P v Q

P v Q

Clause 67 is clear and unambiguous and must be given its literal meaning, barring claims not notified and arbitrators not appointed within 13 months of final discharge, regardless of whether the claim was known or could have been known. Extensions of time under section 12 are only granted if the applicant acted expeditiously and circumstances were outside reasonable contemplation; P and R did not act expeditiously, so their applications are refused, but Q's application is granted.

Parties
Claimant: P; Defendant/claimant: Q; Defendant/claimant: R; Defendant: S
Jurisdiction
England and Wales
Judgment Date
11 June 2018
Procedural Posture
Commercial Arbitration Related Application / Judgment on Applications for Declarations and Extension of Time Under Section 12 Arbitration Act 1996
Outcome
Applications for declarations that claims were in time refused; extension of time under section 12 granted to Q, refused to P and R.
Legal Topics
Time Bar Clauses, Extension of Time for Arbitration, Back to Back Charterparties, Interpretation of Arbitration Agreements
Arbitration Commercial Law Shipping Law Time Bar Clauses Extension of Time for Arbitration Back to Back Charterparties Interpretation of Arbitration Agreements

Case Brief

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Parties

P

Claimant

Q

Defendant/claimant

R

Defendant/claimant

S

Defendant

Procedural Posture

Commercial Arbitration Related Application / Judgment on Applications for Declarations and Extension of Time Under Section 12 Arbitration Act 1996

Legal Issues

  1. 1 Whether notices of claim and commencement of arbitration were served in time under Clause 67 of the charterparties
  2. 2 Whether the court should grant an extension of time under section 12 of the Arbitration Act 1996

Ratio Decidendi

Clause 67 is clear and unambiguous and must be given its literal meaning, barring claims not notified and arbitrators not appointed within 13 months of final discharge, regardless of whether the claim was known or could have been known. Extensions of time under section 12 are only granted if the applicant acted expeditiously and circumstances were outside reasonable contemplation; P and R did not act expeditiously, so their applications are refused, but Q's application is granted.

Court Disposition

Applications for declarations that claims were in time refused; extension of time under section 12 granted to Q, refused to P and R.

Orders

  • No declaration that notices of claim and commencement of arbitration were served in time.
  • Extension of time under section 12 Arbitration Act 1996 granted to Q to 30 November 2016.