PT Thiess Contractors Indonesia v PT Kaltim Prima Coal

PT Thiess Contractors Indonesia v PT Kaltim Prima Coal

The CDA only entitles the Claimant to claim security for amounts that are payable pursuant to a valid Payment Claim under the OAMS. Since the arbitral tribunal determined that only the original rates apply until the dispute is resolved, and the revised rates are not yet payable, the Claimant's claims for security at the revised rates were invalid under the CDA.

Parties
Claimant: PT Thiess Contractors Indonesia; Defendant: PT Kaltim Prima Coal
Jurisdiction
England and Wales
Judgment Date
26 March 2012
Procedural Posture
Commercial Contractual Dispute / Judgment After Hearing of Declaratory Relief Application
Outcome
Claim dismissed
Legal Topics
Interpretation of Contract Terms, Security for Disputed Payments, Third Party Rights Under Contract, Arbitration and Dispute Resolution
Contract Law Commercial Law Interpretation of Contract Terms Security for Disputed Payments Third Party Rights Under Contract Arbitration and Dispute Resolution

Case Brief

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Parties

PT Thiess Contractors Indonesia

Claimant

PT Kaltim Prima Coal

Defendant

Procedural Posture

Commercial Contractual Dispute / Judgment After Hearing of Declaratory Relief Application

Legal Issues

  1. 1 Whether the Claimant is entitled under the Cash Distribution Agreement (CDA) to security for payment of disputed sums at revised rates prior to arbitral determination under the Operating Agreement Mining Services (OAMS)
  2. 2 Proper construction of 'amount payable' in the CDA in light of the OAMS

Ratio Decidendi

The CDA only entitles the Claimant to claim security for amounts that are payable pursuant to a valid Payment Claim under the OAMS. Since the arbitral tribunal determined that only the original rates apply until the dispute is resolved, and the revised rates are not yet payable, the Claimant's claims for security at the revised rates were invalid under the CDA.

Court Disposition

Claim dismissed