Hellenic Petroleum Cyprus Ltd & Anor

Hellenic Petroleum Cyprus Ltd & Anor

There was no agreement in principle or on commercial terms for a long-term charterparty or arbitration clause at the meeting or subsequent phone call on 24 September 2010, nor acceptance by conduct of the draft charterparty sent on 27 and 28 September 2010. The arbitrator lacked substantive jurisdiction as no arbitration agreement existed between the parties.

Parties
Claimant: Hellenic Petroleum Cyprus Limited; Defendant: Premier Maritime Limited
Jurisdiction
England and Wales
Judgment Date
01 July 2015
Procedural Posture
Arbitration Challenge / Judgment
Outcome
application allowed; award set aside
Legal Topics
Arbitrator Jurisdiction, Existence of Arbitration Agreement, Contract Formation, Repudiation, Charterparty Agreements
Arbitration Commercial Law Contract Law Arbitrator Jurisdiction Existence of Arbitration Agreement Contract Formation Repudiation Charterparty Agreements

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Parties

Hellenic Petroleum Cyprus Limited

Claimant

Premier Maritime Limited

Defendant

Procedural Posture

Arbitration Challenge / Judgment

Legal Issues

  1. 1 Did the parties agree to a long-term charterparty including a London arbitration clause?
  2. 2 Did the arbitrator have substantive jurisdiction under section 67 of the Arbitration Act 1996?
  3. 3 Was there acceptance of the draft charterparty by conduct?

Ratio Decidendi

There was no agreement in principle or on commercial terms for a long-term charterparty or arbitration clause at the meeting or subsequent phone call on 24 September 2010, nor acceptance by conduct of the draft charterparty sent on 27 and 28 September 2010. The arbitrator lacked substantive jurisdiction as no arbitration agreement existed between the parties.

Court Disposition

application allowed; award set aside

Orders

  • Award of Mr Hamsher dated 4 June 2014 set aside under section 67 of the Arbitration Act 1996
  • Award declared of no effect for lack of substantive jurisdiction