Pollich and Another v. Heatley [1910] ScotLR 402 (26 January 1910)

Pollich and Another v. Heatley [1910] ScotLR 402 (26 January 1910)

The arbiters were only empowered to decide the question of demurrage under the charter-party; interest after citation is a matter for the court, not the arbiters. Expenses are incidental and not part of the submission unless specifically included. Failure to award expenses does not amount to failure to exhaust the reference. Therefore, there is no ground for reduction of the award.

Citation
[1910] ScotLR 402
Parties
Pursuer: Mat. Pollich, shipowner, Trieste, managing owner of, and as such representing the ownership of the foreign vessels “Alga” and “Marina,” both of Trieste, and Frank Pringle Lauder, Edinburgh, mandatory for the said Mat. Pollich; Defender: W. R. Heatley, coal exporter, Glasgow, and against Richard Mackie, shipowner and coal exporter, Leith, and C. R. France, coal exporter, Glasgow
Jurisdiction
Scotland
Judgment Date
26 January 1910
Procedural Posture
Action of Reduction (challenge to Arbitration Award) / Inner House, First Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor
Outcome
Defender assoilzied (absolved); interlocutor of Lord Ordinary recalled; action of reduction dismissed.
Legal Topics
Arbitration Award—exhaustion of Reference, Charter Party Disputes, Demurrage Claims, Interest on Arbitral Awards, Expenses of Arbitration, Reduction of Arbitral Award
Arbitration Commercial Law Shipping Law Arbitration Award—exhaustion of Reference Charter Party Disputes Demurrage Claims Interest on Arbitral Awards Expenses of Arbitration +1 more

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Parties

Mat. Pollich, shipowner, Trieste, managing owner of, and as such representing the ownership of the foreign vessels “Alga” and “Marina,” both of Trieste, and Frank Pringle Lauder, Edinburgh, mandatory for the said Mat. Pollich

Pursuer

W. R. Heatley, coal exporter, Glasgow, and against Richard Mackie, shipowner and coal exporter, Leith, and C. R. France, coal exporter, Glasgow

Defender

Procedural Posture

Action of Reduction (challenge to Arbitration Award) / Inner House, First Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether failure of arbiters to deal with interest and expenses constituted failure to exhaust the reference, justifying reduction of the award
  2. 2 Whether interest and expenses were within the scope of the matters submitted to arbitration

Ratio Decidendi

The arbiters were only empowered to decide the question of demurrage under the charter-party; interest after citation is a matter for the court, not the arbiters. Expenses are incidental and not part of the submission unless specifically included. Failure to award expenses does not amount to failure to exhaust the reference. Therefore, there is no ground for reduction of the award.

Court Disposition

Defender assoilzied (absolved); interlocutor of Lord Ordinary recalled; action of reduction dismissed.

Orders

  • Recall of Lord Ordinary's interlocutor reducing the award
  • Assoilzies (absolves) the defenders