Petroleum Company of Trinidad and Tobago Ltd v Samsung Engineering Trinidad Co Ltd

Petroleum Company of Trinidad and Tobago Ltd v Samsung Engineering Trinidad Co Ltd

The tribunal's decision on the applicable cap for liquidated damages was a matter of contract construction, not substantive jurisdiction. The tribunal's jurisdiction was limited to the Onshore Agreement, as reflected in the Terms of Reference and pleadings. No claim was made under the Offshore Agreement or Linkage Agreement, so the tribunal was correct to apply the lower cap.

Parties
Claimant/respondent in Arbitration: Petroleum Company of Trinidad and Tobago Limited; Defendant/claimant in Arbitration: Samsung Engineering Trinidad Co. Limited
Jurisdiction
England and Wales
Judgment Date
30 November 2017
Procedural Posture
Arbitration Challenge / Judgment on S.67 Application
Outcome
application refused
Legal Topics
Substantive Jurisdiction, Liquidated Damages, Interpretation of Contracts, Arbitration Agreement, Construction of Contract Terms
Arbitration Contract Law Substantive Jurisdiction Liquidated Damages Interpretation of Contracts Arbitration Agreement Construction of Contract Terms

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Parties

Petroleum Company of Trinidad and Tobago Limited

Claimant/respondent in Arbitration

Samsung Engineering Trinidad Co. Limited

Defendant/claimant in Arbitration

Procedural Posture

Arbitration Challenge / Judgment on S.67 Application

Legal Issues

  1. 1 Whether the arbitral tribunal's decision on the cap for liquidated damages was a matter of substantive jurisdiction under s.67 Arbitration Act 1996
  2. 2 Whether the tribunal's jurisdiction in respect of liquidated damages was limited to the cap in the Onshore Agreement

Ratio Decidendi

The tribunal's decision on the applicable cap for liquidated damages was a matter of contract construction, not substantive jurisdiction. The tribunal's jurisdiction was limited to the Onshore Agreement, as reflected in the Terms of Reference and pleadings. No claim was made under the Offshore Agreement or Linkage Agreement, so the tribunal was correct to apply the lower cap.

Court Disposition

application refused

Orders

  • s.67 application dismissed
  • consequential matters to be dealt with at handing down of judgment