Black Sea Commodities Ltd v Lemarc Agromond Pte Ltd

Black Sea Commodities Ltd v Lemarc Agromond Pte Ltd

There was no binding arbitration agreement between the parties, as the GAFTA arbitration clause was neither expressly agreed nor established as an implied term by custom or usage. The arbitral tribunal therefore lacked jurisdiction.

Parties
Claimant: Black Sea Commodities Ltd; Defendant: Lemarc Agromond Pte Ltd
Jurisdiction
England and Wales
Judgment Date
15 February 2021
Procedural Posture
Arbitration Challenge Under S 67 Arbitration Act 1996 / Judgment on Application to Set Aside Arbitral Award for Lack of Jurisdiction
Outcome
Claimant's application under s 67 Arbitration Act 1996 succeeds; arbitral award set aside for lack of jurisdiction.
Legal Topics
Arbitration Agreement Formation, Implied Terms by Custom, Jurisdiction of Arbitral Tribunal, Offer and Acceptance
Arbitration Contract Law Arbitration Agreement Formation Implied Terms by Custom Jurisdiction of Arbitral Tribunal Offer and Acceptance

Case Brief

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Parties

Black Sea Commodities Ltd

Claimant

Lemarc Agromond Pte Ltd

Defendant

Procedural Posture

Arbitration Challenge Under S 67 Arbitration Act 1996 / Judgment on Application to Set Aside Arbitral Award for Lack of Jurisdiction

Legal Issues

  1. 1 Whether there was a binding arbitration agreement between the parties
  2. 2 Whether a GAFTA arbitration clause was incorporated by custom or usage
  3. 3 Whether the arbitral tribunal had jurisdiction

Ratio Decidendi

There was no binding arbitration agreement between the parties, as the GAFTA arbitration clause was neither expressly agreed nor established as an implied term by custom or usage. The arbitral tribunal therefore lacked jurisdiction.

Court Disposition

Claimant's application under s 67 Arbitration Act 1996 succeeds; arbitral award set aside for lack of jurisdiction.

Orders

  • Arbitral award set aside for lack of jurisdiction