were not outside the reasonable contemplation of the parties, as the Bank's mistake was not materially different from ordinary negligence, and there was no causative conduct by KCH sufficient to make it unjust to enforce the time bar. The Bank's own failure to clarify the position after learning of the bareboat charter was the primary cause of missing the time limit.

Court Disposition

Application dismissed

Orders

  • Application to extend time for commencing arbitration under s.12 Arbitration Act 1996 is refused.